Slide 1: Presentation Q2 2010
Presentation Q2 2010 Pontus Lindwall CEO
Slide 2: Betsson agenda
Betsson • Introduction • Q2 Financial Presentation • Product and Geographical split • Key Performance Indicators - Sportsbook margin - Customer deposits • Legal • Events after Q2 • Q&A
Slide 3: Introduction
Betsson Introduction t "4 betsson gx
Slide 4: Betsson
Betsson • 45 years of accumulated competence • 275 employees • Listed on Nasdaq OMX Nordic, Mid Cap (BETS) • Market Cap of approximately € 400 000 000 • Betsson competes with national monopolies but also with peers, such as Unibet, Ladbrokes, Expekt, Bwin and similar
Slide 5: Betsson website
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Slide 11: Cherry Casino
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Slide 12: High Growth and Profitability
High Growth and Profitability Revenue Growth EBIT-margin 2007 121% 29.3% 2008 60% 26.7% 2009 25% 24.4% 2010 (H1) 22% 23.5% • Outperforming both market growth and competitors • Manage to ”invest during operation”, constantly investing in IT-infrastructure and partnerships while managing operations
Slide 13: Financial Presentation Q2 2010
Betsson Financial Presentation Q2 2010
Slide 14: Q2 Highlights
Q2 Highlights • Revenues increased by 29% to SEK 366.1 M (284.6) • Operating income increased by 43% to SEK 88.0 M (61.6) • Operating margin 24.0% (21.6) • Customer deposits increased by 16% Numbers in gray = Q2 2009
Slide 15: Q2 Highlights
Q2 Highlights • The Gross Turnover in Sportsbook amounted to 1 233.1 M (644.8) , an increase of 91% • The Gross Turnover in Live betting amounted to SEK 699.7 M (227.6), an increase of 207% • Earnings per Share SEK 2.14 (1.50) • Cash by end of period SEK 517.8 M (before payout for redemption shares)
Slide 16: Q2 Highlights
Q2 Highlights • Active customers increased by 56% to 288 699 (185 321) • Betsson has launched LiveCasino • Due to legal reasons Betsson chooses to block French citizens, this is assumed to have a marginal impact on Betsson´s profit Numbers in gray = Q2 2009
Slide 17: Interim report
Interim report • Revenues increased by 22% to SEK 733.8 M (600.1) • Operating income increased to SEK 172.2 M (144.0), an increase of 20% • Operating margin 23.5% (24.0) • Earnings per Share SEK 4.18 (3.51) Numbers in gray = H1 2009
Slide 18: Sportsbook
Sportsbook • Strategically important product • Launched in 2006, it contributes to 27% of Gross Profit with continued growth • 91% growth in Turnover, 207% in live betting • Growing faster than industry average • One of the broadest product offering on the market
Slide 19: Revenues
M SEK Revenues 450 400 366.1 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2007 2008 2009 2010
Slide 20: Product and geographical split
Betsson Product and geographical split
Slide 21: Gross Profit per Product
Gross Profit per Product M SEK 350 300 Growth (%) 250 Other + 83 (Y) + 3 (Q) 200 Poker - 21 (Y) - 17 (Q) 150 Sportsbook + 202 (Y) 100 + 8 (Q) Casino + 10 (Y) 50 - 4 (Q) 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2008 2009 2010
Slide 22: Gross Profit per Product
Gross Profit per Product 5% 9% Casino Sportsbook 27% Poker 59% Other Q2 2010
Slide 23: Gross Profit per Geographical Area
Gross Profit per Geographical Area M SEK 350 300 Growth (%) 250 Rest of World + 150 (Y) + 5 (Q) 200 EU, outside Nordic + 11 (Y) - 11 (Q) 150 Other Europe + 125 (Y) 100 + 9 (Q) Nordic Countries + 1 (Y) 50 - 7 (Q) 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2008 2009 2010
Slide 24: Gross Profit per Geographical Area
Gross Profit per Geographical Area 1% 13% Nordic Countries Other Europe 48% EU, outside Nordic region 38% Rest of the world Q2 2010
Slide 25: Key Performance Indicators
Key Performance Indicators SB Margins Deposits
Slide 26: Growth Indicators
Growth Indicators Growth Q2 2010 Y/Y Q/Q Active Customers 56% -9% Registered Customers 53% 13% Revenues 29% 0% Customer Deposits 16% -6% Gross Turnover SB 91% 22% • Increase in active customers due to higher activity and different market activities. The measure active customers shall be seen in a lo
Slide 27: Active Customers
Active Customers 350 288 700 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 • + 56% compared to Q2 2009 • - 9% compared to Q1 2010
Slide 28: Registered customers
Registered customers 3 000 2 719 300 2 500 2 000 1 500 1 000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 • + 53% compared to Q2 2009 • + 13% compared to Q1 2010
Slide 29: Sportsbook Margins
Sportsbook Margins 2010 2009 2010 2009 2008 Q2 Q2 Q1 FY FY Gross Turnover SB 1233.1 644.8 1012.8 2571.5 1567.1 Gross Margin SB¹ 6.3% 4.0% 7.1% 8.0% 10.1% Gross Profit 78.0 25.8 72.0 206.6 159.0 1) Margin after direct and allocated costs
Slide 30: Sportsbook
Sportsbook 0-2 0-1 1-1 0-1 0-0 0-0 1-2 2-1 Results in the beginning of World Cup fules the sportsbook margin
Slide 31: Live Betting Increases – Fueling Betting Turnover
Live Betting Increases – Fueling Betting Turnover Q2 2010 Q2 2009 Pre-match betting 43% 35% 57% 65% Live betting SEK 1 233 M 700 SEK 645 M 228 SEK M SEK M 533 417 Share of Gross Turnover in Sportsbook
Slide 32: Legal
Betsson Legal t "4 betsson gx
Slide 33: Legal
Legal NAFTA Open minded Protectionistic (Time) Neglect Forbid Regulate Harmonize Not sustainable • Regulate more games More sustainable • Less protectionistic/global understanding • Sustainable tax levels • ECJ vs monopolistic arguments
Slide 34: Legal
Legal The French National Assembly approved on April 6, 2010 a draft bill introducing a licensing regime for online gambling in France. The law was enacted at the end of April 2010 and a first wave of 17 licenses was issued on June 7, 2010. A second wave of nine licenses followed on June 24, 2010. P
Slide 35: Legal
Legal Continued discussions about legalising internet gaming both on federal and state level. Legislation in place which does not discriminate foreign operators. Italy plans to also include poker cash game and casino products in the near future.
Slide 36: Events after Q2
Betsson Events after Q2 t "4 betsson gx
Slide 37: Events after the second quarter
Events after the second quarter • The world championship was completed with few surprises which is not favorable for the margins • July has started marginal weaker than the average for the second quarter • There have been no key events after the end of the interim period
Slide 38: Betsson Rings The NASDAQ Opening Bell
Betsson Rings The NASDAQ Opening Bell © 2009, The NASDAQ OMX Group, Inc. Reprinted with permission
Slide 39: Q&A What's your thrill?
Q&A What's your thrill? - betsson 9x