Mr Green & Co AB. Interim Report January-September Per Norman CEO & Simon Falk CFO. 27 October 2017 Conference Call

Transcription

1 Mr Green & Co AB Interim Report January-September 2017 Per Norman CEO & Simon Falk CFO 27 October 2017 Conference Call

2 Revenues +28.4% EBITDA margin 17.1% Customer deposits +24.8% Q317 vs Q316 2

3 Continued strong financial development Revenue, MSEK Q317 Q316 Change 9M17 9M16 Change % % EBITDA, MSEK Q317 Q316 Change 9M17 9M16 Change % % EBIT, MSEK Q317 Q316 Change 9M17 9M16 Change N.A % EPS, SEK Q317 Q316 Change 9M17 9M16 Change N.A % Personalised customer communication and enhanced product offering key growth drivers 3

4 Growth better than mid-term target Item Target mid-term* Target long-term 9M17 outcome GROWTH Annual growth rate of 20% Exceeding the online gaming industry 30.2% PROFITA- BILITY 20% EBITDA margin 15% EBITDA margin 16.0% DIVIDEND Up to 50% of free cash flow Up to 50% of free cash flow FY16: no dividend due to Danish acquisition * Mid-term is

5 Our strategic actions 2016 Q117 Q217 Q317 New management teams in place New technology platform Data and BI-driven customer communication Sportsbook 1.0 New live casino Listing on Nasdaq Stockholm GRI reporting Reel Thrill Tournaments launched New subsidiary Wizard s Hat Ltd Acquisition of Dansk Underholdning Initiated operations in Latin America Enhanced digital marketing Placement of new shares Relaunch of casino site Garbo Completion of acquisition of Dansk Underholdning Increased focus on the Nordics Sportsbook 2.0 launched Green Gaming predictive tool launched Number game keno launched Continous development of data and BI driven customer communication to personalise and entertain 5

6 Further growth initiatives Q Launching Mr Green in Denmark pending license approval New customer loyalty program Launching bingo Continous development of live casino Continous development of data and BI driven customer communication and marketing Global expansion Organic and/or through acquisitions Targetting locally regulated markets world-wide Enhanced product offering Growth in new verticals Development of existing products, e.g. live Creating differentiators Industry leading user experience Data and BI driven customer communication Entertainment and trust to drive retention Be the leader in Green Gaming Continued differentiation 6

7 Sportsbook 2.0 launched in September Improved user experience Industry first content experience 17,000 bet prompts every week Instant Tennis Football Combi Spin Well received by customers 7

8 Unique Sportsbook features 17,000 weekly bet prompts Instant Tennis Football Combi Spins From complementary to strategic product 8

9 Mr Green perceived to have the best casino offering in Sweden Best selection of casino games 15% Best overall service 10% 5% Best chance at winning Best feature for live casino gaming 0% Best bonus system for casino Most user friendly app (mobile) Most user friendly web page (desktop) Bet365 Svenska Spel (sports) Unibet Betsson Mr Green Leovegas Casumo (casino) Source: Mediavision, Swedish Gambling Insight, H (close to 6,000 respondents) 9

10 Green Gaming Predictive Tool launched Cutting edge, industry first tool Prerequisite to build long-term sustainable customer relations Identifies risk behaviour on an individual level and we adapt our communication accordingly Developed together with Sustainable Interaction To be continuously evaluated by Dr Richard Wood Green Gaming is a key strategic area 10

11 Financials

12 Strong sequential customer growth NUMBER OF ACTIVE CUSTOMERS CUSTOMER DEPOSITS Number of active customers % 128,747 50% 40% 30% % MSEK 50% 40% 24.8% +25.7% from Q % from Q217 Customer deposits +24.8% from Q % % +6.1% from Q % % % % % 0-10% 0 0% Active customers YoY growth, % Customer deposits, MSEK YoY growth, % 12

13 13 Continued strong revenue growth REVENUE +28.4% from Q % 45% MSEK 40% 28.4% 35% 30% 25% 20% 15% 10% 5% +30.2% compared to 9M16 Negative FX impact of 0.4% in Q317 Dansk Underholdning consolidated from 26 April added 2.6% to revenue in Q317 October has had a strong start* * Please note that this information is not a forecast for the revenue in the fourth quarter, it is only an indication of how the fourth quarter has started 0 0% Revenue, MSEK YoY growth, %

14 Good growth across all regions REGIONAL REVENUE DEVELOPMENT, MSEK Western Europe +53.0% from Q316 Central, Eastern and Southern Europe +10.7% from Q316 Nordics +15.7% from Q % from Q217 Denmark new market in Q Central, Eastern and Southern Europe 24% GEOGRAPHICAL SPLIT Q317 Rest of world 2% Nordics 34% Nordics Western Europe Central, Eastern and Southern Europe Rest of world Western Europe 40% Gaining market share in a number of markets 14

15 Decreased CoS and marketing ratios 120 COST OF SERVICES SOLD 40% 120 MARKETING COST 60% % MSEK 50% 30% MSEK 80 40% 60 20% % 30% 16.1% % 10% % 0 0% 0 0% Cost of sales, MSEK CoS/revenue, % CoS excl betting duties/revenue, % Marketing cost, MSEK Marketing cost/revenue Marketing ratio expected to increase coming quarters due to product launches 15

16 Increased marketing efficiency MARKETING EFFICIENCY (revenue increase in MSEK/marketing cost), % 68.3% 57.6% 77.8% 68.7% 80% 70% 60% New marketing strategy in 2016 Increased digital media Improved precision 50% Improved processes and 30.2% 33.1% 40% measurements 20.5% 30% Improved SEO 20% Lower acquisition cost Q Q Q Q Q Q Q % 16

17 17 Stable cost development PERSONNEL COST 18% 36.0 MSEK 16% OTHER OPEX 18% 40.5 MSEK 16% % 12.2% 12% % 13.7% 12% 10% 25 10% 20 8% 20 8% 15 6% 15 6% 10 4% 10 4% 5 2% 5 2% 0 0% 0 0% Personnel cost, MSEK Personnel cost/revenue, % Other cost, MSEK Other cost/revenue, %

18 18 Strong improvement in EBITDA EBITDA 30,0% Betting duties 4.0% Betting duties 15.7% MSEK EBITDA 50.6 MSEK and EBITDA margin 17.1% 25,0% 20,0% 15,0% % 30 Improved profitability YoY of 191% mainly due to strong revenue growth and increased marketing efficiency 10,0% 5,0% 0,0% Austrian self assessment a precautionary measure As expected, we lost in the court of first instance in Austria We have filed an appeal Expected to take time until resolved EBITDA, MSEK EBITDA margin, % Note: EBITDA before non-recurring items

19 Strong financial position Cash of MSEK No liabilities to credit institutions Cash will be used to finance further expansion, organically as well as through acquisitions Well positioned to play an active role in the consolidation of the industry 19

20 Summary

21 Continued good growth momentum We deliver on our strategy Best product offering ever Still more to come to further increase differentiation Green Gaming key to build sustainable customer relations Increased focus on geographical expansion Good momentum to reach targets of annual growth of 20% and 20% EBITDA margin by

22 22 Q&A Year-end report 9 February 08:00 a.m. CET Conference call 10:00 a.m. CET