Pointsbet Holdings Ltd. · ASX:PBH
Pointsbet — Investor Presentation (February 2023)
24 slides from Pointsbet's investor presentation, Feb 28, 2023
Slide 1: H1 FY23 Results Presentation
H1 FY23 : RESULTS PRESENTATION | February 2023 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
H1 FY23 RESULTS PRESENTATION FEB 2023 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,
Slide 3: H1 FY23 Trading Metrics
H1 FY23 RESULTS PRESENTATION FEB 2023 H1 FY23 TRADING METRICS GROUP All figures in A$ H1 FY22 H1 FY23 PCP Turnover / Handle $2,305.9m $3,225.5m +40% Gross Win % 10.9% 8.3% (2.6pp) SPORTS BETTING Gross Win $250.9m $267.0m +6% Net Win % 6.0% 4.9% (1.1pp) Net Win $139.2m $158.2m +14% iGAMING Net Win $7
Slide 4: Agenda
H1 FY23 RESULTS PRESENTATION FEB 2023 AGENDA H1 FY23 Highlights – North America Business Review Australia Business Review Group Financial Performance Appendix 4
Slide 5: Key Highlights and H2 FY23 EBITDA Outlook
H1 FY23 RESULTS PRESENTATION FEB 2023 H1 FY23 KEY HIGHLIGHTS • Group revenue up 28% on the PCP, anchored by United States delivering 81% Net Win growth (with US marketing expense down 17%) • 548,236 Global Active Clients for the 12 months to 31 December 2022 • iGaming represents 31% of North America
Slide 6: Agenda
H1 FY23 RESULTS PRESENTATION FEB 2023 AGENDA H1 FY23 Highlights North American Business Review - Australian Business Review Group Financial Performance Appendix 66
Slide 7: North America Trading Metrics
H1 FY23 RESULTS PRESENTATION FEB 2023 North America Trading Metrics US1 H1 FY23 CANADA1 H1 FY23 All figures in A$ H1 FY22 H1 FY23 PCP All figures in A$ H1 FY23 HoH Turnover / Handle $947.5m $1,573.7m +66% Turnover / Handle $101.3m +535% Gross Win Margin % 7.5% 6.1% (1.4pp) SPORTS Gross Win Margin %
Slide 8: North America OSB + iGaming Revenue +98% vs PCP
NORTH AMERICA OSB + iGAMING REVENUE +98% VS PCP, DRIVEN BY SUPER USER LED CLIENT GROWTH USERS +98% REVENUE PROFILE SHIFTING OVER TIME AS FOCUS COHORTS (+199%) DRIVE GROWTH AVERAGE STAKES MODERATING TOWARDS MARKET NORMS WITH SHIFT IN BUSINESS MIX +199% NGR FOCUS REVENUE MODEL OPTIMISED FOR NGR GROWTH
Slide 9: +199% Revenue Growth in Target Segments
+199% REVENUE GROWTH IN TARGET SEGMENTS, VIA STRONG ENGAGEMENT AND PROMO EFFICIENCY 75% 199% 61% 124% 42% 63% 21% OSB MONTHLY ACTIVES OSB ARPU OSB GROSS REVENUE OSB NET MARGIN RETAINED OSB NET REVENUE OC NET REVENUE H1 FY23 NET REVENUE GROWTH • Investment and • Increased Betcount • Promotions more •
Slide 10: Improving Unit Economics as New Players Are Higher Value
IMPROVING UNIT ECONOMICS AS NEW PLAYERS ARE HIGHER VALUE AND ACQUIRED AT LOWER COST First Year Net Win Payback of H1 Clients WITH STRONG Y1 TO Y2 GROWTH PROFILE* +264% YoY* +30% +264% Year 2 Year 1 H1 FY22 H1 FY23 * Internal management forecast (both OSB and iGaming) * Net Win contribution of Client
Slide 11: North America Highlights
H1 FY23 RESULTS PRESENTATION FEB 2023 NORTH AMERICA HIGHLIGHTS • Targeted and localised North America marketing strategy together with ongoing product improvements delivered 98% North America Net Win growth • +199% Revenue growth in Targeted Segments, delivering a more sustainable client base • Supe
Slide 12: Agenda
H1 FY23 RESULTS PRESENTATION FEB 2023 AGENDA H1 FY23 Highlights North American Business Review Australian Business Review - Group Financial Performance Appendix 1212
Slide 13: Highlights: Australia H1 FY23
H1 FY23 RESULTS PRESENTATION FEB 2023 HIGHLIGHTS: AUSTRALIA H1 FY23 Net Win contribution of Mass Market vs VIP All figures in A$ H1 FY22 H1 FY23 PCP Turnover / Handle $1,358.4m $1,550.5m +14% -2% Gross Win Margin % 13.3% 10.7% (2.5pp) SPORTS BETTING +10% Gross Win $180.1m $166.5m (8%) Net Win Margin
Slide 14: Agenda
H1 FY23 RESULTS PRESENTATION FEB 2023 AGENDA H1 FY23 Highlights North American Business Review Australian Business Review Group Financial Performance - Appendix 14
Slide 15: Group Results
H1 FY23 RESULTS PRESENTATION FEB 2023 GROUP RESULTS NORMALISED NET REVENUE4 Normalised 3 • Net Revenue of $178.1m, an increase of 28% vs the PCP All amounts in A$m1 H1 FY22 H1 FY23 GROSS PROFIT MARGIN Net revenue 139.1 178.1 • H1 FY23 Gross Profit Margin stable vs H1 FY22 Cost of sales (84.4) (108.2
Slide 16: Segment Results
H1 FY23 RESULTS PRESENTATION FEB 2023 SEGMENT RESULTS SUMMARY Statutory Results A$m1 H1 FY22 H1 FY23 Change (%) Australia Trading 97.6 95.3 United States Trading 40.3 75.0 AUSTRALIA TRADING EBITDA Canada Trading - 6.7 • As per last year the Company’s FY23 marketing strategy was to Technology 1.2 1.1
Slide 17: Balance Sheet
H1 FY23 RESULTS PRESENTATION FEB 2023 BALANCE SHEET All amounts in A$m1 As at 30 Jun 22 As at 31 Dec 22 CASH AND CASH EQUIVALENTS Cash and cash equivalents 519.6 387.2 • The group had $387.2 million in cash (of which $66.5 million represented client cash), a Intangible assets 212.5 224.3 proportion
Slide 18: Cash Flows
H1 FY23 RESULTS PRESENTATION FEB 2023 CASH FLOWS STATUTORY A$m1 H1 FY22 H1 FY23 • At 31 December 2022, the group had a cash balance of $387.2m, Cash flows from operating activities including $66.5m of client cash and $320.7m of corporate cash Receipts from customers (inclusive of GST) 162.8 187.4 Pa
Slide 19: Agenda
H1 FY23 RESULTS PRESENTATION FEB 2023 AGENDA H1 FY23 Highlights North American Business Review Australian Business Review Group Financial Performance Appendix 19
Slide 20: Conclusion Q&A
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Slide 21: Appendix
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Slide 22: Statutory P&L
H1 FY23 RESULTS PRESENTATION FEB 2023 STATUTORY P&L A$m1 H1 FY22 H1 FY23 Revenue2 139.1 178.1 Cost of sales (84.4) (108.2) Gross profit 54.7 69.8 Other income 0.2 0.1 Sales and marketing expense (124.1) (131.3) Employee benefits expense (44.2) (75.0) Product and technology expense (7.9) (15.5) Admin
Slide 23: Reconciliation to Statutory P&L
H1 FY23 RESULTS PRESENTATION FEB 2023 RECONCILIATION TO STATUTORY P&L A$m1 H1 FY23 Adjustments H1 FY23 Normalised Statutory A$m1 H1 FY222 Revenue 3 178.1 - 178.1 Cost of sales (108.2) - (108.2) Interest on financial liability 3.4 Gross profit 69.8 - 69.8 Fair value gain on financial liability (1.7)
Slide 24: Reconciliation of Net Win to Net Revenue
H1 FY23 RESULTS PRESENTATION FEB 2023 RECONCILIATION OF NET WIN TO NET REVENUE A$m1 H1 FY23 Net Win (inclusive of Goods and Services Tax) 182.2 Deduction for Goods and Services Tax (9.6) Fair Value adjustments and B2B / ADW revenue streams 5.5 Total Reported Revenue 178.1 Note: 1. Average AUD / USD
PointsBet Holdings — Investor Presentation (February 2023) on 6ix