Presentation Q Q Fourth quarter revenues grew 24%

Transcription

1 Presentation Q Q Fourth quarter revenues grew 24%

2 Q Highlights Revenue +24% ATH Operating income +68% ATH Gross turnover, Sportsbook +24% ATH Deposits +32% ATH Betsson upgraded to Nasdaq Stockholm Large Cap

3 Presentation Q BUSINESS UPDATE

4 Multi brand strategy Business to Consumers (B2C)) Proprietary Gaming Platform Business to Business (B2B)

5 Nordicbet.com to Techsson Revenue allocation after migration 25% Techsson Platform Other Platforms 75% More than doubled live betting offer Live streaming offer +4 times Improved customer experience

6 Case study - Betsson.com Betsson.com grew 28 percent (Q4 2014) Migrated to Techsson Q Significant improvements o One to one messaging o Different & improved offerings (e.g. Betsson Classics, Mega Fortune Dreams) o New Casino Lobby o Wider mobile offerings o Improved customer experience

7 Operational excellence

8 Mobile first 23 percent of total revenues in Q4. A growth of 130 percent Release of apps for MrSmith Casino and Rush Football Release of new mobile web for NordicBet

9 Mobile first Development SEK m Q3 Q4 Q1 Q2 Q3 Q % 25% 20% 15% 10% 5% 0% Mobile Revenue % of total Revenue

10 Mobile Sportsbook Turnover 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 43% 40% 30% 20% 21% 21% Q3 Q4 Q1 Q2 Q3 Q

11 Q4 Oranje & Kroon SEK 89.9 million in revenues and SEK 53.9 million in EBIT EBIT margin of 60% Organic growth of 29% Substantial growth opportunities after the regulation in the Netherlands (nearly 40% is expected)* *Source: H2 Gambling Capital, GamblingData

12 PRESENTATION Q FINANCIAL HIGHLIGHTS

13 Q4 Financial highlights Revenues of SEK (655.5) million (ATH) Total growth of 24 percent Organic growth amounted to 11 percent Figures in brackets refer to the same period last year

14 Q4 Financial highlights EBIT of SEK (150.0) million, a growth of 68 percent EBIT margin of 31.0 percent (22.9 percent) EBIT, adjusted for non-recurring items, of SEK million, a growth of 45 percent Figures in brackets refer to the same period last year

15 Q4 Financial highlights Cash by end of period SEK million (562.5) Earnings per Share SEK 5.28 (3.24) Full year (2014) distributable earnings SEK million Board proposes dividend per Share SEK 11.94

16 Revenues, 24% growth SEK m Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q

17 Presentation Q PRODUCT AND GEOGRAPHICAL SPLIT

18 Gross profit per segment 76.2% (75.9%) 23.8% (24.1%) B2B, Business to business B2C, Business to consumers Figures in brackets refer to the same period last year

19 Gross profit per product 1.7% (2.3%) Casino 26.6% (26.7%) Poker Sportsbook 2.9% (4.6%) 68.8% (66.4%) Other Figures in brackets refer to the same period last year

20 Gross profit per geography (B2C) 1.0% (0.5%) Nordic Region 0.3% (0.6%) 27.1% (14.0%) 71.5% (84.9%) Other Europe EU, outside Nordic region Rest of the world Figures in brackets refer to the same period last year

21 Presentation Q KEY PERFORMANCE INDICATORS

22 Sportsbook SEK m % Q3 Q4 Q1 Q2 Q3 Q Gross turnover Margin after free bets (%) 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%

23 Deposits 32% growth SEK m Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

24 Active customers Stabilized overall figure Thousand Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

25 Registered customers Thousand Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

26 Presentation Q LEGAL UPDATE

27 Legal update Sweden The new government has expressed an interest in a reregulation and is investigating different models Current government is predicting a new regulation during 2018 The European Commission will act against Sweden (through European Court of Justice), but a court timetable is not set yet Norway Two reports have recently been published containing different approaches of a re-regulation Betsson is planning further educational and lobbying efforts A new system is not likely to be implemented before 2017

28 Legal update United Kingdom Betsson has received a transitional license and is preparation to attain a full license. This is expected to occur before end of March 2015 In parallel, we are evaluating the commercial potential of the market The Netherlands The proposed new Dutch legislation is still in the second chamber in the parliament waiting to be processed. Progress is expected in March 2015 The gambling authority estimates delayed implementation, now expected Q2 2016

29 Presentation Q EVENTS AFTER Q4

30 Events after end of the period The first quarter of 2015 has started with revenues somewhat above average level of the previous quarter January 1 st 2015, Betsson was upgraded to Nasdaq Stockholm Large Cap Kroon was migrated to Techsson platform (completed February 3 rd ) There have been no other significant events after the end of the period

31 Presentation Q Q&A

32 Presentation Q Appendix

33 One-off effects in Q4 Accounting effects derived from the NGG process (SEK m) 2014 Q4 Interest income +5.4 NGG accounting effect Advisors fees -3.6 Income before tax (EBT effect) Adjusted EBIT Adjusted EBT EBIT effect SEK million

34 Full year effects (2014) Calculation of dividend (SEK m) 2014 (Full year) Net income (after tax) NGG accounting effect Distributable earnings Dividend policy 75% Nr. of shares (excl. C shares) Dividend per share (SEK) 11.94