Interim / Quarterly Report • Jul 24, 2012
Interim / Quarterly Report
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ALL FIGURES IN THIS REPORT ARE EXPRESSED IN SEK. FIGURES IN BRACKETS REFER TO THE CORRESPONDING FIGURES FOR THE PREVIOUS YEAR, UNLESS OTHERWISE STATED. THIS INFORMATION APPLIES TO THE GROUP, UNLESS OTHERWISE STATED.
| Q2 | Q2 | Jan-June | Jan-June | Full year | |
|---|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | 2011 | |
| Totals | |||||
| Revenues | 486.2 | 338.2 | 1,022.2 | 755.6 | 1,736.6 |
| Gross profit | 407.2 | 275.6 | 866.1 | 606.4 | 1,428.9 |
| of which Sportsbook | 68.9 | 41.3 | 176.7 | 145.6 | 326.9 |
| Operating income | 109.5 | 102.7 | 283.5 | 234.5 | 559.7 |
| Cash and cash equivalents | 342.3 | 195.6 | 342.3 | 195.6 | 509.7 |
| Active customers (thousands) | 508.7 | 335.9 | 508.7 | 335.9 | 403.6 |
| Registered customers (thousands) | 5,418.0 | 3,229.5 | 5,418.0 | 3,229.5 | 3,662.4 |
| Customer deposits Customer deposits, all gaming |
1,093.5 | 756.5 | 2,138.8 | 1,715.5 | 3,931.6 |
| solutions | 1,505.1 | 1,148.2 | 2,973.7 | 2,269.8 | 5,237.9 |
| B2C Sportsbook | |||||
| Gross turnover, Sportsbook | 731.1 | 242.0 | 1,376.6 | 448.5 | 1,525.4 |
| Gross margin, Sportsbook | 4.0% | 4.1% | 5.4% | 5.3% | 5.4% |
| Gross profit, Sportsbook | 29.4 | 10.0 | 74.0 | 24.0 | 82.5 |
| B2B Sportsbook | |||||
| Gross turnover, Sportsbook, B2B | 2,013.7 | 1,563.1 | 4,012.3 | 3,152.1 | 6,055.0 |
| Gross margin, Sportsbook from B2B | 2.0% | 2.0% | 2.6% | 3.9% | 4.0% |
| Gross profit, Sportsbook, B2B | 39.5 | 31.5 | 102.7 | 121.7 | 244.3 |
"Betsson is strengthening its position as a sportbooks operator through a broader sportsbook offering with even more mobile solutions. In addition, several technical development projects have been undertaken with the purpose of securing future growth and profitability. This, together with the highest activity level ever and the ATH in deposits, indicates a continued strong development for Betsson," states Magnus Silfverberg, President and CEO of Betsson.
Today, Tuesday 23 July, at 09.00 CET, Betsson's Group CEO Magnus Silfverberg will present the Interim Report at Betsson's office at Regeringsgatan 28, and through Webcast at www.betssonab.com or http://storm.zoomvisionmamato.com/player/betsson/objects/f8ac4vdp or by telephone 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 OWNING AND ADMINISTERING SHAREHOLDINGS IN COMPANIES WHICH, THEMSELVES OR THROUGH PARTNERS, OFFER GAMING TO THE END USERS VIA THE INTERNET. BETSSON AB OWNS BETSSON MALTA WHICH OPERATES GAMING TO THE END USERS EITHER THROUGH THEIR OWN WEBSITES OR THROUGH PARTNERSHIPS. BETSSON MALTA OFFERS POKER, CASINO, SPORTSBOOK, SCRATCH CARDS, BINGO AND GAMES. THE CUSTOMERS COME PRIMARILY 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 486.2 (338.2) million. Gross profit was SEK 407.2 (275.6) million. Operating income increased by 7 percent to SEK 109.5 (102.7) million and the operating margin was 22.5 (30.4) percent. The Group's profit before tax increased to SEK 110.9 (103.3) million and net income was SEK 105.4 (97.9) million, which is equivalent to SEK 2.54 (2.47) per share. Income has been negatively impacted by non-recurring costs amounting to SEK 10.0 (10.1) million, regarding acquisitions of NGG this year and Betsafe in 2011 and distribution of shares in the subsidiary Angler Gaming plc.
Marketing costs amounted to SEK 149.8 (70.9) million, representing an increase of 111 percent. The increase compared with the previous year is attributable to additional expenses in acquired entities and increased investments in marketing on the newly regulated Danish and Italian markets. During the second quarter additional marketing activities have been carried out in connection with the European Football Championship.
Personnel costs amounted to SEK 71.3 (41.6) million, corresponding to an increase of 71 percent. The increase in personnel costs is attributable to acquired entities, planned recruitments and implemented salary revisions. In the future, personnel costs are estimated to be in line with the Company's development and further recruitments are planned, in order to ensure and guarantee the Company's future growth.
Other external expenses amounted to SEK 79.2 (52.3) million. The increase in other external expenses can partly be explained by additional costs in respect of acquired entities. Further, the income statement has been charged with non-recurring costs amounting to SEK 10.0 (10.1) million in consultancy fees in conjunction with acquisitions and the distribution of shares in Angler Gaming plc. Other external expenses are also increased due to the expanded offering of live-streamed sporting events.
Investments in capitalized development costs amounted to SEK 25.7 (7.5) million, which has a positive effect on the income statement. During the quarter extra resources have been put in investments which made the final migration of Betsafe possible. These investments contribute to a more cost efficient operation. Furthermore, the quarter had higher than normal investments with the purpose of improving the sportsbook offering and creating new mobile applications.These investments aim at growing future revenues.
Income from financial revenues and expenses amounted to revenues of SEK 1.3 (0.6) million.
Group revenue amounted to SEK 1,022.2 (755.6) million, equivalent to an increase of 35 percent. Gross profit amounted to SEK 866.1 (606.4) million, which corresponds to an increase of 42 percent.
Operating income increased to SEK 283.5 (234.5) million and the operating margin was 27.7 (31.0) percent. Income before tax increased to SEK 281.9 (235.9) million and net income increased to SEK 267.7 (223.5) million, equivalent to SEK 6.41 (5.66) per share. Income has been negatively impacted by non-recurring costs amounting to SEK 18.6 (10.1) million, regarding acquisitions and distribution of shares. The first half of year 2011 included an additional positive non-recurring item amounting to SEK 16.9 million, in respect of the divestment of the Turkish customer base.
The net result of capitalized development costs and the amortization of such costs has had a positive effect on the income statement amounting to SEK 11.6 (negative 4.5) million.
NGG was consolidated as a wholly-owned subsidiary as of 20 June 2012. Since this date and until June 30, NGG has contributed an amount of SEK 12.2 million to the Group's gross profit and an amount of SEK 3.0 million to the Group's net income. The Group's net income during the second quarter has been negatively impacted by acquisition-related expenses of SEK 9.6 million, which refer to financial and legal advisory services and which are reported uner Other external expenses.
Had NGG been a subsidiary for the entire interim period, Betsson's gross profit would have amounted to SEK 1 059.0 million rather than SEK 866.1 million and net income to SEK 302.9 million rather than SEK 267.7 million, excluding acquisition costs of SEK 4.5 million in the first and SEK 9.6 in the second quarter but including amortization of the customer base and technical platform amounting to SEK 15.0 million. NGG's gross profit during the interim period amounted to SEK 205.1 million and NGG's net income during the interim period amounted to SEK 39.1 million.
Amortization of the customer base amounting to SEK 1.4 million per month will start 1 July and continue for two years. At the same time, amortization of the technical platform amounting to SEK 1.1 million per month will commence and continue for twelve months.
Through its subsidiaries on Malta, Betsson offers Internet gaming to end customers via partner cooperations and its own gaming portals. Betsson also offers system solutions to other operators.
From 1 January this year, Betsson has launched a number of gaming solutions on the newly regulated Danish market. Taken together, these developed strongly in the second quarter and showed an increase in deposits of close to forty percent compared with the first quarter. At the end of the second quarter, the nisched casino site Starcasino.it was launched under an Italian gaming license. It is too early to comment on the outcome of that launch.
A high demand for mobile solutions has followed in the wake of strong growth in the use of smartphones. At the beginning of the quarter, Betsson had 14 different mobile solutions and a further 7 were launched during the second quarter. Mobile revenues still constitute a minor portion of the company's total revenues. The average quarterly growth, from fourth quarter 2011 to second quarter 2012, exceeded 100 percent. Management estimate that mobile revenues will grow strongly over the coming 12 months.
Gross sales for B2C in the second quarter amounted to SEK 291.9 (151.7) million, an increase of 92 percent.
The segment has been significantly strengthened through two acquisitions during the past year. In addition to the contribution from the recently acquired NGG, the other brands was in comparable figures growing by 27 percent. This despite that the sportsbook shows record low margin after free bets.
With the acquisitions, the importance of the Nordic countries increased in relation to other geographical areas and comprised 82 (76) percent of the segment, while the EU outside the Nordic region represented 17 (23) percent.
Gross profit from B2B amounted to SEK 115.3 (124.0) million. The decrease can largely be explained by low sportsbook margins. The underlying activity, spread among a number of partnerships, is steadily increasing.
Betsson's B2B segment has been successful for many years and Betsson is now well-positioned, both in terms of business and technology, to meet the current trend for B2B within the gaming industry. Betsson's technical gaming platform allows the Company to offer complete gaming solutions within short delivery times.
The activity in the gaming solution offered to Realm Entertainment is showing stable development, even though low sportsbook margins provided lower contributions compared with the previous quarter. Betsson is continuing to develop the Chinese beta version. Due to legal circumstances, it is unclear when it will be possible to implement this version.
Gross profit in Casino during the second quarter amounted to SEK 303.1 (202.1) million, which represents 74 (73) percent of the Group's total gross profit.
Gross profit from Sportsbook during the quarter amounted to SEK 68.9 (41.3) million. The gross profit in Sportsbook includes SEK 39.5 (31.5) million in respect of license and gaming contributions to the gross profit from B2B. Sportsbook's share of the Group's gross profit amounted to 17 (15) percent.
The underlying activity in Sportsbook has never been higher. Gross sales in Sportsbook, in all of Betsson's gaming solutions, amounted to SEK 2,744.8 (1,805.0) million, which is equivalent to an increase of 52 percent compared with last year. Gross sales in Live betting in Sportsbook, in all of Betsson's gaming solutions, amounted to SEK 1,904.8 (1,199.5) million, equivalent to an increase of 59 percent compared with the previous year. The margin after free bets in all of Betssons gaming solutions amounted to 4.6 (5.9) percent.The major football leagues are ended during the second quarter every year wich, due to many favoritwinnings by the end of a league, normally gives low margins for the sportbook operators. This seasonal pattern has been stronger than ever this year with unusually bad results for Betsson.
Gross profit for Poker during the quarter amounted to SEK 25.4 (17.1) million, equivalent to an increase of 49 percent.
Gross profit in Other Products amounted to SEK 9.8 (15.2) million during the second quarter.
Customer deposits vary from quarter to quarter but, in a longer perspective, the deposits demonstrate a strong correlation with the activities in Betsson's various offerings. During the second quarter, a total of SEK 1,093.5 (756,5) million was deposited. This does not include any deposits in NGG for the period prior to 20 June and the comparative figure does not include any deposits in Betsafe prior to 15 June 2011. Deposits in all of Betsson's gaming solutions amounted to SEK 1,505.1 (1,148.2) million during the quarter, which is equivalent to ATH and an increase of 31 percent.
At the end of the quarter, the number of registered customers amounted to 5.4 (3.2) million players, of whom the recently acquired NGG contributed with 1.2 million players. The number of active customers during the quarter amounted to 508,700 (335,500).This figure included all active players NGG had by end of June.
An active customer is defined as a customer who has played for cash during the last three months. This definition thus also includes all players who have played on the basis of free-of-charge offerings.
Equity in the Group amounted to SEK 1,347.7 (910.5) million, equivalent to SEK 31.92 (22.58) per share. During the second quarter, equity has decreased by SEK 395.6 (275.8) million as an equivalent amount was transferred to the company's shareholders. The equity has further been increased by SEK 44.3 million relating to a new share issue in kind in connection with the acquisition of NGG.
At the end of the quarter, cash and cash equivalents amounted to SEK 342.3 (195.6) million. Liabilities to financial institutes amounted to SEK 431,8 million and unutilized facility amounted to SEK 54.5 million. Cash and cash equivalents have been negatively impacted by the acquisition of NGG to the amount of SEK 86.6 million and by the transfer to the shareholders of SEK 395.6 (275.8) million. Customer liabilities including the provision for earned jackpots, amounted to SEK 330.7 (183.2) million. The Group's current receivables with payment providers referring to unsettled customer payments amounted to SEK 344.9 (409.3) million.
At the end of the second quarter, there was a total of 610 (385) employees, of whom the acquisition of NGG has contributed with 128. The average number of employees during the year was 464 (282) in the Group, of whom 375 (216) were employed in Malta.
In addition to these employees, the Group had, at the end of the quarter, 232 temporary staff engaged on a full-time basis, of whom 102 were based in Kiev and Manilla. During the third quarter, the temporary employees in Manilla will be transferred and become employed in a newly started subsidiary within the Betsson Group. Today, 54 of Betsson's temporary employees work in Manilla.
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, offers games to end users via the Internet. The Company provides and sells internal services regarding finance, accounting and administration to a number of Group companies.
Net sales for the interim period amounted to SEK 8.7 (7.3) million and net income for the interim period amounted to SEK 164.6 (-25) million.
The Parent Company's investments in tangible fixed assets amounted to SEK 0.0 (0.0) million during the first half year. Cash and cash equivalents amounted to SEK 77.6 (22.1) 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 15,246 (11,151) shareholders. The largest owners (owners with more than 10 percent of votes) were Per Hamberg with 8.3 percent of the outstanding capital and 20.7 percent of the outstanding votes, the Knutsson family with 6.0 percent of outstanding capital and 10.7 percent of outstanding votes and Rolf Lundström with 3.6 percent of outstanding capital and 10.1 percent of outstanding votes.
In May 2008, Betsson opened a betting shop in Stockholm. The Swedish Gaming Board ruled that the shop's operations were in conflict with the Lotteries Act and demanded that the shop should stop promoting gaming activities. This decision was appealed by Betsson on several occasions and in December 2009 the Administrative Court of Appeal announced its decision that the shop should cease promoting gaming activities. However, after a further appeal, the Supreme Administrative Court announced that they had accepted Betsson's claim for suspension of implementation, which in effect implied that Betsson, once again, had the right to undertake operations whilst waiting for a final decision. The shop was reopened in January 2010 but was again closed in September 2010 when the Supreme Administrative Court announced that they would not grant leave to appeal. On 22 December 2010, the shop opened for the third time, now in compliance with the Gaming Board's injunction from 2008, which means that none of Betsson's marketing designs or logotypes can be displayed in the shop.
Betsson claims that in 1997, the Government, in breach of applicable law, enforced a ban on wheel of fortune games which negatively impacted the financial position of Betsson. In 2010, the Stockholm District Court rejected Betsson's claim against the Government for SEK 102 million in damages arising from this ban. The 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 compensation. Betsson appealed this decision to the Svea Court of Appeal and was granted leave to appeal. The Court of Appeal upheld the District Court's decision in November 2011. Betsson has appealed this decision to the Supreme Administrative Court, which is yet to announce whether the appeal will be upheld. Betsson has also brought an action before the Supreme Court with the aim of ensuring that the case is tried according to the Swedish Act on Damages. This action will be tried by the Supreme Court.
Betsson holds a total of 4,222 of its own Class B shares, acquired before 2011 at an average rate of SEK 58.27.
The total number of shares and votes in Betsson amounts to 42,219,183 and 90,999,183 respectively, of which 5,420,000 are Class A shares representing 10 votes per share and 36,799,183 are Class B shares, representing 1 vote per share.
The Annual General Meeting held on 11 May 2012 resolved to adopt the proposal from the Board of Directors to transfer SEK 9.42 (7.00) per share, corresponding to a total distribution of SEK 395.6
(275.8) million, to the shareholders. This transfer was executed during the second quarter.
In addition to the above, the AGM resolved to adopt the proposal to distribute the shares in the newly started subsidiary, Angler Gaming plc. to the shareholders.
This proposal implies an extra dividend to shareholders of approximately SEK 28.0 million, equivalent to approximately SEK 0.66 per share (or EUR 3.1 million, equivalent to approximately EUR 0.07 per share). This share distribution was undertaken during the beginning of the the third quarter 2012.
July is traditionally the weakest month of the year, with few sporting events and a relatively low level of activity. Comparable revenue in July this far is in line with second quarter's average level of revenue. In the comparable revenues no revenues from NGG is considered, these will contribute in full in the third quarter
The former subsidiary Angler Gaming plc. was successfully listed on the Aktietorget stock exchange on 6 July.
Up to and including the reporting date, one new mobile solution has been launched.
There have been no other significant events after the end of the 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 by gaming by players acquired by the Company itself and gaming by players originating from Betsson's network of affiliated websites (www.affiliatelounge.com). Betsson classes anything which cannot be included in this definition as B2B. Partner markets under the brand name www.betsson.com, among others, are thus included in the B2B segment.
During 2011, Betsson began to report licensing revenues for that section of their operations in which the provision and operation of a technical platform is undertaken by a third party.
The accounting principles applied are in line with what is described in the Annual Report 2011. Further information regarding the Group's accounting and valuation principles can be found in the Annual Report for 2011 (Note 2), which is available at www.betssonab.com or from the head office.
The legal situation regarding gaming over the Internet is constantly changing in different geographical markets. There is continued pressure on countries in the EU to adapt their legislation to bring it into 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 a number of countries have presented proposals for legislation. There is still uncertainty as to when such legislation will be introduced into Betsson's main markets, other than in Denmark, which was re-regulated at the beginning of 2012.
New legislation could lead to a change in market conditions regarding such areas as taxes, product ranges and local licensing fees, which could have a negative impact on Betsson's profitability. At the same time, new legislation may lead to significant growth for Betsson's gaming markets, as well as to providing Betsson with increased opportunities for marketing and an increased presence on the market.
At the beginning of June 2010, Norway extended its ban on the promotion of gaming organized from abroad. The ban affects banks since undertaking payment services in connection with payment to gaming companies for gaming via credit and dedirect debit cards has been made a criminal offence.
In Sweden in December 2008 a government report on gaming proposed new gaming legislation. The proposed legislation was heavily criticized. Betsson's assessment is that the proposed legislation is in conflict with EU law and that it will not be implemented in the proposed form. From the end of 2011 and beginning of 2012 there has been a renewed interest in these questions among Swedish politicians and other stakeholders. Today there appears to be consensus among members of the different parliamentary parties in favor of regulating the Swedish gaming market to bring it into line with the Danish. It is, however, too early to draw conclusions of the impact of this.
After divesting the Turkish customer base, Betsson now has license revenues for, among other things, system delivery to a gaming operator for which portions of the revenues derive from players in Turkey. These license revenues are reported under B2B. Revenues arising from Turkey may be considered to have higher operational risk than revenues from other markets.
A more detailed description of the risks above and other risks and uncertainties can be found in the Annual Report for 2011.
No transactions significantly affecting Betsson's financial position and results for the quarter have
been undertaken between Betsson and related parties.
Betsson believes that the online gaming market will continue to develop strongly. A considerable number of the world´s population 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. In regions where the Internet is accessible, confidence in the Internet as a market place is increasing as more people use the Internet to perform their banking and stock market transactions, insurance business and make other purchases. This changing behavior and increasing confidence in e-commerce has significant implications for the development of the market.
H2 Gambling Capital assessed in September 2011 that the European Internet gaming market will increase by 18.4 percent to USD 18.5 billion during 2012. Betsson intends to continue growing at a rate faster than the market.
A period with acquired and organic growth combined with a larger number of brands and improved product offering has given Betsson a stronger position. This, together with a strong demand for Betsson´s products, paves the way for continued good growth for both B2B and B2C.
The Annual General Meeting of shareholders of Betsson AB was held Friday, 11 May 2012.
The Annual General Meeting re-elected the Board of Directors and the Auditor.
Further information from the Annual General Meeting is available on the Company´s homepage, www.betssonab.com.
Betsson intends to publish its financial reports as follows: the interim report for the third quarter on 26 October and the Year-End Report for 2012 (fourth quarter) on 8 February 2013.
Today, Tuesday 24 July, at 09.00 CET, Betsson's Group CEO Magnus Silfverberg will present the interim report at Betsson's office on Regeringsgatan 28, as well as through Webcast at www.betssonab.com or
http://storm.zoomvisionmamato.com/player/betsson/object s/nztyrvs5 or by telephone at +46 (0)8 505 598 53 (Sweden) or +44 (0)20 3043 2436 (UK). The presentation will be held 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 and including Tuesday 24 July.
The Board and the CEO hereby declare that this interim report provides a true and fair picture of the operations, financial position and results of the Company and the Group, and that it describes significant risks and uncertainty factors facing the Company and the Group.
| Pontus Lindwall Chairman of the Board |
Per Hamberg Director |
|---|---|
| Carl Lewenhaupt Director |
Lars Linder Aronson Director |
| Patrick Svensk Director |
Kicki Wallje-Lund Director |
| John Wattin Director |
Magnus Silfverberg President and Group CEO |
| Betsson AB (publ), | |
| Regeringsgatan 28, 111 53 Stockholm | |
Registered office: Stockholm, Corporate ID no. 556090-4251
For further information, please contact: Magnus Silfverberg, President and Group CEO Tel +46 702714700, [email protected] or Fredrik Rüdén, CFO, Tel +46 733-11 72 62, [email protected].
The information contained in this interim report is information which Betsson AB (Publ) is required to publish in accordance with the Securities Market Act and /or the Financial Instruments Trading Act. The information was presented for publication on 24 July 2012 at 07:30 CET.
This report has not been to the object of review by the Company's auditors.
This document is a translation of the Swedish original.
| Consolidated Income Statement (MSEK) | Q2 | Q2 | Jan-June | Jan-June | Full year |
|---|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | 2011 | |
| Revenues | 486.2 | 338.2 | 1,022.2 | 755.6 | 1,736.6 |
| Cost of services sold | -79.0 | -62.6 | -156.1 | -149.2 | -307,7 |
| Gross Profit | 407.2 | 275.6 | 866.1 | 606.4 | 1,428.9 |
| Marketing expenses | -149.8 | -70.9 | -285.0 | -191.1 | -414,8 |
| Personnel expenses | -71.3 | -41.6 | -131.5 | -84.6 | -197,0 |
| Other external expenses | -79.2 | -52.3 | -159.3 | -98.4 | -232,8 |
| Capitalized development costs | 25.7 | 7.5 | 41.0 | 18.6 | 41,4 |
| Depreciation | -23.2 | -15.7 | -45.3 | -29.6 | -73,8 |
| Other operating income/expenses | 0.1 | 0.1 | -2.5 | 13.2 | 7,8 |
| Operating expenses | -297.7 | -172.9 | -582.6 | -371.9 | -869.2 |
| Operating income | 109.5 | 102.7 | 283.5 | 234.5 | 559.7 |
| Financial items, net | 1.3 | 0.6 | -1.7 | 1.4 | -4.3 |
| Income before tax | 110.9 | 103.3 | 281.9 | 235.9 | 555,4 |
| Tax | -5.5 | -5.4 | -14.2 | -12.4 | -27.6 |
| Net income | 105.4 | 97.9 | 267.7 | 223.5 | 527.8 |
| Earnings per share before dilution (SEK) | 2.54 | 2.47 | 6.41 | 5.66 | 13.12 |
| Earnings per share after dilution (SEK) | 2.54 | 2.47 | 6.41 | 5.66 | 13.10 |
| Operating margin (as percentage of revenues) | 22.5 | 30.4 | 27.7 | 31.0 | 32,2 |
| Operating margin (as percentage of Gross Profit) | 26.9 | 37.3 | 32.7 | 38.7 | 39.2 |
| Profit margin (percent) | 22.8 | 30.5 | 27.6 | 31.2 | 32.0 |
| Average number of outstanding shares (millions) | 41.5 | 39.6 | 41.8 | 39.5 | 40.2 |
| Number of outstanding shares at end of period (millions) | 42.2 | 40.3 | 42.2 | 40.3 | 41.4 |
| Return on equity (percent) | 20 | 29 | 49 | ||
| Return on total capital (percent) | 11 | 14 | 30 | ||
| Return on capital employed (percent) | 12 | 30 | 30 | ||
| Consolidated Statement of | Q2 | Q2 | Jan-June | Jan-June | Full year |
| Comprehensive Income (MSEK) | 2012 | 2011 | 2012 | 2011 | 2011 |
| Net income | 105.4 | 97.9 | 267.7 | 223.5 | 527.8 |
| Other comprehensive income | |||||
| Revenue/costs reported direct in equity Exchange differences in translation of foreign operations |
-16.3 | 5.0 | -24.4 | 6.0 | -20.4 |
| Other comprehensive income for the period (after tax) | -16.3 | 5.0 | -29.4 | 6.0 | -20.4 |
| Total comprehensive income for the period | 89.1 | 102.9 | 238.3 | 229.5 | 507.4 |
| Consolidated Balance Sheet (MSEK) | June 30 2012 |
June 30 2011 |
Dec 31 2011 |
|---|---|---|---|
| Intangible fixed assets | 1,697.8 | 1,015.8 | 982.3 |
| Tangible fixed assets | 29.6 | 30.2 | 26.9 |
| Financial fixed assets | 12.6 | 0.0 | 10.2 |
| Deferred tax receivables Other long-term receivables |
13.9 - |
6.2 - |
14.4 - |
| Total fixed assets | 1,754.0 | 1,052.2 | 1,033.8 |
| Current receivables | 746.4 | 677.2 | 729.6 |
| Cash and cash equivalents | 342.3 | 195.6 | 509.7 |
| Total current assets | 1,088.8 | 872.8 | 1 239.3 |
| Total assets | 2,842.7 | 1,25.0 | 2,273.1 |
| Equity | 1,347.7 | 910.5 | 1 334.3 |
| Deferred tax liabilities Liabilities to financial institutes |
7.6 431.8 |
8.7 | 8.0 |
| Total long-term liabilities | 439.4 | 8.7 | 8.0 |
| Other current liabilities | 1,055.6 | 1 005.8 | 930,8 |
| Total current liabilities | 1,055.6 | 1 005.8 | 930,8 |
| Total equity and liabilities | 2,842.7 | 1 925.0 | 2 273,1 |
| Consolidated Cash Flow Statement (MSEK) | Jan-June 2012 |
Jan-June 2011 |
Full year 2011 |
| Income after financial items Adjustments for non-cash items |
281.9 49.0 |
235.9 14.2 |
555.4 63.1 |
| Taxes paid | -22.1 | -11.3 | 28.8 |
| Cash flows from operating activities | |||
| before changes in working capital | 308.8 | 238.8 | 647.3 |
| Changes in working capital | 54.7 | -105.7 | -110.1 |
| Cash flows from operating activities | 363.5 | 133.1 | 537.2 |
| Investments | -46.4 | -26.2 | -50.9 |
| Sale of intangible assets | - | 16.9 | 17.2 |
| Acquisition of shares, subsidiaries | -518.4 | -203.8 | -203.8 |
| Acquisition of shares, associated companies | - | - | -11.0 |
| Cash flows from investing activities | -564.7 | -213.1 | -248.5 |
| Redemption of shares | -395.6 | -275.8 | -275.8 |
| Cost of Share Redemption Program | - | -0.1 | -0.1 |
| Bank loan Payment at exercise of options |
431.8 - |
50.0 -0.6 |
-0.6 |
| Premiums received for warrants | - | - | 2.7 |
| Cash flows from financing activities | 36.2 | -276.5 | -273.8 |
| Changes to cash and cash equivalents Cash and cash equivalents at beginning of |
-165.1 | -306.5 | 14.9 |
| period Exchange rate differences, cash and cash |
509.7 | 497.1 | 497.1 |
| equivalents Cash and cash equivalents at end of |
-2.2 | 5.0 | -2.3 |
| period | 342.3 | 195.6 | 509.7 |
| Changes in Group Equity (MSEK) | Jan-June 2012 |
Jan-June 2011 |
Full year 2011 |
| Opening balance | 1,334.3 | 825.6 | 825.6 |
| Total comprehensive income for the period | 238.3 | 229.5 | 507.4 |
| Changes in net wealth, excluding transactions |
|||
| with company owners | 238.3 | 229.5 | 507.4 |
| Share redemption | -395.6 | -275.8 | -275.8 |
| Cost of Share Redemption Program after tax | -0.1 | -0.1 | -0.1 |
| Share issue Payment at exercise of options |
159.7 - |
131.4 -0.6 |
274.6 -0.6 |
| Share capital from affiliated companies | 5.3 | - | - |
| Foreign exchange effect security accounting | 5.4 | - | - |
| Premiums received for warrants Share options - value of employee |
- | - | 2.7 |
| performance Equity at end of period |
- 1,347.7 |
0.5 910.5 |
0.5 1,334.3 |
| Attributable to: | |||
| Parent Company's shareholders | 1,347.7 | 910.5 | 1,334.3 |
| Minority Interest | - | - | - |
| Total equity | 1,347.7 | 910.5 | 1,334.3 |
During spring, Betsson AB announced that the Company was to acquire 100 percent of the shares in NGG. Betsson AB announced on 20 June 2012 that the acquisition had been completed, implying that the controlling influence over NGG's operations was transferred to Betsson from that date.
The acquisition increases Betsson's presence and enables continued strong growth in Betsson's main 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 SEK 33.5 million and the ongoing amortization of this will impact the group's net income for a period of two years. The table below summarizes the purchase price paid and the fair value of the acquired assets and assumed liabilities.
The purchase price is divided into an initial portion and a supplementary purchase price. The initial purchase price was settled on 20 June 2012 and constituted delivery of cash and cash equivalents and 217,974 newly issued Betsson B shares, which altogether corresponds to a value of approximately EUR 65 million (SEK 627.0 million).
A supplementary purchase price may be paid depending on the develpment of the acquired entity in 2012. Betsson has the right to chose to settle the supplementary purchase price by transferring cash and cash equivalents or newly issued shares in Betsson AB. The total supplementary purchase price may amount to to a maximum of EUR 20 million (SEK 177.0 million), which implies that the total maximum purchase price (without adjustments for change in market price for delivered Betsson shares) is EUR 85 million. If any additional purchase price becomes payable the final acquisition value will be determined by the market value of Betsson shares issued on the relevant day.
Against the background of NGG's strong development, and the lack of any indication that this development will decline in the second half of the year, management judge it likely that the whole supplementary purchase price will be settled in the first half of 2013.
| Purchase price | |
|---|---|
| Cash and cash equivalents | 582.7 |
| Equity instruments (217,974 class B shares) | 44.3 |
| Total purchase price paid | 627.0 |
| Supplementary purchase price | 177.0 |
| Total purchase price | 804.0 |
acquired assets and assumed liabilities
| Cash and cash equivalents | 65.8 |
|---|---|
| Tangible fixed assets | 9.5 |
| Customer base | 33.5 |
| Brand | 130.1 |
| Other intangible assets | 14.1 |
| Current receivables | 115.6 |
| Long-term liabilities | 0.0 |
| Current liabilities | -123.9 |
| Total identifiable net assets | 245.3 |
Goodwill 558.7
NGG is consolidated as a wholly-owned subsidiary as of 20 June 2012. Since this date and until June 30, NGG has contributed SEK 12.2 million to the Group's gross profit and SEK 3.0 million to the Group's net income.
The Group's net income during the second quarter has been negatively impacted by acquisition-related expenses of SEK 9.6 million, which refer to financial and legal advisory services and which are reported under Other external expenses.
Had NGG been a subsidiary for the entire interim period, Betsson's gross profit would have amounted to SEK 1 059.0 million rather than SEK 866.1 million and net income to SEK 302.9 million rather than SEK 267.7 million, excluding acquisition costs of SEK 14.1 million but including amortization of the customer base and technical platform amounting to SEK 15.0 million. NGG's gross profit during the interim period amounted to SEK 205.1 million and NGG's net income during the interim period amounted to SEK 39.1 million.
Amortization of the customer base amounting to SEK 1.4 million per month will commence first of July and continue over two years. At the same time amortization of the technical platform amounting to SEK 1.1 million per month will be added and continued for twelve months.
| Parent Company Income Statement (MSEK) |
Jan-June 2012 |
Jan-June 2011 |
Full year 2011 |
|---|---|---|---|
| Revenues | 8.7 | 7.3 | 15.6 |
| Operating expenses | -34.7 | -33.5 | -68.4 |
| Operating Income | -26.0 | -26.2 | -52.8 |
| Financial items | 190.6 | 1.2 | 536.7 |
| Income before tax | 164.6 | -25.0 | 483.9 |
| Tax | 0.0 | 6.6 | 7.4 |
| Net income | 164.6 | -18.4 | 491.3 |
| June 30 | June 30 | Dec 31 | |
| Parent Company Balance Sheet (MSEK) |
2012 | 2011 | 2011 |
| Tangible fixed assets | 4.3 | 5.1 | 5.4 |
| Financial assets | 2,066.4 | 1,218.9 | 1,256.6 |
| Total fixed assets | 2,070.8 | 1,224.0 | 1,262.0 |
| Current receivables | 40.1 | 21.1 | 443.3 |
| Cash and cash equivalents | 77.6 | 22.1 | 68.0 |
| Total current assets | 117.8 | 43.2 | 511.3 |
| Total assets | 2,188.5 | 1,267.2 | 1,773.3 |
| Restricted equity | 337.7 | 333.9 | 336.1 |
| Unrestricted equity | 1,169.4 | 588.5 | 1,242.0 |
| Total equity | 1,507.1 | 922.4 | 1,578.1 |
| Long-term liabilities | 431.8 | 0.4 | 0.0 |
| Current liabilities | 249.6 | 344.4 | 195.2 |
| Total equity and liabilities | 2,188.5 | 1,267.2 | 1,773.3 |
| Consolidated Income Statement | ||
|---|---|---|
| ------------------------------- | -- | -- |
| (MSEK) | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| (Continuing operations) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Revenues | 486.2 | 536.0 | 515.2 | 465.8 | 338.2 | 417.4 | 484.3 | 385.1 | 366.1 | 367.7 |
| Cost of Sale | -79.0 | -77.1 | -81.9 | -76.7 | -62.5 | -86.6 | -92.8 | -83.5 | -74.4 | -70.4 |
| Gross Profit | 407.2 | 458.9 | 433.3 | 389.1 | 275.7 | 330.8 | 391.5 | 301.6 | 291.7 | 297.3 |
| Marketing expenses | -149.8 | -135.2 | -123.1 | -100.6 | -70.9 | -120.2 | -163.2 | -124.0 | -120.3 | -120.2 |
| Personnel expenses | -71.3 | -60.2 | -56.3 | -60.5 | -37.2 | -43.0 | -47.2 | -39.6 | -47.4 | -45.4 |
| Other external expenses | -79.2 | -80.1 | -73.5 | -56.5 | -56.7 | -46.1 | -45.8 | -39.0 | -39.0 | -36.3 |
| Capitalized development costs | 25.7 | 15.3 | 13.4 | 9.4 | 7.5 | 11.1 | 9.3 | 7.3 | 9.2 | 9.9 |
| Depreciation | -23.2 | -22.1 | -22.3 | -21.9 | -15.7 | -13.9 | -14.1 | -12.5 | -12.0 | -11.1 |
| Other operating income/-expenses | 0.1 | -2.6 | 0.8 | -6.2 | 0.1 | 13.1 | -2.8 | -13.1 | 5.8 | -10.0 |
| Operating expenses | -297.7 | -284.9 | -261.0 | -236.3 | -172.9 | -199.0 | -263.8 | -220.9 | -203.7 | -213.1 |
| Operating income | 109.5 | 174.0 | 172.3 | 152.8 | 102.8 | 131.8 | 127.7 | 80.7 | 88.0 | 84.2 |
| Financial items, net | 1.3 | -3.0 | 0.6 | -6.3 | 0.6 | 0.8 | 1.0 | 0.0 | 0.5 | 0.4 |
| Income before tax | 110.9 | 171.0 | 172.9 | 146.5 | 103.4 | 132.6 | 128.7 | 80.7 | 88.5 | 84.6 |
| Tax | -5.5 | -8.7 | -7.1 | -8.1 | -5.4 | -7.0 | -3.5 | -4.4 | -4.5 | -4.4 |
| Income after tax | 105.4 | 162.3 | 165.8 | 138.4 | 98.0 | 125.6 | 125.2 | 76.3 | 84.0 | 80.2 |
| Consolidated Balance Sheet (MSEK) | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 |
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Fixed assets | 1,754.0 | 1,020.7 | 1,033.8 | 1,059.8 | 1,052.2 | 493.5 | 482.0 | 473.6 | 482.4 | 477.3 |
| Current assets | 1,088.8 | 1,339.2 | 1,239.3 | 1,140.7 | 872.8 | 1,101.2 | 1,013.6 | 824.1 | 1,026.0 | 937.6 |
| Total assets | 2,842.7 | 2,359.9 | 2,273.1 | 2,200.5 | 1,925.0 | 1,594.7 | 1,495.6 | 1,297.7 | 1,508.4 | 1,414.9 |
| Equity | 1,347.7 | 1,604.4 | 1,334.3 | 1,212.2 | 910.5 | 952.3 | 825.6 | 704.6 | 632.5 | 903.3 |
| Non-current liabilities | 439.4 | 7.8 | 8.0 | 8.7 | 8.7 | 4.1 | 4.2 | 3.6 | 3.9 | 4.1 |
| Current liabilities | 1,055.6 | 747.7 | 930.8 | 979.6 | 1,005.8 | 638.3 | 665.8 | 589.5 | 872.0 | 507.5 |
| Total equity and liabilities | 2,842.7 | 2,359.9 | 2,273.1 | 2,200.5 | 1,925.0 | 1,594.7 | 1,495.6 | 1,297.7 | 1,508.4 | 1,414.9 |
| Group Review | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Cash Flow (MSEK) | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | ||
| (Continuing operations) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||
| Operating cash flow | 265.6 | 97.9 | 54.2 | 352.5 | 79.1 | 51.4 | 138.9 | 227.2 | 18.5 | 11.9 | ||
| Cash flow from investing activities Cash flow from financing activities |
-547.4 36.2 |
-17.3 0.0 |
-24.4 2.7 |
-63.6 0.0 |
-150.6 -276.5 |
-9.9 0.0 |
-16.4 0.8 |
-5.3 -351.9 |
-17.0 -0.1 |
-6.2 0.0 |
||
| Total cash flow | -245.7 | 80.6 | 32.5 | 288.9 | -348.0 | 41.5 | 123.3 | -130.0 | 1.4 | 5.7 | ||
| Key ratios | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | ||
| (Continuing operations) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||
| Quarterly top-line growth (%) | -9 | 4 | 11 | 38 | -19 | -14 | 26 | 5 | 0 | -4 | ||
| Growth compared to same period last year | ||||||||||||
| (%) | 44 | 28 | 6 | 21 | -8 | 14 | 26 | 22 | 29 | 17 | ||
| Gross Margin (percent of Revenues) | 83.7 | 85.6 | 84.1 | 83.5 | 81.5 | 79.3 | 80.8 | 78.3 | 79.7 | 80.9 | ||
| EBITDA-margin (percent of Reveues) EBITDA-margin (percent of Gross Profit) |
27.3 32.6 |
36.6 42.7 |
37.8 44.9 |
37.5 44.9 |
35.0 43.0 |
34.9 44.0 |
29.3 36.2 |
24.2 30.9 |
27.3 34.3 |
25.9 32.1 |
||
| Operating margin (percent of Reveues) Operating margin (percent of Gross Profit) |
22.5 26.9 |
32.5 37.9 |
33.4 39.8 |
32.8 39.3 |
30.4 37.3 |
31.6 39.8 |
26.4 32.6 |
21.0 26.8 |
24.0 30.2 |
22.9 28.3 |
||
| Profit marging (percent of Reveues) | 22.8 | 31.9 | 33.6 | 31.5 | 30.6 | 31.8 | 26.6 | 21.0 | 24.2 | 23.0 | ||
| Profit maging (percent of Gross Profit) | 27.2 | 37.3 | 39.9 | 37.7 | 37.5 | 40.1 | 32.9 | 26.8 | 30.3 | 28.5 | ||
| Marketing expenses (percent of Reveues) | 30.8 | 25.2 | 23.9 | 21.6 | 21.0 | 28.8 | 33.7 | 32.2 | 32.9 | 32.7 | ||
| Marketing expenses (percent of Gross Profit) | 36,8 | 29.5 | 28.4 | 25.9 | 25.7 | 36.3 | 41.7 | 41.1 | 41.2 | 40.4 | ||
| Earnings per share (SEK) | 2.54 | 3.91 | 4.01 | 3.40 | 2.48 | 3.19 | 3.19 | 1.94 | 2.14 | 2.04 | ||
| Operating cash flow per share (SEK) | 6.29 | 2.36 | 1.31 | 8.66 | 2.00 | 1.30 | 3.54 | 5.79 | 0.47 | 0.30 | ||
| Equity per share (SEK) | 31.92 | 38.20 | 32.24 | 29.29 | 22.58 | 24.17 | 20.96 | 17.95 | 16.12 | 23.02 | ||
| Executed dividend/redemption per share (SEK) |
9.42 | - | - | - | 7.00 | - | - | - | 9.00 | - | ||
| Average share price (SEK) | 210.34 | 181.23 | 146.29 | 132.91 | 142.49 | 126.03 | 103.37 | 94.73 | 109.65 | 122.36 | ||
| Last paid share price (SEK) | 206.00 | 194.50 | 151.50 | 129.50 | 151.00 | 139.25 | 117.00 | 96.25 | 89.25 | 124.00 | ||
| Highest share price (SEK) Lowest share price (SEK) |
224.50 195.00 |
199.50 152.00 |
159.50 125.25 |
157.50 109.75 |
162.00 126.50 |
141.50 112.75 |
117.75 94.25 |
101.50 87.00 |
130.50 89.25 |
134.25 110.00 |
||
| Equity/assets ratio (%) | 47% | 68 | 59 | 55 | 47 | 60 | 55 | 54 | 42 | 64 | ||
| Investments (MSEK) | 29.1 | 17.3 | 13.5 | 13.8 | 8.2 | 15.4 | 16.4 | 5.2 | 17.1 | 6.2 | ||
| Average number of employees (accumulated) | 464 | 439 | 340 | 317 | 282 | 266 | 268 | 266 | 266 | 261 | ||
| Number of employees at end of period Number of registered shareholders at end of |
610 | 459 | 412 | 378 | 385 | 278 | 282 | 276 | 275 | 276 | ||
| period | 15,246 | 14,568 | 12,507 | 11,936 | 11,151 | 11,105 | 11,484 | 11,970 | 11,782 | 10,677 | ||
| Customers | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | ||
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||
| Registered customers (thousands) | 5,418.0 | 3 906.3 | 3 662.4 | 3 424.1 | 3 229.5 | 2 587.3 | 3 158.2 | 2 833.9 | 2 719.3 | 2 414.9 | ||
| Quarterly growth (%) Growth compared to same period last year |
39 | 7 | 7 | 6 | 25 | -18 | 11 | 4 | 13 | 14 | ||
| (%) | 68 | 51 | 16 | 21 | 19 | 7 | 49 | 48 | 53 | 48 | ||
| Active customers (thousands) | 508.7 | 405.0 | 403.6 | 382.9 | 335.9 | 335.5 | 300.5 | 255.7 | 288.7 | 318.6 | ||
| Quarterly growth (%) Growth compared to same period last year |
25.6 | 0 | 5 | 14 | 0 | 12 | 18 | -11 | -9 | 10 | ||
| (%) | 51 | 21 | 34 | 50 | 16 | 5 | 4 | 16 | 56 | 82 | ||
| Active rate, active/registered customers (%) | 9 | 10 | 11 | 11 | 10 | 13 | 10 | 9 | 11 | 13 | ||
| Customer deposits | 2012 Q2 |
2012 Q1 |
2011 Q4 |
2011 Q3 |
2011 Q2 |
2011 Q1 |
2010 Q4 |
2010 Q3 |
2010 Q2 |
2010 Q1 |
||
| Customet deposits (MSEK) Quarterly growth (%) |
1,093.5 5 |
1 045.3 -4 |
1 093.5 | -3 | 1 122.6 48 |
756.5 -21 |
959.0 -13 |
1 104.5 21 |
913.6 0 |
911.1 -6 |
964.9 5 |
|
| Growth compared to same period last year (%) |
45 | 9 | -1 | 23 | -17 | -1 | 21 | 11 | 16 | 31 | ||
| Customer deposits, all gaming solutions (MSEK) |
1,505.1 | 1 468.6 | 1 484.5 | 1 483.6 | 1 148.2 | 1 121.6 | 1 104.5 | 913.6 | 911.1 | 964.9 | ||
| Quarterly growth (%) Growth compared to same period last year |
2 | -1 | 0 | 29 | 2 | 2 | 21 | 0 | -6 | 5 | ||
| (%) | 31 | 31 | 34 | 62 | 26 | 16 | 21 | 11 | 16 | 31 |
| Sportbook Margin | 2012 Q2 |
2012 Q1 |
2011 Q4 |
2011 Q3 |
2011 Q2 |
2011 Q1 |
2010 Q4 |
2010 Q3 |
2010 Q2 |
2010 Q1 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Turnover, all gaming solutions (MSEK) | 2,744.8 | 2,644.1 | 2,171.3 | 1,816.6 | 1,805.0 | 1,787.5 | 1,894.1 | 1,215.7 | 1,233.1 | 1,012.8 |
| Quarterly growth (%) Growth compared to same period last year (%) |
4 52 |
22 48 |
20 15 |
1 49 |
1 46 |
-6 76 |
56 151 |
-1 91 |
22 91 |
34 89 |
| Of which Gross Turnover Live Betting (MSEK) | 1,904.8 | 1,740.1 | 1,336.1 | 1,072.4 | 1,199.5 | 1,119.4 | 1,143.6 | 733.7 | 699.7 | 385.2 |
| Live Betting (% of Gross Turnover Soortsbook) | 69.4 | 65.8 | 61.5 | 59.0 | 66.4 | 62.6 | 60.4 | 60.4 | 56.7 | 38.0 |
| Quarterly growth (%) Growth compared to same period last year (%) |
9 59 |
30 55 |
25 17 |
-11 46 |
7 71 |
-2 191 |
56 390 |
5 278 |
82 207 |
65 162 |
| Margin after free bets (%) | 4.6% | 7.2% | 8.1% | 7.6% | 5.9% | 8.3% | 7.6% | 8.6% | 7.4% | 7.6% |
| Gross Profit (MSEK) | 68.9 | 107.8 | 97.2 | 84.1 | 41.3 | 104.3 | 128.2 | 89.5 | 78.0 | 72.0 |
| Gross Margin Sportsbook (%) 1) 1) Margin after allocated costs |
2.5% | 4.1% | 4.5% | 4.6% | 2.3% | 5.8% | 6.8% | 7.4% | 6.3% | 7.1% |
| Segment Reporting | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 |
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Gross Profit (MSEK) | ||||||||||
| B2B, Business to business B2C, Business to consumers |
115.3 291.9 |
142.8 316.2 |
132.6 300.7 |
123.0 266.1 |
124.0 151.7 |
188.4 142.4 |
238.3 153.2 |
180.0 121.6 |
154.0 137.7 |
151.8 145.5 |
| Subtotal | 407.2 | 459.0 | 433.3 | 389.1 | 275.7 | 330.8 | 391.5 | 301.6 | 291.7 | 297.3 |
| Other, adjustments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total Gross Profit | 407.2 | 459.0 | 433.3 | 389.1 | 275.7 | 330.8 | 391.5 | 301.6 | 291.7 | 297.3 |
| Share of total Gross Profit (%) | ||||||||||
| B2B | 28.3 | 31.1 | 30.6 | 31.6 | 45.0 | 57.0 | 60.9 | 59.7 | 52.8 | 51.1 |
| B2C | 71.7 | 68.9 | 69.4 | 68.4 | 55.0 | 43.0 | 39.1 | 40.3 | 47.2 | 48.9 |
| Quarterly Growth (%) | ||||||||||
| B2B B2C |
-19 -8 |
8 5 |
8 13 |
-1 75 |
-34 7 |
-21 -7 |
32 26 |
17 -12 |
1 -5 |
1 -10 |
| Totals | -11 | 6 | 11 | 41 | -17 | -16 | 30 | 3 | -2 | -5 |
| Growth compared to same period last year (%) |
||||||||||
| B2B B2C |
-7 92 |
-24 122 |
-44 96 |
-32 119 |
-19 10 |
24 -2 |
58 -5 |
63 -15 |
83 -2 |
42 -2 |
| Totals | 48 | 39 | 11 | 29 | -5 | 11 | 25 | 19 | 30 | 16 |
| Gross Profit by Products | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 |
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Gross Profit (MSEK) | ||||||||||
| Casino | 303.1 | 308.3 | 290.4 | 275.1 | 202.1 | 188.3 | 216.7 | 174.1 | 173.8 | 180.8 |
| Poker | 25.4 | 27.5 | 24.8 | 21.5 | 17.1 | 20.5 | 26.7 | 24.4 | 25.3 | 30.3 |
| Sportsbook Other products |
68.9 9.8 |
107.8 15.4 |
97.2 20.9 |
84.1 8.4 |
41.3 15.2 |
104.3 17.7 |
128.2 19.9 |
89.5 13.6 |
78.0 14.6 |
72.0 14.2 |
| Total Gross Profit | 407.2 | 459.0 | 433.3 | 389.1 | 275.7 | 330.8 | 391.5 | 301.6 | 291.7 | 297.3 |
| Share of total Gross Profit (%) | ||||||||||
| Casino | 74.4 | 67.2 | 67.0 | 70.7 | 73.3 | 56.9 | 55.4 | 57.7 | 59.6 | 60.8 |
| Poker | 6.2 | 6.0 | 5.7 | 5.5 | 6.2 | 6.2 | 6.8 | 8.1 | 8.7 | 10.2 |
| Sportsbook Other products |
16.9 2.4 |
23.5 3.4 |
22.4 4.8 |
21.6 2.2 |
15.0 5.5 |
31.5 5.4 |
32.7 5.1 |
29.7 4.5 |
26.7 5.0 |
24.2 4.8 |
| Quarterly Growth (%) | ||||||||||
| Casino | -2 | 6 | 6 | 36 | 7 | -13 | 24 | 0 | -4 | -3 |
| Poker | -8 | 11 | 15 | 26 | -17 | -23 | 9 | -4 | -17 | -4 |
| Sportsbook Other products |
-36 -36 |
11 -26 |
16 149 |
104 -45 |
-60 -14 |
-19 -11 |
43 46 |
15 -7 |
8 3 |
-12 20 |
| Total all products | -11 | 6 | 11 | 41 | -17 | -16 | 30 | 3 | -2 | -5 |
| Growth compared to same period last year (%) |
||||||||||
| Casino | 50 | 64 | 34 | 58 | 16 | 4 | 16 | 1 | 10 | 19 |
| Poker Sportsbook |
49 67 |
34 3 |
-7 -24 |
-12 -6 |
-32 -47 |
-32 45 |
-15 56 |
-11 116 |
-21 202 |
-26 25 |
| Other products | -35 | -13 | 5 | -38 | 4 | 25 | 69 | 25 | 83 | 163 |
| Total all products | 48 | 39 | 11 | 29 | -5 | 11 | 25 | 19 | 30 | 16 |
| B2C by Geographical Area | 2012 Q2 |
2012 Q1 |
2011 Q4 |
2011 Q3 |
2011 Q2 |
2011 Q1 |
2010 Q4 |
2010 Q3 |
2010 Q2 |
2010 Q1 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Profit (MSEK) | ||||||||||
| Nordic Countries | 238.7 | 259.0 | 239.0 | 199.4 | 115.7 | 105.5 | 114.8 | 94.4 | 97.8 | 106.6 |
| EU, outside Nordic region | 49.7 | 48.2 | 55.3 | 57.9 | 34.9 | 35.0 | 41.3 | 27.9 | 34.2 | 35.8 |
| Others Europe | 1.5 | 1.1 | 0.8 | 1.4 | 0.7 | 1.0 | -2.8 | 0.5 | 0.9 | 1.6 |
| Rest of the world | 1.9 | 7.9 | 5.6 | 7.4 | 0.5 | 0.9 | -0.1 | -1.2 | 4.8 | 1.5 |
| Total Gross Profit | 291.9 | 316.2 | 300.7 | 266.1 | 151.8 | 142.4 | 153.2 | 121.6 | 137.7 | 145.5 |
| Share of total Gross Profit (%) | ||||||||||
| Nordic Countries | 81.8 | 81.9 | 79.5 | 74.9 | 76.2 | 74.1 | 74.9 | 77.6 | 71.0 | 73.3 |
| EU, outside Nordic region | 17.0 | 15.2 | 18.4 | 21.8 | 23.0 | 24.6 | 27.0 | 22.9 | 24.8 | 24.6 |
| Others Europe | 0.5 | 0.3 | 0.3 | 0.5 | 0.5 | 0.7 | -1.8 | 0.4 | 0.7 | 1.1 |
| Rest of the world | 0.7 | 2.5 | 1.9 | 2.8 | 0.3 | 0.6 | -0.1 | -1.0 | 3.5 | 1.0 |
| Quarterly Growth (%) | ||||||||||
| Nordic Countries | -8 | 8 | 20 | 72 | 10 | -8 | 22 | -3 | -8 | -15 |
| EU, outside Nordic region | 3 | -13 | -4 | 66 | 0 | -15 | 48 | -18 | -4 | 2 |
| Others Europe | 39 | 38 | -43 | 100 | -30 | 136 | -660 | -44 | -44 | 1,500 |
| Rest of the world | -75 | 41 | -24 | 1,380 | -44 | 1,000 | 92 | -125 | 220 | 650 |
| Total all countries | -8 | 5 | 13 | 75 | 7 | -7 | 26 | -12 | -5 | -10 |
| Growth compared to same period last year (%) |
||||||||||
| Nordic Countries | 106 | 145 | 108 | 111 | 18 | -1 | -9 | -19 | -11 | -7 |
| EU, outside Nordic region | 42 | 38 | 34 | 108 | 2 | -2 | 18 | 5 | 16 | 9 |
| Others Europe | 119 | 10 | 129 | 180 | -22 | -38 | -2,900 | 142 | 800 | 129 |
| Rest of the world | 287 | 778 | 5,700 | 717 | -90 | -40 | -150 | -209 | 700 | 200 |
| Total all countries | 92 | 122 | 96 | 119 | 10 | -2 | -5 | -15 | -2 | -2 |
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