Ten Lifestyle Group Plc · LSE:TENG
Ten Lifestyle — H1 2023 Earnings Presentation
39 slides from Ten Lifestyle's earnings presentation, May 2, 2023
Slide 1: Interim Results for the six months to 28 February 2023
Interim Results for the six months to 28 February 2023 May 2023 Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 1 ×
Slide 2: H1 2023 highlights
• Record Net Revenue1, up 49% to £30.9m (H1 2022: £20.8m) • Adj. EBITDA2, up £4.1m to £5m (H1 2022: £0.9m) • Positive PBT, up £3.2 to £0.4M (H1 2022: £(2.8m)) • 100% Material Contract3 retention with a Net Corporate Revenue Retention Rate4 of 144% (H1 2022: 105%) • Active Members5 up 43% to 316k (H1
Slide 3: To become the world's most trusted service platform
To become the world’s most trusted service platform, working behind global brands Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 3 ×
Slide 4: Ten service offering to members
• Full travel service IATA • Held Tables, priority • Access to the best • Personal shopping • In-depth City Guides licensed access and exclusive seats, VIP packages and • Member events • Sourcing coveted • Articles and interviews • Exclusive benefits at benefits at thousands of face value tickets, n
Slide 5: Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights
Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 5 ×
Slide 6: Client retention rates p.a (%)
• Ten’s corporate partners improve customer Client Retention Rates acquisition, retention and grow customer value Client retention rates p.a (%) - Users are 3 times more likely to be retained as customers and more likely to advocate - Users correlate with a higher average card spend vs non-users and
Slide 7: Growth engine: tech and proposition investment
• • • Tech and Proposition Income from premium #1 in market investment delivers better brands to drive loyalty of #1 in tech and assets client ROI and improving their most profitable Long-term, well retained efficiency, which drives more customers contracts, global, engaged scale and profit, allows
Slide 8: Improving proposition growth engine
• • • Tech and Proposition Income from premium #1 in market Improving Proposition investment delivers better brands to drive loyalty of #1 in tech and assets 0.2%their of spend in Financial Won newwell contracts, client ROI'growth Improved and improving engine' most profitable Long-term, retained re
Slide 9: Large member base and maturing operational and technology platform
Large member base and a maturing operational and Scaling technology platform globally Healthy proposition in travel, dining, live entertainment and Iterating, leveraging digital premium retail Strong presence in the financial Selling into known markets, services sector with proven case studies Enabl
Slide 10: Growing Proposition, Profitability and Scale
Growing Proposition, Profitability and Scale Watch the Growth Engine video at www.tenlifestylegroup.com/investors/ Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 10 ×
Slide 11: Image to be updated
Image to be updated Jumeirah Hotels & Resorts, Jumeirah Maldives Olhahali Island. Ten’s Global Hotel Collection Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 11 ×
Slide 12: Net Revenue growth of 49% and Adj. EBITDA up £4.1m to £5.0m
Net Revenue growth of 49% and increased Adj. EBITDA by £4.1m to £5.0M • Net Revenue at £30.9m, up 49% to £30.9m (H1 2022: £20.8m); 39% at constant currency - corporate revenue up 49% to £27.5m (H1 2022: £18.4m) - supplier revenue up 42% to £3.4m (H1 2022: £2.4m) • Adj. EBITDA of £5.0m, up £4.1m (H1
Slide 13: Income statement for period ending February 2023
Income statement for year ending 28 February 2023 • Operating expenses increased by £6.0m £m H1 2023 H1 2022 YOY change (30%): £m £m £m - increased employee costs to support Revenue 32.4 21.3 11.1 Net Revenue 30.9 20.8 10.1 growth Operating expenses and Other income (25.9) (19.9) (6.0) • Adj. EBITDA
Slide 14: Net Revenue Growth H1 2023 vs H1 2022
Net Revenue Growth H1 2023 vs H1 2022 (£m) • Net Revenue of £30.9m, up 49%, 39% at 35.0 1.0 30.9 constant currency 7.0 0.1 30.0 • Retained all Material Contracts 25.0 2.0 20.8 • Net Corporate Revenue Retention Rate of 20.0 144% 15.0 • Base Corporate revenue up £7.0m 10.0 • £0.1m from new mandates la
Slide 15: Supplier Revenue by half-year
Supplier Revenue by half-year (£m) • Supplier revenue (predominantly 8.0 14.0% travel related) of £3.4m (H1 2022: 12.8% 7.0 12.0% £2.4m) up 42% 11.4% 11.0% 6.0 10.7% 10.8% 10.0% - equates to 11% of Net Revenue (H1 Supplier Revenue (£m) 5.0 2022: 11.4%) 8.0% • Some seasonality as travel related 4.0 3
Slide 16: Net Revenue by region
EMEA Net Revenue by region (£m) £m H1 2023 H1 2022 % change • Up 33% as both base corporate and supplier £m £m EMEA 13.3 10.0 +33% revenue grew strongly Americas 13.1 6.5 +102% APAC 4.5 4.3 +6% Americas 30.9 20.8 49% • Up 102%, again, driven by both base corporate 22 locations worldwide and supplier
Slide 17: Adjusted EBITDA by region
EMEA • Adj. EBITDA up £2.2m to £4.0m Adjusted EBITDA (£m) • Adj. EBITDA margin of 30% £m H1 2023 H1 2022 £m £m Americas EMEA 4.0 1.8 Americas 1.0 (1.1) • Adj. EBITDA profit up £2.2m to £1.0m APAC (0.1) 0.2 Total 5.0 0.9 • Region is profitable for first time Adjusted EBITDA % 16.1% 4.3% APAC • Adj. E
Slide 18: Over £45m invested in technology to date
The Group has invested over £45m in the development of our technology to date • Continued ‘good to great’ Cash Spend on Technology Platform, Comms and Infrastructure (£m per FY) investment in Ten Digital Platform, 14 1st Ten 13.6 Digital IPO TenMAID, content, IT infrastructure Platform 12.2 12.2 12
Slide 19: Cashflow
Cashflow £m H1 2023 £m • Operating Cash flow of £3.5m reflects Profit before tax 0.4 Net finance expense 0.1 - profit before tax of £0.4m Working capital changes (1.4) Non-cash items (share-based payments, depreciation and - Decreased net working capital of £1.4m (due 4.4 amortisation) to late clien
Slide 20: Operational update
20 Operational update Ollie Dabbous, head chef at HIDE London where Ten hosted a Ukraine fundraising dinner Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 20 ×
Slide 21: Operational update: retained Material Contracts and new wins
• Continued to retain all Material Contracts (4 years) • New contract wins, including new mandate in the Americas • Developed existing contracts, including expansion of Large contracts in both Americas and EMEA • Revenue growth in all regions, largely via activating more members / more frequent usag
Slide 22: Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights
Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 22 ×
Slide 23: Active member penetration
Higher ACTIVE MEMBER PENETRATION • Member journey • Personalisation content with digital calls-to-action • Digital proposition • Incentives • AI & Chat Lower Low High DIGITAL MIX VERY HIGH value HIGH value MEDIUM value customer segment customer segment customer segment to corporates to corporates to
Slide 24: Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights
× Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 24 ×
Slide 25: £45m+ invested in tech, live with 40+ brands across 50+ markets
£45m+ invested in tech, live with 40+ brands across 50+ markets Ten Platform is the perfect home for Fully transactional travel module on Our members tell us what they This service replaces any sensitive inspiring our members through Ten's Ten Platform. Book flights, hotels, cars love through Ten Pl
Slide 26: Continued optimisation of our Hotels module
Continued optimisation of our Hotels CRM. Building out new, secure Addition of events, excursions and Ability to book online full range of capabilities so Lifestyle Managers module ensuring that it never stands attractions to create more tickets, including "not available to provide superb service us
Slide 27: Members can follow and track their preferences
Members can ”follow” and track their preferred: • Artists and Events under Entertainment • Hotels under Travel • Restaurants under Dining • Brands under Offers • Lifestyle experiences And easily manage them under their profile Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Grou
Slide 28: Building member profiles for effective targeting
Ten is heavily invested in building member profiles so they can be targeted effectively. Data is sourced from clients at the outset augmented with data collected from activation onwards, through explicit selection and implicitly, based on behaviours Contact data, DOB, Member passions Birthdays, Memb
Slide 29: Four ESG pillars
We commit to driving sustainable and ethical decision making by focusing on four Proposition ESG pillars B Corp Journey Supplier Code of Conduct Giving members greater Using business as a force for Making a strong Integrating ethical and access to sustainable, good. Client sponsored, Ten commitment
Slide 30: Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights
Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 30 ×
Slide 31: Typical Contract
Supplier revenue Typical Contract 12% High-touch Requests ££ Per High-touch Digital Requests £ Per Digital 88% Corporate revenue Total Corporate Client Revenue Long term contracts often with agreed minimums Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights r
Slide 32: Eligible Members and Active Members
Eligible Members have an eligible product, employment, account Active Members have used the service at least once in the past or card offered by a corporate client and have access to the 12 months service Eligible Members in High and Very High value segments (‘000) Total Active Members by value segm
Slide 33: Active member penetration
Higher ACTIVE MEMBER PENETRATION • Member journey • Personalisation content with digital calls-to-action • Digital proposition • Incentives • AI & Chat Lower Low High DIGITAL MIX VERY HIGH value HIGH value MEDIUM value customer segment customer segment customer segment to corporates to corporates to
Slide 34: Average Revenue per Active Member by value segment
Average Revenue per Active Member varies by value segment Concierge Revenue per Active Members by value segments (£m) Medium High Very High Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 34 ×
Slide 35: Outlook
Outlook Prepared for Investors HY2022. © Copyright Analyst Presentation H1 2023. ©Ten LifestyleTen Copyright Group 2023.Group Lifestyle All rights reserved. 2023. All rights reserved. 35 ×
Slide 36: Additional Geographies, Verticals and Clients
Additional Geographies, Verticals and Clients New Clients: New Clients: New Clients: Contracts In Signed Contracts Pipeline Negotiation Current Clients: Current Clients: Current Clients: New Contracts Increased Active Increased Usage per (Eligible and Active Members Active Member Members) Current Cl
Slide 37: Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights
Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 37 ×
Slide 38: Investor Relations contact
InvestorRelations@tengroup.com www.tenlifestylegroup.com/investors Prepared for Analyst Presentation H1 2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 38 ×
Slide 39: Investor engagement resources and next steps
• Growth engine video in investor section on www.tenlifestylegroup.com/investors • Overview of our technology – can be shared by video or showcased during an office visit • Insight into member experience – ways to trial the service • Review of how we provide value to corporates under ‘case studies’