PRESENTATION Q1 2015
Q1 2015
First quarter revenues grew 24%
Q1 2015 HIGHLIGHTS
Revenue +24%
ATH
Operating income +39%
Operating margin 28%
Gross turnover, Sportsbook +60%
Deposits +43%
ATH
ATH
PRESENTATION Q1 2015
BUSINESS UPDATE
MULTIBRAND & SINGLE PLATFORM
Business to Consumers (B2C))
Techsson
Business to Business (B2B)
KROON AND TRIOBET TO TECHSSON
 New registration page
 Campaign managing tools for
marketing purposes
 Communication management tools
 Improved control panel
 Live chat available & on site
messaging with customers
 New lobby with better game access
 New registration page
 Campaign managing tools for
marketing purposes
 Communication management tools
 Improved control panel
 Increased number of casino games
 Doubled live betting offer
 Increased number of markets in
“pre-match”
REVENUE ALLOCATION ON TECHSSON*
17%
Techsson Platform
Other Platforms
83%
*Including Triobet (migrated Q2 2015)
MOBILE FIRST
28 percent of total revenues in Q1. A growth of 131
percent
Release of new mobile web for Kroon Casino
Release of Android app for Nordicbet
MOBILE FIRST – DEVELOPMENT
SEK m
+131%
250
30%
200
25%
20%
150
15%
100
10%
50
5%
0
0%
Q4
Q1
Q2
2013
Q3
Q4
2014
Mobile Revenue
Q1
2015
% of total Revenue
MOBILE SPORTSBOOK TURNOVER
60%
48%
50%
40%
40%
30%
30%
20%
43%
21%
21%
Q4
Q1
10%
0%
2013
Q2
Q3
2014
Q4
Q1
2015
PRESENTATION Q1 2015
FINANCIAL HIGHLIGHTS
Q1 FINANCIAL HIGHLIGHTS
Revenues of SEK 847.4 (686.0) million (ATH)
Total growth of 24 percent
Organic growth amounted to 14 percent
Figures in brackets refer to the same period last year
Q1 FINANCIAL HIGHLIGHTS
EBIT of SEK 238.0 (171.2) million, a growth of 39
percent
EBIT margin of 28.1 percent (25.0 percent)
Cash by end of period SEK 533.7 million (666.2)
Earnings per Share SEK 4.87 (3.52)
Figures in brackets refer to the same period last year
REVENUES, 24% GROWTH
SEK m
847.4
900
800
700
600
500
400
300
200
100
0
Q1
2005
Q1
2006
Q1
2007
Q1
2008
Q1
2009
Q1
2010
Q1
2011
Q1
2012
Q1
2013
Q1
2014
2015
RE-CLASSIFICATIONS
New Classification
Income Statements,
SEK million
Revenue
Cost of services provided
Gross profit
Marketing expenses
Other operating costs
Total operating expenses
Operating income
Q1 2015
SEK m
847.4
-209.8
637.6
-166.2
-233.4
-399.6
238.0
Q1 2015
% of revenue
24.8%
19.6%
47.2%
Old Classification
Q1 2015
SEK m
847.4
-130.5
716.9
-245.5
-233.4
-478.9
238.0
Q1 2015
% of revenue
15.4%
29.0%
56.5%
MARKETING OF TOTAL REVENUE (%)
25%
20%
17%
18%
17%
Q1
Q2
Q3
19%
18%
Q4
Q1
19%
17%
18%
Q3
Q4
20%
15%
10%
5%
0%
2013
Q2
2014
Q1
2015
AFFILIATE COST OF TOTAL REVENUE (%)
20%
15%
14%
12%
11%
11%
Q3
Q4
10%
10%
10%
11%
11%
Q1
Q2
Q3
Q4
9%
5%
0%
Q1
Q2
2013
2014
Q1
2015
PRESENTATION Q1 2015
PRODUCT AND
GEOGRAPHICAL SPLIT
REVENUE PER SEGMENT
26.1%
(23.9%)
73.9%
(76.1%)
Figures in brackets refer to the same period last year
B2B, Business
to business
B2C, Business
to consumers
REVENUE PER SEGMENT
Actual (SEK m)
Total
Growth (%)
Organic
Growth (%)
B2C
626.0
20%
8%
B2B
221.5
35%
35%
B2C negative SB margin effect
B2B positive fx effect
REVENUE PER PRODUCT
1.8%
(1.3%)
Casino
25.7%
(27.2%)
Poker
Sportsbook
3.5%
(5.0%)
Figures in brackets refer to the same period last year
69.0%
(66.5%)
Other
REVENUE PER GEOGRAPHY (B2C)
1.7%
(0.9%)
Nordic Region
29.2%
(19.8%)
0.5%
(0.7%)
Figures in brackets refer to the same period last year
Other Europe
68.6%
(78.6%)
EU, outside Nordic region
Rest of the world
PRESENTATION Q1 2015
KEY PERFORMANCE
INDICATORS
SPORTSBOOK
SEK m
+60%
6 000
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
5 000
4 000
3 000
2 000
1 000
0
Q4
Q1
2013
Gross turnover
Q2
Q3
2014
Q4
Q1
2015
Margin after free bets (%)
DEPOSITS – 43% GROWTH
SEK m
3 500
3 174
3 000
2 500
2 000
1 500
1 000
500
0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010
2011
2012
2013
2014
2015
ACTIVE CUSTOMERS – 3% GROWTH
Thousand
600
500
372
400
300
200
100
0
Q2
Q3
2010
Q4
Q1
Q2
Q3
2011
Q4
Q1
Q2
Q3
2012
Q4
Q1
Q2
Q3
2013
Q4
Q1
Q2
Q3
2014
Q4
Q1
2015
REGISTERED CUSTOMERS
Thousand
9 000
7 924
8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000
0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010
2011
2012
2013
2014
2015
PRESENTATION Q1 2015
LEGAL UPDATE
LEGAL UPDATE
Sweden
“Främjandeförbudsutredningen” was presented March 30.
However, it is uncertain if it has an impact
The Swedish Gambling Authority made Apple to stop new
downloads on the Swedish market “Appstore”
The re-regulation investigation starts shortly and the reregulation is expected to be in place 2018
Norway
The discussion among stakeholders to launch a new
regulation continues but no real political focus yet
A new system is not likely to be implemented before
2017/2018
LEGAL UPDATE
United Kingdom
Betsson received a full UK license March 31
Betsson will focus on the brands Mr. Smith and Betsafe
The Netherlands
The proposed new Dutch legislation is still in the second
chamber in the parliament waiting to be processed. Progress
is expected in Q2 2015 but may be further delayed
The gambling authority estimates delayed implementation,
now expected towards Q4 2016/Q1 2017
PRESENTATION Q1 2015
EVENTS AFTER Q1
EVENTS AFTER END OF THE PERIOD
The second quarter of 2015 has started with
revenues in line with average level of the
previous quarter
Triobet was migrated to the Techsson platform
(completed April 13)
There have been no other significant events
after the end of the period
PRESENTATION Q1 2015
Q&A