With more than 50 years experience
from the gaming industry Betsson provides the best customer
experience and we take entertainment seriously.

The Betsson way: Our corporate strategy

Betsson is building its exceptional Customer Experience by becoming the most customer centric company in the industry.

Betsson AB:s business concept is to invest in and manage fast-growing companies operating in the online gaming industry.

One hundred per cent of Betsson’s revenues are regulated and Betsson aims to increase the share of locally licensed revenues.

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We require
operational excellence

Our subsidiaries operational Strategy Statement:
Become the most customer centric company in the industry.
Transform our business by becoming a data led best in class digital
marketing company that leverages a multibrand model and a single technological platform.

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The M&A Growth

Betsson’s business concept is to invest in and manage fast-growing companies operating in the gaming industry. The multi brand and single platform strategy of our subsidiaries benefits Betsson, in particular from an M&A perspective. Betsson achieves economies of scale when we integrate the acquired companies into one single technological platform and still keep and develop the acquired brands.

 

Some of our successful acquisitions, which have joined The Betsson Family are:

 

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Right mix of regulated
revenues

One hundred per cent of Betsson Group’s revenues comes from regulated markets, where the majority is derived from our Maltese license. The requirements for this license are rigorous and the compliance requirements are also high. In total, the Group has seven local licenses in;

MALTA
ITALY
ESTONIA
UK
DENMARK
BELGIUM
GEORGIA

Betsson aims to increase the share of revenues from locally licensed markets. This is implemented both through an increased focus on new markets with a local licensing regime, as well as supporting re-regulation in existing markets. Current countries, where our subsidiaries have customers that are evaluating/implementing local licenses in Europe are;

PORTUGAL
NETHERLANDS
SWEDEN
NORWAY

Betsson believes that gaming companies should be locally licensed if the local licensing system is lawful and commercially viable. Betsson also believes that there still are huge opportunities in the internationally regulated markets.

The Market trends

Betsson has identified five important prevailing market trends which affect the group, either directly or indirectly. Betsson believes it is important to continue allocating resources within these areas in order for the group to maintain a strong market position.

Mobile is everywhere

It is important to live like the customers do; and Mobile is at the centre of their lives. The same will have to go for us. A superior mobile offering means a superior customer experience. Betsson Group’s technology is at the forefront of mobile development. As proof, Betsson won the prize for best sportsbook app in 2014.

The customers are rapidly taking advantage of the mobile and smartphone solutions out there – Mobile represented 23% of Betsson Group’s total revenues in Q4 2014 – a growth of 130% compared to Q4 2013.

Today, virtually all our brands have mobile websites available across the most popular mobile devices. Within the Group we will continue to roll out native apps across our brands, as this offers superior customer experience and takes full benefit of the mobile device features. We are also paying special attention to optimising the customer on-boarding, in-game and payment experiences. Despite rapid growth, we are only at the beginning of the mobile journey!

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Responsibility –
a part of our life

WE LISTEN TO AND RESPECT OUR CUSTOMERS, PARTNERS,
COMMUNITIES AND ONE ANOTHER.
WE ARE RESPONSIBLE AND TRANSPARENT IN OUR OPERATIONS

PRODUCTS

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OUR 23 BRANDS

Betsson owns 23 different brands, 15 within B2C and 8 within B2B, with 80.7% revenue allocation on the Techsson Platform.
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CEO comments

2014 was yet another strong year for Betsson, both in terms of financial and operational performance. Betsson has conti­nued to deliver upon its strategy where multi-brand is combined with a single technological platform. This has been a contributing factor to Betsson’s development over a number of years, in which the Company has reported growth levels higher than the market average and the highest margin amongst our listed competitors. The long-term investments in our platform and in our brands create, in addition, a solid base to stand on as we face the future. That Betsson has been upgrated to the Nasdaq Stockholm Large Cap list is evidence of our success and I want to thank, first and foremost, Betsson’s fantastic personnel for your strong involvement in making this happen!  

BETSSON DELIVERS A STRONG RESULT

Betsson’s growth during the last ten years has been strong and the past year was no exception. During 2014, revenues amounted to MSEK 3,035 an increase of 23 per cent compared with the previous year. Operating income amounted to MSEK 821, which is equivalent to an increase of 37 per cent. The solid improvement in results is partly attributable to strong organic growth and partly to successful acquisitions, where the Oranje and Kroon casino brands, based in the Dutch market, is the most recent acquisition. In line with expectations, we also see that the portion of mobile gaming has increased considerably, and during the fourth quarter 2014 the portion of mobile revenues amounted to 23 per cent of total revenues. During the year, Betsson has invested further in mobile technology with a broader offering of new and improved applications for smartphones and tablets. We anticipate that these investments will result in a further increase in mobile gaming during the coming year, which also will contribute to Betsson’s overall growth.

A clear evidence of Betsson’s long-standing strong operational and financial development is the upgrading to the Nasdaq Stockholm Large Cap list, which took place on 1 January 2015. That Betsson is entering into the Large Cap list shows that the Company has a well-functioning business with highly knowledgeable personnel and a clear strategy. The Company’s multi-brand strategy creates good premises to continue to grow both organi­cally and through acquisitions. The fact that Betsson, in addition, is the first pure Internet company qualified for the Large Cap list shows that the company is at the forefront of technological developments.

OPERATIONAL ACTIVITIES

Betsson’s vision and goal is to deliver the best customer experience in the industry. We also see a clear pattern that the customers’ expectations are increasing in terms of the user experience. As a result, Betsson is continually making invest­ments to further develop the customer’s experience in all of our brands. Examples of these investments include functions which allow individual customers a greater range of customization op­tions, quicker payments and withdrawals and optimized perfor­mance on the various gaming sites as well as optimized flows for registration and deposits. Individual customer adaptations can be achieved through the delivery of individual and relevant com­munication to the customers in real time and through recom­mendation functions based on a user’s history. Betsson intends to stay at the cutting edge when it comes to digital marketing and the use of data to facilitate better decisions and to increase customization. By actively investing in and prioritizing these areas, we ensure that we will remain at the very top level of technical competence and product development in the future.

MUTIBRAND STRATEGY AND MIGRATIONS

Another important factor in Betsson’s continued successful growth and result is our multi-brand strategy. By using locally adapted brands, which are integrated into a common platform, a broad and competitive product portfolio is created where the consumers’ range of choice is increasing significantly. Through its wide range of brands, Betsson can also focus on a larger number of segments and target groups, which creates even more growth opportunities.

In recent years, Betsson has acquired a number of companies, Betsafe (2011), NordicBet (2012), the Automaten brands (2013) and Oranje & Kroon (2014). The latter, O&K, has shown a very positive development following the acquisition and has further strengthened its position as one of the two market leading players in the Dutch market.

All of the acquisitions have been very successful in terms of expanding the Betsson Group as a company and have created a better position in the gaming market. This has been possible through our strategy, which implies that we acquire companies and further develop their brands, while the technology is inte­grated in the common platform. In this manner, the risk of losing customers is minimized while synergies can be achieved and growth possibilities created.

As we have acquired companies during the years, the number of migrations to the common platform has also increased. This has created extensive experience within the organization and thereby increased efficiency. During last year we executed three migrations to the common platform: NordicBet.com, NordicBet.dk and Star Casino. At the same time, we have continued to develop our other brands at a fast pace.

REGULATORY SITUATION

In terms of the regulatory frameworks on our markets, the trend is that more and more markets choose to introduce a licensing system. Concurrently, there are many countries which have retained their monopoly situation and Betsson operates in these countries on the basis of its international license from Malta. Betsson is well-positioned both as regards of locally licensed markets as well as internally regulated markets, and we believe there is significant growth potential in both types of markets. In the locally regulated markets, Betsson will participate and seek licenses where this is commercially defendable.

RESPONSIBLE GAMING

Acting responsibly is a given for Betsson, and this attitude per­meates our entire organization. We offer a number of measures to guarantee safe gaming, such as self-excluding functions, training of all personnel in responsible gaming, self-testing functions, etc. Due to this, Betsson has been nominated as the most socially responsible gaming company for a number of years by both EGR and IGA. That the Company shall also, in the future, be perceived as the most responsible gaming company is something that is very clearly imprinted in Betsson’s culture and organization.

OUTLOOK

We eagerly anticipate the forthcoming year. Our ambition is to continue to grow at a pace exceeding the market growth rate, and we are prepared to do this both organically and through acquisitions. Our strategy, technical competence and leading market position create positive premises for continued high growth and value creation.

Magnus Silfverberg

President and Chief Executive Officer, Betsson AB. March 2015

The numbers in 2014