Betsson Ab Class B · OMXSTO:BETS_B
Betsson Ab Class B — Q4 2017 Earnings Presentation
13 slides from Betsson Ab Class B's earnings presentation, 2018
Slide 1: Q4 2017
Q4 2017 Pontus Lindwall CEO Betsson AB
Slide 2: Highlights Q4
HIGHLIGHTS Q4 — Strong sportsbook development up 36% — B2C sportsbook gross turnover up — Margin was 8.2% — New mobile web sportsbook launched on core brands — Casino growth at 5% — Growth in Western Europe, but decline in the Nordics — Restructuring implemented in Q1 2018 — Introducing KPI’s relate
Slide 3: Financial Summary Q4
FINANCIAL SUMMARY Q4 — Revenue increased by 12% SEK m Q4 2017 Q4 2016 Change FY 2017 — 10% organic growth Revenue 1,256 1,119 12% 4,717 Gross profit 903 831 9% 3,419 — EBIT declined 18% Gross — Organic marketing expenses up SEK 44 m margin 72% 74% 72% — Negative currency impact SEK 34 m EBIT 218 265
Slide 4: Organic Growth
ORGANIC GROWTH Impact from Q4 2017 acquisitions the Q4 2017 SEK million Organic Currency effects last 12 months1) Reported Revenue 1,231 -48.2 +74.1 1,256 Revenue growth 10% 12% Operating income (EBIT) 268 -34.0 -15.5 218 EBIT growth 1% -18% Operating margin 22% 17% 1) Acquired entities include Race
Slide 5: Revenue by Region
REVENUE BY REGION Revenue, Q4 2017 — 62% sportsbook growth in the Nordics — 14% organic growth in Western Europe 4% — CEECA revenue impacted by currency 19% headwind — RoW continues to grow 48% Nordic Western Europe CEECA RoW 29% 5
Slide 6: Revenue Growth by Region
REVENUE GROWTH BY REGION +12% 106 20 50 (38) SEK m 1,256 1,119 RoW CEECA Nordics Revenue Q4 '16 Revenue Q4 '17 Western Europe Growth 9% Growth 42% Growth -14% Growth 75% 6
Slide 7: Strong Quarter for Sportsbook
STRONG QUARTER FOR SPORTSBOOK — Sportsbook 36% Y/Y Sportsbook, turnover 8 000 10% — Sportsbook gross turnover SEK 6.0 bn (6.1) 6 000 8% — Organic growth was 7% 6% SEK m 4 000 4% — Sportsbook margin at 8.2% (6.6) 2 000 2% 0 0% Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 —
Slide 8: Slow Casino Development in Q4
SLOW CASINO DEVELOPMENT IN Q4 — Casino growth 5% Casino, revenue — Organic growth 3% 900 800 — Casino growth driven by live casino and 700 mobile web casino 600 500 SEK m — Roll-out of OBG front-end framework on 400 desktop and apps during 2018 300 200 100 0 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q
Slide 9: Strong Underlying Activity
STRONG UNDERLYING ACTIVITY 700 Active customers 5 000 Deposits 4 500 600 4 000 500 3 500 3 000 400 SEK m 000's 2 500 300 2 000 200 1 500 1 000 100 500 0 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017
Slide 10: Regulatory Update
REGULATORY UPDATE — Re-regulation of the Swedish gambling market — New regulation expected 2019 — Re-regulation of gambling market in the Netherlands still on hold — Government’s ambition is to launch new regulation in 2019 2004 2011 2012 2015 2016 2017 Malta Italy Estonia UK Ireland Spain Denmark G
Slide 11: Restructuring for Efficiency
RESTRUCTURING FOR EFFICIENCY — Clearer responsibilities Number of employees at end of period — Less layers 2000 1821 1873 — Scaling back in the UK 1800 1713 1639 1600 1400 — Headcount reduced by 160 1200 — Cost to be recognised in Q1 1000 870 — Annual net cost saving of SEK 50-60 m 800 857 — Restruc
Slide 12: Focus Going Forward
FOCUS GOING FORWARD — Continue to strengthen product — Further roll-out of new Casino and Sportsbook — Actions to improve growth — Continued marketing spend to capitalise on World Cup 2018 — Focus on efficiencies — Reorganisation done in Q1 — Back to basics in the UK Betsson Group won the EGR Nordic
Slide 13: Betsson AB
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