Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q1 2012 Earnings Presentation
36 slides from Betsson Ab Class B's earnings presentation, 2012
Slide 1: Betsson AB Presentation Q1 2012
Betsson AB Presentation Q1 2012 Q1 2012 Operating income increased by 32 percent CEO Magnus Silverberg
Slide 2: Presentation Outline
Betsson AB Presentation Q1 2012 Presentation Outline Introduction B2C – Business to Consumers B2B – Business to Business Q1 Highlights Legal Update Events after Q1 Q&A
Slide 3: Introduction
Betsson AB Presentation Q1 2012 Introduction
Slide 4: Betsson – 49 years in gaming
Betsson AB Presentation Q1 2012 Betsson – 49 years in gaming 459 employees + 165 full time consultants Listed on Nasdaq OMX Nordic, Mid Cap (BETS) Market Cap of approximately € 1 000 000 000 Betsson competes with national monopolies but also with peers, such as Unibet, Ladbrokes, Sportingbet, Bwin.p
Slide 5: Multi Supplier and Multi Brand Strategy
Betsson AB Presentation Q1 2012 Multi Supplier and Multi Brand Strategy Business to Consumers (B2C) Proprietary Gaming Platform Business to Business (B2B)
Slide 6: B2C - Business to Consumers
Betsson AB Presentation Q1 2012 B2C - Business to Consumers
Slide 7: Betsson AB Presentation Q1 2012
Betsson AB Presentation Q1 2012
Slide 8: Denmark launched
Betsson AB Presentation Q1 2012 Denmark launched Two B2C brands, www.betsafe.dk and www.casinoeuro.dk was launched on the newly regulated Danish market It is currently too early to evaluate the performance of the B2C segment in Denmark after the introduction of the new license system
Slide 9: NordicBet acquired
Betsson AB Presentation Q1 2012 NordicBet acquired Strengthen our position as the largest independent operator in the Nordics NGG brands fit in Betsson’s business model and brand portfolio Strong sportsbook brands, especially in Northern Europe
Slide 10: About NGG
Betsson AB Presentation Q1 2012 About NGG About 185 employees Offices in Malta, Stockholm and Tallinn Products: 3 internal brands Founded 2002
Slide 11: NGG Deal
Betsson AB Presentation Q1 2012 NGG Deal MEUR 50 revenues R12 17% MEUR 11 EBIT R12 Sportsbook 49% 37% growth Casino Poker 34% Purchase Price MEUR 65-85 The up-front purchase price corresponds to 5.9x EBIT during the last 12 months If full additional consideration is paid, the total purchase price is
Slide 12: B2B - Business to Business
Betsson AB Presentation Q1 2012 B2B - Business to Business
Slide 13: Betsson AB Presentation Q1 2012
Betsson AB Presentation Q1 2012
Slide 14: B2B Developments
Betsson AB Presentation Q1 2012 B2B Developments Denmark Existing Partners China During the quarter, two The gaming solutions In China, Betsson is new brands were launched offered via Realm continuing the and put into operation on Entertainment are development of the beta developing positively, vers
Slide 15: Mobile Creativity
Betsson AB Presentation Q1 2012 Mobile Creativity Within B2B during the first quarter, Betsson launched self-developed Smartphone applications under seven existing brand names, and further launches are planned for the year within both B2B and B2C After the first quarter, Betsson launched a self-deve
Slide 16: Q1 Highlights
Betsson AB Presentation Q1 2012 Q1 Highlights
Slide 17: Q1 Highlights
Betsson AB Presentation Q1 2012 Q1 Highlights Revenues amounted to SEK 536.1 (417.4) million, equivalent to an increase of 28 percent Operating income amounted to SEK 174.1 (131.8) million, equivalent to an increase of 32 percent Operating margin amounted to 32.5 percent (31.6 percent) Numbers in gr
Slide 18: Q1 Highlights
Betsson AB Presentation Q1 2012 Q1 Highlights Earnings per Share SEK 3.91 (3.19) Deposits in all of Betsson’s gaming solutions amounted to SEK 1 468.6 (1 121.6) million, an increase of 31 percent Cash by end of period SEK 588.4 million (535.8) Numbers in gray = Q1 2011
Slide 19: Q1 Highlights
Betsson AB Presentation Q1 2012 Q1 Highlights Betsson launched during the quarter four new gaming sites on the newly regulated Danish market – It is currently too early to evaluate the performance in Denmark after the introduction of the new license system On January 23, Betsson was awarded “Online
Slide 20: Revenues
Betsson AB Presentation Q1 2012 Revenues M SEK 600 536.1 500 400 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2007 2008 2009 2010 2011
Slide 21: Product and Geographical Split
Betsson AB Presentation Q1 2012 Product and Geographical Split
Slide 22: Gross Profit per Segment
Betsson AB Presentation Q1 2012 Gross Profit per Segment 31% B2B, Business to business B2C, Business to 69% consumers
Slide 23: Gross Profit per Product
Betsson AB Presentation Q1 2012 M SEK Gross Profit per Product 500 450 15.4 27.5 400 350 107.8 300 Other 250 Poker 200 Sportsbook 150 Casino 308.3 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 2011
Slide 24: Gross Profit per Product
Betsson AB Presentation Q1 2012 Gross Profit per Product 3% 6% Casino Sportsbook 24% Poker Other 67%
Slide 25: Gross Profit per Geographical Area (B2C)
Betsson AB Presentation Q1 2012 Gross Profit per Geographical Area (B2C) 3% 15% 0,3% Nordic Countries Other Europe EU, outside Nordic region Rest of the world 82%
Slide 26: Key Performance Indicators
Betsson AB Presentation Q1 2012 Key Performance Indicators
Slide 27: Active Customers
Betsson AB Presentation Q1 2012 Active Customers Thousand 450 405 000 400 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011
Slide 28: Registered Customers
Betsson AB Presentation Q1 2012 Registered Customers Thousand 4 500 3 906 300 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011
Slide 29: Growth Indicators
Betsson AB Presentation Q1 2012 Growth Indicators Y/Y Q/Q Active Customers 21% 0.4% Registered Customers 51% 7% Revenue 28% 4% Customer Deposits* 31% -1% Gross Turnover SB* 48% 22% The measure Active Customers shall be seen in a longer perspective * Including all of Betsson’s gaming solutions
Slide 30: Sportsbook Margins
Betsson AB Presentation Q1 2012 Sportsbook Margins 2012 – Q1 2011 – Q1 2012 – Q1 2011 –Q1 3rd PARTY 3rd PARTY SEK million SB SB SB SB Gross Turnover SB 645.5 1998.6 146.7 1640.8 Gross Margin SB 6.9% 3.2% 9.5% 5.5% Gross Profit 44.6 63.2 14.0 90.2
Slide 31: Legal Update
Betsson AB Presentation Q1 2012 Legal Update
Slide 32: Legal update: Italy, Denmark, USA
Betsson AB Presentation Q1 2012 Italy’s now implemented cash games decree enables licensed operators to add cash poker and casino games to their tournament games Betsson has been granted a license Denmark’s new regulation has been approved and was implemented on January 1, 2012. Betsson has been gra
Slide 33: Legal update: Netherlands, Germany, Sweden
Betsson AB Presentation Q1 2012 The Dutch government plans to grant local licences for internet gaming during 2012. It is still early in the process but it seems the Dutch government is looking at Denmark as a model for a future Dutch regulation Schleswig-Holstein is moving ahead with their separate
Slide 34: Events after Q1
Betsson AB Presentation Q1 2012 Events after Q1
Slide 35: Events after Q1
Betsson AB Presentation Q1 2012 Revenues at the beginning of the second quarter are somewhat lower than the average revenue level during the first quarter, whilst deposits are at the same level as the first quarter As a consequence of the potential liberalisation of the German market Betsson has, to
Slide 36: Q&A
Betsson AB Presentation Q1 2012 Q&A