Quarterly Report • Oct 28, 2011
Quarterly Report
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ALL FIGURES IN THIS REPORT ARE EXPRESSED IN SEK. FIGURES IN PARENTHESES REFER TO THE CORRESPONDING FIGURES FOR THE PREVIOUS YEAR, UNLESS STATED OTHERWISE. THIS INFORMATION APPLIES TO THE GROUP, UNLESS STATED OTHERWISE.
| Q3 | Q3 | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | 2010 | |
| Totals | |||||
| Revenues | 465.7 | 385.1 | 1 221.4 | 1 118.9 | 1 603.2 |
| Gross Profit | 389.1 | 301.6 | 995.6 | 890.6 | 1 282.1 |
| of which Sportsbook | 84.1 | 78.0 | 229.7 | 150.0 | 367.7 |
| Operating Income | 152.8 | 80.7 | 387.4 | 252.9 | 380.6 |
| Liquid funds 1) | 490.3 | 377.3 | 490.3 | 377.3 | 497.1 |
| Active Customers (thousands) | 382.9 | 255.7 | 382.9 | 255.7 | 300.5 |
| Registered Customers (thousands) | 3 424.1 | 2 833.9 | 3 424.1 | 2 833.9 | 3 158.2 |
| Customer Deposits | 1 122.6 | 913.6 | 2 838.1 | 2 789.6 | 3 894.1 |
| Customer Deposits. all gaming solutions | 1 483.6 | 913.6 | 3 753.4 | 2 789.6 | 3 894.1 |
| Sportsbook 2) | |||||
| Gross Turnover Sportsbook | 527.7 | 1 215.7 | 1 998.7 | 3 461.6 | 5 355.7 |
| - of which Live Betting | 202.1 | 733.7 | 1 059.4 | 1 818.6 | 2 962.2 |
| - of which Live Betting percentage | 38.3% | 60.4% | 53.0% | 52.5% | 55.3% |
| Margin after free bets. Sportsbook | 7.6% | 8.6% | 7.0% | 7.9% | 7.8% |
| Gross Profit Sportsbook. B2C | 24.5 | 89.5 | 113.6 | 239.5 | 367.7 |
| Third party. Sportsbook | |||||
| Gross Turnover Sportsbook | 1 288.9 | - | 3 410.4 | - | - |
| - of which Live Betting | 870.3 | - | 2 331.9 | - | - |
| - of which Live Betting percentage | 67.5% | - | 68.4% | - | - |
| Gross Profit Sportsbook from third party | 59.6 | - | 116.1 | - | - |
1) Available liquid funds amounted to SEK 176.5 (211.9) million which derives from liquid funds amounted to SEK 490.3 (377.3) million deducted with customer liabilities including the provision for earned jackpots, amounted to SEK 313.8 (165.4) million. 2) Own customers, which means a mixture of B2B and B2C up until first quarter 2011.
-"The B2C segment is displaying the highest level of underlying activity which we have ever seen and the B2B segment has launched three new collaborations. At the same time, we are adapting the Group to comply with new regulations across Europe. Being able to make these changes while posting good results is proof of our strength." states Magnus Silfverberg, President and CEO of Betsson.
Today, Friday 28 October, at 09.00 CET, Betsson's CEO Magnus Silfverberg will present the Interim Report from Betsson's office at Regeringsgatan 28, and through webcast at www.betssonab.com or http://storm.zoomvisionmamato.com/player/betsson/objects/3fdkj8qs or by phone on +46 (0)8 505 598 53 (Sweden) or +44 (0)20 3043 2436 (UK). The presentation will be in English and will be followed by a question and answer session.
BETSSON AB'S CORE BUSINESS CONSISTS OF INVESTING AND ADMINISTERING SHAREHOLDING IN COMPANIES, WHICH THROUGH PARTNERS OR BY THEMSELVES, OFFER GAMES TO THE END USERS VIA THE INTERNET. BETSSON AB OWNS BETSSON MALTA WHICH OPERATES GAMES THROUGH PARTNERSHIPS AND THE WEBSITES WWW.BETSSON.COM, WWW.BETSAFE.COM, WWW.CASINOEURO.COM AND WWW.CHERRYCASINO.COM. BETSSON MALTA OFFERS POKER, CASINO, SPORTS BETTING, SCRATCH CARDS, BINGO AND GAMES. THE CUSTOMERS MAINLY ORIGINATE FROM THE SCANDINAVIAN COUNTRIES AND OTHER PARTS OF EUROPE. BETSSON AB IS LISTED ON NASDAQ OMX NORDIC MID CAP LIST, (BETS).
Group revenue amounted to SEK 465.7 (385.1) million. Gross profit was SEK 389.1 (301.6) million. Operating income increased by 89 percent to SEK 152.8 (80.7) million and the operating margin was 32.8 (21.0) percent. Betsafe has contributed to gross profit in an amount of SEK 102.1 million and to operating income in an amount of SEK 36.6 million. The Group's income before tax increased to SEK 146.5 (80.7) million and net income was SEK 138.4 (76.3) million, which is equivalent to SEK 3.40 (1.94) per share.
Marketing costs during the quarter amounted to SEK 100.6 (124.0) million. The significant reduction in marketing costs can be explained by the fact that no marketing costs are derived from Turkey due to the divestment of the Turkish customer base. Betsson's marketing consists of traditional marketing and partner co-operation agreements with variable remuneration. The marketing costs arising from partners receiving variable remuneration incur a lower risk than costs for traditional marketing.
Personnel costs amounted to SEK 60.5 (39.6) million, corresponding to an increase of 53 percent. The substantial increase in personnel costs during the quarter is, primarily, attributable to the acquisition of Betsafe. Personnel costs will gradually rise as a consequence of Betsson's focus on growth.
Other external expenses amounted to SEK 56.5 (39.0) million. The substantial increase in other external expenses during the quarter can be explained, primarily, by the acquisition of Betsafe and the use of a higher number of consultants than during the corresponding period in the previous year. As the organisation, as it currently stands, has a very high work load, Management is of the opinion that the Company will require the services of a somewhat higher number of consultants in the near future.
Operating income has been negatively impacted during the quarter in an amount of SEK 6.2 (13.1) million, referring to the currency translation of balance sheet items.
Betsson continuously invests in improving its offering to end users with integrated payment and product solutions. The amortization of capitalized development costs exceed capitalizations with SEK 6.0 (2.2) million, which has a negative impact in the income statement.
Income from financial items amounts to SEK minus 6.3 (0.0) million. Of this amount, SEK 6 million can be explained by the difference in market value between the valuation date and the delivery date for shares supplied in conjunction with the payment of the purchase consideration to the previous owners of Betsafe. The low level of net financial income in general can be explained by a low level of nondeposited liquid funds and temporary external financing.
Gross profit in Betsson's B2C segment amounted to an all-time high of SEK 266.1 (121.6) million, an increase of 119 percent. The segment was strengthened significantly as a result of the acquisition of Betsafe during the second quarter. Excluding Betsafe's gross profit of SEK 102.1 million, the B2C segment has increased by 35 percent. The Nordic countries account for 75 (78) percent of the segment and EU outside of the Nordic countries represents 22 (23) percent. As a whole, the segment has substantial growth opportunities.
More and more countries in Europe are approaching the application of a domestically regulated market, supported by the EU. This is changing the scene for gaming operators. Betsson has applied for licenses in Italy and Denmark, respectively.
Gross profit in B2B amounted to SEK 123.0 (180.0) million. The decrease can, primarily, be explained by the divestment of the Turkish customer base and the weak development of the Turkish Lira. The underlying activity is steadily increasing, with several B2B collaborations and ever more activity being seen in these.
Betsson's B2B segment has been successful for a number of years and Betsson is now both financially and technically well-positioned to meet the trend for B2B currently seen within the gaming industry. The gaming solution offered through Realm Entertainment is developing positively, from a business perspective. The project in China is developing according to plan. A beta version of a gaming site is currently being run under the license of the collaboration partner, but no investments in the Chinese markets have been undertaken. The collaborations with the other Asian operator is yet to come into force, due to uncertainties regarding legislation and regulations. It is still too difficult to predict when the projects will begin to generate material revenues.
During the quarter, Betsson has launched three new B2B collaborations. The first is with Arsenal, in which the brand name, Gunners Gaming by Betsson, was launched at www.gunnersgaming.com. The second collaboration, targeted at the regulated British market, is the launch of a niche casino offering on the web site www.harrycasino.com. The third collaboration, with a primary focus on sports betting and targeted at the Portuguese market, was launched during the third quarter on the web site www.dhoze.com. Management is of the opinion that these collaborations will, in total, begin to provide positive contributions towards the end of 2012. Furthermore, Management believes that the Company has good opportunities to sign additional collaboration agreements over the next twelve month period.
Group revenue amounted to SEK 1,221,4 (1,118,9) million, equivalent to an increase of 9 percent. The underlying growth in gaming activity is significantly higher than what is reflected in reported revenues. The explanation for this has its origins in the divestment of the Turkish customer base and the effects of this divestment on the financial reports. Gross profit amounted to SEK 995.6 (890.6) million, which corresponds to an increase of 12 percent. Operating income increased to SEK 387.4 (252.9) million and the operating margin was 31.7 (22.6) percent. Income before tax increased to SEK 382.5 (253.8) million and net income increased to SEK 362.0 (240.5) million, equivalent to SEK 9.08 (6.13) per share.
The amortization of capitalized development costs exceed capitalizations with SEK 10.5 (2.8) million, which has a negative impact in the income statement.
Income from financial items amounts to SEK minus 4.9 (plus 0.9) million. Of this amount, SEK minus 6 million can be explained by the difference in market value between the valuation date and the delivery date for shares supplied in conjunction with the payment of the purchase consideration to the previous owners of Betsafe.
Betsson's subsidiary on Malta offers Internet gaming to end customers via partner co-operation and its own gaming portals www.betsson.com, www.betsafe.com, www.casinoeuro.com and www.cherrycasino.com. Betsson also offers system solutions to other operators.
Gross profit in Casino during the second quarter amounted to SEK 275.1 (174.1) million, which represented 71 (58) percent of the Group's total gross profit.
Gross profit in Sportsbook during the quarter amounted to SEK 84.1 (89.5) million. Gross profit includes SEK 59.6 (-) million regarding license revenues from B2B. Sportsbook's share of the Group's gross profit amounted to 22 (30) percent. The underlying activity in Sportsbook has never been higher. Gross turnover in Sportsbook, in all of Betsson's gaming solutions, amounted to SEK 1 816.6 (1 215.7) million, which is equivalent to an increase of 49 percent compared with the strong third quarter during the previous year. Gross turnover in Live betting in Sportsbook including all of Betsson's gaming solutions amounted to SEK 1 072.4 (733.7) million, equivalent to an increase of 46 percent. The gross margin after free bets in B2C in Sportsbook amounted to 7.6 (8.6) percent.
Gross profit in Poker during the quarter amounted to SEK 21.5 (24.4) million. Gross profit in Other products amounted to SEK 8.4 (13.6) million during the third quarter.
Customer deposits vary between the quarters but, in a longer perspective, the deposits show a strong
correlation with the activities in Betsson's various offerings. During the third quarter, a total of SEK 1,122.6 (913.6) million was deposited, which is an increase of 23 percent. Deposits in all of Betsson's gaming solutions amounted to SEK 1 483.6 (913.6) million during the quarter, which is equivalent to ATH with an increase of 62 percent.
At the end of the quarter, the number of registered customers, amounted to 3.4 (2.8) million players, which is equivalent to an increase of 21 percent. The number of active customers during the quarter amounted to 382,900 (255,700).
An active customer is defined as a customer who has played for cash during the last three months. This definition also includes players who have played on the basis of free of charge offerings.
Equity in the Group amounted to SEK 1,212.2 (704.6) million, equivalent to SEK 29.29 (17.95) per share. Equity has increased by SEK 137.2 million during the quarter, attributable to an issue in kind for the payment of supplementary purchase consideration to the previous owners of Betsafe.
At the end of the quarter, liquid funds amounted to SEK 490.3 (377.3) million. Customer liabilities including the provision for earned jackpots, amounted to SEK 313.8 (165.4) million. The Group's current receivables with payment providers referring to unsettled client payments amounted to SEK 234.8 (242.5) million.
At the end of the interim period, there was a total of 378 (276) employees, of which 95 individuals have been added through the acquisition of Betsafe. The average number of employees during the period was 317 (266) in the Group, of which 236 (190) were employed in Malta.
In addition to these employees, the Group had, at the end of the quarter, 171 consultants employed on a fulltime basis, of which 70 were based in Kiev and Manila.
The operations of the Parent Company, Betsson AB (publ), consist of the ownership and administration of shares in companies through which Betsson, itself or through partner co-operation, offer games to end users via the Internet. The Company provides and sells internal services to certain Group companies regarding finance, accounting and administration.
Net sales for the interim period amounted to SEK 11.3 (12.0) million and net loss amounted to SEK -29.2 (-23.0) million.
The Parent Company's investments in tangible fixed assets amounted to SEK 0.7 (5.2) million during the period. In addition, the Company has acquired
Betsafe. See page 9 for further details. Liquid funds amounted to SEK 183.4 (291.7) million.
The Company's Class B shares are listed on the NASDAQ OMX NORDIC MID CAP LIST, (BETS). At the end of the period, the Company had 11,936 (11,970) shareholders. The largest owners (owners with more than 10 percent of votes) were Per Hamberg with 8.5 percent of the capital and 20.8 percent of votes, the Knutsson family with 6.1 percent of capital and 10.8 percent of votes and Rolf Lundström, with 3.7 percent of capital and 10.2 percent of votes.
In May 2008, Betsson opened a betting shop in Stockholm. The Swedish Gaming Board was of the opinion that the shop's operations were in conflict with the Lotteries Act and demanded, with threat of a fine, that the shop should stop marketing gaming activities. This decision was appealed by Betsson on several occasions and, in 2009, the Administrative Court of Appeal informed of its decision that the shop should cease to market gaming activities. However, after a further appeal, the Supreme Administrative Court informed that they had accepted Betsson's claim for suspension of implementation, which concretely implied that Betsson, once again, had the right to undertake operations whilst waiting for the Administrative Court of Appeal's decision to come into effect or the Supreme Administrative Court granting leave to appeal. The shop was reopened in January 2010. In September 2010, the Supreme Administrative Court notified that they did not grant leave to appeal which meant, concretely, that the Administrative Court of Appeal's decision remained in effect and, therefore, Betsson closed the shop. On 22 December 2010, the shop opened for the third time, in compliance with the Gaming Board's injunction from 2008, which implied that none of Betsson's marketing designs or logotypes can be displayed in the shop.
On 2 September 2010, the County Administrative Court in Stockholm ruled against Betsson's claims for damages of SEK 102 million against the Government. Betsson argue that in 1997, the Government, in breach of applicable law, applied a ban on wheel of fortune games which has negatively impacted the financial position of Betsson. The County Administrative Court agreed that the Government had acted in breach of applicable EU law, but that this was not sufficient for the Government to be forced to pay claims for damages. Betsson has appealed this decision to the Svea Court of Appeal and has been granted leave to appeal. The case is due to go before the Court of Appeal on 1 November 2011.
Betsson holds own shares amounting to 4,222 Class B shares, acquired before 2011 at an average rate of SEK 58.27.
The number of shares and votes in Betsson amount to 41,394,392 and 90,174,392, respectively, of which
5,420,000 are Class A shares representing 10 votes per share and 35,974,392 are Class B shares, representing 1 vote per share.
The activity level going into the fourth quarter is stable, with revenues somewhat over the monthly average revenue in the third quarter.
On 17 October, Betsson applied for a gaming license for the Danish market.
There have been no other significant events after the end of the interim period.
Betsson complies with the IFRS standards adopted by the EU, as well as with the interpretations of those standards (IFRIC). This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's Recommendation RFR 2.
Betsson's B2C segment is defined as games by players acquired by the Company itself and games from players originating from Betsson's network of affiliated websites (www.affiliatelounge.com). Betsson classes anything which cannot be included in these categories as B2B. therefore, partner markets under the brand name www.betsson.com, among other things, are included in the B2B segment.
During 2011, Betsson began to report licensing revenues for a section of their operations in which the provision and operation of a technological platform is undertaken by a third party.
In other respects, the accounting principles remain unchanged from the preparation of the Annual Report for 2010. Further information regarding the Group's accounting and valuation principles can be found in Note 2 of the Annual Report for 2010, which is available at www.betssonab.com or at the head office.
The legal situation regarding online gaming is constantly changing in different geographical areas. There is continued pressure on countries in the EU to bring their legislation in line with applicable EU law, with unrestricted mobility for 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 into Betsson's main markets, although there are signs pointing to regulation on the Danish market being introduced during 2012.
New legislation could lead to that market conditions, regarding for example changes in taxes, product range and local licensing fees, may have a negative impact on Betsson's profitability. Meanwhile new
legislation may lead to a significant growth for Betsson's gaming markets, as well as provide Betsson with increased opportunities for marketing and an increased presence on the market.
The European Court of Justice has recently made a ruling on Internet gaming (Carmen Media, Marcus Stoss, WinnerWetten and Engelman), further strengthening the obligations for national monopolies to comply with applicable EU law. The major purpose, today, for having national monopolies is to generate cash inflows to the states, and this leads to the fact that this limitation on the free movement of services created by the states cannot be defended in compliance with applicable EU law. The conclusion is that, based on these new rulings, it will be more difficult for domestic courts to rule within the "margin of appreciation" in favor of the monopolies. Betsson conclude that these rulings will continue to be an important precedent for other court cases as regards whether local monopoly legislations in other EU/EEC countries are in breach of applicable EU law.
At the start of June 2010, Norway introduced its ban on promoting games organized from abroad. This ban impacts banks, in that payment services for transactions to gaming companies made using debit and credit cards, have been classified as unlawful.
In Sweden, a public inquiry on gaming was undertaken in December 2008, preceding the introduction of new gambling legislation. This proposed new legislation has met hard criticism. Betsson's view is that this law would be in conflict with EU law and that it will not, in the end, be introduced in its proposed form.
After the divestment of the Turkish customer base, Betsson also has license revenues for system delivery to a gaming operator, which is reported in the segment B2B. Parts of this revenue derive from players in Turkey. Revenues arising from Turkey may be considered to have higher operational risk than revenues from other markets.
A deeper description of above risks and other risks and uncertainties can be found in the Annual Report for 2010.
No transactions significantly affecting Betsson's financial position and results for the year have been undertaken between Betsson and related parties.
Betsson is of the opinion that the online gaming market will continue to develop strongly. A considerable portion of the world´s citizens still have no or limited access to the Internet. The number of Internet users is growing rapidly, which is a fundamental driver for the business. The confidence in Internet and e-commerce is increasing as more people use the Internet to perform their banking and stock market transactions, insurance business and other purchases. This changing behavior and increasing confidence in e-commerce is important for the online gaming industry.
H2 Gambling Capital stated in its forecast in January 2011 that the European Internet gaming market will increase by 15.2 percent to USD 15.3 billion during 2011. Betsson intends to continue growing at a rate faster than the market.
Betsson is a stronger company after the acquisition of Betsafe. ATH in customer deposits and general high activity in Betsson's gaming sites indicate continued healthy growth.
In accordance with the resolution made by the annual general meeting of shareholders in Betsson held on 12 May 2011, the members of the Nomination Committee have been appointed prior to the annual general meeting for 2012. The following individuals comprise the Nomination Committee:
The Nomination Committee is tasked with presenting proposals, before the forthcoming annual general meeting for 2012, as regards the number of Board members to be elected by the meeting, Board fees, the composition of the Board, the Chairman of the Board and the Chairman of the annual general meeting. Furthermore, the Nomination Committee is to present a proposal for new directives for the Nomination Committee for the following annual general meeting.
The annual general meeting of annual general meeting of shareholders in Betsson AB will be held on Thursday, 11 May 2012, in Stockholm (Information regarding the time and location will be provided at a later date).
Shareholders wishing to submit proposals for the Nomination Committee may do so via email to [email protected] or by post To the address; Betsson AB, Valberedning, Regeringsgatan 28, 111 53 Stockholm.
Betsson intends to make its Year-end Report for 2011 (fourth quarter) public on 10 February 2012.
Today, Friday 28 October, at 09.00 CET, Betsson's CEO Magnus Silfverberg will present the Interim Report through webcast at www.betssonab.com or http://storm.zoomvisionmamato.com/player /betsson/objects/3fdkj8qs or by phone at +46 (0)8 505 598 53 (Sweden) or +44 (0)20 3043 2436 (UK). The presentation will be in English and will be followed by a question and answer session.
A copy of the presentation will be available at www.betssonab.com from Friday 28 October.
Magnus Silfverberg President and CEO Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.
PricewaterhouseCoopers AB
Michael Bengtsson Authorised Public Accountant
This document is a translation of the Swedish original.
Betsson AB (publ), Regeringsgatan 28, SE-111 53 Stockholm Registered office: Stockholm, Corporate ID no. 556090-4251
For more information, please contact: Magnus Silfverberg, President and CEO Tel, +46 702714700, [email protected] or Fredrik Rüdén, CFO, Tel, +46 733-11 72 62, +46 8-506 403 63, [email protected].
The information in this Interim Report is information which Betsson AB (Publ) shall publish in accordance with the Securities Market Act and /or the Financial Instruments Trading Act. The information was presented for publication on 28 October 2011, 07:30 CET.
We have reviewed this report for the period 1 January 2011 to 30 September 2011 for Betsson AB (publ). The board of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
| Consolidated Income Statement (MSEK) | Q3 | Q3 | Jan-Sep | Jan-Sep | Full year |
|---|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | 2010 | |
| Revenues | 465.7 | 385.1 | 1 221.4 | 1 118.9 | 1 603.2 |
| Cost of Sale | -76.6 | -83.5 | -225.8 | -228.3 | -321.1 |
| Gross Profit | 389.1 | 301.6 | 995.6 | 890.6 | 1282.1 |
| Marketing expenses | -100.6 | -124.0 | -291.7 | -364.5 | -527.7 |
| Personnel expenses Other external expenses |
-60.5 -56.5 |
-39.6 -39.0 |
-140.7 -159.3 |
-132.4 -114.3 |
-179.6 -160.1 |
| Capitalized development costs | 9.4 | 7.3 | 28.0 | 26.4 | 35.7 |
| Depreciation | -21.9 | -12.5 | -51.5 | -35.6 | -49.7 |
| Other operating income | -3,0 | 4.4 | 16,9 | 11.0 | 9.9 |
| Other operating expenses | -3.2 | -17.5 | -9,9 | -28.3 | -30.0 |
| Operating expenses | -236.3 | -220.9 | -608.2 | -637.7 | -901.5 |
| Operating income | 152.8 | 80.7 | 387.4 | 252.9 | 380.6 |
| Financial items. net | -6.3 | 0.0 | -4.9 | 0.9 | 1.9 |
| Income before tax | 146.5 | 80.7 | 382.5 | 253.8 | 382.5 |
| Tax | -8.1 | -4.4 | -20.5 | -13.3 | -16.8 |
| Net income | 138.4 | 76.3 | 362.0 | 240.5 | 365.7 |
| Earnings per share before dilution (SEK) | 3.40 | 1.94 | 9.08 | 6.13 | 9.32 |
| Earnings per share after dilution (SEK) | 3.40 | 1.94 | 9.07 | 6.12 | 9.32 |
| Operating margin (percent of Revenues) | 32.8 | 21.0 | 31.7 | 22.6 | 23.7 |
| Operating margin (percent of Gross Profit) | 39.3 | 26.8 | 38.9 | 28.4 | 29.7 |
| Profit margin (percent) | 31.5 | 21.0 | 31.3 | 22.7 | 23.9 |
| Average number of outstanding shares (millions) Number of outstanding shares at end of period |
40.7 | 39.2 | 39.9 | 39.2 | 39.2 |
| (millions) | 41.4 | 39.2 | 41.4 | 39.2 | 39.3 |
| Return on equity (percent) | 36 | 32 | 44 | ||
| Return on total capital (percent) | 21 | 19 | 26 | ||
| Return on capital employed (percent) | 21 | 19 | 27 | ||
| Consolidated Statement of | Q3 | Q3 | Jan-Sep | Jan-Sep | Full year |
| Comprehensive Income (MSEK) | 2011 | 2010 | 2011 | 2010 | 2010 |
| Net income | 138.4 | 76.3 | 362.0 | 240.5 | 365.7 |
| Other comprehensive income | |||||
|---|---|---|---|---|---|
| Exchange differencies on translating foreign operations | 19.8 | -5.6 | 25.8 | -4.9 | -10.3 |
| Other comprehensive income of the period (after tax) | 19.8 | -5.6 | 25.8 | -4.9 | -10.3 |
| Total comprehensive income for the period | 158.2 | 70.7 | 387.8 | 235.6 | 355.4 |
| Consolidated Balance Sheet (MSEK | 2011-09-30 | 2010-09-30 | 2010-12-31 |
|---|---|---|---|
| Intangible fixed assets | 1 024.2 | 452.6 | 450.2 |
| Tangible fixed assets | 29.4 | 20.3 | 25.7 |
| Deferred tax receivables Long-term receivables |
6.2 - |
0.7 - |
6.1 - |
| Total non-current assets | 1 059.8 | 473.6 | 482.0 |
| Current receivables | 650.4 | 446.8 | 509.0 |
| Cash and liquid assets Total current assets |
490.3 1 140.7 |
377.3 824.1 |
497.1 1 006.1 |
| Total assets | 2 200.5 | 1 297.7 | 1 488.1 |
| Equity | 1 212.2 | 704.6 | 825.6 |
| Deferred tax liabilities | 8.7 | 3.6 | 4.2 |
| Total non-current liabilities | 8.7 | 3.6 | 4.2 |
| Other current liabilities | 979.6 | 589.5 | 658.3 |
| Total current liabilities | 979.6 | 589.5 | 658.3 |
| Total equity and liabilities | 2 200.5 | 1 297.7 | 1 488.1 |
| Consolidated Cash Flow Statement (MSEK) | Jan-Sep 2011 |
Jan-Sep 2010 |
Full year 2010 |
| Income after financial items | 382.5 | 253.8 | 382.5 |
| Adjustments for non-cash items | 55.8 | 61.5 | 73.6 |
| Taxes paid Cash flows from operating activities |
2.8 | -17.6 | -18.9 |
| before changes in working capital | 441.1 | 297.7 | 437.2 |
| Changes in working capital | 60.1 | -40.1 | -40.7 |
| Cash flows from operating activities | 501.2 | 257.6 | 396.5 |
| Investments | -55.6 | -28.5 | -44.9 |
| Sale of intangible assets Acquisition of shares. subsidiaries |
17.1 -203.8 |
- - |
- - |
| Cash flows from investing activities | -242.3 | -28.5 | -44.9 |
| Redemption of shares | -275.8 | -353.2 | -353.2 |
| Cost of Share Redemption Program | -0.1 | -0.2 | -0.2 |
| Share issue at exercise of warrants | - | - | 7.5 |
| Payment at exercise of options | -0.6 | - | -6.7 |
| Premiums received for warrants | - | 1.4 | 1.4 |
| Cash flows from financing activities | -276.5 | -352.0 | -351.2 |
| Changes to cash and liquid assets | -17.6 | -122.9 | 0.4 |
| Cash and liquid assets at beginning of period | 497.1 | 529.1 | 529.1 |
| Exchange rate differences Cash and liquid assets at end of period |
10.8 490.3 |
-28.9 377.3 |
-32.4 497.1 |
| Change in Group Equity (MSEK) | Jan-Sep | Jan-Sep | Full year |
| 2011 | 2010 | 2010 | |
| Opening balance | 825.6 | 820.4 | 820.4 |
| Total comprehensive income for the period | 387.8 | 235.6 | 355.4 |
| Total change. excluding transactions | |||
| with company owners | 387.8 | 235.6 | 355.4 |
| Share Redemption | -275.8 | -353.2 | -353.2 |
| Cost of Share Redemption Program after tax Share issue at exercise of warrants |
-0.1 274.6 |
-0.2 - |
-0.2 7.5 |
| Payment at exercise of options | -0.5 | - | -6.7 |
| Premiums received for warrants | - | 1.4 | 1.4 |
| Share options - value of employee services | 0.6 | 0.6 | 1.0 |
| Equity at end of period | 1 212.2 | 704.6 | 825.6 |
| Attributable to: Parent company's shareholders |
1 212.2 | 704.6 | 825.6 |
| Minority Interest | - | - | - |
| Total equity | 1 212.2 | 704.6 | 825.6 |
On 13 May 2011, Betsson AB stated that the Company was to acquire 100 percent of the shares in Betsafe. Betsson AB stated on 15 June 2011 that the acquisition had been completed, implying that the controlling influence over Betsafe's operations was transferred to Betsson on the same date.
The acquisition increases Betsson's presence and facilitates continued positive growth in Betsson's core markets in the Nordic countries. Seen from a longer perspective, the acquisition creates good premises for an efficient cost structure through synergy effects.
No portion of reported goodwill is expected to be tax deductible upon taxation of income. The acquired customer base amounts to EUR 2.5 million and the ongoing amortization of this will impact the group's net income for a period of two years. The table below displays the purchase consideration paid and the fair value of the acquired assets and assumed liabilities.
| (MEUR) | (MSEK) | |
|---|---|---|
| Purchase consideration | ||
| Cash and cash equivalents | 27.1 | 248.2 |
| Equity instruments (918.824 class B shares) | 14.4 | 131.4 |
| Total purchase consideration paid | 41.5 | 379.6 |
| Paid supplementary purchase | ||
| Equity instruments (1056.403 class B shares) |
15.0 | 137.2 |
| Remaining supplementary purchase | ||
| Supplementary purchase consideration | 12.5 | 114.4 |
| Total purchase consideration | 69.0 | 631.2 |
| Reported values of identifiable | ||
| acquired assets and assumed liabilities | ||
| Cash and cash equivalents | 4.8 | 44.4 |
| Tangible fixed assets | 0.5 | 4.5 |
| Customer base |
2.5 | 22.9 |
| Brand name | 7.4 | 67.7 |
| Other intangible assets | 0.8 | 7.1 |
| Long term receivables | 0.0 | 0.1 |
| Current receivables | 9.9 | 90.3 |
| Long-term liabilities | -0.5 | -4.5 |
| Current liabilities | -7.9 | -72.7 |
| Total identifiable net assets | 17.5 | 159.8 |
| Goodwill | 51.5 | 471.4 |
Betsafe was consolidated as a wholly-owned subsidiary as of 15 June 2011. Since this date, Betsafe has contributed to the Group's gross profit in an amount of SEK 118.7 million and to the Group's net income in an amount of SEK 40.9 million. In the third quarter Betsafe´s gross profit amounted to SEK 102.1 million and Betsafe´s operating income amounted to SEK 36.6 million.
The Group's net income during the second quarter has been negatively impacted by acquisition-related expenses of SEK 10.1 million, which refer to financial and legal advisory services and which are reported under Other external expenses.
Had Betsafe been a subsidiary for the entire interim period, Betsson's gross profit would have amounted to SEK 1,141.0 million instead of actual SEK 995.6 million and operating income to SEK 428.8 million instead of actual SEK 387.4 million, excluded acquisition cost of SEK 10.1 million but including amortization of customer base amounting to SEK 8.9 million. Betsafe's gross profit during the interim period amounted to SEK 264.2 million and Betsafe's net income during the interim period amounted to SEK 72.3 million.
The purchase consideration is divided between an initial portion and supplementary purchase consideration.
The initial portion of the purchase consideration for the operations in Betsafe amounted to SEK 34.0 million, comprised of cash and cash equivalents at a value of EUR 19.6 million and class B shares in Betsson at a value of EUR 14.4 million, corresponding to 234,555 shares held by the Company and 684,269 newly-issued shares, which were delivery to the sellers on 15 June. Thereby, the total initial portion of the purchase consideration amounts to EUR 34 million. In addition, Betsson paid EUR 7.5 million regarding acquired cash and cash equivalents and acquired net income. The total initial portion of the purchase consideration amounts to EUR 41.5 million, comprised of EUR 27.1 million of cash and cash equivalents and EUR 14.4 million of class B shares in Betsson. During the third quarter, a portion of the supplementary purchase consideration in an amount of EUR 15.0 million was paid, by means of the transfer of 1,056,403 class B shares in Betsson.
Betsson retains the right to provide potential remaining supplementary purchase consideration in the form of cash or the Company's own shares. The total supplementary purchase consideration amounts to approximately EUR 12.5 million, implying that the total purchase consideration for the operations may amount to EUR 61.5 million and the total purchase consideration (including the acquisition of cash and cash equivalents and acquired net income) may amount to approximately EUR 69.0 million. Any possible change to the market value of the shares after the date of valuation will be reported in the income statement.
The criteria for any additional purchase consideration are based on the achievement of pre-determined performance targets for 2011. Against the background of Betsafe's strong development during the first three quarters, and the lack of any indication that this development will subside during the fourth quarter, Management is of the opinion that it is likely that the entire purchase consideration will have been paid by the end of the first quarter of 2012.
| Parent Company Income Statement (MSEK) |
Jan-Sep 2011 |
Jan-Sep 2010 |
Full year 2010 |
|---|---|---|---|
| Revenues | 11.3 | 12.0 | 16.3 |
| Operating expenses | -52.1 | -43.5 | -57.8 |
| Operating Income | -40.8 | -31.5 | -41.5 |
| Financial items | 1.2 | 0.7 | 361.7 |
| Income before tax | -39.6 | -30.8 | 320.2 |
| Tax | 10.4 | 7.8 | 8.9 |
| Net income | -29.2 | -23.0 | 329.1 |
| Parent Company Balance Sheet (MSEK) |
2011-09-30 | 2010-09-30 | 2010-12-31 |
|---|---|---|---|
| Tangible fixed assets Financial assets |
5.4 1 224.9 |
6.3 583.6 |
6.0 590.8 |
| Total non-current assets | 1 230.3 | 589.9 | 596.8 |
| Current receivables Cash and liquid assets |
32.7 183.4 |
143.8 291.7 |
374.4 283.0 |
| Total current assets | 216.1 | 435.5 | 657.4 |
| Total assets | 1 446.4 | 1 025.4 | 1 254.2 |
| Restricted equity Unrestricted equity |
336.0 718.8 |
332.4 387.3 |
332.6 753.1 |
| Total equity | 1 054.8 | 719.7 | 1 085.7 |
| Untaxed reserves | 0.4 | 0.4 | 0.4 |
| Current liabilities | 391.2 | 305.3 | 168.1 |
| Total equity and liabilities | 1 446.4 | 1 025.4 | 1 254.2 |
| Consolidated Income Statement (MSEK) | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| (Continuing operations) | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Revenues | 465.7 | 338.2 | 417.4 | 484.3 | 385.1 | 366.1 | 367.7 | 382.9 | 316.7 | 284.6 | 315.5 |
| Cost of Sale | -76.6 | -62.6 | -86.6 | -92.8 | -83.5 | -74.4 | -70.4 | -70.7 | -63.7 | -60.5 | -59.8 |
| Gross Profit | 389.1 | 275.6 | 330.8 | 391.5 | 301.6 | 291.7 | 297.3 | 312.2 | 253.0 | 224.1 | 255.7 |
| Marketing expenses | -100.6 | -70.9 | -120.2 | -163.2 | -124.0 | -120.3 | -120.2 | -136.4 | -104.4 | -86.1 | -113.1 |
| Personnel expenses | -60.5 | -37.2 | -43.0 | -47.2 | -39.6 | -47.4 | -45.4 | -43.9 | -34.9 | -39.3 | -32.3 |
| Other external expenses | -56.5 | -56.7 | -46.1 | -45.8 | -39.0 | -39.0 | -36.3 | -38.9 | -34.6 | -37.7 | -39.7 |
| Capitalized development costs | 9.4 | 7.5 | 11.1 | 9.3 | 7.3 | 9.2 | 9.9 | 14.9 | 12.2 | 12.5 | 13.7 |
| Depreciation | -21.9 | -15.7 | -13.9 | -14.1 | -12.5 | -12.0 | -11.1 | -10.6 | -9.6 | -8.9 | -7.5 |
| Other operating income | -3.0 | -0.4 | 20.3 | -1.1 | 4.4 | 1.9 | 4.7 | -3.2 | 8.7 | 10.7 | 5.2 |
| Other operating expenses | -3.2 | 0.5 | -7.2 | -1.7 | -17.5 | 3.9 | -14.7 | -0.6 | -11.0 | -13.7 | 0.4 |
| Operating expenses | -236.3 | -172.9 | -199.0 | -263.8 | -220.9 | -203.7 | -213.1 | -218.7 | -173.6 | -162.5 | -173.3 |
| Operating income | 152.8 | 102.7 | 131.8 | 127.7 | 80.7 | 88.0 | 84.2 | 93.5 | 79.4 | 61.6 | 82.4 |
| Financial items. net | -6.3 | 0.6 | 0.8 | 1.0 | 0.0 | 0.5 | 0.4 | 0.8 | 0.2 | 0.4 | 0.6 |
| Income before tax | 146.5 | 103.3 | 132.6 | 128.7 | 80.7 | 88.5 | 84.6 | 94.3 | 79.6 | 62.0 | 83.0 |
| Tax | -8.1 | -5.4 | -7.0 | -3.5 | -4.4 | -4.5 | -4.4 | -4.3 | -4.0 | -3.1 | -4.2 |
| Net income (continuing operations) | 138.4 | 97.9 | 125.6 | 125.2 | 76.3 | 84.0 | 80.2 | 90.0 | 75.6 | 58.9 | 78.8 |
| Consolidated Balance Sheet (MSEK) | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Non-current assets | 1 059.8 | 1 052.2 | 493.5 | 482.0 | 473.6 | 482.4 | 477.3 | 482.9 | 475.3 | 478.7 | 474.6 |
| Current assets | 1 140.7 | 872.8 | 1 101.2 | 1 013.6 | 824.1 | 1 026.0 | 937.6 | 909.3 | 728.1 | 607.6 | 802.3 |
| Total assets | 2 200.5 | 1 925.0 | 1 594.7 | 1 495.6 | 1 297.7 | 1 508.4 | 1 414.9 | 1 392.2 | 1 203.4 | 1 086.3 | 1 276.9 |
| Equity | 1 212.2 | 910.5 | 952.3 | 825.6 | 704.6 | 632.5 | 903.3 | 820.4 | 728.1 | 657.8 | 798.9 |
| Non-current liabilities | 8.7 | 8.7 | 4.1 | 4.2 | 3.6 | 3.9 | 4.1 | 4.5 | 4.0 | 4.3 | 4.3 |
| Current liabilities | 979.6 | 1 005.8 | 638.3 | 665.8 | 589.5 | 872.0 | 507.5 | 567.3 | 471.3 | 424.2 | 473.7 |
| Total equity and liabilities | 2 200.5 | 1 925.0 | 1 594.7 | 1 495.6 | 1 297.7 | 1 508.4 | 1 414.9 | 1 392.2 | 1 203.4 | 1 086.3 | 1 276.9 |
| Consolidated Cash Flow Statement (MSEK) | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| (Continuing operations) | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Operating cashlow | 368.1 | 83.0 | 50.1 | 138.9 | 227.2 | 18.5 | 11.9 | 149.9 | 129.6 | 65.0 | 80.4 |
| Cashflow from investing activities | -79.2 | -154.5 | -8.6 | -16.4 | -5.3 | -17.0 | -6.2 | -19.9 | -6.3 | -12.8 | -19.5 |
| Cashflow from financing activities | 0.0 | -276.5 | 0.0 | 0.8 | -351.9 | -0.1 | 0.0 | 0.0 | 0.0 | -200.3 | 0.0 |
| Totals | 288.9 | -348.0 | 41.5 | 123.3 | -130.0 | 1.4 | 5.7 | 130.0 | 123.3 | -148.1 | 60.9 |
| Key Ratios | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| (Continuing operations) | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Quarterly top-line growth (%) | 38 | -19 | -14 | 26 | 5 | 0 | -4 | 21 | 11 | -10 | -2 |
| Growth compared to same period last year (%) | 21 | -8 | 14 | 26 | 22 | 29 | 17 | 19 | 26 | 20 | 38 |
| Gross Margin (percent of Revenues) | 83.6 | 81.5 | 79.3 | 80.8 | 78.3 | 79.7 | 80.9 | 81.5 | 79.9 | 78.7 | 81.0 |
| EBITDA-margin (percent of Revenues) | 37.5 | 35.0 | 34.9 | 29.3 | 24.2 | 27.3 | 25.9 | 27.2 | 28.1 | 24.8 | 28.5 |
| EBITDA-margin (percent of Gross Profit) | 44.9 | 43.0 | 44.0 | 36.2 | 30.9 | 34.3 | 32.1 | 33.3 | 35.2 | 31.5 | 35.2 |
| EBIT-margin (percent of Revenues) | 32.8 | 30.4 | 31.6 | 26.4 | 21.0 | 24.0 | 22.9 | 24.4 | 25.1 | 21.6 | 26.1 |
| EBIT-margin (percent of Gross Profit) | 39.3 | 37.3 | 39.8 | 32.6 | 26.8 | 30.2 | 28.3 | 29.9 | 31.4 | 27.5 | 32.2 |
| Profit margin (percent of Revenues) | 31.5 | 30.5 | 31.8 | 26.6 | 21.0 | 24.2 | 23.0 | 24.6 | 25.1 | 21.8 | 26.3 |
| Profit margin (percent of Gross Profit) | 37.7 | 37.5 | 40.1 | 32.9 | 26.8 | 30.3 | 28.5 | 30.2 | 31.5 | 27.7 | 32.5 |
| Marketing expenses (percent of Revenues) | 21.6 | 21.0 | 28.8 | 33.7 | 32.2 | 32.9 | 32.7 | 35.6 | 33.0 | 30.3 | 35.8 |
| Marketing expenses (percent of Gross Profit) | 25.9 | 25.7 | 36.3 | 41.7 | 41.1 | 41.2 | 40.4 | 43.7 | 41.3 | 38.4 | 44.2 |
| Earnings per share (SEK) | 3.40 | 2.47 | 3.19 | 3.19 | 1.94 | 2.14 | 2.04 | 2.29 | 1.93 | 1.50 | 2.01 |
| Operating cashflow per share (SEK) | 9.05 | 2.10 | 1.27 | 3.54 | 5.79 | 0.47 | 0.30 | 3.82 | 3.30 | 1.66 | 2.05 |
| Equity per share (SEK) | 29.29 | 22.58 | 24.17 | 20.96 | 17.95 | 16.12 | 23.02 | 20.91 | 18.54 | 16.75 | 20.35 |
| Executed dividend/redemption per share (SEK) | - | 7.00 | - | - | - | 9.00 | - | - | - | 5.10 | - |
| Average share price (SEK) | 132.91 | 142.49 | 126.03 | 103.37 | 94.73 | 109.65 | 122.36 | 111.59 | 91.35 | 91.79 | 87.92 |
| Last paid share price (SEK) | 129.50 | 151.00 | 139.25 | 117.00 | 96.25 | 89.25 | 124.00 | 109.75 | 109.25 | 87.25 | 91.50 |
| Highest share price (SEK) | 157.50 | 162.00 | 141.50 | 117.75 | 101.50 | 130.50 | 134.25 | 121.00 | 109.75 | 103.00 | 105.25 |
| Lowest share price (SEK) | 109.75 | 126.50 | 112.75 | 94.25 | 87.00 | 89.25 | 110.00 | 102.75 | 77.50 | 78.00 | 67.75 |
| Equity/asset ratio (percent) | 55 | 47 | 60 | 55 | 54 | 42 | 64 | 59 | 60 | 61 | 63 |
| Investments (MSEK) | 29.5 | 12.0 | 14.2 | 16.4 | 5.2 | 17.1 | 6.2 | 19.9 | 6.3 | 12.8 | 19.5 |
| Average number of employees (accumulated) Number of employees at end of period Number of registered shareholders at end of |
317 378 |
282 385 |
266 278 |
268 282 |
266 276 |
266 275 |
261 276 |
225 258 |
210 251 |
197 225 |
182 196 |
| period | 11 936 | 11 151 | 11 105 | 11 484 | 11 970 | 11 782 | 10 677 | 9 905 | 8 316 | 7 826 | 6 413 |
| Customers | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Registered Customers (thousands) | 3 424.1 | 3 229.5 | 2 587.3 | 3 158.2 | 2 833.9 | 2 719.3 | 2 414.9 | 2 117.8 | 1 916.7 | 1 777.1 | 1 629.1 |
| Quarterly growth (%) | 6 | 25 | -18 | 11 | 4 | 13 | 14 | 10 | 8 | 9 | 9 |
| Growth compared to same period last year (%) | 21 | 19 | 7 | 49 | 48 | 53 | 48 | 41 | 42 | 44 | 42 |
| Active Customers (thousands) | 382.9 | 335.9 | 335.5 | 300.5 | 255.7 | 288.7 | 318.6 | 288.7 | 220.9 | 185.3 | 174.6 |
| Quarterly growth (%) | 14 | 0 | 12 | 18 | -11 | -9 | 10 | 31 | 19 | 6 | 4 |
| Growth compared to same period last year (%) | 50 | 16 | 5 | 4 | 16 | 56 | 82 | 72 | 74 | 33 | 14 |
| Activity Rate. Active/Registered customers (%) | 11 | 10 | 13 | 10 | 9 | 11 | 13 | 14 | 12 | 10 | 11 |
| Customer Deposits | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Customer Deposits (MSEK) | 1 122.6 | 756.5 | 959.0 | 1 104.5 | 913.6 | 911.1 | 964.9 | 915.7 | 823.6 | 783.1 | 735.6 |
| Quarterly growth (%) | 48 | -21 | -13 | 21 | 0 | -6 | 5 | 11 | 5 | 6 | 5 |
| Growth compared to same period last year (%) | 23 | -17 | -1 | 21 | 11 | 16 | 31 | 30 | 41 | 52 | 54 |
| Customer Deposits. all gaming solutions (MSEK) | 1 483.6 | 1 148.2 | 1 121.6 | 1 104.5 | 913.6 | 911.1 | 964.9 | 915.7 | 823.6 | 783.1 | 735.6 |
| Quarterly growth (%) | 29 | 2 | 2 | 21 | 0 | -6 | 5 | 11 | 5 | 6 | 5 |
| Growth compared to same period last year (%) | 62 | 26 | 16 | 21 | 11 | 16 | 31 | 30 | 41 | 52 | 54 |
| Sportbook Margin | 2011 Q3 |
2011 Q2 |
2011 Q1 |
2010 Q4 |
2010 Q3 |
2010 Q2 |
2010 Q1 |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Turnover. all gaming solutions (MSEK) | 1 816.6 | 1 805.0 | 1 787.5 | 1 894.1 | 1 215.7 | 1 233.1 | 1 012.8 | 755.3 | 634.9 | 644.8 | 536.5 |
| Quarterly growth (%) Growth compared to same period last year (%) |
1 49 |
1 46 |
-6 76 |
56 151 |
-1 91 |
22 91 |
34 89 |
19 45 |
-2 78 |
20 73 |
3 69 |
| Of which Gross Turnover Live Betting (MSEK) Live Betting (% of Gross Turnover Soortsbook) |
1 072.4 59.0% |
1 199.5 66.5% |
1 119.4 62.6% |
1 143.6 60.4% |
733.7 60.4% |
699.7 56.7% |
385.2 38.0% |
233.4 30.9% |
194.0 30.6% |
228.1 35.4% |
147.1 27.4% |
| Quarterly growth (%) | -11 | 7 | -2 | 56 | 5 | 82 | 65 | 20 | -15 | 55 | 20 |
| Growth compared to same period last year (%) | 46 | 71 | 191 | 390 | 278 | 207 | 162 | 90 | 430 | 236 | 198 |
| Margin after free bets (%) | 7.6% | 5.9% | 8.3% | 7.6% | 8.6% | 7.4% | 7.6% | 12.0% | 7.2% | 4.7% | 11.7% |
| Gross Profit (MSEK) | 84.1 | 41.3 | 104.3 | 128.2 | 89.5 | 78.0 | 72.0 | 82.0 | 41.4 | 25.8 | 57.4 |
| Gross Margin Sportsbook (%) 1) 1) Margin after allocated costs |
4.6% | 2.3% | 5.8% | 6.8% | 7.4% | 6.3% | 7.1% | 10.9% | 6.5% | 4.0% | 10.7% |
| Segment Reporting | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Gross Profit (MSEK) | |||||||||||
| B2B. Business to business B2C. Business to consumers |
123.0 266.1 |
123.8 151.8 |
188.4 142.4 |
238.3 153.2 |
180.0 121.6 |
154.0 137.7 |
151.8 145.5 |
150.9 161.3 |
110.6 142.4 |
84.3 139.8 |
106.6 149.1 |
| Subtotal | 389.1 | 275.6 | 330.8 | 391.5 | 301.6 | 291.7 | 297.3 | 312.2 | 253.0 | 224.1 | 255.7 |
| Others. adjustments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total Gross Profit | 389.1 | 275.6 | 330.8 | 391.5 | 301.6 | 291.7 | 297.3 | 312.2 | 253.0 | 224.1 | 255.7 |
| Share of total Gross Profit (%) | |||||||||||
| B2B | 31.6 | 44.9 | 57.0 | 60.9 | 59.7 | 52.8 | 51.1 | 48.3 | 43.7 | 37.6 | 41.7 |
| B2C | 68.4 | 55.1 | 43.0 | 39.1 | 40.3 | 47.2 | 48.9 | 51.7 | 56.3 | 62.4 | 58.3 |
| Quarterly Growth (%) | |||||||||||
| B2B | -1 | -34 | -21 | 32 | 17 | 1 | 1 | 36 | 31 | -21 | |
| B2C | 75 | 7 | -7 | 26 | -12 | -5 | -10 | 13 | 2 | -6 | |
| Totals | 41 | -17 | -16 | 30 | 3 | -2 | -5 | 23 | 13 | -12 | |
| Growth compared to same period last year (%) | |||||||||||
| B2B | -32 | -20 | 24 | 58 | 63 | 83 | 42 | ||||
| B2C | 119 | 10 | -2 | -5 | -15 | -2 | -2 | ||||
| Totals | 29 | -6 | 11 | 25 | 19 | 30 | 16 | ||||
| Gross Profit by Products | 2011 Q3 |
2011 Q2 |
2011 Q1 |
2010 Q4 |
2010 Q3 |
2010 Q2 |
2010 Q1 |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 |
| Gross Profit (MSEK) | |||||||||||
| Casino | 275.1 | 202.0 | 188.3 | 216.7 | 174.1 | 173.8 | 180.8 | 186.9 | 173.2 | 158.4 | 151.9 |
| Poker Sportsbook |
21.5 84.1 |
17.1 41.3 |
20.5 104.3 |
26.7 128.2 |
24.4 89.5 |
25.3 78.0 |
30.3 72.0 |
31.5 82.0 |
27.5 41.4 |
31.9 25.8 |
41.0 57.4 |
| Other products | 8.4 | 15.2 | 17.7 | 19.9 | 13.6 | 14.6 | 14.2 | 11.8 | 10.9 | 8.0 | 5.4 |
| Total Gross Profit | 389.1 | 275.6 | 330.8 | 391.5 | 301.6 | 291.7 | 297.3 | 312.2 | 253.0 | 224.1 | 255.7 |
| Share of total Gross Profit (%) | |||||||||||
| Casino Poker |
70.7 5.5 |
73.3 6.2 |
56.9 6.2 |
55.4 6.8 |
57.7 8.1 |
59.6 8.7 |
60.8 10.2 |
59.9 10.1 |
68.5 10.9 |
70.7 14.2 |
59.4 16.0 |
| Sportsbook | 21.6 | 15.0 | 31.5 | 32.7 | 29.7 | 26.7 | 24.2 | 26.3 | 16.4 | 11.5 | 22.4 |
| Other products | 2.2 | 5.5 | 5.4 | 5.1 | 4.5 | 5.0 | 4.8 | 3.8 | 4.3 | 3.6 | 2.1 |
| Quarterly Growth (%) Casino |
36 | 7 | -13 | 24 | 0 | -4 | -3 | 8 | 9 | 4 | |
| Poker | 26 | -17 | -23 | 9 | -4 | -17 | -4 | 15 | -14 | -22 | |
| Sportsbook | 104 | -60 | -19 | 43 | 15 | 8 | -12 | 98 | 60 | -55 | |
| Other products | -45 | -14 | -11 | 46 | -7 | 3 | 20 | 8 | 36 | 48 | |
| Total all products | 41 | -17 | -16 | 30 | 3 | -2 | -5 | 23 | 13 | -12 | |
| Growth compared to same period last year (%) | |||||||||||
| Casino | 58 | 16 | 4 | 16 | 1 | 10 | 19 | ||||
| Poker | -12 | -32 | -32 | -15 | -11 | -21 | -26 | ||||
| Sportsbook Other products |
-6 -38 |
-47 4 |
45 25 |
56 69 |
116 25 |
202 83 |
25 163 |
||||
| Total all products | 29 | -6 | 11 | 25 | 19 | 30 | 16 |
STOCKHOLM, 28 OCTOBER 2011
| B2C by Geographical Area | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Gross Profit (MSEK) | |||||||||||
| Nordic Countries | 199.4 | 115.7 | 105.5 | 114.8 | 94.4 | 97.8 | 106.6 | 125.9 | 115.9 | 109.7 | 115.0 |
| EU. outside Nordic region | 57.9 | 34.9 | 35.0 | 41.3 | 27.9 | 34.2 | 35.8 | 35.1 | 26.6 | 29.4 | 32.9 |
| Others Europe | 1.4 | 0.7 | 1.0 | -2.8 | 0.5 | 0.9 | 1.6 | 0.1 | -1.2 | 0.1 | 0.7 |
| Rest of the world | 7.4 | 0.5 | 0.9 | -0.1 | -1.2 | 4.8 | 1.5 | 0.2 | 1.1 | 0.6 | 0.5 |
| Total Gross Profit | 266.1 | 151.8 | 142.4 | 153.2 | 121.6 | 137.7 | 145.5 | 161.3 | 142.4 | 139.8 | 149.1 |
| Share of total Gross Profit (%) | |||||||||||
| Nordic Countries | 74.9 | 76.2 | 74.1 | 74.9 | 77.6 | 71.0 | 73.3 | 78.1 | 81.4 | 78.5 | 77.1 |
| EU. outside Nordic region | 21.8 | 23.0 | 24.6 | 27.0 | 22.9 | 24.8 | 24.6 | 21.8 | 18.7 | 21.0 | 22.1 |
| Others Europe | 0.5 | 0.5 | 0.7 | -1.8 | 0.4 | 0.7 | 1.1 | 0.1 | -0.8 | 0.1 | 0.5 |
| Rest of the world | 2.8 | 0.3 | 0.6 | -0.1 | -1.0 | 3.5 | 1.0 | 0.1 | 0.8 | 0.4 | 0.3 |
| Quarterly Growth (%) | |||||||||||
| Nordic Countries | 72 | 10 | -8 | 22 | -3 | -8 | -15 | 9 | 6 | -5 | |
| EU. outside Nordic region | 66 | 0 | -15 | 48 | -18 | -4 | 2 | 32 | -10 | -11 | |
| Others Europe | 100 | -30 | 136 | -660 | -44 | -44 | 1 500 | 108 | -1 300 | -86 | |
| Rest of the world | 1 380 | -44 | 1 000 | 92 | -125 | 220 | 650 | -82 | 83 | 20 | |
| Total all countries | 75 | 7 | -7 | 26 | -12 | -5 | -10 | 13 | 2 | -6 | |
| Growth compared to same period last year (%) | |||||||||||
| Nordic Countries | 111 | 18 | -1 | -9 | -19 | -11 | -7 | ||||
| EU. outside Nordic region | 108 | 2 | -2 | 18 | 5 | 16 | 9 | ||||
| Others Europe | 180 | -22 | -38 | -2 900 | 142 | 800 | 129 | ||||
| Rest of the world | 717 | -90 | -40 | -150 | -209 | 700 | 200 | ||||
| Total all countries | 119 | 10 | -2 | -5 | -15 | -2 | -2 |
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