Quarterly Report • Jul 23, 2010
Quarterly Report
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ALL FIGURES IN THIS REPORT ARE IN SEK. UNLESS OTHERWISE SPECIFIED THE FIGURES IN BRACKETS ARE THE CORRESPONDING FIGURES FOR THE PREVIOUS YEAR. THIS INFORMATION APPLIES TO THE GROUP UNLESS OTHERWISE SPECIFIED.
| Q2 2010 |
Q2 2009 |
Jan-Jun 2010 |
Jan-Jun 2009 |
Full year 2009 |
|
|---|---|---|---|---|---|
| Totals | |||||
| Revenues | 366.1 | 284.6 | 733.8 | 600.1 | 1 299.7 |
| Gross Profit | 291.7 | 224.1 | 589.0 | 479.8 | 1 045.0 |
| Operating Income | 88.0 | 61.6 | 172.2 | 144.0 | 316.9 |
| Cash | 517.8 | 287.9 | 517.8 | 287.9 | 529.1 |
| Active Customers (thousands) | 288.7 | 185.3 | 288.7 | 185.3 | 288.7 |
| Registered Customers (thousands) | 2 719.3 | 1 777.1 | 2 719.3 | 1 777.1 | 2 117.8 |
| Customer Deposits | 911.1 | 783.1 | 1 876.0 | 1 518.7 | 3 258.0 |
| Sportsbook | |||||
| Gross Turnover Sportsbook | 1 233.1 | 644.8 | 2 245.9 | 1 181.3 | 2 571.5 |
| Margin after free bets, Sportsbook | 7.4% | 4.7% | 7.5% | 7.9% | 8.9% |
| Gross Profit Sportsbook | 78.0 | 25.8 | 150.0 | 83.2 | 206.6 |
| Gross Margin Sportsbook 1) | 6.3% | 4.0% | 6.7% | 7.0% | 8.0% |
1) Margin after allocated costs
"There are two important trends in the gaming industry today. One is that Live betting in sports is increasing and second that operators are focusing in joint online gaming solutions with other companies. Betsson is well positioned as regards these trends, with a history of successful cooperation and one of the strongest growing Live betting in Sports. " says Pontus Lindwall, Betsson's President and CEO.
Today, Friday 23 July, at 09.00 CET, Betsson's CEO Pontus Lindwall will present the Interim Report through webcast at http://www.betssonab.com or
http://storm.zoomvisionmamato.com/player/betsson/objects/4sn2gt8v/ or through 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.
BETSSON AB´S CORE BUSINESS CONSISTS OF INVESTING AND ADMINISTER COMPANIES WITHIN THE GAMING BUSINESS. BETSSON AB OWNS BETSSON MALTA WHICH OPERATES GAMES THROUGH PARTNERSHIPS AND TOWARDS END CUSTOMERS, VIA THE WEBSITES WWW.BETSSON.COM, WWW.CASINOEURO.COM AND WWW.CHERRYCASINO.COM. BETSSON MALTA OFFERS POKER, CASINO, BETTING EXCHANGE, SPORTS BETTING, LOTTERY, 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 366.1 (284.6) million, corresponding to an increase of 29 percent. The gross profit was SEK 291.7 (224.1) million which is an increase of 30 percent. Operating income increased by 43 percent to SEK 88.0 (61.6) million and the operating margin was 24.0 (21.6) percent. Income before tax increased to SEK 88.5 (62.0) million and the income for the period was SEK 84.0 (58.9) million, which is equivalent to SEK 2.14 (1.50) per share.
Betsson's efforts are focused on continued profitable growth, a strategy which has positioned Betsson as one of the most successful companies in this industry. Compared to the previous year customer deposits has increased by 16 percent, gross turnover in Sportsbook by 91 percent and gross turnover in Live by 207 percent
During the second quarter, Betsson has continued to improve the offering to end users, with faster response time in the games and broader gaming possibilities. During the quarter Betsson has launched a Betsson-specific casino game and signed an agreement with Evolution Gaming regarding the launch of LiveCasino on www.CasinoEuro.com.
Marketing costs during the quarter amount to SEK 120.3 (86.1) million, corresponding to an increase of 40 percent. Marketing consists of traditional marketing and partner co-operations with variable remuneration. Marketing which derives from partners receiving variable remuneration is accompanied by a significantly lower risk than costs for traditional marketing.
Personnel expenses amounted to SEK 47.4 (39.3) million, corresponding to an increase of 21 percent. Betsson has developed into an attractive employer. Betsson offers employment in a profitable and fast-growing company where the employees are offered interesting and challenging tasks. Today, Betsson has one of the most competent and efficient organizations in this industry. Competent motivated employees are crucial in order to create and meet future growth in Europe and elsewhere in the world.
Other external expenses amounted to SEK 39.0 (37.7) million. The lower level of growth in other external expenses is to a great extent explained by successful recruitments which have contributed to a decreased dependence on external sub-contractors.
Over the past half year, the company has worked to strengthen control over costs in the group. The outcome of these efforts shows that the company has the ability to balance growth and cost control.
Betsson actively seeks to reduce the foreign exchange exposure in the group. The size of the future foreign exchange effects will be determined by when future cash flows arise, which currencies the assets and liabilities are placed in and the success of Betsson's policy to actively limit the exposure.
Betsson continuously invest in integrated payment and product solutions. Investments in the quarter amounted to SEK 17.1 (12.8) million, of which 7.1 (11.5) million corresponds to capitalized development cost. Depreciation and amortization in the quarter amounted to SEK 12.0 (8.9) million, of which 9.8 (7.3) million was amortization of capitalized development cost.
Cash flow during the quarter amounted to SEK 1.4 (-148.1) million. The automatic redemption process affected the cash flow in the third quarter negatively by SEK 353.2 million. The distribution to the shareholders 2009 affected the cash flow by SEK 200.1 million in the second quarter. Short term receivables, from payment providers has increased with SEK 148.5 million in the second quarter.
Group revenue amounted to SEK 733.8 (600.1) million, corresponding to an increase of 22 percent. The gross profit was SEK 589.0 (479.8) million an increase of 23 percent. The operating income increased to SEK 172.2 (144.0) million and the operating margin was 23.5 (24.0) percent. Income before tax increased to SEK 173.1 (145.0) million and the income for the period was SEK 164.2 (137.7) million, which is equivalent to SEK 4.18 (3.51) per share, an increase of 19 percent.
Investments during the interim period amounted to SEK 23.3 (32.3) million, of which 11.2 (30.8) million corresponds to capitalized development cost. Depreciation and amortization in the interim period amounted to SEK 23.1 (16.4) million, of which 19.2 (13.2) million was amortization of capitalized development cost.
Through its subsidiary on Malta Betsson offers Internet gaming to end customers via partners and the own gaming portals www.Betsson.com, www.CasinoEuro.com and www.CherryCasino.com.
Casino is Betsson's largest product and accounted for 59.6 (70.7) percent of the total gross profit in the quarter, followed by Sportsbook with 26.7 (11.5) percent, Poker with 8.7 (14.2) percent and Other Products, which together accounted for 5.0 (3.6) percent of gross profit.
Gross turnover in Sportsbook amounted to SEK 1 233.1 (644.8) million, of which Live betting increased with 207 percent and amounted to SEK 699.7 (227.6) million. Live betting accounted for 57 (35) percent of gross turnover. Gross margin in Sportsbook amounted to 6.3 (4.0) percent. In the second quarter, the major annual football leagues reached their conclusions and the FIFA World Cup commenced. At the beginning of the World Cup, results were hard to predict and Betsson experienced high player activity. The strategic decision to invest in Sports betting has proved to be a success. This has contributed to this product segment increasing in importance.
The favourable weather on Betsson´s major markets at the end of the second quarter has strengthened the normal seasonal variances for Poker and Casino.
Despite the warm weather in June the segment Other Products continued to perform strongly. One reason for this is the company´s successful investments in scratchcard projects in 2009.
For further details about products see page 12.
All geographical areas have demonstrated growth compared with comparable figures last year. Nordic is the largest market followed by rest of Europe and non-Nordic EU countries. Rest of the World does not yet generate any tangible revenue, but management continuously evaluates a variety of opportunities to establish Betsson in new geographical areas. Due to legal reasons, Betsson has chosen to block French citizens, this is assumed to have a marginal impact on Betsson´s profit in the future. For further details see page 12.
Customer deposits vary between quarters but represent, in the long run, a strong correlation with the activity in Betsson´s offerings. During the interim period deposits amounted to SEK 1 876.0 (1 518.7) million, which corresponds to an increase of 24 percent. During the second quarter, deposits amounted to SEK 911.1 (783.1) million, which corresponds to an increase of 16 percent. Compared with the seasonally strong previous quarter, the deposits decreased by 6 percent.
The strong inflow of new customers is proof that the overall marketing strategies in Betsson have been effective. At the end of the quarter, the number of registered customers totalled 2 719 262 (1 777 084) which represent an increase of 53 percent. Active customers totalled 288 699(185 321), an increase of 56 percent.
An active customer is defined as a customer who has played for money in the last three months. Therefore, this definition includes all players who have played free spins/bets based on offerings from Betsson or Betsson´s partners.
The group's equity amounted to SEK 632.5 (657.8) million, which is equivalent to SEK 16.12 (16.75) per share. Equity has decreased by SEK 353.2 (200.1) million as a result of the execution of the automatic redemption process. This corresponds to a transfer of SEK 9.00 (5.10) per share to the shareholders.
Cash and cash equivalents at the end of the year amounted to SEK 517.8 (287.9) million. Customer funds including reserves for accumulated jackpots were SEK 178.8 million. The customer funds are comfortably covered by the group's current receivables from payment providers for unsettled customer payments, which amount to SEK 316.7 million.
A total of 275 (225) individuals were employed by the end of the second quarter. The number of employees has increased by 17 individuals during the year. The average number of employees during the quarter was 266 (197), of which 189 (132) were based on Malta.
The operations of the parent company, Betsson AB (publ) consist of holding company activities and group administration. The company provides and sells services to certain other group companies in the areas of finance, accounting, administration and management.
Revenues for the quarter totalled SEK 8.2 (5.4) million and profit after financial items was SEK-23.2 (-0.8) million. During the interim period the income statement was negatively impacted by SEK 13.0 (revenue 8.5) million, attributable to revaluation of balance sheet items.
The Parent Company's investments during the quarter totalled SEK 5.2 (0.2) million. Liquid funds totalled SEK 375.6 (189.0) million. In the third quarter, SEK 353.2 million has been transferred to the shareholders.
The company's B-share is listed on OMX NASDAQ NORDIC MID CAP LIST, (BETS). The company had 11 782 (7 826) shareholders at the end of the period. The largest owners (with more than 10 percent of the votes) were Per Hamberg with 8.9 percent of the capital and 21.4 percent of the votes, the Knutsson family with 6.5 of the capital and 11.1 percent of the votes and Rolf Lundström with 3.9 percent of the capital and 10.5 percent of the votes.
In May 2008, Betsson opened a betting shop in Stockholm. The Gaming Board for Sweden argued these operations were contrary to the Lotteries Act and, on threat of penalty, required the shop to cease the promotion of gambling operations. This decision was appealed by Betsson (Shopsson) to the County Administrative Court. The County Administrative Court rejected the appeal, in the company's opinion in violation of EC law. Betsson then appealed the decision to the Administrative Court of Appeal. This court gave Betsson leave to appeal in January 2009 and upheld the Betsson claim for interim relief, which meant that the County Administrative Court ruling no longer applied. In December 2009 the Administrative Court of Appeal gave its ruling that once again, on threat of penalty payment, the shop must cease to promote gambling operations. Company management held fast to their view that the decision was contrary to applicable EU law and appealed once again to the Supreme Administrative Court. In order to avoid penalties, management was forced to close the shop. Two days after the shop closed the Supreme Administrative Court upheld Betsson's claim for interim relief, which in practical terms means that Betsson once again was entitled to conduct operations in anticipation of court's decision to enter into legal force or the Supreme Administrative Court to grant notice to appeal. The shop was opened again in January 2010.
On September 22 the police made a house search in the purpose to investigate if illegal gambling was taking place in the shop. Betsson´s view is that all gaming activities in the group are operated on Malta. The preliminary investigation continues and is expected to be completed within next six months.
Betsson holds own shares amounting to 310 000 B-shares, acquired before 2010 at an average rate of SEK 58.27. The number of outstanding shares excluding repurchased shares amounted to 39 243 720, of which 5 420 000 were A-shares and 33 823 720 were B-shares. The average number of outstanding shares amounted to 39 243 720 in the interim period.
July is normally the weakest month seasonally, with fewer sports events and a lower level of activity. The FIFA World Cup concluded with few surprises, which is unfavourable for margins. July has started marginally weaker than the average for the second quarter
There have been no key 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 2.3, Accounting for Legal Entities.
The revenue presented by Betsson is the result emerging from transactions with end users, i.e. the customers. Gross profits (gaming surplus) represent the result emerging after transactions with third parties, e.g. gaming suppliers and payment providers. Gross profit from the Group's gaming operations is composed of the net of received gaming wagers and paid winnings, minus gaming taxes, license fees to game
suppliers, and the net value of income and expenses for bank and credit card payment services for the deposit of gaming wagers and payment of winnings. Bonus to players and loyalty schemes do not affect the Group's gross margin.
From January 2010, Betsson applies the amended IFRS 3 Business Combinations and IAS 27 Consolidated and Separate Financial Statements, including amendments to associated standards.
In other respects, the accounting principles remain unchanged from the annual bookclosing 2009. Further information on the Group's accounting and valuation principles can be found in note 2 of the Annual Report 2009, which is available at www.betssonab.com or at 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 EC law, with unrestricted mobility for goods and services. A number of countries have reported that they are working on new legislation which is compatible within EU requirements. While there is still uncertainty as to when such legislation will be introduced in Betsson's main markets, when this does occur it will give Betsson increased opportunities for marketing and presence on the market.
In 2007, Turkey introduced legislation against Internet gaming with the aim of protecting its state gaming company IDDAA. Betsson's Internet-based gaming operations exhibit a clearly-defined, cross-border character which means that international law is applicable. According to the principle of the sovereignty of states, each country is of equal value; consequently one state's legal regulations cannot take precedence over those of another state. Betsson's marketplace is Malta and operations are undertaken in accordance with Maltese legislation and answer to the Maltese legal system. As a part of Malta's market place, Betsson is able to claim immunity to Turkish legislation that may attempt to prevent Betsson from carrying out its operations. This is, according to Betsson´s legal advisor, a principle that Turkey accepted through its membership in WTO and through other international agreements. In addition to the above, Turkey has the intention of becoming a full member state of the EU and has accepted, in principle,
the EU treaty concerning the free movement of goods and services between member states. Turkey has signed an Association Agreement which is to regulate the country's journey to full membership. According to Betsson´s legal advisor, this gaming legislation is in breach of EU law and not strictly in line with the Association Agreement. This Turkish legislation makes operations more difficult for Betsson on the Turkish market, even though Turkey can apply no sanctions against Betsson due to the principle of sovereignty. Consequently, Betsson's future revenues from Turkey continue to be more uncertain than those generated by its other markets.
Norway expanded the ban on promoting games organized from abroad. The ban impacts banks, in that payment services to gaming companies, regarding transactions made using debit and credit card have been criminalised.
After the end of the reporting period, the EU Court of Justice has communicated guidelines regarding how the court of appeal should rule in the proceedings against the Swedish editors-inchief Gerdin and Sjöberg. The EU Court of Justice has answered the general questions that were put forward, but has not taken a standpoint regarding the specific protective purpose invoked by the Swedish state, that is, public health and consumer protection. In Betsson's opinion, it is not possible to draw any meaningful conclusions from the ruling of the EU Court of Justice.
In Sweden, a public inquiry on gaming was presented in December 2008, preceding new gaming legislation. This proposed new legislation has met hard criticism. Betsson's view is that the law would be in conflict with EC law and that it will not be introduced in its proposed form. Betsson's view is that the law would be in conflict with EC law and will not be introduced in its proposed form. No legal change is expected on the Swedish market until after the election in September 2010.
A description of other risks and uncertainties can be found in the Annual Report 2009.
No transactions significantly affecting Betsson's financial position and profit for the year have been undertaken between Betsson and related parties.
Betsson expects the market for Internet gaming to continue growing rapidly.
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 increases as more people use Internet to perform their banking and stock market transactions, insurance business and regular purchasing of physical products. This changing behavior and increasing confidence in e-commerce is important for the online gaming industry.
At the beginning of the year, Global Betting and Gaming Consultants estimated that the online gaming market in Europe would grow 12.6 percent to USD 8.7 billion in 2010. Betsson aims to grow faster than the market.
High customer deposits and high activity in Betsson indicate continued healthy growth.
Betsson plans to publish the third quarter report on 26 October and the Full year report for 2010 on 11 February 2011.
The annual report for 2009 is available on www.betssonab.com.
The Annual General Meeting in Betsson AB was held 3 June.
The AGM re-elected the board and decided in favour of a redemption process in 2010. Further information concerning the AGM is published at the website www.betssonab.com.
Today, Friday 23 July at 09.00 CET, Betsson's CEO Pontus Lindwall will present the Interim Report through webcast (by audio, image and power point), visit http://www.betssonab.com or http://storm.zoomvisionmamato.com/player/be tsson/objects/4sn2gt8v/.
A copy of the presentation will be available at www.betssonab.com on Friday 23 July.
The Board and CEO hereby state that this interim report provides a true and fair picture of the operations, financial position and results of the parent company and the Group, as well as describing significant risks and uncertainty factors to which the parent company and the companies belonging to the Group are exposed.
Stockholm 23 July 2010
| John Wattin | Per Hamberg |
|---|---|
| Chairman Director | Director |
| Carl Lewenhaupt | Lars Linder-Aronson |
| Director | Director |
Patrick Svensk Kicki Wallje-Lund Director Director
Pontus Lindwall President and CEO
Betsson AB (publ), Regeringsgatan 28, SE-111 53 Stockholm Registered office: Stockholm, Corporate ID no. 556090-4251
For more information, please contact: Pontus Lindwall, President and CEO Tel, +46 8 506 403 10, +46 708 27 51 55, [email protected] or Fredrik Rüdén, CFO, Tel, +46 733-11 72 62, +46 8-506 403 63, [email protected].
This report has not been subject to examination by the company's auditors.
This document is a translation of the Swedish original.
| Consolidated Income Statement (MSEK) | Q2 | Q2 | Jan-Jun | Jan-Jun | Full year |
|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2009 | |
| Revenues | 366.1 | 284.6 | 733.8 | 600.1 | 1 299.7 |
| Operating expenses from gaming activities | -74.4 | -60.5 | -144.8 | -120.3 | -254.7 |
| Gross Profit | 291.7 | 224.1 | 589.0 | 479.8 | 1045.0 |
| Marketing expenses Personnel expenses Other external expenses |
-120.3 -47.4 -39.0 |
-86.1 -39.3 -37.7 |
-240.5 -92.8 -75.3 |
-199.2 -71.6 -77.4 |
-440.0 -150.4 -150.9 |
| Capitalized development costs Depreciation Other operating income Other operating expenses |
9.2 -12.0 1.9 3.9 |
12.5 -8.9 10.7 -13.7 |
19.1 -23.1 6.6 -10.8 |
26.2 -16.4 15.9 -13.3 |
53.3 -36.6 21.4 -24.9 |
| Operating expenses | -203.7 | -162.5 | -416.8 | -335.8 | -728.1 |
| Operating income | 88.0 | 61.6 | 172.2 | 144.0 | 316.9 |
| Financial items, net | 0.5 | 0.4 | 0.9 | 1.0 | 2.0 |
| Income before tax | 88.5 | 62.0 | 173.1 | 145.0 | 318.9 |
| Tax | -4.5 | -3.1 | -8.9 | -7.3 | -15.6 |
| Income for the period | 84.0 | 58.9 | 164.2 | 137.7 | 303.3 |
| Earnings per share before dilution (SEK) Earnings per share after dilution (SEK) |
2.14 2.14 |
1.50 1.50 |
4.18 4.18 |
3.51 3.51 |
7.73 7.72 |
| Operating margin (percent of Revenues) Operating margin (percent of Gross Profit) Profit margin (percent) |
24.0 30.2 24.2 |
21.6 27.5 21.8 |
23.5 29.2 23.6 |
24.0 30.0 24.2 |
24.4 30.3 24.5 |
| Average number of outstanding shares (millions) Number of outstanding shares at end of period (millions) |
39.2 39.2 |
39.2 39.2 |
39.2 39.2 |
39.2 39.2 |
39.2 39.2 |
| Return on equity (percent) Return on total capital (percent) Return on capital employed (percent) |
23 12 24 |
20 13 21 |
39 25 41 |
||
| Consolidated Statement of | Q2 | Q2 | Jan-Jun | Jan-Jun | Full year |
| Comprehensive Income (MSEK) | 2010 | 2009 | 2010 | 2009 | 2009 |
| Income for the period | 84.0 | 58.9 | 164.2 | 137.7 | 303.3 |
| Other comprehensive income | |||||
| Exchange differencies on translating foreign operations | -1.7 | 0.1 | 0.7 | 0.2 | -3.7 |
| Other comprehensive income of the period (after tax) | -1,7 | 0.1 | 0.7 | 0.2 | -3.7 |
Total comprehensive income for the period 82.3 59.0 164.9 137.9 299.6
| Consolidated Balance Sheet (MSEK | 2010-06-30 | 2009-06-30 | 2009-12-31 |
|---|---|---|---|
| Intangible fixed assets | 458.6 | 459.1 | 464.2 |
| Tangible fixed assets | 22.1 | 17.2 | 17.2 |
| Deferred tax receivables | 1.7 | 2.4 | 1.5 |
| Total non-current assets | 482.4 | 478.7 | 482.9 |
| Current receivables | 508.2 | 319.7 | 380.2 |
| Cash and liquid assets | 517.8 | 287.9 | 529.1 |
| Total current assets | 1 026.0 | 607.6 | 909.3 |
| Total assets | 1 508.4 | 1 086.3 | 1 392.2 |
| Equity | 632.5 | 657.8 | 820.4 |
| Deferred tax liabilities | 3.9 | 4.3 | 4.5 |
| Total non-current liabilities | 3.9 | 4.3 | 4.5 |
| Other current liabilities (non interest bearing) | 872.0 | 424.2 | 567.3 |
| Total current liabilities | 872.0 | 424.2 | 567.3 |
| Total equity and liabilities | 1 508.4 | 1 086.3 | 1 392.2 |
| Consolidated Cash Flow Statement (MSEK) | Jan-Jun | Jan-Jun | Full year |
|---|---|---|---|
| 2010 | 2009 | 2009 | |
| Income after financial items | 173.1 | 145.0 | 318.9 |
| Adjustments for non-cash items | 43.4 | 14.7 | 44.8 |
| Taxes paid | -16.7 | -12.4 | -7.8 |
| Cash flows from operating activities | 0.0 | 0.0 | 0.0 |
| before changes in working capital | 199.8 | 147.3 | 355.9 |
| Changes in working capital | 183.8 | -1.9 | 69.0 |
| Cash flows from operating activities | 383.6 | 145.4 | 424.9 |
| Investments | -23.3 | -32.3 | -58.5 |
| Cash flows from investing activities | -23.3 | -32.3 | -58.5 |
| Redemption of shares | -353.2 | -200.1 | -200.1 |
| Cost of Share Redemption Program | -0.1 | -0.2 | -0.2 |
| Cash flows from financing activities | -353.3 | -200.3 | -200.3 |
| Changes to cash and liquid assets | 7.0 | -87.2 | 166.1 |
| Cash and liquid assets at beginning of period | 529.1 | 373.2 | 373.2 |
| Exchange rate differences | -18.3 | 1.9 | -10.2 |
| Cash and liquid assets at end of period | 517.8 | 287.9 | 529.1 |
| Change in Group Equity (MSEK) | Jan-Jun | Jan-Jun | Full year |
|---|---|---|---|
| 2010 | 2009 | 2009 | |
| Opening balance | 820.4 | 720.2 | 720.2 |
| Total comprehensive income for the period | 164.9 | 137.9 | 299.6 |
| Total change, excluding transactions | 0.0 | 0.0 | 0.0 |
| with company owners | 164.9 | 137.9 | 299.6 |
| Share Redemption | -353.2 | -200.1 | -200.1 |
| Cost of Share Redemption Program after tax | -0.1 | -0.2 | -0.2 |
| Share options - value of employee services | 0.5 | - | 0.9 |
| Equity at end of period | 632.5 | 657.8 | 820.4 |
| Attributable to: | 0.0 | 0.0 | 0.0 |
| Parent company's shareholders | 632.5 | 657.4 | 820.4 |
| Minority Interest | - | 0.4 | - |
| Total equity | 632.5 | 657.8 | 820.4 |
| Parent Company Income Statement (MSEK) |
Jan-Jun 2010 |
Jan-Jun 2009 |
Full year 2009 |
|---|---|---|---|
| Revenues | 8.2 | 5.4 | 10.8 |
| Operating expenses | -32.2 | -7.2 | -22.1 |
| Operating Income | -24.0 | -1.8 | -11.3 |
| Financial items | 0.8 | 1.0 | 299.6 |
| Income before tax | -23.2 | -0.8 | 288.3 |
| Tax | 5.9 | 0.2 | 0.7 |
| Income for the period | -17.3 | -0.6 | 289.0 |
| Parent Company Balance Sheet (MSEK) |
2010-06-30 | 2009-06-30 | 2009-12-31 |
|---|---|---|---|
| Tangible fixed assets | 6.6 | 3.0 | 2.9 |
| Financial assets | 584.1 | 585.8 | 584.1 |
| Total non-current assets | 590.7 | 588.8 | 587.0 |
| Current receivables | 147.5 | 81.4 | 296.8 |
| Cash and liquid assets | 375.6 | 189.0 | 393.9 |
| Total current assets | 523.1 | 270.4 | 690.7 |
| Total assets | 1 113.8 | 859.2 | 1 277.7 |
| Restricted equity | 332.4 | 332.4 | 332.4 |
| Unrestricted equity | 391.7 | 465.9 | 762.4 |
| Total equity | 724.1 | 798.3 | 1 094.8 |
| Untaxed reserves | 0.4 | 0.4 | 0.4 |
| Current liabilities | 389.3 | 60.5 | 182.5 |
| Total equity and liabilities | 1 113.8 | 859.2 | 1 277.7 |
| Consolidated Income Statement (MSEK) | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 | 2008 | 2007 | 2006 |
|---|---|---|---|---|---|---|---|---|---|---|
| (Continuing operations) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | FY | FY | FY | FY |
| Revenues | 366.1 | 367.7 | 382.9 | 316.7 | 284.6 | 315.5 | 1 299.7 | 1 037.8 | 649.0 | 293.6 |
| Operating expenses from gaming activities | -74.4 | -70.4 | -70.7 | -63.7 | -60.5 | -59.8 | -254.7 | -209.7 | -128.2 | -61.4 |
| Gross Profit | 291.7 | 297.3 | 312.2 | 253.0 | 224.1 | 255.7 | 1 045.0 | 828.1 | 520.8 | 232.2 |
| Marketing expenses | -120.3 | -120.2 | -136.4 | -104.4 | -86.1 | -113.1 | -440.0 | -347.8 | -189.1 | -106.3 |
| Personnel expenses | -47.4 | -45.4 | -43.9 | -34.9 | -39.3 | -32.3 | -150.4 | -101.7 | -62.4 | -46.5 |
| Other external expenses | -39.0 | -36.3 | -38.9 | -34.6 | -37.7 | -39.7 | -150.9 | -109.8 | -91.2 | -59.2 |
| Capitalized development costs | 9.2 | 9.9 | 14.9 | 12.2 | 12.5 | 13.7 | 53.3 | 44.0 | 26.9 | 12.1 |
| Depreciation | -12.0 | -11.1 | -10.6 | -9.6 | -8.9 | -7.5 | -36.6 | -20.6 | -12.3 | -11.5 |
| Other operating income | 1.9 | 4.7 | -3.2 | 8.7 | 10.7 | 5.2 | 21.4 | - | - | - |
| Other operating expenses | 3.9 | -14.7 | -0.6 | -11.0 | -13.7 | 0.4 | -24.9 | -15.6 | -2.8 | -1.9 |
| Operating expenses | -203.7 | -213.1 | -218.7 | -173.6 | -162.5 | -173.3 | -728.1 | -551.5 | -330.9 | -213.3 |
| Operating income | 88.0 | 84.2 | 93.5 | 79.4 | 61.6 | 82.4 | 316.9 | 276.6 | 189.9 | 18.9 |
| Financial items, net | 0.5 | 0.4 | 0.8 | 0.2 | 0.4 | 0.6 | 2.0 | 4.1 | 2.8 | -1.1 |
| Income before tax | 88.5 | 84.6 | 94.3 | 79.6 | 62.0 | 83.0 | 318.9 | 280.7 | 192.7 | 17.8 |
| Tax | -4.5 | -4.4 | -4.3 | -4.0 | -3.1 | -4.2 | -15.6 | -13.4 | -13.3 | 14.2 |
| Income for the period (Continuing operations) | 84.0 | 80.2 | 90.0 | 75.6 | 58.9 | 78.8 | 303.3 | 267.3 | 179.4 | 32.0 |
| Consolidated Balance Sheet (MSEK) | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 | 2008 | 2007 | 2006 |
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | FY | FY | FY | FY | |
| Non-current assets | 482.4 | 477.3 | 482.9 | 475.3 | 478.7 | 474.6 | 482.9 | 462.6 | 415.7 | 417.7 |
| Current assets | 1 026.0 | 937.6 | 909.3 | 728.1 | 607.6 | 802.3 | 909.3 | 685.8 | 427.9 | 177.8 |
| Total assets | 1 508.4 | 1 414.9 | 1 392.2 | 1 203.4 | 1 086.3 | 1 276.9 | 1 392.2 | 1 148.4 | 843.6 | 595.5 |
| Equity | 632.5 | 903.3 | 820.4 | 728.1 | 657.8 | 798.9 | 820.4 | 720.2 | 623.5 | 491.3 |
| Non-current liabilities | 3.9 | 4.1 | 4.5 | 4.0 | 4.3 | 4.3 | 4.5 | 4.3 | 0.2 | 0.9 |
| Current liabilities | 872.0 | 507.5 | 567.3 | 471.3 | 424.2 | 473.7 | 567.3 | 423.9 | 219.9 | 100.3 |
| Total equity and liabilities | 1 508.4 | 1 414.9 | 1 392.2 | 1 203.4 | 1 086.3 | 1 276.9 | 1 392.2 | 1 148.4 | 843.6 | 592.5 |
| Consolidated Cash Flow Statement (MSEK) | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 | 2008 | 2007 | 2006 |
| (Continuing operations) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | FY | FY | FY | FY |
| Operating cashlow | 371.7 | 11.9 | 149.9 | 129.6 | 65.0 | 80.4 | 424.9 | 384.3 | 239.3 | 15.6 |
| Cashflow from investing activities | -17.0 | -6.2 | -19.9 | -6.3 | -12.8 | -19.5 | -58.5 | -67.5 | -36.8 | -15.7 |
| Cashflow from financing activities | -353.3 | 0.0 | 0.0 | 0.0 | -200.3 | 0.0 | -200.3 | -199.7 | -37.9 | -29.1 |
| Totals | 1.4 | 5.7 | 130.0 | 123.3 | -148.1 | 60.9 | 166.1 | 117.1 | 164.6 | -29.2 |
| Key Ratios (Continuing operations) |
2010 Q2 |
2010 Q1 |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 |
2009 FY |
2008 FY |
2007 FY |
2006 FY |
|---|---|---|---|---|---|---|---|---|---|---|
| Quarterly top-line growth (%) | 0 | -4 | 21 | 11 | -10 | -2 | ||||
| Growth compared to same period last year (%) | 29 | 17 | 19 | 26 | 20 | 38 | 25 | 60 | 121 | 87 |
| Gross Margin (percent of Revenues) | 79.7 | 80.9 | 81.5 | 79.9 | 78.7 | 81.0 | 80.4 | 79.8 | 80.2 | 79.1 |
| EBITDA-margin (percent of Revenues) | 27.3 | 25.9 | 27.2 | 28.1 | 24.8 | 28.5 | 27.2 | 28.6 | 31.2 | 10.4 |
| EBITDA-margin (percent of Gross Profit) | 34.3 | 32.1 | 33.3 | 35.2 | 31.5 | 35.2 | 33.8 | 35.9 | 38.8 | 13.1 |
| EBIT-margin (percent of Revenues) EBIT-margin (percent of Gross Profit) |
24.0 30.2 |
22.9 28.3 |
24.4 29.9 |
25.1 31.4 |
21.6 27.5 |
26.1 32.2 |
24.4 30.3 |
26.7 33.4 |
29.3 36.5 |
6.4 8.1 |
| Profit margin (percent of Revenues) | 24.2 | 23.0 | 24.6 | 25.1 | 21.8 | 26.3 | 24.5 | 27.0 | 29.7 | 6.1 |
| Profit margin (percent of Gross Profit) | 30.3 | 28.5 | 30.2 | 31.5 | 27.7 | 32.5 | 30.5 | 33.9 | 37.0 | 7.7 |
| Marketing expenses (percent of Revenues) Marketing expenses (percent of Gross Profit) |
32.9 41.2 |
32.7 40.4 |
35.6 43.7 |
33.0 41.3 |
30.3 38.4 |
35.8 44.2 |
33.9 42.1 |
33.5 42.0 |
29.1 36.3 |
36.2 45.8 |
| Earnings per share (SEK) | 2.14 | 2.04 | 2.29 | 1.93 | 1.50 | 2.01 | 7.73 | 6.81 | 4.55 | 0.82 |
| Operating cashflow per share (SEK) | 9.47 | 0.30 | 3.82 | 3.30 | 1.66 | 2.05 | 10.83 | 9.79 | 6.06 | 0.40 |
| Equity per share (SEK) Ongoing/executed dividend/redemption per share |
16.12 | 23.02 | 20.91 | 18.54 | 16.75 | 20.35 | 20.91 | 18.34 | 15.85 | 12.41 |
| (SEK) | 9.00 | - | - | - | 5.10 | - | 5.10 | 5.00 | 0.50 | - |
| Average share price (SEK) | 109.65 | 122.36 | 111.59 | 91.35 | 91.79 | 87.92 | 95.09 | 66.88 | 57.00 | 25.04 |
| Last paid share price (SEK) Highest share price (SEK) |
89.25 130.50 |
124.00 134.25 |
109.75 121.00 |
109.25 109.75 |
87.25 103.00 |
91.50 105.25 |
109.75 121.00 |
68.50 83.75 |
83.25 88.00 |
21.80 35.90 |
| Lowest share price (SEK) | 89.25 | 110.00 | 102.75 | 77.50 | 78.00 | 67.75 | 67.75 | 54.25 | 21.00 | 16.20 |
| Equity/asset ratio (percent) | 42 | 64 | 59 | 60 | 61 | 63 | 59 | 63 | 74 | 83 |
| Investments, continuing operations (MSEK) | 17.1 | 6.2 | 19.9 | 6.3 | 12.8 | 19.5 | 58.5 | 67.8 | 36.1 | 18.0 |
| Average number of employees (accumulated) | 266 | 261 | 225 | 210 | 197 | 182 | 225 | 154 | 106 | 71 |
| Number of employees at end of period | 275 | 276 | 258 | 251 | 225 | 196 | 258 | 185 | 136 | 95 |
| Number of registered shareholders at end of period | 11 782 | 10 677 | 9 905 | 8 316 | 7 826 | 6 413 | 9 905 | 5 790 | 5 952 | 3 256 |
| Customers | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 | 2008 | 2007 | 2006 |
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | FY | FY | FY | FY | |
| Registered Customers (thousands) | 2 719.3 | 2 414.9 | 2 117.8 | 1 916.7 | 1 777.1 | 1 629.1 | 2 117.8 | 1 499.9 | 996.2 | 543.6 |
| Quarterly growth (%) | 13 | 14 | 10 | 8 | 9 | 9 | ||||
| Growth compared to same period last year (%) | 53 | 48 | 41 | 42 | 44 | 42 | 41 | 51 | 83 | 22 |
| Active Customers (thousands) | 288.7 | 318.6 | 288.7 | 220.9 | 185.3 | 174.6 | 288.7 | 167.4 | 107.0 | 92.6 |
| Quarterly growth (%) Growth compared to same period last year (%) |
-9 56 |
10 82 |
31 72 |
19 74 |
6 33 |
4 14 |
72 | 56 | 16 | 109 |
| Activity Rate, Active/Registered customers (%) | 11 | 13 | 14 | 12 | 10 | 11 | 14 | 11 | 11 | 17 |
| Customer Deposits | 2010 Q2 |
2010 Q1 |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 |
2009 FY |
2008 FY |
2007 FY |
2006 FY |
| Customer Deposits (MSEK) Quarterly growth (%) |
911.1 -6 |
964.9 5 |
915.7 11 |
823.6 5 |
783.1 6 |
735.6 5 |
3 258.0 | 2 279.7 | 1 346.6 | 748.8 |
| Growth compared to same period last year (%) | 16 | 31 | 30 | 41 | 52 | 54 | 43 | 69 | 80 | 94 |
| Sportbook Margin | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 | 2008 | ||
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | FY | FY | |||
| Gross Turnover Sportbook (MSEK) | 1 233.1 | 1 012.8 | 755.3 | 634.9 | 644.8 | 536.5 | 2 571.5 | 1 567.1 | ||
| of which Live betting Quarterly growth (%) |
56.7% 22 |
38.0% 34 |
30.7% 19 |
30.6% -2 |
35.3% 20 |
27.5% 3 |
31.2% | 19.8% | ||
| Growth compared to same period last year (%) | 91 | 89 | 45 | 78 | 73 | 69 | ||||
| Margin after free bets (%) | 7.4% | 7.6% | 12.0% | 7.2% | 4.7% | 11.7% | 8.9% | 11.1% | ||
| Gross Profit (MSEK) | 78.0 | 72.0 | 82.0 | 41.4 | 25.8 | 57.4 | 206.6 | 159.0 | ||
| Gross Margin Sportsbook (%) 1) 1) Margin after allocated costs |
6.3% | 7.1% | 10.9% | 6.5% | 4.0% | 10.7% | 8.0% | 10.1% |
| Gross Profit by Geographical Area | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 | 2008 | 2007 | 2006 |
|---|---|---|---|---|---|---|---|---|---|---|
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | FY | FY | FY | FY | |
| Gross Profit (MSEK) | ||||||||||
| Nordic Countries | 140.9 | 151.3 | 168.7 | 153.2 | 140.1 | 143.0 | 605.0 | 478.2 | 351.4 | 158.0 |
| EU, outside Nordic region | 37.2 | 42.0 | 40.0 | 33.3 | 33.5 | 32.9 | 139.7 | 97.2 | 66.3 | 28.8 |
| Others Europe | 111.6 | 102.1 | 102.6 | 64.6 | 49.7 | 79.0 | 295.9 | 250.4 | 89.3 | 34.1 |
| Rest of the world | 2.0 | 1.9 | 0.9 | 1.9 | 0.8 | 0.8 | 4.4 | 2.3 | 1.5 | 6.1 |
| Total gaming activities | 291.7 | 297.3 | 312.2 | 253.0 | 224.1 | 255.7 | 1 045.0 | 828.1 | 508.5 | 227.0 |
| Others, adjustments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 12.3 | 5.2 |
| Group totals | 291.7 | 297.3 | 312.2 | 253.0 | 224.1 | 255.7 | 1 045.0 | 828.1 | 520.8 | 232.2 |
| Share of total gaming activities (%) | ||||||||||
| Nordic Countries | 48.3 | 50.9 | 54.0 | 60.6 | 62.5 | 55.9 | 57.9 | 57.7 | 69.1 | 69.6 |
| EU, outside Nordic region | 12.8 | 14.1 | 12.8 | 13.2 | 14.9 | 12.9 | 13.4 | 11.7 | 13.0 | 12.7 |
| Others Europe | 38.3 | 34.3 | 32.9 | 25.5 | 22.2 | 30.9 | 28.3 | 30.2 | 17.6 | 15.0 |
| Rest of the world | 0.7 | 0.6 | 0.3 | 0.8 | 0.4 | 0.3 | 0.4 | 0.3 | 0.3 | 2.7 |
| Quarterly Growth (%) | ||||||||||
| Nordic Countries | -7 | -10 | 10 | 9 | -2 | 5 | ||||
| EU, outside Nordic region | -11 | 5 | 20 | -1 | 2 | 6 | ||||
| Others Europe | 9 | 0 | 59 | 30 | -37 | -13 | ||||
| Rest of the world | 5 | 111 | -53 | 138 | 0 | -11 | ||||
| Total all countries | -2 | -5 | 23 | 13 | -12 | -1 | ||||
| Growth compared to same period last year (%) | ||||||||||
| Nordic Countries | 1 | 6 | 24 | 21 | 29 | 35 | 27 | 36 | 122 | 91 |
| EU, outside Nordic region | 11 | 28 | 29 | 54 | 51 | 46 | 44 | 47 | 130 | 71 |
| Others Europe | 125 | 29 | 14 | 17 | -8 | 55 | 18 | 180 | 162 | 401 |
| Rest of the world | 150 | 138 | 0 | 171 | 100 | 167 | 91 | 53 | -75 | -34 |
| Total all countries | 30 | 16 | 21 | 24 | 21 | 42 | 26 | 63 | 124 | 96 |
| Gross Profit by Products | 2010 Q2 |
2010 Q1 |
2009 Q4 |
2009 Q3 |
2009 Q2 |
2009 Q1 |
2009 FY |
2008 FY |
2007 FY |
2006 FY |
| Gross Profit (MSEK) | ||||||||||
| Casino | 173.8 | 180.8 | 186.9 | 173.2 | 158.4 | 151.9 | 670.4 | 481.3 | 254.2 | 126.8 |
| Poker Sportsbook |
25.3 78.0 |
30.3 72.0 |
31.5 82.0 |
27.5 41.4 |
31.9 25.8 |
41.0 57.4 |
131.9 206.6 |
158.5 159.0 |
193.0 56.8 |
83.1 14.6 |
| Other products | 14.6 | 14.2 | 11.8 | 10.9 | 8.0 | 5.4 | 36.1 | 29.3 | 4.5 | 2.5 |
| Total gaming activities | 291.7 | 297.3 | 312.2 | 253.0 | 224.1 | 255.7 | 1 045.0 | 828.1 | 508.5 | 227.0 |
| Others, adjustments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 12.3 | 5.2 |
| Group totals | 291.7 | 297.3 | 312.2 | 253.0 | 224.1 | 255.7 | 1 045.0 | 828.1 | 520.8 | 232.2 |
| Share of total gaming activities (%) | ||||||||||
| Casino Poker |
59.6 8.7 |
60.8 10.2 |
59.9 10.1 |
68.5 10.9 |
70.7 14.2 |
59.4 16.0 |
64.2 12.6 |
58.1 19.1 |
50.0 38.0 |
55.9 36.6 |
| Sportsbook | 26.7 | 24.2 | 26.3 | 16.4 | 11.5 | 22.4 | 19.8 | 19.2 | 11.2 | 6.4 |
| Other products | 5.0 | 4.8 | 3.8 | 4.3 | 3.6 | 2.1 | 3.5 | 3.5 | 0.9 | 1.1 |
| Quarterly Growth (%) | ||||||||||
| Casino Poker |
-4 -17 |
-3 -4 |
8 15 |
9 -14 |
4 -22 |
4 0 |
||||
| Sportsbook | 8 | -12 | 98 | 60 | -55 | -7 | ||||
| Other products | 3 | 20 | 8 | 36 | 48 | -41 | ||||
| Total all products | -2 | -5 | 23 | 13 | -12 | -1 | ||||
| Growth compared to same period last year (%) | ||||||||||
| Casino | 10 | 19 | 28 | 36 | 42 | 57 | 39 | 89 | 100 | 81 |
| Poker | -21 | -26 | -24 | -25 | -10 | -9 | -17 | -18 | 132 | 87 |
| Sportsbook | 202 | 25 | 33 | 27 | -21 | 78 | 30 | 180 | 289 | - |
| Other products | 83 | 163 | 28 | 36 | 29 | -8 | 23 | 551 | 80 | 127 |
| Total all products | 30 | 16 | 21 | 24 | 21 | 42 | 26 | 63 | 124 | 96 |
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