Unibet Group plc Fawwara Buildings
Msida Road, Gzira GZR1402, Malta.
Tel: +356 2133 3532 Company No: C39017.
Registered in Malta.
Registered office:
c/o Camilleri Preziosi, Level 2, Valletta Buildings South Street, Valletta VLT11, Malta.
www.unibetgroupplc.com
AnnuAl report 2009 Unibet Group plc
by plAyers for plAyers
profit before tAX
pioneer in the moneytAinment
®industry
+161%
pbt gbp 28.9m
Active customers
+25%
365,865 Active customers worldwideUnibet Group plc
Annual Report and Accounts 2009
plAying to win
This report is printed on 50% recycled paper When you have finished with
this report please recycle it
50%
AdditionAl informAtion
AnnuAl generAl meeting
The Annual General Meeting (AGM) of Unibet Group plc will be held at 15.00 CET on Thursday 6 May 2010, at the Grand Hotel, Södra Blasieholmshamnen 8, Stockholm in Sweden.
Right to participate
Holders of Swedish Depositary Receipts (SDRs) who wish to attend the AGM must be registered at Euroclear Sweden AB/VPC on Monday 26 April 2010 and notify Skandinaviska Enskilda Banken AB (publ) of their intention to attend the AGM no later than 11.00 CET on Friday 30 April 2010, by filling in the enrolment form provided at www.unibetgroupplc.com/AGM, Notification to holders of Swedish Depository Receipts in Unibet Group plc. The form must be completed in full and delivered electronically.
Please note that conversions to and from SDRs and ordinary shares will not be permitted between 26 April and 6 May 2010.
Dividend
The Board of Directors proposes a dividend of GBP 0.71 per share/SDR, which is approximately SEK 7.68 per share/SDR.
Financial information
Unibet Group plc’s financial information is available in Swedish and English.
Reports can be obtained from Unibet’s website, www.unibetgroupplc.com or ordered by email at info@unibet.com. Distribution will be via email.
Annual Reports can be ordered through the website, www.unibetgroupplc.com or ordered by email at info@unibet.com.
Unibet will publish financial reports for the financial year 2010 on the following dates:
• Interim Report January – March 2010, on 5 May 2010
• Interim Report January – June 2010, on 11 August 2010
• Interim Report January – September 2010, on 3 November 2010.
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Park is an EMAS certified CarbonNeutral® Company and its Environmental Management System is certified to ISO14001.
100% of the inks used are vegetable oil based 95% of press chemicals are recycled for further use and on average 99% of any waste associated with this production will be recycled.
This document is printed on Revive 50:50; a paper containing 50% virgin fibre and 50% recycled fibre. The pulp used in this product is bleached using an Elemental Chlorine Free (ECF) process and contains fibre from well managed, sustainable, FSC certified forests.
The unavoidable carbon emissions generated during the manufacture and delivery of this document have been reduced to net zero through a verified, carbon offsetting project.
Unibet is not affiliated or connected with sports teams, event organisers or players displayed in this report.
whAt’s inside
Key highlights 1
Unibet at a glance 2
Gaming responsibly 4
Q&A with the CEO 6
Sports betting 8
Non-sports betting 10
Shares and share capital 32
Directors’ report 34
Remuneration Committee report 36 Corporate governance statement 38
Consolidated income statement 41 Statement of comprehensive income 41 Consolidated balance sheet 42 Consolidated statement of changes
in equity 43
Consolidated cash flow statement 44 Notes to the consolidated financial
statements 45
Independent auditors’ report to the members of Unibet Group plc 62 Board of Directors and CEO 63
Definitions 64
Annual General Meeting 65
overview
Delivering against our strategy 12 Emerging markets new opportunities 14 Innovation leading the way 16
Market overview 18
Unibet’s markets 20
Financial objectives 22
Sportsbook B2B network 23
Business performance review 24
Unibet going forward 26
Dedicated people 27
General legal environment 28
Principal risks 30
business review governAnce
Accounts
AdditionAl informAtion
Unibet was founded in 1997. With over 4.1 million registered customers in more than 100 countries, the Group is one of Europe’s largest
online gaming operators.
Gaming products include pre-game sports betting, live betting, casino, poker, bingo and soft games. Customers can bet via websites in 27 languages, and increasingly via mobile phones and other mobile devices.
Unibet creates products and services intended for the global market, and customises them to suit local needs. This “glocal” approach – global reach and mindset combined with local understanding – helps Unibet make all customers feel at home.
vision
The thrill of putting money at stake for the chance to win more is at the heart of Unibet’s vision – it’s moneytainment
®.
mission
To provide reliable online gaming and build value by delivering entertaining products and excellent service.
unibet’s strengths
One of Europe’s largest gaming
companies in a fast-growing and exciting consumer category
Diversified product and geographic portfolio
Main focus on organic growth combined with selected acquisitions
Regarded as one of Europe’s strongest sportsbooks
Key objectives
Satisfied and excited customers Motivated employees
Strong financials
LIVE LIVE
138.3m
Gross winninGs revenue 2009 +12% (2008: 123.4m)
41.9m
eBiTDA 2009 (2008: 46.3m)
2009 2008 Profit from operations GBPm 32.8 36.5
Equity: assets ratio % 58 45
Net cash per share GBP -0.352 0.994 Dividend per share paid
out to SDR-holders GBP
0.23 0.50
All time high in active customers All time high in sports betting gross
winnings revenue
For the third time in four years Unibet was awarded
“European Sports betting operator of the Year”
Due to the popularity and success the Live Casino has achieved Unibet was also awarded the
“European Live Gaming Operator of the Year”
*Certain measures used in the reporting are not defined under IFRS. The Company believes that these measures are important to understand the performance of the business. (Also refer to definitions on page 64).
The Company’s registered office is at Camilleri Preziosi, Level 2 Valletta Buildings, South Street, Valletta, Malta. The Company’s registered number is C39017.
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.
2009 2008
EBITDA GBPm 41.9 46.3
EBITDA per share GBP 1.498 1.657
EBITDA margin % 30 37
Net cash less bond per share GBP -0.352 -1.340
key hiGhliGhTs
live cAsino
Unibet has a dominant position in the Nordics and Western Europe in the live gaming segment and a strong position in Southern Europe.
for furTher informATion see pAGe 11
Strong barrier to market entry Over 21,000 events offered Over 4,500 events streamed
live BeTTinG AccelerATinG
moBile chAnnel GrowinG
Mobile betting took some major steps forward in 2009 as the mobile platform asserted its place in the betting industry’s future plans.
for furTher informATion see pAGe 17
furTher non-GAAp*
AnAlysis
More information to be found in the business performance review on page 24.
furTher operATionAl AnAlysis
More information to be found in the financial objectives section on page 22.
2009 2008
Number of employees at year end 465 412
Registered customers at year end 4,149,668 3,142,751 Active customers last three
months of the year
365,865 292,168
Number of shares at year end 28,258,038 28,241,092
ifrs (GBp) non-GAAp*
operATionAl
for furTher informATion see pAGes 8-9
overview
overview
27
lAnGuAGes465
pAssionATe, frienDly eXperTs40
nATionAliTiesover
100
counTries wiTh cusTomer presence
sporTs BeTTinG
Sports betting is the heartbeat of Unibet’s business.
To illustrate the sheer power of major sporting events, the number of active customers using Unibet hit a peak of 365,865 in the fourth quarter of 2009.
non-sporTs BeTTinG
Online poker is a phenomenon. Bingo brings people together. The online casino gives players a little of the glamour of the real thing. Non-sports betting is an important part of Unibet’s business, and opens up a broad range of target markets – young and old, male and female – to the possibilities of moneytainment®.
for furTher informATion see pAGes 8-9
for furTher informATion see pAGes 10-11
Unibet is one of the largest online gaming operators in the European market with over 4.1 million customers worldwide.
Unibet offers a comprehensive range of online gaming products, such as pre-match sports betting, live betting, casino, poker, bingo and soft games, through the Group’s websites.
Unibet now also offers Sportsbook and risk management services to external B2B customers.
The customer base spans more than 100 countries.
Unibet is audited and certified by eCOGRA and by G4, Global Gambling Guidance Group, in relation to responsible and fair gaming.
uniBeT
AT A GlAnce
who we Are key fAcTs whAT we Do
Awarded two prizes at the prestigious eGaming Annual Awards ceremony organised by the international gaming magazine eGaming Review, Unibet is a clear leader in the moneytainment® industry.
For the third time in four years Unibet was awarded “European Sports Betting Operator of the Year”. The second award was the
“European Live Gaming Operator” which Unibet was awarded due to the popularity and success the Live Casino has achieved.
2009 AwArDs
uniBeT
AT A GlAnce
28.9m
profiT Before TAX (GBp)
online Gross GAminG 2007 – 2012e (eur Bn)
Source: H2 Gambling Capital, January 2010
4.1m
reGisTereD cusTomers worlDwiDe Unibet has customers in more than 100 countries worldwide. The Group’s key markets are divided into three territories: Nordic and Western Europe, along with the combined region of Central, Eastern and Southern Europe.Nordic is the Group’s biggest market, while Central, Eastern and Southern Europe is the fastest growing.
11.1m
esTimATeD online sporTs BeTTinG AccounTs in europe 2012
Source: H2 Gambling Capital, January 2010
Profit from operations (trailing 12-mth) Profit before tax (trailing 12-mth)
Operating cash flow before movements in working capital after tax and capital expenditure (see Note 28 on page 61) (trailing 12-mth)
uniBeT rollinG 12-monTh ADjusTeD cAsh flow versus profiT from operATions AnD Before TAX (GBp million)
overview
The imporTAnce of responsiBle GAminG
“By players, for players” does not stop at providing fair gaming and betting products tailored to customer’s entertainment needs. It also entails a shared responsibility to educate customers on responsible online behaviour and ensure that gaming is and remains fun and entertaining.
In contrast to what conventional wisdom may suggest, Unibet has vested interests in providing for a safe and responsible moneytainment® environment. The key objective as a customer-centric company is to provide value added service to customers over a longer period of time, build trust and increase customer retention and satisfaction.
In this regard, responsible gaming is an integrated part of the overriding company objectives.
Being a founding member of EGBA and ESSA, Unibet has always advocated a constructive dialogue based upon facts, instead of myths and misunderstandings. Whilst acknowledging that consumer protection and problem gambling, like any other problem behaviour, must be addressed in the most adequate manner, one may not forget that studies in the field of responsible gaming reveal that more than 98 per cent of the population enjoy gaming and betting in a responsible manner.
An analysis of Unibet’s database shows that the average player is 32 years old, places 188 stakes per year with an average value per stake of GBP 6.2.
For the vast majority of people, gambling is fun and entertaining, a hobby or a social activity among others, this both online and land-based.
To a very small percentage of people, gambling – like any other human behaviour – can become problematic and develop into problem behaviour, even addiction. The questions also needing to be answered are; what do 98 per cent of the gamblers get
GAminG
responsiBly
out of their gaming? What do they do right, which the minority does wrong?
What good does it do them? What are the moral benefits for society as a whole? Everyone will benefit from this: Unibet, the gaming industry, as well as the specialised service centres, customers, and potential customers.
As the dominant research paradigm for gambling behaviour relates to understanding, mitigating or treating gambling-related risk or harm, Unibet initiated cooperation with a leading scientific research centre to study the possible benefits of gambling for society at large. Acknowledging that problem behaviour remains a priority, by supporting this scientific initiative, Unibet aims to contribute in a positive manner to a broader responsible gaming debate.
When consumer protection at large is based upon an informed choice and self-responsibility, why should 98 per cent of European consumers be denied and restricted in their choice to purchase services across borders? When one does too much of something, whether it is food, shopping, gambling, alcohol or other chemical substances, one will start to get negative consequences of that particular behaviour. Balance is the key in enjoying life and having a good time.
This is no different in the gaming or moneytainment® industry.
What has changed over the last decade, and driven by innovation and the further development of e-commerce, is that more people are discovering the internet and internet gaming. As such this is not more dangerous or problematic. However addressing new challenges and risks associated with e-commerce such as the protection of minors on the internet, is a shared responsibility of us all, including service providers, politicians, adults and regulators.
New technologies also provide new opportunities to increase protection and security. The mere fact that
GAminG
responsiBly
responsible gaming is high up the agenda of all stakeholders, including monopolies and politicians, finds its root cause in the arrival of technology driven operators such as Unibet.
Together with other EGBA members, Unibet is raising the bar and standards on an ongoing basis.
The yearly Responsible Gaming Day (RGD), organised in the European Parliament by EGBA, is a good illustration of how Unibet wishes to come via open dialogue to more efficient and sustainable solutions for all. The work done by the EGBA in relation to consumer protection and its standards was taken into consideration by the Swedish EU presidency. As history has demonstrated, prohibition is counterproductive as it drives both provision and consumption underground without any safeguards for consumers. If consumer protection is the true driver of the debate then Unibet and alike are part of the solution.
In line with the six points on page 7, Unibet advocates a passport mechanism based on cooperation between Member States, non- duplication of requirements and the definition of equivalent or minimum consumer protection standards in the European Union.
responsiBle GAminG DAy-To-DAy
For Unibet, responsibility takes a number of forms, of which primary prevention is the most important.
All of the Company’s operations are designed to prevent problems as much as possible, including gambling addiction, under-age gambling and safeguarding the integrity and security of the operations.
In general, the Company’s responsible gaming policy is designed i) to apply to all the customers, not just problem gamblers, and ii) to increase customer satisfaction and retention as part of house-hold entertainment.
As A leADer in The europeAn moneyTAinmenT
®inDusTry, responsiBiliTy AnD cusTomer sATisfAcTion Are key oBjecTives AnD pArT of uniBeT’s corporATe DnA.
for uniBeT, responsiBiliTy TAkes A numBer of forms, of which primAry prevenTion is The mosT imporTAnT.
+10
over 10 yeArs eXperience of responsiBle GAminG, conTrols, securiTy AnD frAuD prevenTion+98%
over 98% of plAyers enjoy GAminG AnD BeTTinG in A responsiBle mAnnerTo implement its Responsible Gaming vision, Unibet, amongst other things, undertakes to:
Educate and provide information to all staff in Responsible Gaming strategies and procedures.
Have Responsible Gaming as an integrated part of the daily operations in everything the company does, from customer service to marketing and technical solutions.
Be committed in being up to date with research and public awareness regarding Responsible Gaming and contribute to further research in this area.
Evaluate, and improve where needed, its policies and procedures from an holistic point by a qualified behavioural psychologist, appointed Responsible Gaming Manager.
Monitor vigilantly all transactions and have a zero-tolerance policy against fraud, including under-age gambling.
Advertise responsibly.
Use the opportunities offered by new technologies to optimise consumer protection, e.g. by implementing third party ID verification tools or relying on objective recorded data instead of self-reported data.
Have tools available on the Group’s websites to enable customers to set their own gaming limits in function of time, budget and/or products.
Provide responsible gaming information, including self-assessment tools and links where to turn for further specialised assistance on the websites.
Engage with external specialists and have processes audited and improved in cooperation with suppliers as G4, the Global Gambling Guidance Group (G4), Adictel, eCOGRA (eCommerce and Online Gaming Regulation and Assurance) or Gambling Therapy.
responsiBle GAminG DAy-To-DAy
overview
whAT hAs hAppeneD in 2009?
If we summarise 2009 we can see that despite the economic downturn the gaming industry has continued to grow. Compared to other consumer industries we have been resilient but not totally immune.
Re-regulation has gained momentum with Italy reducing betting duties, and adding more products, and France and Denmark moving from monopoly positions opening up for private industry in different forms.
Consolidation has continued to be a theme with Bwin, Mangas and others being active in the market place.
We could also see that the online industry keeps on delivering more innovation with streaming, WebTV and the mobile channel producing real numbers and real contribution for the industry and for ourselves.
whAT cAn we eXpecT from 2010?
If we look at where independent analysts predict this industry is going, the underlying growth and the consumer demand is expected to continue and support industry growth.
2010 will also be a big year for European sportbooks with the winter Olympics just passed and the World Cup in football to come later this spring.
We also expect the consolidation to continue and the underlying trend towards re-regulation to carry on paralleled with a persisting legal tension field. An interesting phenomenon is that re-regulation triggers potential new entrants such as telecom, media, land-based casino groups and venture capitalists, creating a new wave of industry entrants.
A new EU Commission with the important task of being guardians of the treaty and supporting the single market principle has just been installed in Brussels. However it seems to take time before the vision of one digital European market place becomes a reality.
whAT will Drive uniBeT in The cominG yeAr?
Besides the strong sports calendar, streaming and broadcasting of sport events will be an important factor. Live betting is still in a fantastic growth phase and we will continue to develop the product and broaden our offerings in order to always be on the forefront.
Our emerging markets in Europe are developing well, stimulated by our investments in a number of activities such as sponsorships, poker TV, and active online marketing.
We have also added a new business area where we offer our B2B in-house developed proprietary system for fixed and live odds betting, including odds compiling and risk management.
The first operator to sign up was the Ålandic gaming company Paf. They will also be able to offer our fast growing sports betting pool products, SuperToto and SuperScore to their punters.
In connection with this we have initiated investigations on how to structure our B2B business in order to protect the integrity of the B2B customers and to maximise the shareholder value for the Unibet shareholders.
So all in all, our shareholders can look forward to a very exciting year whereby
“By players, for players” will show that we really work for our players…
Q&A
wiTh The ceo peTTer nylAnDer
1. free movemenT AnD choice Article 56 in the Treaty of the
Functioning of the European Union (Treaty of Lisbon), is one of the fundamental principles of the EU constellation and prosperity.
2. compeTiTion increAses reGulATion AnD conTrol
A competitive market has a regulatory and controlling effect between market operations.
Trust and security are key differentiators in e-commerce.
As in telecoms, we wish for a highly regulated EU market with appropriate consumer protection mechanisms.
3. fiGhT proBlem GAminG BAseD on science
The vast majority use gaming services in a responsible manner.
Responsible gaming is a top priority.
4. sTATe reGulATe, noT operATe Regulation and enforcement
by independent authorities and cooperation between Member States.
5. AppropriATe eu frAmework Recognises cross-border
technology-driven industry.
High-end consumer protection.
Guarantees consumer choice.
Fair and equal market access.
Cooperation between Member States.
6. we Are pArT of The soluTion Unibet is a public company, listed
on NASDAQ OMX Nordic Exchange since 2004.
We are EU-regulated and push for higher standards.
Self-regulation and co-regulation are key.
Cooperation, not repression.
Trust and security are key differentiators in e-commerce.
uniBeT’s 6 poinTs of A moDern europeAn GAminG mArkeT
uniBeT ToDAy
The online GAminG inDusTry is 100% in The new fronTier DrivinG chAnGe wiTh no AnAloGue leGAcy
peTTer nylAnDer
overviewoverview
sporTs BeTTinG
Sports betting is the heart of the Unibet business – providing high-octane, high-thrills entertainment on local and international events 24 hours a day, 7 days a week.
There are a vast range of sporting opportunities to bet on around the globe, from the biggest international events to more localised competitions, whilst also providing coverage of popular non- sporting events; everything from the Eurovision Song Contest and the Oscars, to whether or not Susan Boyle will win a Grammy.
Unibet is always looking to the future and raising the bar with innovative new products and an expansion of the existing Sportsbook portfolio.
During 2009, mobile channel developments, live betting and a significant increase in streamed live sport, were key elements in the Group’s drive to be an industry leader and innovator.
inTroDucTion
51.2m
overAll Gross winninGs revenue By sporTs BeTTinG proDucT 2009 (GBp)
24 Feb 2010: Cross-Country Skiing Men’s 4 x 10km Relay.
30 Jan 2010: Birmingham City v Tottenham Hotspur, Premier League.
pre-mATch BeTTinG
875,000
pre-mATch BeT offers DurinG 2009 vArieTy AnD innovATion
232,247.6
The BiGGesT pAyouT for 14 correcT preDicTions on superToTo DurinG 2009 (eur)
The Unibet Sportsbook product portfolio consists of fixed odds betting as well as the Football/Ice Hockey pool betting products Supertoto and SuperScore. Unibet also offers betting on French Horses and on Swedish Trotting through the Travnet Live Racing platform.
Unibet offered odds on over 50 different sports during 2009, ranging from Champions League football to Mixed Martial Arts. The most popular Sportsbook bets were on English football with over 17 million bets placed.
Furthermore, Unibet continued its market-leading approach to non- sports offering. Once again, the Eurovision Song Contest was the most popular entertainment event.
There was huge interest across Europe with 40,000 bets placed.
Mobile betting really took off in 2009 and with new platforms coming next year the potential for 2010 looks enormous. Thanks in part to the launch of an iPhone client, Unibet had a 400 per cent increase in mobile actives at the end of 2009 compared to the end of 2008. The mobile channel provides even more opportunities to bet wherever you are and whenever you want; at the stadium, on the bus or at home with friends.
The continued expansion of the Unibet sporting range has proved the strength behind the success of 2009.
By offering a forever growing range of product offers, the product pushed all barriers with over 68 million bets placed in 2009.
Football is the sport that provided over 55 per cent of Unibet’s pre-match betting turnover. The most popular Football Leagues to bet on in 2009 were the English leagues closely followed by the Champions League and the leagues in Spain, France and Italy.
Tennis, ice hockey, basketball and trotting were the other highest turnover sports after football.
Unibet has proved this year that the product is not reliant on major showpieces such as the World Cup and the Olympics. By having a variety of events and bet types, the fixed odds can generate interest even in quieter months.
2010 is definitely a year to keep an eye on – the recent Winter Olympics and the World Cup will fuel betting interest and push the fixed odds offering up to a new level. The World Cup dream scenario would see an early exit from the tournament for Brazil and a final between Australia vs Denmark.
uniBeT Gross winninGs revenue 2009
26%
63% 11%
Pre-match betting Live betting
Total Sports betting GBP 51.2m Non-sports betting GBP 87.2m
Del Potro vs Federer – a thrilling match.
14 May 2009 Eurovision Song Contest – Moscow.
684,399
hiGhesT live BeTTinG Turnover (GBp)
For the third time in four years, Unibet was awarded the prestigious European Sports betting operator of the Year at the annual EGR Awards.
It was also a record-breaking year – in October the Sportsbook posted an all time high in gross winning revenue, just short of the GBP 10 million mark.
AchievemenTs
26 Jan 2010 Rafael Nadal of Spain eyes a return.
sTreAminG/uniBeT Tv
4,500
live sTreAmeD evenTs offereD DurinG 2009
live BeTTinG
31.67%
live BeTTinG AcTiviTies GrowTh
Live betting continued to thrive and flourish throughout 2009.
The range of bets Unibet offers on a live match is continually increasing, giving a greater range of variety of bet types.
The product grew so much in 2009 that it accounted for over 50 per cent of the Sportsbook total turnover. 2009 saw Unibet offer over 21,000 live events in total of which 12,000 were football matches. In 2010 live betting will offer over 30,000 matches in total.
Tennis was the next most popular live betting sport with over 3,400 events offered. It proves to be a successful live betting sport due to the vast range of bet offers that Unibet is able to provide. As well as all the prices on match odds and next set, there are prices on such things as next point, next game and next game score.
These offerings encourage turnover and stimulate activity as they are very fast and settled quickly, enabling the customer to then bet again and again throughout the match.
Live betting gives the ability to bet on practically anything, any time from the top football and tennis matches to squash and beach soccer, and watch the match in the live betting console thanks to Unibet TV with the unique design of the client. There is also the
“Ca$h In” function, an innovative feature which enables the customer to take a profit on both sides as a match is in progress. This sophisticated tool really makes Unibet’s product stand out from its competitors.
The Sportsbook streaming has revolutionised the brand in 2009 and looks set to push the product for 2010.
The impressive growth in the live betting product has also been achieved by the substantial strengthening of the live streaming offer.
Streaming has become a vital part of the business, providing entertainment on a whole new level and combined with the live offer this creates an ultimate service to watch and bet at the same time. With the acquisition of many new leagues and events, Unibet now streams about 450 live events per month – that’s almost 15 matches per day! In 2010 these figures will continue to increase significantly.
The offer is a strategic mix of high profile events and smaller events ranging in size and stature from Spanish Primera and Grand Slam tennis down to well-timed events like Darts World Championships and Philippine basketball.
21,000
evenTs in live BeTTinG DurinG 2009
...That the football match that created the biggest live betting turnover for Unibet during 2009 was the Champions League Final between Barcelona and Manchester United at the Stadio Olimpico in Rome. The odds on Barcelona to win the treble were 30.00 at the start of the season.
...That the SuperScore odds record is 139,986 (10 March 2009).
DiD you know?
overviewoverview
The quality of graphics, the range of games, the reliability of the technical platform and, of course, the quantity of prizes available all helped Unibet to extend its leadership of non-sports online betting in 2009.
non-sporTs BeTTinG
87.2m
uniBeT Gross winninGs revenue By non-sporTs BeTTinG proDucT 2009 (GBp)
uniBeT Gross winninGs revenue 2009
37%
63%
Sports betting GBP 51.2m Non-sports betting GBP 87.2m
inTroDucTion
cAsino
12m
ToTAl jAckpoTs offereD (eur) In 2009 Unibet’s existing casino portfolio, a flash casino on unibet.com and a download casino onunibetcasino.com, saw an exciting new addition with the launch of a Live Dealer Casino. Streaming from a studio in Riga, the Live Casino offers dedicated Blackjack tables, Roulette and Baccarat, and is the closest you can get to a bricks-and-mortar casino online.
Every November the egaming industry gets together at the prestigious EGR Awards, the industry’s very own
“Oscars”. In 2009 Unibet was handed the European Live Gaming Operator trophy for its new Live Casino.
The award is a celebration and acknowledgement by the industry, underlining what was the most successful launch for Evolution Gaming’s Live product by any of their partners.
Over 200 casino games are currently offered combined on Unibet’s three casinos, including more than 110 video slots and over 30 progressive jackpot games. Regular casino tournaments are held on a daily and monthly basis with prize pools of up to EUR 20,000.
poker
1,889
ToTAl plAyers in uniBeT open 2009 Poker continues to be a strong force within the Unibet product portfolio, registering an increase in new depositors of 24 per cent in 2009, compared with 2008.
This growth can be attributed to a range of factors including successful local marketing initiatives such as the Swedish and Finnish Online poker championships which gained over 76,000 entries, local poker tours in Poland and the Czech Republic combined with the continued success of the Unibet Open. These activities and others have ensured substantial presence in both online and offline spaces across Europe.
The poker software saw upgrades too with the aim of refining and improving the user experience:
A new “XL” lobby was launched, new tournament types including the popular “Survivor” tournaments, and a new Single Table Tournament offering, were all implemented during 2009. The network also proved itself to be one of the most stable around with 99.994 per cent up time.
The Unibet Open has gone from strength to strength as one of Europe’s leading poker events, attracting strong media coverage and positive feedback for building the Unibet brand as well as acquiring new players.
Anthon-Pieter from the Netherlands was the winner of Unibet Open in Budapest 2010.
690,000
prize pool in uniBeT open (eur)
Unibet has growing presence in the European market and offers Live Casino in all markets in 18 languages. Unibet believes in a localised approach with the products and services offered in the customer’s language as this builds trust and loyalty.
The Live Casino was launched in early June 2009 and started out with one private Unibet branded Blackjack table, exclusively for Unibet players. After just two months a second private Unibet table was enabled to meet demand, and both tables are usually full throughout most parts of the day.
Unibet now has a dominant position in the Nordics and the Western Europe in the live gaming segment, and a strong position in Southern Europe.
Unibet is dedicated to make the user experience the best to be online. Through surveys and customer focus groups Unibet understands what is important for the players, and the future roadmap is largely based on that input. With this information and feedback the live gaming offering at Unibet will continue to grow to be Europe’s biggest and best.
AchievemenTs
sofT GAmes
50
GAmes AvAilABle2009 has seen the portfolio of games more than double to 50, including over 20 new slots. The portfolio still aims to satisfy all tastes with Keno, Sports Dice and other games.
Frequency of play is high, with players looking for the entertainment factor with a quick and frequent bet rather than the higher rolling casinos.
Therefore games provide an important element of our overall casino and games offering, giving players more reasons to come to Unibet.
The year also saw the launch of a new games lobby with 15 games targeting the female-dominated Maria site.
BinGo
50
BinGo roomsBingo remains a key part of the Unibet offering and continues to dominate activity on the Maria brand. The Bingo product offers players a unique opportunity to join players from across our markets in pan-European bingo games featuring multiple currencies and nationalities – with the prizes paid in the local currency. Players can also enjoy a localised experience with each market having dedicated Bingo rooms and Chat Hosts.
Bingo development continued in 2009 with further strengthening of the online community, including innovative features such as online profiles for players with direct appeal to the key bingo audience.
skill GAmes
20
DifferenT skill GAmesSkill covers single and multiplayer games with a wide range of regular tournaments and jackpots including favourites such as Head to Head Solitaire games and Yatzy.
This year saw the launch of a new comprehensive Backgammon.
Approved by the World Series of Backgammon, it is as close to the real thing as you can get in the online world and is already proving a hit with Backgammon aficionados.
overviewoverview
DeliverinG AGAinsT our sTrATeGy
uniBeT’s Business concepT is To Be A reliABle proviDer operATinG in The online GAminG mArkeT, BuilDinG vAlue By DeliverinG enTerTAininG GAminG proDucTs wiTh An eXcellenT service.
how we Deliver
1
Enter into more markets within Europe, historically characterised by monopolies and a strong gaming culture, where there is also high internet penetration.
Though the Company has customers in more than 100 countries, historically Unibet’s operations have been specifically targeted at Sweden, Denmark, Norway and Finland.
Even Spain, Italy and Poland have their dedicated marketing teams.
With the acquisition of MrBookmaker in 2005, the Netherlands, Belgium and France became important markets. Since then the expansion has encompassed several new countries in Central, Southern and Eastern Europe – each with its dedicated website.
for furTher informATion see pAGes 20-21
2
Strenghthen the position in the market for sports betting by offering better odds on major events, particularly within domestic sports.Unibet now offers between 6,000 and 10,000 odds and almost 80 live events every day. Almost every sport event broadcast in Europe or streamed on the site is offered live, plus much, much more... Focus is to always have any relevant market available at the best price, and markets are offered on anything right down to next point or next corner. Unibet also provides coverage of popular non-sporting events, everything from Eurovision to Big Brother.
The important differentiator, live betting, is also the fastest growing product. It is an important entry barrier to market and during 2009 Unibet offered over 21,000 live events in total, of which 12,000 were football matches.
for furTher informATion see pAGes 8-9
3
Offer a wide range of new gaming products, for example Casino and Poker, to existing and new customers, reducing dependence on sports betting.Unibet has continued to broaden the range of gaming products with exciting new offers designed to capture customers’ imaginations and grow quickly. The Unibet browser casino consists of more than 80 games such as Roulette, Blackjack, Caribbean Stud, Video Slots and Video Poker, and the downloadable casino offers over 140 games to give players the perfect casino experience.
Unibet’s Live Casino offers two Unibet-branded Blackjack tables, Roulette and Baccarat. The Live Casino is the closest you can get to a real bricks-and-mortar casino online, with real dealers spinning the roulette wheel and dealing the cards. Due to its popularity and incredible success with the players, it was handed the
“European Live Gaming Operator of the Year” trophy at the prestigious eGaming Awards in November 2009 – the industry’s very own annual Oscars.
Unibet Games includes a wide range of entertainment games with many themes and there are now almost 50 games in this lobby. The games are a softer version of the casino and are derived from the popularity of lottery and keno-based games, virtual sports and hi/lo games.
for furTher informATion see pAGes 10-11
4.1m
reGisTereD cusTomers in more ThAn 100 counTries80
live evenTs every DAy140
DownloADABle cAsino GAmesAims
Unibet’s business aim is to strengthen its position as one of the major players in the European market for online gaming. The financial aim is for gaming profits to increase by at least the same rate as market growth for online gaming and for at least 50 per cent of this increase to directly improve the operating result.
sTrATeGies
Unibet has a leading position in the European market for online gambling.
Unibet’s strategies to expand activities and achieve the business and financial aims are:
our sTrATeGy eXplAineD
In 2009, Unibet was awarded two prizes at the prestigious eGaming Annual Awards ceremony organised by the international gaming magazine eGaming Review. For the third time in four years Unibet was awarded
“European Sports betting operator of the Year”. The second award was the “European Live Gaming Operator of the Year” which Unibet was awarded due to the popularity and success it has achieved.
AchievemenTs
how we Deliver
5
Prioritise organic growth.As a company that relies so heavily on technology, Unibet has to effectively use developments in digital distribution channels, with particular focus on interactive services via PC and mobile devices. This means ever more opportunities to bet wherever you are and whenever you want. At a stadium, in a bar or just at home with friends – the growth of the mobile market looks to have forever expanding possibilities as smartphones become more and more prevalent.
Mobile betting really took off in 2009 and with new platforms the potential for 2010 looks enormous. Thanks in part to the launch of an iPhone client, Unibet had over 400 per cent increase in mobile activities at the end of 2009 compared to the end of 2008.
for furTher informATion see pAGes 16-17
In earlier phases of development, Unibet focused on products and on regions. That work has now paid off, with the customer base reaching critical mass, and an exceptionally strong combination of products, infrastructure and personnel in place.
While the focus is on online marketing, a broad range of channels are used tactically to develop recognition and respect for the Unibet brand and core values and to treat customers like friends by delivering offers tailored exactly to them.
In building the Unibet Open Poker tournament into one of Europe’s biggest events, with opportunities for online players to win a seat at the table, Unibet has even crossed the boundary between the virtual and real worlds.
By 2010 Unibet aims to be among the top three online gaming providers in all of its prioritised markets. That vision is ambitious. It is also achievable.
Unibet’s product breadth, commitment to marketing innovation and strategic focus on the customer, will help make it happen.
for furTher informATion see pAGes 14-15
4
Develop new distribution methods, for example, mobile applications.400%
increAse in moBile AcTiviTyTop 3
online GAminG proviDers By 2010Leadership – Unibet aims for a top 3 position in every geographic market entered.
Brand – Unibet has a strong pan-European brand supported by high-value niche brands for all markets and products.
Horizontal approach – Unibet has a horizontal business model, working with the best available suppliers for non-sports products, to enhance time to market, customer satisfaction and return on capital while managing the Sportsbook internally using proprietary software, odds compilation and risk management.
Digital – Unibet is mainly focusing on digital distribution.
Responsible – Unibet works proactively to secure responsible gaming.
Talent – Unibet employs talented people, focuses on accountability and rewards high performers.
uniBeT’s moDel hAs proveD successful Given The sTronG TrAck-recorD in DeliverinG profiTABle GrowTh since iTs founDinG. The pillArs of The moDel will conTinue To Be The key for uniBeT’s fuTure success AnD Are encApsulATeD in “The uniBeT wAy”:
our sTrATeGy eXplAineD
uniBeT GoinG forwArD
Business review
poker Tv
In the Czech Republic Unibet has produced the first celebrity-style poker show called “VIP Poker Show”.
The show was broadcast on the biggest commercial TV channel Nova. Eight episodes were shown for almost three months on Nova and Nova Sport, and reached a majority of their late-night audience.
It opened a door to media publicity and through 12 celebrities, Unibet received significant media attention on different channels. This investment had a huge influence on securing Unibet’s position in the market and gave high credibility for future investments.
In the spring of 2009 Unibet launched the Unibet “Pókermilliomos”
Championship in Hungary. During six weeks of qualification over 15,000 players entered the competition and the 12 best players had the chance to play against top national celebrities, fight for fame and the HUF 10 million prize money. The highlights of the series were an instant hit on Hungarian TV channel Viasat3, and had over 100,000 viewers on average in front of the screens.
cooperATion wiTh sporT porTAls
Another important channel to the customers in Eastern Europe is cooperation with sport portals. Special Unibet-branded poker sections have been introduced on the top two sport portals in each country. These poker sections included the Unibet Poker School and general tips and explanations of the online poker game. Special tournaments will introduce Sportsbook punters to the online poker world.
Poker has grown steadily in the Eastern region.
sponsorship
Unibet is the official sponsor of Nõmme Kalju in Estonia, Ferencvaros in Hungary, Žalgiris Vilnius in Lithuania and Rapid Bucure¸sti in Romania.
These sponsorships include the Unibet logo on the players’ shirts, billboards and scoreboards.
JK Nõmme Kalju is one of Estonia’s most popular football clubs based in Tallinn and currently plays in the Meistriliiga, the highest level of Estonian football.
The green and white club colours of the well-supported Ferencvárosi Torna Club in Budapest make a perfect match with the Unibet logo.
The Romanian football club FC Rapid Bucure¸sti is one of the top three teams in Romania and has won the Romanian championship four times and the Romanian Cup on 13 occasions.
In green and white the FK Žalgiris in Vilnius have won the Lithuanian Championship three times.
online mArkeTinG
Online marketing is important to attract visitors and convert them to real money players that can drive revenues from the emerging markets. Unibet focuses on optimising search engine positioning, social media and cooperation with affiliates/partners.
During 2009 a brand-new design of unibetaffiliates.com was launched in 18 languages promoting all the three brands: Unibet, Maria and Carlos.
The affiliate team also uses a scientific approach for banner tracking and reward plans for affiliates signing up.
emerGinG mArkeTs new opporTuniTies
Valencia CF – official sponsor
Main sponsor of football clubs:
Nõmme Kalju (EE) Ferencvaros (HU) FC Rapid Bucure¸sti (RO) FK Žalgiris Vilnius (LI)
Unibet Open poker in Budapest, Prague and Warsaw
Poker TV shows in Hungary and the Czech Republic
Maria brand expansion with online campaign, affiliates, media cooperations and poker events
sTrATeGy in AcTion
invesTinG in “emerGinG mArkeTs”
invesTinG in emerGinG mArkeTs is An imporTAnT pArT of uniBeT’s AmBiTion To Grow in eAsTern europe.
ThrouGh sponsorships, poker Tv proGrAmmes AnD cooperATion wiTh lArGe sporTs porTAls, uniBeT is BuilDinG The BrAnD in These imporTAnT counTries.
18
lAnGuAGe versions of uniBeTAffiliATes.com15,000
plAyers TryinG To QuAlify for The pokermilliomos
451
plAyers compeTeD in The uniBeT open in prAGue 2009Business review
innovATion
leADinG The wAy sTrATeGy in AcTion
140,000
loG-ins since lAunch in june 2009
converGence is DrAmATic, chAnGinG consumers’
BehAviour. innovATion is supporTinG The inDusTry AnD uniBeT To Grow. The sTronGesT consumer TrenD in online GAminG riGhT now is To enjoy A live eXperience. iT’s All ABouT live.
4,500
live BeTTinG evenTs sTreAmeD
21,000
live BeTTinG evenTs offereD
TechnoloGy converGence
Unibet now offers live betting, live streaming and Live Casino and the customers really appreciate the live element in these products. In less than a year Unibet has transformed by being much more active in using Web TV to strengthen products, brand and user experience. During 2009 Unibet offered over 21,000 live events integrated into the live betting offer.
Several markets have also started to produce excellent Web TV shows (5-10 min) and/or video blogs dedicated for different markets.
Unibet Open is also a fantastic platform for developing and use of Web TV.
This is just the beginning of how television and the PC are becoming one, and Unibet is in a pole position making it a vital part of the DNA.
moBile chAnnels GrowinG
Mobile betting took some major steps forward in 2009 as the mobile platform asserted its place in the betting industry’s future plans. The mobile channel is without doubt one of the most important areas of potential growth.
H2 Gambling Capital predicts that the global market for mobile gaming will grow to EUR 2.9 billion by 2012 in terms of gross gaming yield. Given the rapid growth rate so far, this appears to be a conservative estimate.
The underlying market trend is that internet is moving into the mobile arena and so is Unibet.
Unibet has continued to be at the forefront of mobile development by extending the mobile betting offer to meet with new handset technology requirements and opportunities that they bring. This leadership by innovation philosophy has established Unibet as a leading mobile betting operator. The outlook is very positive with expectations that mobile betting will get its real breakthrough in 2010.
any European television station. Unibet aims to keep the continued integration of sports and media as a focus area for 2010.
live cAsino
Unibet’s Live Casino was launched in June 2009 and currently offers three classic casino games: Roulette, Blackjack and Baccarat. The big difference between the Live Casino and other online casinos is that you have real live dealers spinning the roulette wheel and dealing your cards while you play and watch the action via live streaming.
The fact that the gaming experience in Live Casino is as close as you can get to a real land-based casino, including real-time chat with the dealers and other players, made it an instant hit with the players. It became so popular during the year that dedicated Unibet Blackjack tables were added to accommodate demand and its success earned Unibet the Live Gaming European Operator of 2009 Award from eGaming Review.
Smartphones and particularly iPhones have dramatically changed mobile usage and behaviour over the past few years. User experience has increased significantly and with these new devices the possibilities for development are endless.
Unibet’s Sportsbook and Casino have been well received by both existing and new customers when using the mobile betting platform.
In order to serve our customers with the best and the latest solutions for moneytainment®, Unibet continues to stay focused on the mobile betting industry and the transition period it is going through with fast-moving internet and betting into mobile.
live BeTTinG
Unibet live betting is now more or less a 24/7 product with matches offered through the night. This, in addition to the launch of combination bets, offers the customer more options and flexibility than ever before. The aim for 2010 is to continue customer-driven innovation, with the goal being for the customer to consider Unibet live betting to be not just a betting site, but a sporting hub.
During 2009 live betting continued to accelerate, with a doubling of both turnover and the number of events offered. A huge investment has been made in the live streaming product, with full coverage offered on two of the top four European Football leagues, as well as over 500 Grand Slam Tennis matches from Wimbledon and the Australian Open, more than
Business review
mArkeT overview
jusT Three yeArs AGo, The GBGc reporTeD ThAT There were 9.3 million online sporTs BeTTinG AccounTs in ToTAl ThrouGhouT europe. in DecemBer 2009, uniBeT’s cusTomer BAse wiThin sporTs &
non-sporTs proDucTs sTooD AT 4.1 million AccounT holDers.
percenTAGe of householDs wiTh BroADBAnD Access
Source: Eurostat, February 2010
Those two figures underline not just the rapid growth in online gaming, but that Unibet is now established as one of the major online bookmakers in the world.
The homogenising influence of the European Union notwithstanding, the continent’s online gaming market remains complex, with individual nations retaining unique characteristics and varying degrees of growth. State gambling monopolies, local laws and interpretations of European law vary from one country to another. It means that the way in which Unibet markets itself varies greatly.
The popularity of live televised events is indicative of a worldwide determination to be part of the action.
Online gaming helps quench this thirst and advanced technology assists delivery of the product.
The European market has one of the world’s highest – and fastest growing – rates of internet and broadband penetration. The number of worldwide consumer broadband connections will reach over half a billion in 2010, according to the European Travel Commission, with a 56 per cent broadband penetration of all European Union households in 2009 says Eurostat. Online payment systems and state regulation have improved across Europe as a whole.
Market outlook for world egaming gross gaming yield is estimated to be EUR 25.3 billion by 2012 according to H2 Gambling Capital.
The Group made giant strides in 2009, despite a worldwide economic downturn, maintaining strong growth in established markets, building on the foundation of success in established markets, and introducing the Unibet brand to several new markets.
The bank of knowledge, experience and success across the Unibet organisation enables the Group to enter new markets quickly and efficiently. Tried and tested systems are used alongside common principles of customer relationship management (CRM). These are amalgamated with marketing campaigns and products that are tailor-made to the local interests and characteristics.
The year ahead is a bright one, with a strong sports calendar expected to drive online betting levels to new heights, and a live offering and live streaming of thousands of events is expected to be a cornerstone of that success.
77%
BroADBAnD TAke-up The Nordic Region, which includesSweden, Denmark, Norway and Finland, is the Company’s biggest and most established market. Unibet is one of the largest private online gambling operators in the region.
30%
70%
Sports betting GBP 19.4m
Non-sports betting GBP 44.9m norDic Gross winninGs revenue conTriBuTion By reGion
65%
BroADBAnD TAke-up Within Western Europe, Unibet hasthree established markets in France, Belgium and Netherlands, and four new markets in Germany, the UK, Austria and Switzerland.
56% 44%
Sports betting GBP 23.9m
Non-sports betting GBP 30.0m wesTern europe Gross winninGs revenue conTriBuTion By reGion
40%
BroADBAnD TAke-up Central, Eastern and SouthernEurope is the fastest growing of Unibet’s three regional markets – albeit from a relatively small base.
39%
61%
Sports betting GBP 7.2m
Non-sports betting GBP 11.5m cenTrAl, eAsTern AnD souThern europe Gross winninGs revenue conTriBuTion By reGion
cenTrAl, eAsTern AnD souThern europe wesTern europe
norDic reGion
Other regions – comprised of Sports betting GBP 0.7m and Non-sports betting GBP 0.8m
36%
19%
11%
4%
22%
8%
Sports betting Poker Casino Bingo Skill-based and
other gaming Lotteries online GGy By proDucT 2012e
Source: H2 Gambling Capital, January 2010
Business review
