9M 2011 - Fortuna Entertainment Group EU
9M 2011 - Fortuna Entertainment Group EU
9M 2011 - Fortuna Entertainment Group EU
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>Fortuna</strong> <strong>Entertainment</strong><br />
<strong>Group</strong> NV<br />
<strong>9M</strong> <strong>2011</strong> Financial Results<br />
Analysts & Investors Presentation<br />
November 3, <strong>2011</strong>
Agenda<br />
1. Introduction<br />
2. <strong>9M</strong> <strong>2011</strong> Financial Performance<br />
3. <strong>9M</strong> <strong>2011</strong> Sport Betting Results<br />
4. <strong>9M</strong> <strong>2011</strong> Lottery Results<br />
5. Outlook & Strategy <strong>2011</strong>/ 2012<br />
i. On-line in Poland<br />
ii. Tipsport deal<br />
iii. Outlook<br />
2
Presentation Team<br />
MICHAL VEPŘEK<br />
CFO<br />
VLADAN CRHA<br />
Marketing & IR<br />
Director<br />
3
Financial Performance<br />
in the First 9 Months of <strong>2011</strong><br />
4
Financial Highlights – <strong>9M</strong> <strong>2011</strong><br />
Financial Highlights Operational Highlights<br />
Growing core markets<br />
─ <strong>9M</strong> <strong>2011</strong> Amounts Staked – up by o 9.3% yoy<br />
to <strong>EU</strong>R 301.7 MM<br />
─ <strong>9M</strong> <strong>2011</strong> total Gross Win – up by 6.7 % yoy to<br />
<strong>EU</strong>R 70.9 MM<br />
─ <strong>9M</strong> <strong>2011</strong> EBITDA – <strong>EU</strong>R 14.2 MM, down by<br />
17.3% yoy<br />
─ EBITDA sports betting <strong>EU</strong>R 18.3 MM, up<br />
6.4% yoy<br />
On-line sports betting retains its momentum<br />
─ <strong>9M</strong> <strong>2011</strong> Gross Win on-line sports betting – up by<br />
37% yoy to <strong>EU</strong>R 20.<strong>9M</strong>M<br />
Lottery in line with plan<br />
─ <strong>9M</strong> <strong>2011</strong> total Amounts Staked from lottery – <strong>EU</strong>R<br />
4.4 mm (of which scratch tickets <strong>EU</strong>R 2.1 MM and<br />
numerical games Loto <strong>EU</strong>R 2.3 MM)<br />
─ Amounts Staked scratch tickets growing 73.4%<br />
qoq<br />
─ <strong>9M</strong> <strong>2011</strong> Gross Win from lottery <strong>EU</strong>R 2 MM<br />
─ <strong>9M</strong> <strong>2011</strong> EBITDA lottery (<strong>EU</strong>R 4.1MM)<br />
Source: Calculated based on FEG consolidated unaudited financial results for <strong>9M</strong> <strong>2011</strong> and Company information<br />
FX rates used for translation: average ČNB<br />
Lottery business in the Czech Republic<br />
─ Successful sale of scratch tickets – estimated<br />
50% market share, series I almost 2 MM tickets<br />
sold out in less than 6 months<br />
─ <strong>Fortuna</strong> Loto gained 14% market share since its<br />
launch on July 18<br />
─ New daily game introduced from Nov 1<br />
Polish on-line on its door-step<br />
─ Decision from the Polish Ministry of Finance<br />
anticipated<br />
─ More than 12,000 users already pre-registered in<br />
Poland in one month<br />
─ Ready to launch immediately<br />
Tipsports PL<br />
─ Decision from the Polish Ministry of Finance<br />
anticipated<br />
─ Due diligence process completed<br />
─ <strong>Fortuna</strong> taking over managerial control over<br />
Tipsport´s operations in Poland<br />
5
<strong>9M</strong> <strong>2011</strong> – Solid Growth<br />
<strong>EU</strong>R mil.<br />
<strong>EU</strong>R mil.<br />
95<br />
90<br />
85<br />
80<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
Amounts Staked Q3<br />
0<br />
84,5<br />
Gross Win Q3<br />
3,7<br />
89<br />
3Q 2010 3Q <strong>2011</strong><br />
Sports Betting Lottery<br />
16,3<br />
4,8<br />
1,1<br />
0,5<br />
15,2<br />
6,3<br />
Q3 2010 Q3 <strong>2011</strong><br />
SB: 5.3%<br />
Lottery: n/a<br />
------------------------<br />
Total: 9.7%<br />
Online: 31.3%<br />
Retail: (6.8%)<br />
Lottery: n/a<br />
------------------------<br />
Total: 9.2% yoy<br />
SB Online SB Retail Lottery ST Lottery Num games<br />
Source: Calculated based on FEG consolidated unaudited financial results for <strong>9M</strong> <strong>2011</strong> and Company information<br />
FX rates used for translation: average ČNB<br />
<strong>EU</strong>R mil.<br />
<strong>EU</strong>R mil.<br />
300<br />
280<br />
260<br />
80<br />
60<br />
40<br />
Amounts Staked <strong>9M</strong><br />
276,1<br />
4,4<br />
297,2<br />
<strong>9M</strong> 2010 <strong>9M</strong> <strong>2011</strong><br />
Sports Betting Lottery<br />
Gross Win <strong>9M</strong><br />
51,2<br />
1,1<br />
0,9<br />
48<br />
SB: 7.6%<br />
Lottery: n/a<br />
------------------------<br />
Total: 9.3%<br />
20<br />
0<br />
15,3<br />
20,9<br />
<strong>9M</strong> 2010 <strong>9M</strong> <strong>2011</strong><br />
SB Online SB Retail Lottery ST Lottery Num Games<br />
Online: 37%<br />
Retail: (6.2%)<br />
Lottery: n/a<br />
------------------------<br />
Total: 6.7% yoy<br />
6
<strong>EU</strong>R mil.<br />
<strong>EU</strong>R mil.<br />
<strong>9M</strong> <strong>2011</strong> – Profitability on Budget<br />
80<br />
60<br />
40<br />
20<br />
0<br />
20<br />
15<br />
10<br />
5<br />
0<br />
-5<br />
-10<br />
58<br />
17,2<br />
Revenues <strong>9M</strong><br />
EBITDA <strong>9M</strong><br />
60,4<br />
<strong>9M</strong> 2010 <strong>9M</strong> <strong>2011</strong><br />
Revenues SB Revenues Lottery<br />
18,3<br />
-4,1<br />
<strong>9M</strong> 2010 <strong>9M</strong> <strong>2011</strong><br />
EBITDA SB EBITDA lottery<br />
Source: Calculated based on FEG consolidated unaudited financial results for <strong>9M</strong> <strong>2011</strong> and Company information<br />
FX rates used for translation average ČNB<br />
2<br />
SB: 4.3%<br />
Lottery: n/a<br />
------------------------<br />
Total: 7.7%<br />
SB: 6.4%<br />
Lottery: n/a<br />
------------------------<br />
Total: (17.3%)<br />
<strong>EU</strong>R mil.<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
18,6<br />
Revenues Q3<br />
19<br />
1,6<br />
Q3 2010 Q3 <strong>2011</strong><br />
Revenues SB Revenues Lottery<br />
─ Solid revenues generation in sports<br />
betting<br />
─ EBITDA increase as a results of focus<br />
on operating costs control<br />
─ EBITDA lottery fully on budget<br />
SB: 1.8%<br />
Lottery: n/a<br />
------------------------<br />
Total: 10.3%<br />
7
Sports Betting Results<br />
in the First 9 Months of <strong>2011</strong><br />
8
<strong>EU</strong>R mil.<br />
<strong>EU</strong>R mil.<br />
<strong>9M</strong> <strong>2011</strong> – Growth Driven by On-line<br />
300<br />
290<br />
280<br />
270<br />
260<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
SB Amounts Staked <strong>9M</strong><br />
276,1<br />
SB EBITDA <strong>9M</strong><br />
17,2<br />
7.6%<br />
297,2<br />
<strong>9M</strong> 2010 <strong>9M</strong> <strong>2011</strong><br />
Amounts Staked<br />
6.4%<br />
18,3<br />
<strong>9M</strong> 2010 <strong>9M</strong> <strong>2011</strong><br />
EBITDA SB<br />
Source: Calculated based on FEG consolidated unaudited financial results for <strong>9M</strong> <strong>2011</strong> and Company information<br />
FX rates used for translation average ČNB<br />
<strong>EU</strong>R mil.<br />
80<br />
60<br />
40<br />
20<br />
0<br />
SB Gross Win <strong>9M</strong><br />
51,2<br />
15,3<br />
48,0<br />
20,9<br />
<strong>9M</strong> 2010 <strong>9M</strong> <strong>2011</strong><br />
GW Online GW Retail<br />
─ EBITDA increase as a results of focus on<br />
operating costs control in the sports betting<br />
segment<br />
─ On-line betting retains its strong<br />
momentum, supported by network of land<br />
shops<br />
Online: 37.0%<br />
Retail: (6.2%)<br />
------------------------<br />
Total: 3.7%<br />
─ Although on-line substitution is strong, GW<br />
margin declined only little<br />
9
<strong>EU</strong>R mil.<br />
Sport Betting by Countries<br />
200<br />
150<br />
100<br />
50<br />
0<br />
SK<br />
31,7%<br />
Amounts Staked <strong>9M</strong> Gross Win <strong>9M</strong><br />
146,4<br />
<strong>9M</strong> 2010<br />
Poland<br />
15,1%<br />
Malta<br />
0,1%<br />
87,6<br />
159,6<br />
97,9<br />
41,8 36,9<br />
0,3 2,9<br />
<strong>9M</strong> 2010 <strong>9M</strong> <strong>2011</strong><br />
CR SB SK Poland Malta<br />
Amounts Staked in %<br />
CR SB<br />
53,0%<br />
SK<br />
32,9%<br />
Poland<br />
12,4%<br />
CR SB<br />
53,7%<br />
Source: Calculated based on FEG consolidated unaudited financial results for <strong>9M</strong><strong>2011</strong> and Company information<br />
FX rates used for translation average ČNB<br />
Malta<br />
1,0%<br />
<strong>9M</strong> <strong>2011</strong><br />
<strong>EU</strong>R mil.<br />
40<br />
30<br />
20<br />
10<br />
0<br />
Poland<br />
22,0%<br />
SK<br />
31,9%<br />
30,7<br />
31,6<br />
21,2<br />
23,1<br />
14,6 14,1<br />
<strong>9M</strong> 2010<br />
Malta<br />
0,0%<br />
0,03 0,1<br />
<strong>9M</strong> 2010 <strong>9M</strong> <strong>2011</strong><br />
CR SB SK Poland Malta<br />
Gross Win in %<br />
CR SB<br />
46,1%<br />
Poland<br />
20,5%<br />
SK<br />
33,5%<br />
<strong>9M</strong> <strong>2011</strong><br />
Malta<br />
0,2%<br />
CR SB<br />
45,8%<br />
10
Lottery Results<br />
in the First 9 Months of <strong>2011</strong><br />
11
<strong>EU</strong>R mil.<br />
<strong>EU</strong>R mil.<br />
<strong>9M</strong> <strong>2011</strong> – Lottery in line with Plan<br />
2,5<br />
2<br />
1,5<br />
1<br />
0,5<br />
0<br />
0<br />
-1<br />
-2<br />
-3<br />
-4<br />
-5<br />
Lottery Amounts Staked<br />
2,1<br />
<strong>9M</strong> <strong>2011</strong><br />
Lottery EBITDA<br />
<strong>9M</strong> <strong>2011</strong><br />
-4,1<br />
EBITDA Lottery<br />
Source: Calculated based on FEG consolidated unaudited financial results for <strong>9M</strong><strong>2011</strong> and Company information<br />
FX rates used for translation average ČNB<br />
2,3<br />
Scratch Tickets Numerical Games<br />
<strong>EU</strong>R thous.<br />
1500<br />
1000<br />
500<br />
0<br />
Lottery Gross Win<br />
919<br />
<strong>9M</strong> <strong>2011</strong><br />
1 060<br />
Scratch Tickets Numerical Games<br />
─ Scratch tickets sales app. 100<br />
thousand pieces a week, series I sold<br />
out in 6 months (1.5 million tickets)<br />
─ Lottery EBITDA in line with the plan,<br />
full year outlook <strong>EU</strong>R 5-6 million<br />
negative should be delivered<br />
12
CZK thous.<br />
Lottery Update<br />
10 000<br />
8 000<br />
6 000<br />
4 000<br />
2 000<br />
Amounts Staked- 18.7. – 21.10. <strong>2011</strong><br />
0<br />
Gross Win- 18.7. – 21.10. <strong>2011</strong><br />
─ Sales instant scratch tickets per POS are 4.5 times higher than those of SAZKA<br />
─ Current market share of <strong>Fortuna</strong> lottery app.14%<br />
─ Market share of scratch tickets app. 50%<br />
─ New daily game Golden 11 introduced from Nov 1<br />
CZK thous.<br />
6 000<br />
5 000<br />
4 000<br />
3 000<br />
2 000<br />
1 000<br />
0<br />
13
Lottery Update<br />
In CZK thous.<br />
Mobile Top Ups Sales- 18.7. – 21.10.<strong>2011</strong><br />
20 000<br />
15 000<br />
10 000<br />
5 000<br />
0<br />
1 400<br />
1 200<br />
1 000<br />
800<br />
600<br />
400<br />
200<br />
0<br />
No. of POS - 18.7. – 21.10.<strong>2011</strong><br />
─ Total no. of POS over 1,200 (lottery and mobile top ups combined)<br />
─ Target up to 3,000 POS by the end of next year in the Czech Republic<br />
─ Mobile top ups available with all three mobile operators in the Czech Republic<br />
14
Lottery Update<br />
15
Outlook & Strategy <strong>2011</strong>/<br />
2012<br />
16
Strategy Overview<br />
Lottery business<br />
in the Czech<br />
Republic<br />
Focus on on-line<br />
betting/ Poland<br />
Tipsport PL<br />
acquisition<br />
Organic growth<br />
to grow market<br />
share<br />
• Lottery business launched<br />
• Gained 14% market share to-date<br />
• Aim to have 30% market share in 3 years<br />
• Scratch tickets extremely successful<br />
• Leveraging its heritage brand and retail<br />
network to develop leading position in<br />
online<br />
• New law amendment in Poland approved<br />
and application for local licence<br />
submitted to MinFin<br />
• Approval of MinFin expected<br />
• Due diligence completed<br />
• Potential to increase market share in<br />
Poland to approximately 1/3<br />
• Continuous improvement of retail network<br />
• CRM<br />
• Partnerships<br />
17
On-line betting in Poland<br />
─ Amendment to the law approved and it<br />
should be implemented before the year<br />
end <strong>2011</strong><br />
─ Application for the local licence<br />
submitted to the Ministry of Finance<br />
and decision anticipated soon<br />
─ Already over 12,000 users subscribed<br />
for <strong>Fortuna</strong> on-line services in Poland<br />
in one month<br />
─ <strong>Fortuna</strong> is ready to launch the online<br />
betting immediately once the<br />
permission is received<br />
18
Tipsport PL takeover<br />
Update:<br />
─ Due diligence completed<br />
─ Request for the Approval of the Polish Ministry of Finance submitted, a<br />
decision of the Ministry anticipated<br />
─ <strong>Fortuna</strong> took over managerial control of Tipsport PL<br />
─ Signing of transaction and final price determination subject to revision of<br />
PoS network<br />
─ Up to 100 shops could be taken over<br />
19
Outlook<br />
Further development of existing products and markets<br />
Sports Betting:<br />
─ Growing Amounts Staked on-line in all countries<br />
─ Getting ready for major sport events in 2012: UEFA <strong>EU</strong>RO 2012, Olympic Games<br />
─ Poland: targeting <strong>EU</strong>R 10 million of Amounts Staked via on-line in the first year<br />
─ Czech Republic: broadening on-line product portfolio<br />
Lottery:<br />
─ Targeting up to 3,000 distribution points by year-end<br />
─ Establishment of full product portfolio: scratch tickets, weekly and daily games, keno<br />
─ New scratch tickets to be checked and validated on-line<br />
20
IR Contacts<br />
IR Contacts<br />
Vladan Crha Klára Klímová<br />
Marketing & IR Director IR Consultant<br />
e-mail: crha.vladan@ifortuna.cz e-mail: klara.klimova@fortunaeg.nl<br />
21
Change language