Interim / Quarterly Report • Jul 17, 2015
Interim / Quarterly Report
Open in ViewerOpens in native device viewer
ALL FIGURES IN THIS REPORT ARE EXPRESSED IN SEK, UNLESS STATED OTHERWISE. FIGURES IN PARENTHESES REFER TO THE CORRESPONDING PERIOD FOR THE PREVIOUS YEAR, UNLESS STATED OTHERWISE. THIS INFORMATION APPLIES TO THE GROUP UNLESS STATED OTHERWISE.
¹Deposits and gross turnover in Sportsbook refer to all gaming solutions.
"After four years as the President and CEO of Betsson, it feels great to finish with the best quarter ever. In spite of high comparative figures, Betsson has achieved strong organic growth in revenues, deposits, gross turnover in Sportsbook and net income. With above-market growth and additional acquisitions, the Company has achieved a leading position in a number of countries. This reduces the Company's operational risk and creates a foundation for sustainable growth. Thanks to cost awareness and the one single platform strategy, Betsson has the highest profitability in the industry," says Magnus Silfverberg, Betsson's President and CEO.
Today, Friday 17 July at 09:00 CET, Betsson's CEO, Magnus Silfverberg, will present the Interim Report from Betsson's office at Regeringsgatan 28, and through webcast on www.betssonab.com or http://edge.mediaserver.com/m/p/mqovazi2 or by phone on +46 (0)8 505 564 74 (Sweden), +44 (0)203 364 53 74 (UK), or +1 (0) 855 753 22 30 (US). The presentation will be in English and will be followed by a question and answer session.
BETSSON AB'S CORE BUSINESS CONSISTS OF THE OWNING AND ADMINISTRATION OF SHAREHOLDINGS IN COMPANIES THAT, THROUGH PARTNERS OR BY THEMSELVES, OFFER GAMES TO THE END CUSTOMER VIA THE INTERNET. BETSSON AB OWNS BETSSON MALTA WHICH OPERATES GAMING FOR END CUSTOMERS THROUGH BOTH ITS OWN WEBSITES AND THROUGH PARTNERSHIPS. BETSSON MALTA OFFERS POKER, CASINO, SPORTSBOOK, SCRATCH CARDS, BINGO AND GAMES. CUSTOMERS MAINLY ORIGINATE FROM THE NORDIC COUNTRIES AND OTHER PARTS OF EUROPE. BETSSON AB IS LISTED ON NASDAQ STOCKHOLM LARGE CAP LIST, (BETS).
The Group's revenue amounted to SEK 860.6 (752.3) million. Gross profit was SEK 631.2 (552.3) million. Operating income amounted to SEK 213.8 (190.4) million and the operating margin was 24.8 (25.3) per cent. Group income before tax amounted to SEK 212.3 (187.5) million and net income was SEK 201.6 (176.6) million, which is equivalent to SEK 1.46 (1.28) per share.
Revenue has increased by SEK 7.2 million, and expenses by SEK 12.9 million, due to exchange rate fluctuations, compared with the rates applied in the comparative figures last year. The positive effect in revenue derives primarily from B2C and the Dutch market. The overall effect in operationg profit deriving from exchange rate fluctuations was minus SEK 5.7 million. Betsson's revenue this quarter was primarily affected by exchange rate fluctuations in EUR and NOK in relation to SEK.
Marketing expenses amounted to SEK 166.0 (143.1) million, representing an increase of 16 per cent. Management is planning for continued growth, and believes that there are good long-term opportunities for growth in both locally and internationally regulated markets. In addition to marketing expenses, an amount of SEK 81.7 (77.4) million related to commissions for affiliates and partners was included in the item Cost of services provided. Marketing expenses in relation to revenue during the second half of 2015 are planned to be marginally higher than in the first half of the year.
Personnel costs amounted to SEK 128.1 (109.3) million, representing an increase of 17 per cent. The increase from the previous year refers to new recruitments to create and meet future growth. Personnel costs increased faster than the Company's revenue during the second quarter, in accordance with the information communicated in the Q1 report. The expectation for full year 2015 is that personnel costs will increase in line with the Company's growth.
Other external expenses amounted to SEK 115.0 (101.8) million. Operating income was encumbered with SEK 4.8 million for acquisition-related expenses. Management deems that other external expenses will grow slower than the Company's growth in 2015.
Capitalised development costs were SEK 30.9 (28.2) million. Betsson's operating companies are primarily investing in migrations and improvements in the various gaming solutions, which creates conditions for growth.
The Group's revenue amounted to SEK 1,708 (1,438.3) million, representing an increase of 19 per cent. Gross profit amounted to SEK 1,268.8 (1,064.1) million, representing an increase of 19 per cent. Operating income increased to SEK 451.8 (361.5) million and the operating margin was 26.5 (25.1) per cent. Income before tax increased to SEK 448.7 (354.1) million and net income increased to SEK 425.7 (334.3) million.
Through its subsidiaries on Malta, Betsson offers Internet gaming to end customers via partner co-
operations and its own gaming portals. Betsson also offers system solutions to other operators.
During the quarter Betsson signed an agreement to acquire Europe-Bet, a Georgian gaming operator, for an initial purchase price of USD 50 million. In addition to the initial purchase price, an additional purchase price of a maximum of USD 35 million may be paid after one year, provided that betting regulations in Georgia remain unchanged. This means a total maximum purchase price of USD 85 million, which corresponds to 4.3 times the EBIT for 2014. Revenue in 2014 amounted to USD 52.4 million, of which online business constituted USD 40.8 million. The remaining share derived from land-based operations, which largely support the online business. Operations are primarily driven by Sportsbook, and Sportsbook represented 44% of total revenue in 2014. Total EBIT was USD 20.0 million, of which USD 17.9 million derives from the online business. The EBIT margin was 38.1%, and the Company has generated a stable double digit growth over recent years. The acquisition has not yet contributed to net income other than the income statement being encumbered with SEK 4.8 million in acquisition costs. Europe-Bet's operating earnings and future depreciation of the acquired customer base are expected to impact Betsson's net income from the end of July.
According to plan, Betsson's mobile revenue increased to SEK 286.0 (129.5) million, representing 33 (17) per cent of the total revenue and an increase from 28 per cent the previous quarter. Mobile gross turnover in Sportsbook accounted for 55 (30) per cent of total gross turnover in Sportsbook.
During the first quarter, Kroon was migrated to the shared platform, Techsson. The migration enabled the development of a sportsbook for Kroon, which was launched in June and is developing as planned.
Betsson previously announced the migration of Triobet to Techsson during the beginning of the second quarter. Betsson's operating subsidiaries are planning to migrate all of the remaining brands to Techsson in the long run.
The second quarter's revenue in B2C was SEK 666.0 (586.2) million, representing organic growth of 14 per cent.
The Nordic Region represented 65 (71) per cent of the segment in the second quarter, while the EU outside the Nordic Region represented 32 (29) per cent.
Revenue from B2B amounted to SEK 194.6 (166.1) million, an increase of 17 per cent. The strong growth in B2B is explained by the market-leading customer experience found in Betsson's partner offering.
Betsson co-operates with a state-owned Chinese company for the Internet-based lottery and sports betting business. The expected regulation for Internet-based lotteries in China has not yet been introduced. Betsson has a continued positive outlook on the market's future potential.
During the second quarter, revenue in Casino amounted to SEK 617.8 (534.6) million, an increase of 16 per cent. Overall, Casino represented 72 (71) per cent of the Group's revenue.
Gross turnover in Sportsbook, across all of Betsson's gaming solutions, was SEK 5,385.7 (4,140.4) million, an increase of 30 per cent. Over half of the turnover was generated from mobile devices. The margin after free bets across all of Betsson's gaming solutions in Sportsbook was 6.3 (7.0) per cent. Revenue from Sportsbook during the quarter totalled SEK 206.4 (178.0) million, representing an increase of 16 per cent. Revenue from Sportsbook includes SEK 94.2 (88.0) million referring to licensing revenue and gaming contributions from B2B. Sportbook's share of total revenue amounted to 24 (24) per cent of the Group's revenue.
Revenue from Poker during the quarter amounted to SEK 24.6 (27.1) million. The decline was due to a continued decreased level of activity in poker networks in Betsson's markets.
Revenue from other products amounted to SEK 11.8 (12.6) million during the first quarter.
During the second quarter, SEK 2,222.0 (1,934.4) million was deposited, corresponding to growth of 15 per cent. Deposits in all of Betsson's gaming solutions for the quarter amounted to SEK 3,116.6 (2,613.4) million. The term "all of Betsson's gaming solutions" includes B2B partnerships which are operated based on their own licenses.
At the end of the quarter, the number of registered customers amounted to 8.1 (7.4) million, an increase of 10 per cent. Active customers during the quarter amounted to 357,577 (381,406). This key performance indicator reflects gaming activity in Betsson's solutions which do not require a deposit.
Equity in the Group amounted to SEK 2,849.6 (2,543.0) million, equivalent to SEK 20.63 (18.42) per share. SEK 549.7 million was transferred to the Company's shareholders during the quarter through an automatic redemption. This reduced equity to a corresponding degree.
Liquid funds at the end of March amounted to SEK 355.7 (433.2) million. The transfer to shareholders reduced the cash by SEK 549.7 million, at the same time that cash increased by SEK 185.6 million as a result of credit facility utilisation. During the quarter the total external credit facility was increased with SEK 700 million. Liabilities to credit institutions amounted to SEK 691.3 (717.3) million and unutilized credit facility amounted to SEK 838.3 (110.4) million.
Customer liabilities, including the provision for accumulated jackpots, amounted to SEK 334.2 (314.8) million. Due to the Maltese Lotteries and Gaming Authority's regulations, this amount may limit utilisation of the Company's liquid funds. Current receivables from payment providers for unsettled customer deposits were SEK 282.2 (296.3) million.
At the end of the quarter, the Company had 928 (877) employees. During the interim period, the average number of employees amounted to 900 (839) in the Group, of which 690 (589) were based in Malta. In addition, the Group employed 116 (161) full-time consultants at the end of the period.
The operations of the Parent Company, Betsson AB (publ), consist of the ownership and administration of shareholdings in companies which, on their own or through partnerships, offer end customers gaming over the Internet. The Company provides and sells internal services related to finance, communication, accounting and administration to certain Group companies.
Turnover for the interim period amounted to SEK 8.3 (8.6) million and income before tax to SEK 34.0 (-40.0) million.
Liquid funds amounted to SEK 34.5 (35.7) million.
The Annual General Meeting resolved to set up an incentive programme for executive management. 98 per cent of the programmes were contracted and will run from 1 July 2015 to 15 August 2018. A total of 564,806 call options and 2,843,200 personnel options were issued, which can give a maximum of 3,408,006 Series B shares. The subscription price in the programmes amounts to SEK 149.9 and was calculated at 130 per cent of the average share price during the last five trading days before the programme began. The share options scheme also has a ceiling corresponding to an increase of 130 per cent of the latest price paid for the Company's Series B shares at the beginning of the programme on 30 June.
The Company's Series B shares are listed on Nasdaq Stockholm Large Cap List, (BETS). The Company had 27,727 (21,148) shareholders at the end of the period. The three largest owners, in terms of votes, were Per Hamberg, including companies, with 3.8 per cent of the outstanding capital and 17.9 per cent of the outstanding votes, the Knutsson family, and companies, with 4.9 per cent of the outstanding capital and 10.6 per cent of the outstanding votes and the Lundström family, and companies, with 3.1 per cent of the outstanding capital and 9.6 per cent of the outstanding votes.
The total number of shares and votes in Betsson amounts to 139,618,581 and 285,958,581, divided into 16,260,000 Series A shares with ten votes each, 122,155,730 Series B shares with one vote each and 1,202,851 Series C shares which may not be represented at general meetings. This includes Betsson's holding of 1,173 Series B treasury shares which have been acquired in previous years at an average price of SEK 19.42 and 1,202,851 shares of Series C.
The third quarter of 2015 has started with revenues somewhat below the daily average of the second quarter of 2015. July is normally the seasonally weakest month.
After six years at Betsson, four of which he served as President and CEO of Betsson AB, Magnus Silfverberg has decided to leave his position at the Company for a new role in another industry. Pontus Lindwall is appointed as new CEO and Lars Linder-Aronson as Chairman of the board as of July 20.
The closing of the acquisition of Europe-Bet is in progress and is estimated to be finalised before the end of July. From the date of closing Betsson can benefit from the income from the business.
There have been no other significant events after the end of the reporting period.
Betsson complies with IFRS standards and interpretations (IFRIC) as approved by the EU. This Interim Report has been prepared in accordance with IAS 34, Interim Financial Reporting. The Parent Company's financial statements have been prepared in accordance with RFR 2.
Betsson's B2C segment is defined on the basis of gaming undertaken by players whom Betsson has, itself, secured and gaming by players playing on Betsson's network of affiliated websites (www.affiliatelounge.com). Any activity that does not fall within this definition is classified as B2B in Betsson.
The accounting principles applied are consistent with those presented in the Annual Report for 2014. Detailed information about the Group's accounting and valuation principles can be found in the Annual Report for 2014 (Note 2) which is available on www.betssonab.com or at the Company's head office.
The legal landscape for online gaming is constantly changing, both at the EU level and in the various geographical markets. There is continued pressure on countries in the EU to bring their legislation in line with applicable EU law, especially regarding restrictions in the free movement of goods and services. A number of countries have reported that they are working on new legislation which will be compatible with EU requirements, and certain countries have presented proposals for concrete legislation. There is still uncertainty as to the point in time at which such legislation will be introduced to those of Betsson's main markets which are yet to receive new regulations, with the exception of the Netherlands.
New legislation could result in changes in market conditions regarding, for example, tax rates, product ranges and local licensing fees, and this might have a negative impact on Betsson's profitability. At the same time, new legislation may lead to a significant market growth, as well as possibly provide Betsson with increased opportunities for marketing and an expanded presence in the market.
In early June 2010, Norway expanded its ban on promoting gaming organised from abroad. This ban negatively affects banks due to the fact that cashier services for online gaming payments via credit and debit cards have been made illegal. However, after the elections in September 2013, there has been a parliamentary majority in favour of re-regulating the Norwegian gaming market. However, based on what is known today, the management of Betsson believes that it is unlikely that there will be new regulations in Norway within the next few years.
The outcome of the 2014 general election in Sweden has changed the parliamentary situation. Now there is not only a consensus among representatives of various parliamentary parties to re-regulate the Swedish gaming market, but also a willingness from the Government to do so. Many analysts believe that new regulations are likely to be introduced during 2018.
Betsson has license revenue for system deliveries to one gaming operator, for example, where a portion of the revenue derives from players in Turkey. This license revenue is reported as B2B. Revenue arising from these players may be considered to incur a higher operational risk than revenue from other markets.
For a detailed description of the above risks and other risks and uncertainties, please refer to the Annual Report for 2014.
No transactions took place between Betsson and related parties which significantly affected Betsson's financial position and performance in the quarter.
Betsson expects that the market for online gaming will continue to develop strongly. The number of Internet users is growing rapidly worldwide, which is a driving force for the industry. The most crucial factor today is the growth of mobile solutions and the use of smart phones. In the regions where Internet is available, confidence in the Internet is growing as more people use the Internet for banking and stock trading, insurance matters and other purchases. This changing behaviour and increasing confidence in e-commerce is important for the market development.
Betsson believes that, from a risk perspective, there is a sustainable value in both the local, re-regulated markets as well as in the previously internationally regulated markets. Selected, internationally regulated markets constitute, for the foreseeable future, a base for strong growth and profitability. Based on the analysis from, for example, H2 Gambling, management believes that Betsson's
combined major markets will grow by 7-8 per cent in 2015. Betsson will continue over time grow faster than market growth.
Management also believes that Betsson's mobile revenue will continue to grow strongly over the foreseeable future.
The Annual General Meeting of shareholders in Betsson AB was held on Friday, 8 May 2015 at 10:00 CET, at Betsson's offices at Regeringsgatan 28, Stockholm.
Betsson intends to publish financial reports as follows: Interim Report for the third quarter on 22 October and the Year-End Report for the full year 2015 (Fourth Quarter) on 5 February 2016.
Today, Friday 17 July at 09:00 CET, Betsson's CEO, Magnus Silfverberg, will present the Interim Report from Betsson's office at Regeringsgatan 28, and through webcast on www.betssonab.com or http://edge.media-server.com/m/p/mqovazi2 or by phone on +46 (0)8 505 564 74 (Sweden), +44 (0)203 364 53 74 (UK), or +1 (0) 855 753 22 30 (US). The presentation will be in English and will be followed by a question and answer session.
A copy of the presentation is available at www.betssonab.com as of Friday 24 April.
The board and the CEO in Betsson AB hereby confirm that this interim report give a fair picture of the operations, the balance sheet and the income statment in the parent company and in the group and that it describes the material risks connected with the company and the group.
| Magnus Silfverberg President and CEO |
Pontus Lindwall Chairman of the board |
|---|---|
| Lars Linder-Aronson | Patrick Svensk |
| Board member | Board member |
| Kicki Walje-Lund | Martin Wattin |
| Board member | Board member |
Jan Nord Board member Betsson AB (publ), Regeringsgatan 28, 111 53 Stockholm Registered office: Stockholm, Corporate Identity Number 556090-4251
For further information, please contact Magnus Silfverberg, President and CEO, tel. +46 (0) 8 506 403 00, [email protected] or Fredrik Rüdén, CFO, tel. +46 (0) 8 506 403 00, [email protected].
This interim report has not been subject to review by the Company's auditors.
The information in this interim report is information which Betsson AB (publ) is to publish in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 17 July 2015 at 07:30 CET.
This is an English version of the Swedish original report.
| Consolidated Income Statement, SEK million | Quarter 2 | Quarter 2 | Jan-June | Jan-June | Full year |
|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | 2014 | |
| Revenue | 860.6 | 752.3 | 1,708.0 | 1,438.3 | 3,035.1 |
| Cost of services provided | -229.4 | -200.0 | -439.2 | -374.2 | -803.7 |
| Gross profit Marketing expenses Personnel costs Other external expenses Capitalised development costs Depreciation/amortisation Other operating income/expenses |
631.2 -166.0 -128.1 -115.0 30.9 -36.7 -2.5 |
552.3 -143.1 -109.3 -101.8 28.2 -34.2 -1.7 |
1,268.8 -332.2 -252.7 -220.1 64.3 -72.9 -3.5 |
1,064.1 -266.9 -211.9 -211.0 53.6 -63.7 -2.7 |
2,234.3 -548.2 -448.1 -440.0 123.1 -128.0 31.1 |
| Operating expenses | -417.4 | -361.9 | -817.0 | -702.6 | -1,410.1 |
| Operating income | 213.8 | 190.4 | 451.8 | 361.5 | 821.2 |
| Financial income and expenses | -1.5 | -2.8 | -3.1 | -7.4 | -6.4 |
| Income before tax | 212.3 | 187.5 | 448.7 | 354.1 | 814.8 |
| Tax | -10.7 | -10.9 | -23.0 | -19.8 | -44.1 |
| Net income for the period | 201.6 | 176.6 | 425.7 | 334.3 | 770.7 |
| Earnings per share before dilution (SEK) Earnings per share after dilution (SEK) |
1.46 1.46 |
1.28 1.28 |
3.08 3.08 |
2.47 2.47 |
5.64 5.63 |
| Operating margin (as a percentage of revenue) Operating margin (as a percentage of gross profit) |
24.8 33.9 |
25.3 34.5 |
26.5 35.6 |
25.1 34.0 |
27.1 36.8 |
| Profit margin (per cent) Average number of outstanding shares (millions) Number of outstanding shares at the end of the period |
24.7 138.1 |
24.9 138.0 |
26.3 138.1 |
24.6 135.3 |
26.8 136.7 |
| (millions) | 138.1 | 138.1 | 138.1 | 138.1 | 138.1 |
| Return on equity (per cent) | 7 | 15 | 30 | ||
| Return on total capital (per cent) | 5 | 9 | 19 | ||
| Return on capital employed (per cent) | 5 | 10 | 22 |
| Income, SEK million | Quarter 2 | Quarter 2 | Jan-June | Jan-June | Jan-June |
|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | 2014 | |
| Net income for the period | 201.6 | 176.6 | 425.7 | 334.3 | 770.7 |
| Other comprehensive income | |||||
| Revenue/expenses reported directly in equity Hedging of net investments in foreign currency, including |
|||||
| deferred tax | 4.9 | -27.7 | 21.8 | -34.4 | -51.3 |
| Exchange rate differences on translation of foreign operations | -28.9 | 102.7 | -110.4 | 117.7 | 229.0 |
| Other comprehensive income for the period (after tax) | -23.9 | 75.0 | -88.5 | 83.3 | 177.7 |
| Total comprehensive income for the period | 177.7 | 251.6 | 337.2 | 417.6 | 948.3 |
| Consolidated Balance Sheet, SEK million | 30/06/2015 | 30/06/2014 | 31/12/2014 |
|---|---|---|---|
| Intangible fixed assets | 3,298.1 | 3,260.0 | 3,402.2 |
| Tangible fixed assets | 45.0 | 52.3 | 50.9 |
| Financial fixed assets | 21.9 | 23.5 | 25.1 |
| Deferred tax assets | 23.1 | 22.9 | 29.3 |
| Total fixed assets | 3,388.1 | 3,358.6 | 3,507.5 |
| Current receivables | 990.9 | 842.3 | 1,025.1 |
| Liquid funds | 355.7 | 433.2 | 478.1 |
| Total current assets | 1,346.6 | 1,275.4 | 1,503.2 |
| Total assets | 4,734.6 | 4,634.0 | 5,010.7 |
| Equity | 2,849.6 | 2,543.0 | 3,073.8 |
| Deferred tax liabilities | 5.2 | 3.4 | 5.4 |
| Liabilities to credit institutions | 691.3 | 717.3 | 523.4 |
| Total non-current liabilities | 696.5 | 720.8 | 528.7 |
| Other current liabilities | 1,188.6 | 1,370.2 | 1,408.2 |
| Total current liabilities | 1,188.6 | 1,370.2 | 1,408.2 |
| Total equity and liabilities | 4,734.6 | 4,634.0 | 5,010.7 |
| Cash Flow Statement for the Group, SEK million | Jan-June | Jan-June | Full year |
|---|---|---|---|
| 2015 | 2014 | 2014 | |
| Income after financial items | 448.7 | 354.1 | 814.8 |
| Adjustments for items not included in cash flow | 74.8 | 66.3 | 97.8 |
| Tax paid | -33.0 | -32.9 | -45.4 |
| Cash flow from operating activities | |||
| before changes in working capital | 490.5 | 387.5 | 867.1 |
| Changes in working capital | -26.4 | -10.7 | 1.1 |
| Cash flow from operating activities | 464.1 | 376.8 | 868.3 |
| Investments | -71.4 | -58.4 | -156.3 |
| Acquisition of liquid funds | - | 36.0 | 36.0 |
| Acquisition of shares in subsidiaries | - | -374.5 | -376.3 |
| Cash flow from investing activities | -71.4 | -396.9 | -496.6 |
| Cash paid upon redemption of warrants | -8.1 | -16.9 | -17.4 |
| Purchase price paid | -137.1 | -60.0 | -207.1 |
| Raised bank loans | 185.9 | 378.0 | 378.0 |
| Repayment of bank loans | - | - | -211.2 |
| Share redemption programme | -549.7 | -421.5 | -421.5 |
| Cash flow from financing activities | -509.1 | -120.4 | -479.2 |
| Changes in liquid funds | -116.4 | -140.5 | -107.6 |
| Liquid funds at the beginning of the period | 478.1 | 562.5 | 562.5 |
| Exchange rate differences in liquid funds | -6.0 | 11.2 | 23.2 |
| Liquid funds at the end of the period | 355.7 | 433.2 | 478.1 |
| Changes in Equity for the Group, SEK million | Jan-June | Jan-June | Full year |
| 2015 | 2014 | 2014 | |
| Opening balance | 3,073.8 | 2,032.2 | 2,032.2 |
| Total comprehensive income for the period | 337.2 | 417.6 | 948.3 |
| Total change in equity, excluding transactions with the Company's owners |
337.2 | 417.6 | 948.3 |
| Share redemption programme | -549.7 | -421.5 | -421.5 |
| Costs for redemption programme after tax effects | - | -0.1 | -0.1 |
| New share issue | - | 531.2 | 531.2 |
| Repurchase of warrants and personnel options | -12.2 | -16.9 | -17.4 |
| Share options – value of employee services | 0.5 | 0.5 | 1.1 |
| Equity at the end of the period | 2,849.6 | 2,543.0 | 3,073.8 |
| Attributable to: | |||
| Shareholders in the Parent Company | 2,849.6 | 2,543.0 | 3,073.8 |
| Minority interest | - | - | - |
| Total equity | 2,849.6 | 2,543.0 | 3,073.8 |
| Parent Company Income Statement, SEK million | Jan-June 2015 |
Jan-June 2014 |
Full year 2014 |
|---|---|---|---|
| Revenue | 8.3 | 8.6 | 17.6 |
| Operating expenses | -26.5 | -40.4 | -76.5 |
| Operating income Financial items |
-18.1 52.1 |
-31.8 -8.2 |
-58.9 824.1 |
| Income before tax Tax |
34.0 0.0 |
-40.1 0.0 |
765.2 0.0 |
| Net income for the period | 34.0 | -40.1 | 765.2 |
| Parent Company Balance Sheet, SEK million | 30/06/2015 | 30/06/2014 | 31/12/2014 |
|---|---|---|---|
| Tangible fixed assets Financial fixed assets |
1.0 3,470.2 |
1.8 3,656.2 |
1.1 3,470.2 |
| Total fixed assets | 3,471.3 | 3,657.9 | 3,471.3 |
| Current receivables | 71.9 | 57.4 | 432.7 |
| Liquid funds | 34.5 | 35.7 | 143.3 |
| Total current assets | 106.4 | 93.0 | 576.1 |
| Total assets | 3,577.7 | 3,751.0 | 4,047.3 |
| Restricted equity Non-restricted equity |
346.4 2,362.5 |
346.4 2,085.8 |
346.4 2,890.6 |
| Total equity | 2,708.9 | 2,432.2 | 3,236.9 |
| Non-current liabilities to credit institutions Other current liabilities |
672.7 196.0 |
690.5 628.3 |
486.9 323.5 |
| Total current liabilities | 196.0 | 628.3 | 323.5 |
| Total equity and liabilities | 3,577.7 | 3,751.0 | 4,047.3 |
| Group Overview Income Statements, SEK million |
2015 | 2015 | 2014 | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2014 |
|---|---|---|---|---|---|---|---|---|---|---|
| (continuing operations) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Full year |
| Revenue Cost of services provided Gross profit |
860.6 -229.4 631.2 |
847.4 -209.8 637.6 |
814.7 -221.9 592.8 |
782.1 -207.7 574.4 |
752.3 -200.0 552.3 |
686.0 -174.2 511.8 |
655.5 -179.8 475.6 |
603.4 -167.3 436.1 |
579.2 -167.1 412.1 |
3,035.1 -803.7 2,231.3 |
| Marketing expenses Personnel costs Other external expenses Capitalised development |
-166.0 -128.1 -115.0 |
-166.2 -124.6 -105.2 |
-145.5 -116.1 -117.7 |
-135.9 -120.2 -111.3 |
-143.1 -109.3 -101.8 |
-123.8 -102.6 -109.2 |
-122.3 -101.8 -96.9 |
-101.1 -89.9 -88.4 |
-101.7 -89.3 -82.5 |
-548.2 -448.1 -440.0 |
| costs Depreciation/amortisation Other operating |
30.9 -36.7 |
33.4 -36.2 |
36.2 -31.0 |
33.3 -33.3 |
28.2 -34.2 |
25.4 -29.5 |
24.7 -25.8 |
19.2 -26.3 |
25.4 -27.6 |
123.1 -128.0 |
| income/expenses Total operating expenses Operating income Net financial items |
-2.5 -417.4 213.8 -1.5 |
-1.0 -399.6 238.0 -1.6 |
33.7 -340.3 252.5 4.1 |
0.1 -367.3 207.2 -3.1 |
-1.7 -361.9 190.4 -2.8 |
-1.1 -340.7 171.2 -4.6 |
-3.5 -325.6 150.0 -1.0 |
2.7 -283.8 152.2 -2.5 |
1.4 -274.2 137.8 -0.3 |
31.1 -1,410.1 821.2 -6.4 |
| Income before tax Tax |
212.3 -10.7 |
236.4 -12.3 |
256.6 -13.6 |
204.1 -10.7 |
187.5 -10.9 |
166.6 -8.9 |
149.0 -8.1 |
149.7 -8.7 |
137.5 -9.2 |
814.8 -44.1 |
| Income after tax Balance Sheets, SEK million |
201.6 2015 |
224.1 2015 |
243.0 2014 |
193.4 2014 |
176.6 2014 |
157.7 2014 |
140.9 2013 |
140.9 2013 |
128.3 2013 |
770.7 2014 |
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Full year | |
| Fixed assets Current assets |
3,388.1 1,346.6 |
3,418.2 1,610.3 |
3,507.5 1,503.2 |
3,374.8 1,278.6 |
3,358.5 1,275.4 |
3,259.9 1,519.4 |
2,129.9 1,386.0 |
2,034.2 1,175.2 |
2,050.3 1,067.9 |
3,507.5 1,503.2 |
| Total assets Equity |
4,734.6 2,849.6 |
5,028.5 3,233.5 |
5,010.7 3,073.8 |
4,653.4 2,734.1 |
4,634.0 2,543.0 |
4,779.3 2,727.2 |
3,515.9 2,032.2 |
3,209.4 1,827.8 |
3,118.2 1,704.1 |
5,010.7 3,073.8 |
| Non-current liabilities Current liabilities |
696.5 1,188.6 |
516.0 1,278.9 |
528.7 1,408.2 |
508.4 1,410.8 |
720.8 1,370.2 |
698.7 1,353.4 |
4.1 1,479.5 |
7.2 1,374.4 |
6.1 1,408.0 |
528.7 1,408.2 |
| Total equity and liabilities Cash Flow Statements, SEK million |
4,734.6 2015 |
5,028.5 2015 |
5,010.7 2014 |
4,653.4 2014 |
4,634.0 2014 |
4,779.3 2014 |
3,515.9 2013 |
3,209.4 2013 |
3,118.2 2013 |
5,010.7 2014 |
| (continuing operations) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Full year |
| Operating cash flow Cash flow from investing activities |
232.2 -37.0 |
231.9 -34.4 |
164.4 -44.5 |
327.1 -55.2 |
223.7 -31.7 |
153.1 -365.3 |
192.0 -57.9 |
175.3 -35.1 |
150.7 -34.8 |
868.3 -496.6 |
| Cash flow from financing activities Total cash flow |
-372.0 -176.7 |
-137.1 60.4 |
-147.0 -27.1 |
-211.8 60.1 |
-435.9 -243.9 |
315.5 103.4 |
-0.6 133.5 |
-38.8 101.5 |
-410.9 -295.1 |
-479.2 -107.6 |
| Key Performance Indicators | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2014 |
|---|---|---|---|---|---|---|---|---|---|---|
| (continuing operations) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Full year |
| Growth per quarter (%) | 2 | 4 | 4 | 4 | 10 | 5 | 9 | 4 | -9 | |
| Growth compared with the previous year (%) |
14 | 24 | 24 | 30 | 30 | 7 | 1 | 14 | 19 | 23 |
| Gross margin (% of revenue) | 73.3 | 75.2 | 72.8 | 73.4 | 73.4 | 74.6 | 72.6 | 72.3 | 71.1 | 73.5 |
| EBITDA margin (% of revenue) | 29.1 | 32.3 | 34.8 | 30.7 | 29.8 | 29.3 | 26.8 | 29.6 | 28.6 | 31.3 |
| EBITDA margin (% of gross profit) | 39.7 | 43.0 | 47.8 | 41.9 | 40.7 | 39.2 | 37.0 | 40.9 | 40.2 | 42.5 |
| Operating margin (% of revenue) Operating margin (% of gross profit) |
24.8 33.9 |
28.1 37.3 |
31.0 42.6 |
26.5 36.1 |
25.3 34.5 |
25.0 33.4 |
22.9 31.5 |
25.2 34.9 |
23.8 33.4 |
27.1 36.8 |
| Profit margin (% of revenue) | 24.7 | 27.9 | 31.5 | 26.1 | 24.9 | 24.3 | 22.7 | 24.8 | 23.7 | 26.8 |
| Profit margin (% of gross profit) | 33.6 | 37.1 | 43.3 | 35.5 | 34.0 | 32.5 | 31.3 | 34.3 | 33.4 | 36.5 |
| Marketing (% of revenue) | 19.3 | 19.6 | 17.9 | 17.4 | 19.0 | 18.0 | 18.7 | 16.8 | 17.6 | 18.1 |
| Marketing (% of gross profit) Earnings per share (SEK) |
26.3 1.46 |
26.1 1.62 |
24.5 1.76 |
23.7 1.40 |
25.9 1.28 |
24.2 1.17 |
25.7 1.08 |
23.2 1.08 |
24.7 0.98 |
24.6 5.62 |
| Operating cash flow per share (SEK) | 5.11 | 1.68 | 1.19 | 2.37 | 1.62 | 1.14 | 1.47 | 1.35 | 1.16 | 6.32 |
| Equity per share (SEK) Dividend/redemption per share |
20.63 | 23.42 | 22.27 | 19.81 | 18.42 | 19.76 | 15.60 | 14.03 | 13.08 | 22.27 |
| (SEK) | 3.98 | - | - | - | 3.05 | - | - | - | 3.15 | 3.05 |
| Average share price (SEK) | 118.60 | 100.35 | 85.26 | 80.51 | 77.20 | 68.29 | 65.92 | 59.77 | 58.93 | 77.15 |
| Share price at the end of the period (SEK) |
119.80 | 107.93 | 91.67 | 85.33 | 77.00 | 78.50 | 68.00 | 63.50 | 56.67 | 91.67 |
| Highest listing (SEK) | 132.40 | 110.97 | 94.33 | 90.50 | 83.67 | 79.50 | 71.17 | 65.50 | 70.00 | 94.33 |
| Lowest listing (SEK) | 106.30 | 91.33 | 73.83 | 74.67 | 74.17 | 59.33 | 60.83 | 55.83 | 53.17 | 59.33 |
| Equity/assets ratio (%) | 60 | 64 | 61 | 59 | 55 | 57 | 58 | 57 | 55 | |
| Investments (SEK million) Average number of employees (acc.) |
35.6 900 |
34.4 875 |
44.4 850 |
53.4 845 |
31.8 839 |
26.6 835 |
57.9 789 |
19.3 756 |
34.8 721 |
156.3 850 |
| Number of employees at the end of | ||||||||||
| the period Number of shareholders at the end |
928 | 905 | 870 | 885 | 877 | 857 | 839 | 815 | 756 | 870 |
| of the period | 27,727 | 25,234 | 21,443 | 20,604 | 21,148 | 19,770 | 18,825 | 19,909 | 19,447 | 21,443 |
| Number of shares, million | 139.6 | 139.6 | 139.6 | 139.6 | 139.6 | 139.6 | 130.3 | 130.3 | 130.3 | 139.6 |
| Number of customers | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2014 |
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Full year | |
| Number of registered customers (thousand) |
8,096.6 | 7,924.0 | 7,732.4 | 7,533.2 | 7,363.7 | 7,172.2 | 6,732.7 | 6,623.2 | 6,354.9 | 7,732.4 |
| Growth per quarter (%) | 2 | 2 | 3 | 2 | 3 | 7 | 2 | 4 | 5 | |
| Growth compared with the previous | ||||||||||
| year (%) Number of active customers |
10 | 10 | 15 | 14 | 16 | 19 | 17 | 18 | 17 | 15 |
| (thousand) | 357.6 | 372.1 | 390.7 | 363.5 | 381.4 | 360.8 | 401.4 | 423.6 | 428.7 | 390.7 |
| Growth per quarter (%) | -3.9 | -4.8 | 7.5 | -4.7 | 5.7 | -10.1 | -5.2 | -1.0 | -10.5 | |
| Growth compared with the previous year (%) |
-6 | 3 | -3 | -14 | -11 | -25 | -23 | -9 | -16 | -3 |
| Customer activity level (%) | 4 | 5 | 5 | 5 | 5 | 5 | 6 | 6 | 7 | 5 |
| Customer deposits | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2014 |
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Full year | |
| Deposited amount (SEK million) | 2,222.0 | 2,170.4 | 2,130.3 | 2,062.3 | 1,939.4 | 1,570.7 | 1,613.6 | 1,493.8 | 1,445.9 | 7,702.7 |
| Growth per quarter (%) | 2 | 2 | 3 | 6 | 23 | -3 | 8 | 3 | -4 | |
| Growth compared with the previous year (%) |
15 | 38 | 32 | 38 | 34 | 4 | 2 | 10 | 32 | 27 |
| Deposited amount, all gaming | ||||||||||
| solutions (SEK million) | 3,116.6 | 3,173.6 | 2,977.1 | 2,737.3 | 2,613.4 | 2,212.5 | 2,262.3 | 2,027.1 | 2,017.8 | 10,540.3 |
| Growth per quarter (%) Growth compared with the previous |
-2 | 7 | 9 | 5 | 18 | -2 | 12 | 0 | -5 | |
| year (%) | 19 | 43 | 32 | 35 | 30 | 5 | 5 | 15 | 34 | 25 |
| Gross margin, Sportsbook | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2014 |
| Gross turnover, all gaming solutions | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Full year |
| (SEK million) | 5,385.7 | 6,054.4 | 5,074.8 | 4,063.3 | 4,140.4 | 3,780.8 | 4,094.6 | 3,398.5 | 3,447.6 | 17,059.3 |
| -of which B2B (SEK million) | 3,446.0 | 4,214.6 | 3,403.4 | 2,653.4 | 2,666.2 | 2,449.7 | 2,666.0 | 2,164.4 | 2,317.7 | 11,172.7 |
| Growth per quarter (%) 2) | -11.0 | 19.3 | 24.9 | -1.9 | 9.5 | -7.7 | 20.5 | -1.0 | -11.0 | |
| Growth compared with corresponding | ||||||||||
| period during the previous year (%) 1) |
30 | 60 | 24 | 20 | 20 | -2 | 8 | 16 | 26 | 15 |
| of which gross turnover, live betting | ||||||||||
| (SEK million) Proportion live betting (%) |
4,148.9 77.0 |
4,575.3 75.6 |
3,692.0 72.8 |
2,963.1 72.9 |
2,847.2 68.8 |
2,618.2 69.2 |
2,770.9 67.7 |
2,365.2 69.6 |
2,393.2 69.4 |
12,120.5 71.0 |
| Growth per quarter (%) | -9.3 | 23.9 | 24.6 | 4.1 | 8.7 | -5.5 | 17.2 | -1.2 | -10.3 | |
| Growth compared with corresponding | ||||||||||
| period during the previous year (%) Margin after free bets (%) |
46 | 75 | 33 | 25 | 19 | -2 | 12 | 24 | 26 | 19 |
| Revenue (SEK million) | 6.3% 206.4 |
6.2% 217.7 |
6.1% 192.6 |
8.5% 222.1 |
7.0% 178.0 |
8.0% 186.3 |
6.2% 156.2 |
6.9% 151.3 |
6.5% 135.0 |
7.4% 778.9 |
| -of which B2B | 94.2 | 124.4 | 97.2 | 105.0 | 88.1 | 91.6 | 68.2 | 60.3 | 68.5 | 381.8 |
| 1) Calculated on all gaming solutions | 3.8% |
| Reporting per segment | 2015 Q2 |
2015 Q1 |
2014 Q4 |
2014 Q3 |
2014 Q2 |
2014 Q1 |
2013 Q4 |
2013 Q3 |
2013 Q2 |
2014 Full year |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (SEK million) B2B, Business to business |
194.6 | 221.5 | 185.3 | 174.9 | 166.1 | 164.1 | 152.6 | 123.7 | 143.0 | 690.5 |
| B2C, Business to consumers | 666.0 | 626.0 | 629.3 | 607.2 | 586.2 | 521.9 | 502.9 | 479.7 | 436.2 | 2,344.6 |
| Total Proportion of total (%) |
860.6 | 847.4 | 814.7 | 782.1 | 752.3 | 686.0 | 655.5 | 603.4 | 579.2 | 3,035.1 |
| B2B B2C |
22.6 77.4 |
26.1 73.9 |
22.8 77.2 |
22.4 77.6 |
22.1 77.9 |
23.9 76.1 |
23.3 76.7 |
20.5 79.5 |
24.7 75.3 |
22.7 77.3 |
| Growth per quarter (%) | ||||||||||
| B2B | -12 | 19 | 6 | 5 | 1 | 8 | 23 | -14 | -25 | |
| B2C | 6 | -1 | 4 | 4 | 12 | 4 | 5 | 10 | -3 | |
| Total Growth compared with the previous year (%) |
2 | 4 | 4 | 4 | 10 | 5 | 9 | 4 | -9 | |
| B2B B2C |
17 14 |
35 20 |
21 25 |
41 27 |
16 34 |
-14 16 |
13 26 |
|||
| Total | 14 | 24 | 24 | 30 | 30 | 7 | 23 | |||
| Revenue per product | 2015 Q2 |
2015 Q1 |
2014 Q4 |
2014 Q3 |
2014 Q2 |
2014 Q1 |
2013 Q4 |
2013 Q3 |
2013 Q2 |
2014 Full year |
| Revenue | ||||||||||
| Casino Poker |
617.8 24.6 |
585.0 29.3 |
580.4 28.9 |
524.0 25.5 |
534.6 27.1 |
456.0 34.6 |
447.8 38.2 |
404.5 32.3 |
390.4 34.2 |
2,094.9 116.2 |
| Sportsbook | 206.4 | 217.7 | 192.6 | 222.1 | 178.0 | 186.3 | 156.2 | 151.3 | 135.0 | 778.9 |
| Other products Total gross profit |
11.8 860.6 |
15.4 847.4 |
12.7 814.7 |
10.5 782.1 |
12.6 752.3 |
9.1 686.0 |
13.3 655.5 |
15.2 603.4 |
19.6 579.2 |
45.0 3,035.1 |
| Proportion of total revenue (%) |
||||||||||
| Casino | 71.8 | 69.0 | 71.2 | 67.0 | 71.1 | 66.5 | 68.3 | 67.0 | 67.4 | 69.0 |
| Poker Sportsbook Other products |
2.9 24.0 1.4 |
3.5 25.7 1.8 |
3.6 23.6 1.6 |
3.3 28.4 1.3 |
3.6 23.7 1.7 |
5.0 27.2 1.3 |
5.8 23.8 2.0 |
5.4 25.1 2.5 |
5.9 23.3 3.4 |
3.8 25.7 1.5 |
| Growth per quarter (%) | ||||||||||
| Casino | 6 | 1 | 11 | -2 | 17 | 2 | 11 | 4 | -2 | |
| Poker | -16 | 1 | 14 | -6 | -22 | -9 | 18 | -5 | -22 | |
| Sportsbook | -5 | 13 | -13 | 25 | -4 | 19 | 3 | 12 | -23 | |
| Other products | -24 | 21 | 21 | -17 | 38 | -31 | -13 | -23 | -17 | |
| Total, all products Growth compared with the previous year (%) |
2 | 4 | 4 | 4 | 10 | 5 | 9 | 4 | -9 | |
| Casino | 16 | 28 | 30 | 30 | 37 | 15 | 28 | |||
| Poker Sportsbook |
-9 16 |
-15 17 |
-24 23 |
-21 47 |
-21 32 |
-21 6 |
-22 26 |
|||
| Other products | -7 | 69 | -4 | -31 | -36 | -61 | -37 | |||
| Total, all products | 14 | 24 | 24 | 30 | 30 | 7 | 23 | |||
| B2C per geographic | ||||||||||
| area | 2015 Q2 |
2015 Q1 |
2014 Q4 |
2014 Q3 |
2014 Q2 |
2014 Q1 |
2013 Q4 |
2013 Q3 |
2013 Q2 |
2014 Full year |
| Revenue | ||||||||||
| Nordic Region EU, outside the Nordic Region |
433.5 213.8 |
429.2 182.9 |
446.6 173.5 |
443.4 156.1 |
413.4 167.0 |
410.2 103.4 |
424.5 72.3 |
404.4 69.7 |
353.2 78.2 |
1,713.6 600.0 |
| Other Europe | 7.2 | 3.3 | 2.4 | 2,6 | 3.0 | 3.6 | 3.3 | 2.8 | 2.7 | 11.7 |
| Rest of the world Total gross profit |
11.5 666.0 |
10.6 626.0 |
6.8 629.3 |
5.1 607.2 |
2.7 586.2 |
4.7 521.9 |
2.8 502.9 |
2.8 479.7 |
2.2 436.2 |
19.4 2,344.6 |
| Proportion of total (%) | ||||||||||
| Nordic Region | 65.1 | 68.6 | 71.0 | 73.0 | 70.5 | 78.6 | 84.4 | 84.3 | 81.0 | 73.1 |
| EU, outside the Nordic Region Other Europe |
32.1 1.1 |
29.2 0.5 |
27.6 0.4 |
25.7 0.4 |
28.5 0.5 |
19.8 0.7 |
14.4 0.7 |
14.5 0.6 |
17.9 0.6 |
25.6 0.5 |
| Rest of the world | 1.7 | 1.7 | 1.1 | 0.8 | 0.5 | 0.9 | 0.6 | 0.6 | 0.5 | 0.8 |
| Growth per quarter (%) | ||||||||||
| Nordic Region | 1 | -4 | 1 | 7 | 1 | -3 | 5 | 14 | -1 | |
| EU, outside the Nordic Region | 17 | 5 | 11 | -7 | 61 | 43 | 4 | -11 | -9 | |
| Other Europe | 119 | 38 | -9 | -13 | -14 | 7 | 19 | 5 | 36 | |
| Rest of the world | 8 | 56 | 33 | 88 | -42 | 70 | -3 | 31 | -45 | |
| Total, all countries Growth compared with the previous year (%) |
6 | -1 | 4 | 4 | 12 | 4 | 5 | 10 | -3 | |
| Nordic Region | 5 | 5 | 5 | 10 | 17 | 15 | 11 | |||
| EU, outside the Nordic Region Other Europe |
28 138 |
77 -7 |
140 -28 |
124 -5 |
114 15 |
21 82 |
96 9 |
|||
| Rest of the world | 322 | 125 | 146 | 80 | 25 | 19 | 65 | |||
| Total, all countries | 14 | 20 | 25 | 27 | 34 | 16 | 26 |
STOCKHOLM 17 JULY 2015
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.