Unibet in Brief

Contents Unibet in brief l Unibet was founded in 1997 and is one of Europe’s largest online 2005 in brief 1 gaming operators, with over 919,000 registered customers in more than CEO’s comments 2 100 countries. Group overview 4 l Unibet offers a full range of gaming products – odds on sporting events, live odds, a range of casino games, a variety of poker products and Financial objectives 7 tournaments as well as lotteries and games – through its website, Organisation and history 8 www.unibet.com, and via mobile phone. Market overview 10 l In 2005, Unibet’s customers placed almost 18 million bets. The most popular event, with more than 20,000 bets, was the Champions League Unibet’s markets 12 football match between Barcelona and Chelsea in February 2005. Products and odds compilation 14 l Unibet’s gaming business is conducted under licences in the United Competition 18 Kingdom and Malta. The company has been listed on the Stockholm Risk management 20 Stock Exchange since 2004. Employees 22 l Today, Unibet has 180 employees representing 28 different nationalities. Legal Environment 24 The Share 26 Directors’ report 28 Corporate Social Responsibility Remuneration Committee report 30 Responsible Gambling Corporate Governance statement 31 Socially responsible enterprise is about fi nding ways to offer a safe Business Performance Review 33 playing fi eld for all Unibet gamblers. A lot of emphasis is placed on the Consolidated Income Statement 35 safety and privacy of its customers. The company applies a strict age limit and accepts no customers under the age of 18. Consolidated Balance Sheet 36 Unibet is seeking accreditation from G4, the Global Gaming Guidance Consolidated Cashfl ow Statement 37 Group. G4 was created by a group of international gaming experts with the aim of establishing an industry standard for responsible gaming. Notes to the consolidated fi nancial statements 38 EBA Independent auditors’ report to the Unibet is also a member of the European Betting Association (EBA), members of Unibet Group plc 49 which brings together 12 of the leading gaming companies in Europe. The Association’s statute specifi es how the member companies should Options 50 deal with issues such as gambling addiction, illegal gambling by minors, Board of Directors 52 gambler privacy and money laundering. Senior executives 53 The concept of betting 54 Annual General Meeting 55 Unibet has gambling customers in over 100 countries. Defi nitions 56 Key markets are Sweden, Norway, Denmark, Finland, the Netherlands, Belgium, France, Spain, Italy and Poland. Each The Company’s registered offi ce is at of these countries has a dedicated marketing team with 9 Kingsway, London, WC2B 6XF, UK responsibility for adapting Unibet’s games and marketing to local conditions. The Company’s registered number is Since February 2006, Unibet has also become 04049409 active in Russia, Estonia, Greece, Hungary and the Czech Republic. This document is the English original. In the event of any discrepancy between the original English document and the Swedish translation, the English original shall prevail. 2005 in brief l Gross winnings revenue continued to increase at a rapid pace, to GBP 43.5 (2004: 24.7) million. l EBIT (Profit from operations) increased by 67 per cent, to GBP 19.9 (2004: 11.9) million. l Gross winnings revenue from Unibet’s poker business soared by 684 per cent, to GBP 14.9 (2004: 1.9) million. l In August, the Group acquired MrBookmaker.com, providing access to two key markets, France and Belgium. l The number of active customers increased to 171,918 by the year end.1) l Several new products were launched, including the online scratchcard Trixx, and a number of Games. Unibet also introduced gambling via the mobile phone. l The Board of Directors proposes a dividend of SEK 2.25 (2004: 2.25) per share/SDR. 1) An active customer is defined as a customer who has placed a bet in the last three months. Key ratios GBPm 2005 2004 Gross winnings revenue, sports book 17.4 16.4 Gross winnings revenue, other gaming products 26.1 8.3 Gross winnings revenue 43.5 24.7 EBIT 19.9 11.9 EBIT margin, % 45.7 48.2 Return on total capital, % 18.9 41.6 BruttoomsättningensBruttoomsättningensProfit after tax geografisk geografiska föra fördelningdelning ProduktProdukt för fördelningdelning 13.7 8.9 Profit margin, % 31.5 36.0 Earnings per share, GBP 0.523 0.370 Sverige,Sverige, 50 50%% Equity/assets ratio, % 53.6Sportspel, Sportspel, 40 40%58.9% ÖvrigaÖvriga Nor Norden,den, 23% 23% Cash flow per share, GBP –0.07Po Poker,ker, 34 34%% 0.83 SydeurSydeuropa,opa, 16 16%% Number of employees at year end 175Kasino Kasino oc och h 109 Övrigt, 11% övriga spel, 26% Registered customersÖvrigt, at11 %year end 919,000övriga spel,351,000 26% “Unibet’s business objective is to Number of shares at year end 28,125,092 25,081,192 become one of the leading players in the European ‘moneytainment’ ENG?ENG? market for online gaming.” GeografiskGeografisk Geographical br eakdownbreakdown breakdown BreakdownBrBreakdowneakdown of gross winnings revenue Sweden,Sweden, 50 50%% SportsSports betting, betting, 40 40%% OtherOther Nor Nordics,dics, 23 23%% PoPoker,ker, 34 34%% SouthernSouthern Eur Europe,ope, 16 16%% CasinoCasino and and othe other r Other, 11% Other, 11% non-sportsnon-sports betting, betting, 26% 26% Unibet 2005 – 2005 in brief 1 CEO’s comments “Unibet way: Recruit, moneytain & cost control.” CEO Petter Nylander Growth and momentum The acquisition enabled us to rapidly establish Strong growth In 2005, Unibet set new records in all product a leading position in central European markets. Online gambling currently accounts for about areas. The company showed its operational A rapid, efficient and successful integration 5 per cent of the total global gambling market strength by rapidly and effectively establising of MrBookmaker was carried out during the and the market continues to grow at a rapid itself as one of Europe’s leading providers Autumn. pace. Positive drivers include the growth of of online Poker. Our success was based on Poker remains highly popular, and the Internet penetration and broadband as well as a cost-efficient launch of the Poker product launch of other new innovative gaming products an increasing acceptance of the Internet as a to our existing customer base and the use of proved a success. Poker now accounts for reliable marketplace. The government Poker as another key tool for attracting new almost 60 per cent of non-sports betting gambling monopolies’ growing offering of customers. revenues. Poker products generate risk-free online gambling services is also helping to The number of active customers more revenues and reduce Unibet’s exposure to boost online gambling at the expense of than doubled year on year, to almost 172,000, seasonal variations in sports betting margins. the traditional betting shop, as is the launch whilst gross winnings surged by 76 per cent, Scandinavia remained our strongest playing of new products specially adapted for the to GBP 43.5 million. Growth was driven partly field, with Poker attracting a strong following Internet. by strong organic expansion and partly by the by Spring 2005. The acquisition of MrBookmaker acquisition of MrBookmaker in August. helped to strengthen Unibet’s brand in the De-monopolisation As we enter 2006, Unibet is well positioned European market. In most countries this form of entertainment is to meet the future, with a portfolio that is well subject to government regulation. Unibet balanced both geographically and in terms of Mr Bookmaker.com remains positive towards a licensing régime products. In August 2005, Unibet acquired MrBookmaker.com, with equal fees for all and inspections of the one of the largest gaming operators in France industry. In many European countries there is Moneytainment and the Benelux countries. During the remainder still a strong polarisation between the national Games and gambling have been around as of the year, the two organisations were and the EU level. National legislation is gradually a stimulating form of recreational activity for successfully merged, and several key individuals being adapted, though not without opposition, several thousand years. For the vast majority, from MrBookmaker.com were given global to the EU’s overall ambition to dismantle gambling is about getting more out of other responsibilities within the Unibet Group. national monopolies for the benefit of leisure-time activities, such as watching a The companies’ differing marketing methods European consumers and society. Unibet is football match on TV and betting on the and expertise have been combined and convinced that the industry is heading towards result. The great majority of games involve integrated and are now being put to full use a deregulation similar to that which has small stakes and form part of the household in all markets, under the Unibet brand. already taken place in the European telecom entertainment budget. We offer our customers In addition to the numerous strategic and television sectors. great Moneytainment. advantages, the acquisition has enabled A number of legal cases are currently Unibet to launch a new type of virtual before courts in several European countries. New records gambling – “Games” – that MrBookmaker.com In Sweden the monopoly issue was a source Since setting up in 1997, Unibet has shown already had in its portfolio. of lively debate in 2005. Unibet keeps a the strength of its business model and The integration was completed ahead of close eye on developments around the world. operational organisation. Our ability to exploit schedule, despite a challenging timeframe. Through our membership of the European the opportunities created by changes in our The Group is now strongly focused on Betting Association (“EBA”) we are also environment was also demonstrated in 2005, continued growth in Europe under a single proactively driving the issues of interest to when we continued to expand organically brand and with a shared technical platform.

Load more