Evoke Plc · LSE:EVOK
Evoke — 888 Holdings — FY2021 Earnings Presentation
27 slides from Evoke's earnings presentation, Mar 9, 2022
Slide 1: 888 Holdings Plc Full Year Results 2021
888 Holdings Plc Full Year Results 2021 9 March 2022
Slide 2: Introduction
Introduction Itai Pazner, CEO
Slide 3: Agenda
AGENDA 1 Introduction and highlights 2 Financial review 3 Strategic review 4 Summary 5 Q&A 3
Slide 4: 2021 Highlights
2021 HIGHLIGHTS Another record year, with strong strategic progress ◎ Record revenues ($980m) and Adjusted EBITDA ($165m) with strong cash generation ◎ Regulated markets driving growth, with regulated or taxed mix at 74% of revenues ◎ Continued success with focus on product and content leadership ◎
Slide 5: Financial review
Financial review Yariv Dafna, CFO
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS Record revenues and Adjusted EBITDA despite regulatory headwinds US$ millions 2021 2020 YoY B2C 941.9 814.3 16% ◎ Revenue growth of +15% (+10%cc1) driven by expansion in regulated markets Revenue B2B 38.2 35.4 8% Total 980.1 849.7 15% ◎ Adjusted EBITDA margin slightly down, refl
Slide 7: Revenue Evolution
REVENUE EVOLUTION Step change in scale following new product launches and digital migration Quarterly total revenue by year – 2015 to 2021 ($ millions) Significantly expanded global player base Average monthly actives1 vs 2018 base 136% 980 130% 850 222 Q4 255 542 560 230 Q3 521 530 102% 462 100% 13
Slide 8: Regulated Market Leader
REGULATED MARKET LEADER Diversified revenue mix with growth driven by locally regulated markets Locally regulated revenue mix 2017 – 2021 Revenue by geography 2021 (2020) ROW 26% 1% (2%) 33% 31% Americas 41% 42% 36% 13% (11%) UK Italy 40% (39%) 74% 12% (10%) 69% 67% 64% 59% 58% EMEA Rest 34% (38%) 2
Slide 9: Adjusted EBITDA
ADJUSTED EBITDA 6% growth in Adjusted EBITDA despite increased investment in the US US$ millions 2021 2020 YOY Revenue Group revenue 980.1 849.7 15% ◎ Double digit growth across most major markets, despite challenging Cost of sales1 333.1 286.9 16% comparatives Gross profit1 647.0 562.8 15% ◎ Gross
Slide 10: Free Cash Flow
FREE CASH FLOW Strong cash flow generation, reflecting relatively capital light business model 2021 – Adjusted EBITDA to Free Cash Flow bridge ($ millions) ◎ Strong conversion of Adjusted EBITDA to free cash flow ◎ Net working capital includes more than $20m of one-off cash costs, principally relate
Slide 11: Outlook
OUTLOOK Improved momentum into 2022 gives confidence in full year expectations Improved Momentum into 2022 ◎ Positive start to 2022 with strong customer volumes and average daily revenues throughout January and February B2C Daily Average Actives up mid single digit relative to Q4 2021 Current tradin
Slide 12: Strategic review
Strategic review Itai Pazner, CEO
Slide 13: 888: A Global Leader
888: A GLOBAL LEADER Refined our strategic framework to 3 focus areas to deliver long-term, sustainable growth Market focus Sustainable competitive advantages Value enhancing M&A Clear focus on the addressable Invest in core capabilities to reinforce our competitive A structured and systematic growt
Slide 14: Market Focus
MARKET FOCUS Clear focus on attractive long-term growth opportunities, with strong progress in 2021 Markets: UK; Italy; and Spain Markets: High priority growth opportunities % Revenue: 59% % Revenue: 21% 2021 revenue growth: 18% Core Growth 2021 revenue growth: 26% Plans: Build on established market
Slide 15: Market Focus – The USA
MARKET FOCUS – THE USA Long-term growth opportunity where we can leverage iconic brands to grow profitably Technology Iconic Leading Brand Operational Expertise Market Access Scalable proprietary Integrated content, media and Product leadership; world class Medium term target platform gaming creatin
Slide 16: Product Leadership
PRODUCT LEADERSHIP Best-in-class features; differentiated proprietary content; and AI-driven personalisation Content-rich Usability Industry leading UX, built Safety with a customer-first focus Over 870 games added to 888’s quick and intuitive Mobile-first award-winning Poker product 888casino in 20
Slide 17: World Class Brands
WORLD CLASS BRANDS Made to Play master brand plan builds on our position as a leading global casino brand 58% 72% 68% 60% 888casino is the only 55% 54% 55% 52% 50% 46% 48% 47% 47% Plans to reinforce global casino brand, 52% our brand in core 50% with leading brand markets and awareness in our increa
Slide 18: Made to Play Advert
MADE TO PLAY ADVERT 18
Slide 19: Customer Excellence
CUSTOMER EXCELLENCE Understanding customer needs to create the best betting and gaming experiences Customer Insight Customer Service Customer Safety ◎ Significantly expanded capabilities and Customer satisfaction ◎ Cutting edge Control Centre tool gives team during 2021 to develop a deep (rebased to
Slide 20: Value Enhancing M&A
VALUE ENHANCING M&A Becoming a global leader through strategically and financially attractive M&A Platform for long-term growth in the US through strategic partnership with an Creating a global online betting and gaming leader by bringing together two highly iconic US brand to launch SI complementar
Slide 21: Made for the Future
MADE FOR THE FUTURE Developing clear ESG framework to set a platform for sustainable long-term growth All underpinned by a robust corporate governance framework 21
Slide 22: Summary
SUMMARY Becoming a global leader and well positioned for long-term sustainable growth ◎ Record financial results ◎ Refined and clear strategy to target long-term growth opportunities ◎ Transformational year with proposed acquisition of William Hill ◎ Strong start to 2022 and confident in long-term p
Slide 23: Q&A
Itai Pazner, CEO Q&A Yariv Dafna, CFO
Slide 24: Appendix
APPENDIX 24
Slide 25: Quarterly Group Revenue
QUARTERLY GROUP REVENUE US$m 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 B2C Gaming 107 111 109 114 131 186 175 200 221 208 194 192 B2C Betting 23 22 22 23 26 19 32 46 42 39 27 20 B2C 130 133 131 137 157 204 206 247 263 246 220 213 B2B 8 7 7 8 8 10 9 8 10 10 10 9 Total 137 140 138 145 165 214
Slide 26: Operational Margins
OPERATIONAL MARGINS Gross margin1 Marketing expenses % of revenue 66.2% 66.0% 31.3% 27.9% 2020 2021 2020 2021 Operating expenses % of revenue2 Adjusted EBITDA margin 20.0% 18.3% 17.9% 16.8% 2020 2021 2020 2021 26 1 Excluding exceptional FX gain/loss in cost of sales. Please refer to the full financi
Slide 27: Disclaimer
DISCLAIMER Forward-looking statements ◎ Certain information contained in this document, including any information as to the Company’s strategy, plans or future financial or operating performance constitutes “forward-looking statements”. These forward-looking statements can be identified by the use o