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% ATH Deposits +43% 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% 250 200 150 100 50 0 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 30% 25% 20% 15% 10% 5% 0% Mobile Revenue % of total Revenue
MOBILE SPORTSBOOK TURNOVER 60% 50% 40% 40% 43% 48% 30% 20% 21% 21% 30% 10% 0% Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 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 900 847.4 800 700 600 500 400 300 200 100 0 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
RE-CLASSIFICATIONS New Classification Old Classification Income Statements, SEK million Q1 2015 Q1 2015 Q1 2015 Q1 2015 SEK m % of revenue SEK m % of revenue Revenue 847.4 847.4 Cost of services provided -209.8 24.8% -130.5 15.4% Gross profit 637.6 716.9 Marketing expenses -166.2 19.6% -245.5 29.0% Other operating costs -233.4-233.4 Total operating expenses -399.6 47.2% -478.9 56.5% Operating income 238.0 238.0
MARKETING OF TOTAL REVENUE (%) 25% 20% 17% 18% 17% 19% 18% 19% 17% 18% 20% 15% 10% 5% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015
AFFILIATE COST OF TOTAL REVENUE (%) 20% 15% 10% 14% 12% 11% 11% 10% 10% 11% 11% 9% 5% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015
PRESENTATION Q1 2015 PRODUCT AND GEOGRAPHICAL SPLIT
REVENUE PER SEGMENT 73.9% (76.1%) 26.1% (23.9%) B2B, Business to business B2C, Business to consumers Figures in brackets refer to the same period last year
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 3.5% (5.0%) 69.0% (66.5%) Sportsbook Other Figures in brackets refer to the same period last year
REVENUE PER GEOGRAPHY (B2C) 1.7% (0.9%) 0.5% (0.7%) 29.2% (19.8%) 68.6% (78.6%) Nordic Region Other Europe EU, outside Nordic region Rest of the world Figures in brackets refer to the same period last year
PRESENTATION Q1 2015 KEY PERFORMANCE INDICATORS
SPORTSBOOK SEK m +60% 6 000 5 000 4 000 3 000 2 000 1 000 0 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Gross turnover 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 600 500 400 372 300 200 100 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
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