Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q3 2014 Earnings Presentation
32 slides from Betsson Ab Class B's earnings presentation, 2014
Slide 1: Presentation Q3 2014
Presentation Q3 2014 Q3 2014 Third quarter revenues grew 30%
Slide 2: Presentation outline
Presentation outline Business update Financial highlights Legal update Events after Q3 Q&A
Slide 3: Business update
Presentation Q3 2014 BUSINESS UPDATE
Slide 4: Multi brand strategy
Multi brand strategy Business to Consumers (B2C)) Proprietary Gaming Business to Business (B2B) Platform
Slide 5: Q3 Operational highlights
Q3 Operational highlights Acquired Dhoze.com (previous B2B Partner) Terminated HarryCasino.com (previous B2B Partner) Migrated the existing customers to a new B2C brand, Mr. Smith.com Decided to cease operations in Manila office (Philippines). This generated one-off costs of SEK 12.8 million. The fu
Slide 6: Operational key initiatives
Operational key initiatives 1:1 marketing Product differentiation Digital marketing Mobile first
Slide 7: 1:1 and Digital marketing
1:1 and Digital marketing Individual banners on Recently played games Welcome back window registration page Recommendation engine SEO ROI based digital marketing
Slide 8: Product differentiation
Product differentiation IN HOUSE IN HOUSE IN HOUSE IN HOUSE IN HOUSE EXCLUSIVE PLATFORM SPORTSBOOK MOBILE APPS PAYMENT SYSTEM LOYALTY SYSTEM PRODUCTS
Slide 9: Mobile first - Penetration
Mobile first - Penetration Represents 23% of total revenues in Q3, which is an increase of 36% compared to the preceding quarter New mobile web for the Automaten brands New mobile web for Triobet.com/.ee
Slide 10: Mobile first – Development
Mobile first – Development M SEK 200 25% 180 160 20% 140 120 15% 100 80 10% 60 40 5% 20 0 0% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Mobile Revenue % of total Revenue
Slide 11: Mobile sportsbook turnover
Mobile sportsbook turnover 45% 40% 40% 35% 30% 30% 25% 20% 21% 21% 20% 17% 18% 15% 10% 5% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014
Slide 12: Q3 Oranje & Kroon
Q3 Oranje & Kroon Contributed with SEK 83.9 million in revenues and SEK 50.4 million in EBIT EBIT margin of 60.1% Organic growth of 17% Substantial growth opportunities after the regulation in the Netherlands (nearly 40% is expected)*. Oranje & Kroon growth for 2013 was 5% *Source: H2 Gambling Capit
Slide 13: Financial highlights
PRESENTATION Q3 2014 FINANCIAL HIGHLIGHTS
Slide 14: Q3 Financial highlights
Q3 Financial highlights Revenues amounted to SEK 782.1 (603.4) million (All time high), equivalent to an increase of 30 percent Organic growth amounted to 16 percent Deposits grew 35 percent (All time high) Figures in brackets refer to the same period last year
Slide 15: Q3 Financial highlights
Q3 Financial highlights Operating income of SEK 207.2 (152.2) million, corresponding to a growth of 36 percent Adjusted organic EBIT growth of 11 percent EBIT margin of 26.5 percent (25.2 percent) Cash by end of period SEK 493.6 million (417.8) Earnings per Share SEK 4.20 (3.25) Figures in brackets
Slide 16: Revenues, 30% growth
Revenues, 30% growth M SEK 900 782.1 800 700 600 500 400 300 200 100 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 17: Product and geographical split
Presentation Q3 2014 PRODUCT AND GEOGRAPHICAL SPLIT
Slide 18: Gross profit per segment
Gross profit per segment 23.9% (20.9%) B2B, Business to business B2C, Business 76.1% to consumers (79.1%) Figures in brackets refer to the same period last year
Slide 19: Gross profit per product
Gross profit per product 1.4% (2.1%) Casino 31.5% Poker (28.0%) 64.5% Sportsbook (65.7%) 2.5% Other (4.2%) Figures in brackets refer to the same period last year
Slide 20: Gross profit per geog. area (B2C)
Gross profit per geog. area (B2C) 0.7% (0.4%) 26.1% Nordic Countries (13.9%) Other Europe 0.4% 72.8% (0.4%) (85.4%) EU, outside Nordic region Rest of the world Figures in brackets refer to the same period last year
Slide 21: Key performance indicators
Presentation Q3 2014 KEY PERFORMANCE INDICATORS
Slide 22: Sportsbook
Sportsbook SEK million 2014 – Q3 Growth 2014 – Q3 Growth B2C B2C B2B B2B Gross Turnover SB 1,409.9 14.2% 2,653.4 22.6% Gross Margin SB¹ 7.4% pp 0,8 3.9% pp 1,2 Gross Profit 103.7 26.8% 103.5 75.7% Total margin after free bets was 8.5% (6.9%) ¹Margins after allocated costs
Slide 23: Active customers
Active customers Stabilized overall figure - Underlying growth Thousand 600 500 363.5 400 300 200 100 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 Q2 Q3 2007 2008 2009 2010 2011 2012 2013 2014
Slide 24: Registered customers
Registered customers Thousand 7 533.2 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 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 Q2 Q3 2007 2008 2009 2010 2011 2012 2013 2014
Slide 25: Deposits – 35% growth
Deposits – 35% growth M SEK 2 737.3 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 Q2 Q3 2009 2010 2011 2012 2013 2014
Slide 26: Legal update
Presentation Q3 2014 LEGAL UPDATE
Slide 27: Legal update
Legal update Sweden The European Commission has taken Sweden to the European Court of Justice; the gambling regulation is not compliant with EU law principles This is the first time a member state gets sued, and it sends a strong signal to other EU/EEA member states In connection to this, the new Sw
Slide 28: Legal update
Legal update United Kingdom U.K is about to implement a licensing system with a point of consumption tax of 15% The start date for the new regulation has been postponed a month to November 1 following a legal challenge of the new law The Netherlands The proposed new Dutch legislation is still in the
Slide 29: Legal update
Legal update Germany The activation of licenses has been stopped because of legal uncertainties and is not expected to be resumed during 2014, maybe not even during 2015 Some call for the abandonment of parts or even the whole licensing regime because of breaches of EU law which also has been highli
Slide 30: Events after Q3
Presentation Q3 2014 EVENTS AFTER Q3
Slide 31: Events after end of the period
Events after end of the period The fourth quarter has started with revenues in line with the average level in the third quarter, meanwhile the underlying activity has been above the average level in the third quarter Except for the EU legal case against Sweden, there have been no other significant e
Slide 32: Q&A
Presentation Q3 2014 betsson cab Q&A