Re-inventing the Game - Driving Online Gaming Growth. September 2010

Transcription

1 Re-inventing the Game - Driving Online Gaming Growth September 2010

2 Agenda About bwin Highlights Q Legislative developments and regional expansion Online gaming market Merger with PartyGaming

3 Business, vision, mission, goals Business Vision Mission Goals Branded online gaming platform / products B2C and selected B2B Establish online gaming as mainstream entertainment Become category owner for online gaming Continue profitable growth Move ahead of competition in Europe Be first entrant into regulated markets Develop and control top of the line key products

4 Strategy Operate branded House of Games Center around customers needs, preferences, and sell on entertainment value, not on price Act responsibly Focus on regulated and regulating markets in Europe Further develop game plans for the USA and Asia Maintain innovation and quality leadership Foster a high degree of flexibility Engage in M&A

5 Where we are Competence centers Vienna (marketing, customer service, IT development, security, payment transactions, administration) ~850 employees Stockholm (IT development poker and games) ~380 employees Gibraltar (bookmaking, customer service) ~180 employees Milan/Rome (Italian local product development) ~80 employees Regional representative/marketing offices Europe: Germany, Spain, UK, Balkans Asia: China Licenses Americas: Mexico, Argentina Italy, Germany, South Africa, Spain (retail), Argentina, Mexico, Gibraltar (for bwin.com) Licenses competence centres

6 Agenda About bwin Highlights Q Legislative developments and regional expansion Online gaming market Merger with PartyGaming

7 Highlights Q Record turnover for sports betting due to successful Soccer World Cup; sports betting margin at 7.2% despite weak April and May Start of 2 French sport betting platforms and preparations for 3 poker labels in France Result temporarily affected by intensive preparations and start-up costs in anticipation of further regulation in Europe First mover: Competitive advantage achieved by targeted marketing campaign in France immediately after granting of license Stabilization of market share in Italy at positive EBITDA level Poker and casino affected by World Cup and seasonal trend; significant growth for games, especially Bingo

8 Net gaming revenues (in EURm) Q Net gaming revenues: +29.2% YoY Sports betting: +47.8% YoY World Cup fuels growth Promising start in France Poker: +19.4% YoY Growth in spite of World Cup Slight market share gains in Italy Q209 Q210 Sports betting Poker Casino Games Casino and games: -15.8% and +63.1% YoY Casino affected by World Cup and compliance in France Continued success for bingo in Italy

9 Sports betting: Q developments Flexible betting platform Ability to handle different regulatory requirements increasingly a clear competitive advantage successful start in France Personalization important for transition from.com to.nation Start of My Favourites and Country Highlights on main book Personal settings and regional customer preferences increase betting volume Launch of a completely new development: Racebook Product launch in Austria and now also in Scandinavia and Poland also online Totalisator product: Transmission of bets in pools at race courses Betting services currently focused on USA and Germany

10 Development of sports betting margin 20% 15% 16,0% 12,8% 16,3% 13,4% 13,1% Significant growth in prematch margin due to World Cup 10% 8,2% 7,4% 5,9% 7,1% 8,5% 7,5% 7,2% More products and markets due to improvements to back end 5% 0% 5,5% 5,3% 5,3% 5,6% 5,3% 5,1% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Better user experience due to improved user interface (front end) Pre-match Overall margin Live betting

11 Poker: Q developments Poker impacted by World Cup - customer interest channeled to sports betting Slight market share gains in Italy Continuing stiff competition Poker start in France significantly above expectations New in network: betfair, world's largest betting exchange Launch of "Essence" in Ongame network provides greater incentive for leisure oriented poker players

12 Customer development: Sports betting, poker, casino, games GGR/ active customer EUR % YoY CPA* EUR % YoY Record number of active customers Successful reactivation measures during 2010 World Cup Efficient and effective marketing: Cost per new active customer down 7.7% Q209 Q210 Q209 Q210 Active customers (000) New active customers (000) *Costs per new active customer (marketing expenses and bonuses / number of new active customers)

13 Development of costs (in EURm) Marketing: investments in Italy, firstmover launch campaign in France and Soccer World Cup Marketing expenses Q209 Personnel expenses (excl. share-based payment IFRS 2) Other expenses (excluding IFRS 2, German soccer league, FX and one-off effects in connection with proposed merger) Q210 Launch of bwin.fr, sajoo.fr and integration of French poker network (bwin.fr, sajoo.fr, eurosportbet.fr) Preparations for launch of betfair.com on Ongame poker network Peak capacities covered by external consultants bwin optimally prepared for anticipated wave of regulation

14 EBITDA (in EURm) EBITDA adjusted* EBITDA adjusted & excluding German soccer league Margin** 19.4% 10.9% 12.5% 10.9% 15,1 11,0 9,7 11,0 Q209 Q210 Q209 Q210 * adjusted: excluding share-based payment (IFRS 2) and one-off effects in connection with proposed merger ** EBITDA-margin (adjusted) relative to net gaming revenues

15 Outlook Average daily gross gaming revenues in the current quarter (1 July 15 August 2010) at EUR 1.3 million, approx. 30% above the level in the same period the previous year Management anticipates an adjusted* EBITDA margin of at least 25% of net gaming revenues for 2010 *Excluding non-cash expenses in connection with share-based payment (IFRS 2) and one-off effects in connection with proposed merger

16 Agenda About bwin Highlights Q Regional expansion and legislative developments Online gaming market Merger with PartyGaming

17 Growth through regulation Landmark ruling Germany ECJ concludes German sports betting and lotteries monopoly is unjustified and inconsistent Restrictions of German treaty on games of chance no longer applicable New regulation in Germany necessary multi operator licensing system already successfully introduced in other countries Support of sporting associations and states in favor of regulation (e.g. Schleswig-Holstein and Lower Saxony) buoyed by ECJ ruling Italy: Launch of additional products (poker cash games and casino) expected at end of 2010 Denmark: Gambling act to come into force at beginning of 2011 USA: Bill on regulation of internet gaming passed late July

18 bwin lands online gaming licenses in France 8. June 2010: bwin receives licenses for sports betting as first non- French provider 9 June 2010: Sports betting launched on bwin.fr and sajoo.fr Active sports betting customers (June, July): +46% vs. average Jan. to May 1 July 2010: Start of real-money poker operations French poker network (bwin.fr, sajoo.fr and eurosportbet.fr) to be rapidly expanded Active poker customers (July): +85% vs. average Jan. to May Benefit from hype surrounding World Cup 2010 with targeted marketing campaigns immediately after granting of license creates competitive advantage bwin well equipped for further regulation in Europe

19 Agenda About bwin Highlights Q Legislative developments and regional expansion Online gaming market Merger with PartyGaming

20 Online gross gaming revenue by product (EURbn) GGR by product Worldwide GGR by product Europe ,2 3,4 0,9 1,4 2,5 2,4 3,3 2,7 5,9 6,1 2,3 1,9 3,6 2,9 4,3 3,8 7,4 7,7 2,8 4,1 4,9 8,7 5,0 4,7 5,8 5,4 9,5 10,1 1,4 1,3 1,2 2,9 2,7 1,0 2,2 0,5 0,8 0,2 1,8 1,3 2,1 2,4 2,5 0,9 1,0 1,6 1,8 0,8 1,2 1,2 1,5 2,1 2,2 2,8 3,2 3, e 2011e 2012e Sports betting Casino Poker Bingo e 2011e 2012e Sports betting Casino Poker Bingo CAGR0912: SB 9.4%, PO 11.2%, CA 10.7%, GA 14.3% CAGR0912: SB 15.7%, PO 16.8%, CA 11.8%, GA 12.5% Source: H2 Gambling Capital, April 2010

21 Online gross gaming revenue by major markets (EURbn) Timely investment in regulated markets pays off in subsequent periods e 2011e 2012e Italy France Germany Spain Greece Austria Poland Portugal Source: H2 Gambling Capital, April 2010

22 Agenda About bwin Highlights Q Legislative developments and regional expansion Online gaming market Merger with PartyGaming

23 bwin and PartyGaming will create the world s largest publicly listed online gaming enterprise Implementation of merger on schedule - closure expected in Q Consolidated company will be market leader in poker, sports betting, casino and games (bingo) as well as in technology, marketing, customer relationship and development Size as an important competitive factor Best of breed in all product verticals and core markets in Europe Merger to ensure optimal positioning to take advantage of growth potential due to regulation of European and international markets Estimated pre-tax synergies (revenues and costs) of 55m p.a.

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