Pointsbet Holdings Ltd. · ASX:PBH
Pointsbet — FY2022 Earnings Presentation
37 slides from Pointsbet's earnings presentation, Aug 31, 2022
Slide 1: FY22 Results Presentation
FY22 RESULTS PRESENTATION August 2022 N B C U N I V E R S A L M E D I A P A R T N E R S H I P & F Y 2 0 R E S U L T S P R E S E N T A T I O N │ A U G U S T 2 0 2 0 1
Slide 2: Important Notice and Disclaimer
FY22 RESULTS PRESENTATION IMPORTANT NOTICE AND DISCLAIMER This document and any oral presentation accompanying it has been Therefore, there can be no assurance that such forecasts, forward Disclosures in this document, the accompanying presentation or any prepared in good faith, however, no express
Slide 3: Agenda
FY22 RESULTS PRESENTATION AGENDA FY22 Highlights – Group Financial Performance Australian Business Review US Business Review Canada Business Review Responsible Gambling Conclusion Appendix 3
Slide 4: Global operator with material incumbency in rapidly growing North America market
FY22 RESULTS PRESENTATION GLOBAL OPERATOR WHICH HAS BUILT MATERIAL INCUMBENCY IN THE RAPIDLY GROWING NORTH AMERICA MARKET AND AUSTRALIA US MEDIA PARTNERSHIP LEADING BRAND AMBASSADORS iGAMING OPERATIONS IN FOUR US STATES & ONTARIO IN-HOUSE PREMIUM MARKET-LEADING STRATEGIC PARTNERSHIPS TECHNOLOGY STAC
Slide 5: PointsBet's current North American market access
FY22 RESULTS PRESENTATION POINTSBET’S CURRENT NORTH AMERICAN MARKET ACCESS 1 Live Operations Market access partner States/Jurisdictions in which Next states to secured or expected to be the company is assessing launch untethered market access opportunities 1. Subject where relevant to legalisation t
Slide 6: Key operational highlights FY22 (July-December 2021)
FY22 RESULTS PRESENTATION KEY OPERATIONAL HIGHLIGHTS FY22 13 AUGUST 2021 LAUNCHED ONLINE 2 NOVEMBER 2021 16 DECEMBER 2021 16 SEPTEMBER 2021 8 DECEMBER 2021 23 JULY 2021 SPORTS BETTING RECORD MELBOURNE LAUNCH OF MOBILE MAJOR PARTNER OF THE PARTNERSHIP SPORTS WAGERING IN LAUNCHED iGAMING OPERATIONS CU
Slide 7: Key operational highlights FY22 (January-June 2022)
FY22 RESULTS PRESENTATION KEY OPERATIONAL HIGHLIGHTS FY22 20 JUNE 2022 11 MARCH 2022 4 APRIL 2022 31 MAY 2022 STRATEGIC INVESTMENT AND 25 JANUARY 2022 13 FEBRUARY 2022 PARTNERSHIP WITH SIG SPORTS LAUNCH OF NEW NCAAM LAUNCH OF SPORTS MLB PRODUCT UPGRADES TO LAUNCHED ONLINE FIRST EVER SPORTS INVESTMEN
Slide 8: FY22 Trading Metrics
FY22 RESULTS PRESENTATION FY22 TRADING METRICS GROUP1 AUSTRALIA US2 All figures in A$ FY21 FY22 PCP FY21 FY22 PCP FY21 FY22 PCP Turnover / Handle $3,781.4m $5,006.3m +32% $1,989.0m $2,536.4m +28% $1,792.4m $2,454.0m +37% Gross Win % 9.3% 9.9% +0.6pp 12.9% 13.3% +0.4pp 5.3% 6.5% +1.1pp SPORTS BETTING
Slide 9: Agenda
FY22 RESULTS PRESENTATION AGENDA FY22 HIGHLIGHTS Group Financial Performance – Australian Business Review US Business Review Canada Business Review Responsible Gambling Conclusion Appendix 9
Slide 10: Group Results Normalised
FY22 RESULTS PRESENTATION GROUP RESULTS NORMALISED Normalised3 NET REVENUE4 Net Revenue comprises Net Win from sports betting and iGaming of All amounts in A$m1 FY21 FY22 $309.4M adjusted for Australian goods and services tax, fair value Net revenue 194.7 296.5 adjustments and revenue received from
Slide 11: Segment Results Summary
FY22 RESULTS PRESENTATION SEGMENT RESULTS SUMMARY Statutory Results A$m1 FY21 FY22 Change (%) Australia Trading 150.7 195.2 AUSTRALIA TRADING EBITDA United States Trading 42.3 98.7 The Company delivered EBITDA of $7.7 million for the Canada Trading - 0.2 Australian Trading Business for FY22. The pos
Slide 12: Balance Sheet
FY22 RESULTS PRESENTATION BALANCE SHEET All amounts in A$m1 As at 30 Jun 21 As at 30 Jun 22 CASH AND CASH EQUIVALENTS The group had $519.6 million in cash (of which $46.9 million represented client cash), Cash and cash equivalents 276.2 519.6 a proportion of which is held in USD. The group had no co
Slide 13: Cash Flows Statutory
FY22 RESULTS PRESENTATION CASH FLOWS STATUTORY A$m1 FY21 FY22 – At 30 June 2022, the group had a cash balance of $519.6m, including $46.9m of client cash and $472.7m of corporate cash. Cash flows from operating activities Receipts from customers (inclusive of GST) 210.2 328.2 – Total cash receipts f
Slide 14: Agenda
FY22 RESULTS PRESENTATION AGENDA FY22 HIGHLIGHTS Group Financial Performance Australian Business Review – US Business Review Canada Business Review Responsible Gambling Conclusion Appendix 1414
Slide 15: Highlights: Australia FY22
FY22 RESULTS PRESENTATION HIGHLIGHTS: AUSTRALIA FY22 POINTSBET AUSTRALIA – PERFORMANCE (A$) A$2,536.4m A$338.4m Key metrics FY21 FY22 PCP Turnover / Handle Gross Win Turnover / Handle $1,989.0m $2,536.4m +28% UP 28% ON PCP UP 32% ON PCP Gross Win Margin 12.9% 13.3% +0.4pp A$215.4m Gross Win Net Win
Slide 16: Highlights: Australia FY22
FY22 RESULTS PRESENTATION HIGHLIGHTS: AUSTRALIA FY22 CASH ACTIVE CLIENTS Marketing Highlights For the 12 months to 30 June 2022 Cash Active Clients were 239,121 Extended Shaquille O’Neal as an Australian brand ambassador +22% on the PCP for an additional two years The Australian marketing expense* f
Slide 17: Agenda
FY22 RESULTS PRESENTATION AGENDA FY22 HIGHLIGHTS Group Financial Performance Australian Business Review US Business Review – Canada Business Review Responsible Gambling Conclusion Appendix 1717
Slide 18: Highlights: US FY22
FY22 RESULTS PRESENTATION HIGHLIGHTS: US FY22 A$2,454.0m A$158.7m A$93.9m POINTSBET US – PERFORMANCE (A$) PCP SPORTS BETTING Key metrics FY21 FY22 SPORTS BETTING TOTAL Turnover / Handle Gross Win Net Win Sports Betting Turnover / Handle $1,792.4 $2,454.0m +37% UP 37% ON PCP UP 66% ON PCP UP 122% ON
Slide 19: Highlights: US FY22
FY22 RESULTS PRESENTATION HIGHLIGHTS: US FY22 ENHANCEMENT OF PROPRIETARY BANACH CONTINUED TAM EXPANSION /ODDSFACTORY PRODUCT 1 OSB live in 10 states at 30 June 2022 Expanded pre-game same game parlay and in- Launched online sportsbooks in West Virginia, Virginia, New York and Pennsylvania play marke
Slide 20: Key US Partnerships: NBC
FY22 RESULTS PRESENTATION KEY US PARTNERSHIPS: NBC Throughout FY22, PointsBet has leveraged the NBC partnership to purchase local media inventory in and around major sports properties, leagues, and events. Contextual odds integrations and unique partnerships delivered an enhanced experience for our
Slide 21: Award Winning Sports Betting Operator
FY22 RESULTS PRESENTATION AWARD WINNING SPORTS BETTING OPERATOR EGAMING REVIEW (EGR) NORTH AMERICA AWARDS 2022 COMMENTS FROM JOHNNY AITKEN, POINTSBET USA CEO “Being recognized for the second consecutive year as the top sports betting operator at the EGR North America Awards is a tremendous honour th
Slide 22: PointsBet ranks third in Eilers & Krejcik's app-by-app testing
FY22 RESULTS PRESENTATION POINTSBET RANKS THIRD IN EILERS & KREJCIK’S APP-BY-APP TESTING OVERALL APP 100% OWNED RANK TECH STACK? Overall Rank 1 3rd/42 SPORTSBOOKS 2 UNLIKE 3 / 42 MANY OF ITS PEERS, Methodology POINTSBET 4 OWNS AND Eilers & Krejcik, an independent US research firm, tested 42 US sport
Slide 23: Banach / OddsFactory: in-house modeling and algorithms for US in-play sports
BANACH / ODDSFACTORY: IN-HOUSE MODELING AND ALGORITHMS FOR US IN-PLAY SPORTS Delivering significant user experience upgrades for each sport NOV DEC MAR AUG In Development Enabling New Betting Creating the Best 2021 2021 2022 2022 for FY23 launch Opportunities Customer Experience Deep Market Offering
Slide 24: Nellie Analytics Partnership Benefits
FY22 RESULTS PRESENTATION NELLIE ANALYTICS PARTNERSHIP BENEFITS PRODUCT (PointsBet) + PRICE (Nellie) = LEADING CUSTOMER EXPERIENCE Nellie Analytics best-in-class risk management and pricing algorithms can assist PointsBet’s ability to offer: $73.0m Increased trading Increased Deeper market Faster be
Slide 25: Agenda
FY22 RESULTS PRESENTATION AGENDA FY22 HIGHLIGHTS Group Financial Performance Australian Business Review US Business Review Canada Business Review – Responsible Gambling Conclusion Appendix 25
Slide 26: Highlights: Canada Q4 FY22
FY22 RESULTS PRESENTATION HIGHLIGHTS: CANADA Q4 FY22 A$16.0m A$0.7m A$0.2m POINTSBET CANADA– PERFORMANCE (A$) FY22 SPORTS BETTING SPORTS BETTING TOTAL Key metrics (Q4 only) Turnover/Handle Gross Win Net Win Sports Betting Turnover / Handle $16.0m Sports Betting Gross Win Margin 4.2% Sports Betting G
Slide 27: Highlights: Canada FY22 Partnerships
FY22 RESULTS PRESENTATION HIGHLIGHTS: CANADA FY22 PARTNERSHIPS 27
Slide 28: Agenda
FY22 RESULTS PRESENTATION AGENDA FY22 HIGHLIGHTS Group Financial Performance Australian Business Review US Business Review Canada Business Review Responsible Gambling – Conclusion Appendix 28
Slide 29: ESG: Responsible Gambling
FY22 RESULTS PRESENTATION ESG: RESPONSIBLE GAMBLING FY22 Achievements Responsible Wagering Australia Trailer Park Boys National Council on Problem 126k Media Campaign Responsible Gambling Post Gambling Research Initiative 12 MONTH GLOBAL UNIQUE VIEWS Responsible Gambling Page 727k 12 MONTH GLOBAL CU
Slide 30: Agenda
FY22 RESULTS PRESENTATION AGENDA FY22 HIGHLIGHTS Group Financial Performance Australian Business Review US Business Review Canada Business Review Responsible Gambling Conclusion – Appendix 30
Slide 31: Conclusion
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Slide 32: Q&A
Q&A 32
Slide 33: Appendix
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Slide 34: Statutory P&L
FY22 RESULTS PRESENTATION STATUTORY P&L A$m1 FY21 FY22 Revenue2 194.7 296.5 Cost of sales (107.0) (174.9) Gross profit 87.6 121.6 Other income 0.3 0.4 Sales and marketing expense (170.7) (236.8) Employee benefits expense (51.4) (92.2) Product and technology expense (13.8) (22.2) Administration and o
Slide 35: Reconciliation to Statutory P&L
FY22 RESULTS PRESENTATION RECONCILIATION TO STATUTORY P&L A$m1 FY22 Adjustments FY22 Normalised Statutory A$m1 FY222 Revenue3 296.5 - 296.5 Interest on financial liability 5.7 Cost of sales (174.9) - (174.9) Fair value gain on financial liability (2.1) Gross profit 121.6 - 121.6 Share based payments
Slide 36: Reconciliation of Net Win to Net Revenue
FY22 RESULTS PRESENTATION RECONCILIATION OF NET WIN TO NET REVENUE A$m1 FY22 Net Win (inclusive of Goods and Services Tax) 309.4 Deduction for Goods and Services Tax (19.6) Fair Value adjustments and B2B / ADW revenue streams 6.5 Total Reported Revenue 296.5 Note: 1. Average AUD / USD FX rate 0.7258
Slide 37: US State Metrics
FY22 RESULTS PRESENTATION FY22 US STATE METRICS 1 POINTSBET US: STATE-BY-STATE FY22 PERFORMANCE (A$M)* Key metrics Illinois New Jersey New York Michigan Colorado Pennsylvania Indiana Iowa Virginia West Total Virginia Turnover / Handle 908.6 424.5 315.7 204.6 226.1 68.0 150.9 72.5 75.5 7.6 2,454.0 Gr