Evoke Plc · LSE:EVOK
Evoke — 888 Holdings — Investor Presentation (May 2021)
25 slides from Evoke's investor presentation, May 2021
Slide 1: Corporate Presentation May 2021
CORPORATE PRESENTATION MAY 2021
Slide 2: Disclaimer
Disclaimer • The following presentation and documents and information relating thereto (both oral and written) (the “Presentation”) are provided to you (each recipient hereof being a “Recipient”) for information and discussion purposes only and should not be relied upon by the Recipients. No liabili
Slide 3: Senior Leadership Team
SENIOR LEADERSHIP TEAM Lord Jon Mendelsohn Itai Pazner Yariv Dafna Vaughan Lewis Non-executive Chairman Chief Executive Officer Chief Financial Officer Chief Strategy Officer Lord Jon Mendelsohn is a highly experienced Itai Pazner was appointed as COO of the company in Yariv Dafna was appointed as C
Slide 4: Introduction
INTRODUCTION ◎ 888 Holdings Plc (888) is one of the world’s leading betting and gaming companies ◎ 888’s mission is to develop state-of-the-art technology and products that provide fun, fair and safe digital gambling products to players globally ◎ Founded in 1997 and listed on the main market of the
Slide 5: Safer Gambling
Safer Product- Expansion in Data-driven SAFER GAMBLING gambling leadership regulated markets investments Safer. Better. Together strategy roll-out, with 8 commitments 1 2 3 4 CULTURE OF PREVENTING RAISING RESEARCH, RESPONSIBILITY HARM STANDARDS EDUCATION AND TREATMENT We are committed to change We a
Slide 6: 888's Product Leadership Principles
Safer Product- Expansion in Data-driven 888’S PRODUCT LEADERSHIP PRINCIPLES gambling leadership regulated markets investments SAFETY USABILITY CONTENT-RICH ENTERTAINMENT SCALABILITY All products must make Quick, simple and intuitive Enable customers to Use AI and gamification to Build once and deplo
Slide 7: Leading Proprietary End-to-End Tech Stack
Safer Product- Expansion in Data-driven LEADING PROPRIETARY END-TO-END TECH STACK gambling leadership regulated markets investments World class casino proposition with a vast array of content ◎ SAFETY ◎ Easy access to the Control Centre ◎ USABILITY ◎ Next-gen, responsive app built around proprietary
Slide 8: Leading Proprietary End-to-End Tech Stack
Safer Product- Expansion in Data-driven LEADING PROPRIETARY END-TO-END TECH STACK gambling leadership regulated markets investments Proprietary sports betting platform driving strong market share gains ◎ SAFETY ◎ Easy access to the Control Centre ◎ USABILITY ◎ Next-gen, responsive app ◎ Quick, simpl
Slide 9: Leading Proprietary End-to-End Tech Stack
Safer Product- Expansion in Data-driven LEADING PROPRIETARY END-TO-END TECH STACK gambling leadership regulated markets investments Entertainment-led mobile first poker offering ◎ SAFETY ◎ Easy access to the Control Centre ◎ USABILITY ◎ Next-gen, portrait-first mobile app ◎ Placing the focus on the
Slide 10: Regulated Market Footprint
Safer Product- Expansion in Data-driven 888 REGULATED MARKET FOOTPRINT gambling leadership regulated markets investments Long-term potential multiple times current TAM 16 LICENCES Denmark ◎ UK ◎ Gibraltar ◎ Ireland UK ◎ Germany (Schleswig-Holstein) Sweden ◎ Romania Ireland ◎ Spain Romania ◎ Italy ◎
Slide 11: Regulated Markets Driving Growth
Safer Product- Expansion in Data-driven REGULATED MARKETS DRIVING GROWTH gambling leadership regulated markets investments Long-term double-digit growth profile, with significant acceleration in new customers in 2020 2020 New Customers YoY% Long-term growth in deposits 160% 400% Regulated Markets 15
Slide 12: Unique Technology Capabilities
Safer Product- Expansion in Data-driven 888 UNIQUE TECHNOLOGY CAPABILITIES gambling leadership regulated markets investments ◎ Highly scalable and secure proprietary platform CUSTOMER-FACING INTERFACE – MOBILE, TABLET, DESKTOP underpins competitive advantages UX / responsiveness / speed / segmentati
Slide 13: Data-driven marketing machine
Safer Product- Expansion in Data-driven Data-driven marketing machine gambling leadership regulated markets investments Wide range of marketing channels, supported by years of data, knowledge and expertise Our approach Diversified, Effective Marketing Channels (2020) ◎ Team of online marketing exper
Slide 14: Platform to Scale in the US
PLATFORM TO SCALE IN THE US Foundations laid for rapid scaling up ◎ ACCESS ◎ Secured access in 3 additional states, Colorado, Iowa, Indiana, taking B2C footprint to 4 ◎ B2B licence awarded in Pennsylvania, taking total potential footprint to 7 states with further applications in process ◎ Pipeline o
Slide 15: FY20 Highlights
FY20 HIGHLIGHTS 15
Slide 16: 2020 Business Highlights
2020 BUSINESS HIGHLIGHTS Record annual results ◎ Record revenues, Adjusted EBITDA and Adjusted EPS ◎ Enhanced focus on customer protection & safer gambling ◎ Market share gains in key regulated markets ◎ Product-leadership strategy accelerated ◎ Rollout of Control Centre, an industry-leading safer g
Slide 17: 2020 Financial Highlights
2020 FINANCIAL HIGHLIGHTS Long-term double-digit growth profile, with significant acceleration in new customers in 2020 Pro forma 2020 2019 YoY ◎ 42% growth in FTDs, supporting total revenue growth of 52% B2C 814 531 53% ◎ Adjusted EBITDA up 69% to $156m (2019: $92m) Revenue B2B 35 30 19% ◎ Adjusted
Slide 18: Record Annual Revenue
RECORD ANNUAL REVENUE Strong growth in all product verticals, driven by product-leadership strategy Revenue 2020 vs. 2019 ◎ Casino up 63% to $587m (2019: $359m), driven by a strong product suite, content launches, AI and +52% effective marketing +53% 850 814 ◎ Sport up 36% to $122m (2019: $90m), wit
Slide 19: Operational Margins
OPERATIONAL MARGINS Regulated market growth with scale benefits from operating expenses Gross Margin Contribution Margin 67.2% 66.2% 40.0% 38.3% Marketing Investment % of Revenue Operating Expenses % of Revenue 23.5% 27.3% 27.9% 20.0% 19
Slide 20: Adjusted EBITDA & Margin
ADJUSTED EBITDA & MARGIN 69% increase reflecting high returns on marketing and operational gearing US$m 2020 2019 YoY ◎ Strong revenue growth across verticals Revenue Group revenue 850 560 52% ◎ Gross profit margin slightly lower, driven by regulated markets expansion, with gaming taxes Cost of sale
Slide 21: Q1 2021 Update
Q1 2021 UPDATE Strong underlying momentum, driven by product and marketing excellence Quarterly revenues evolution ($m) Product analysis Casino Sport Poker Bingo B2B YoY% at Revenue ($m) Q1 2021 Q1 2020 YoY constant currency 273 254 Casino 195.2 108.7 80% 68% 213 215 Sport 41.6 25.5 63% 53% 166 Poke
Slide 22: Summary & Outlook
SUMMARY & OUTLOOK ◎ Increasing focus on safer gambling ◎ Product-leadership strategy delivering strong results ◎ Data-driven investments and AI driving ongoing marketing effectiveness ◎ Well positioned to scale up in US ◎ Opportunity to leverage strong balance sheet to pursue non-organic expansion 2
Slide 23: Appendix
APPENDIX 23
Slide 24: International Footprint
888 INTERNATIONAL FOOTPRINT A global leader supported by a global team UK Competitive Intelligence Marketing Product Ireland c.10 employees Customer support c.125 employees Romania Developers Engineers Marketing operations Corporate functions c.500 employees USA Gibraltar Risk & Fraud Customer Suppo
Slide 25: 888 in the US
888 IN THE US USSL ORBIT POKER 2013 2017 2018 2020 2021 NV DE BUYOUT 888 PLATFORM 16% NJ 72% 12% 1 Source: NJ Regulator reporting and Group internal Data for NV and Delaware 25