Slide 1: Interim Results 29 August 2013
Interim Results 29 August 2013
Slide 2: Introduction
INTRODUCTION » Roger Withers, Chairman
Slide 3: Introduction
INTRODUCTION • Impressive H1 financial performance • total revenue +15% (underlying total revenues +14%) • adj. EBITDA +3% (underlying adj. EBITDA +13%) • adj. net profit +0.5% (underlying adj. net profit +11%) • Sale of stake in William Hill Online for £424m* • Strong current trading, confident out
Slide 4: Financial Review
FINANCIAL REVIEW » Ron Hoffman, CFO
Slide 5: Group financial results H1-12 vs H1-13
WHO SOP included for 3½ months versus 6 250 months in the prior period 200 194.9 176.8 176.5 150 € Millions 153.8 100 94.3 91.2 84.9 84.5 50 0 Gross Income Total Revenue Adj. EBITDA Adj. Net profit +10% +15% +3% +0.5% H1-12 H1-13 5
Slide 6: Underlying results excluding William Hill SOP, acquisitions and Skywind
200 174.6 150 153.2 € Millions 100 78.9 69.8 69.7 62.8 50 0 Revenues* Adj. EBITDA * Adj. Net profit* +14% +13% +11% H1-12 H1-13 *Excluding William Hill SOP, acquisitions and Skywind 6
Slide 7: Organic growth
180 176.8 6.7 16.4 170 160 153.8 150 Organic Growth € MIllions 140 11% from 4% from new existing 130 business 120 110 100 H1-12 New business Existing H1-13 *Other New Business defined as new licensees or new products that were launched in the past 18 months 7
Slide 8: Revenue by product segment
100 • Casino up 26% mainly from 90 90.3 mobile, premium games & LIVE Services up 80 • Services up 4% LFL (down 2% 4% on a like after transfer of WHO team) 70 for like basis 71.5 60 • Bingo up 6% mainly due to Gala € Millions Bingo and mobile 50 52.5 51.6 • Sport up 90% mainly due to 40 Poker down gr
Slide 9: Casino revenue growth
95 0.4 1.9 +4%* 90.3 90 +35%* +0.5%** 2.6 +26%* +3%** 3.9 85 +3.5%** +335%* €Millions 10.0 80 +5%** +22%* 75 71.5 +14%** 70 H1-12 Casino Core casino Mobile LIVE Premium Content Other H1-13 Casino *Nominal growth of each segment **Contribution to overall casino growth 9
Slide 10: Bingo and poker revenue
16 Bingo €14.7m €13.6m 14 0.7 0.1 12 Bingo 4.8 5.4 10 € Millions • Bingo €8.6m 8 • Side games €5.4m 6 8.7 8.6 • Mobile €0.7m 4 2 • True bingo €14.7m 0 H1-12 H1-13 Bingo Side games Mobile €13.5m Poker 14 Poker €11.3m 12 3.8 • Poker €8.0m 10 3.3 • Side games € Millions €3.3m 8 • Mobile €0.0m 6 9.7 4 8
Slide 11: Mobile revenue
H1-13 vs. €13.8m Mobile H1-12 H1-13 H1-12 14 0.7 Mobile sports 4.2 7.9 92% 12 Mobile casino 1.2 5.2 339% 5.2 10 Mobile bingo 0.1 0.7 412% € Millions Mobile poker - - - 8 Total mobile 5.5 13.8 151% €5.5m 6 0.1 1.2 4 7.9 2 4.2 0 H1-12 H1-13 Mobile sports Mobile casino Mobile bingo 11
Slide 12: Licensee concentration
45 H1-12 H1-13 40 Top 2 licensees 42% 40% 40 39 35 Top 5 licensees 62% 59% Top 10 licensees 73% 71% 30 Top 15 licensees 78% 78% 29 25 20 15 14 10 11 8 5 0 Licensees > €4.0m revenues annualised Licensees > €1.0m revenues annualised H1-11 H1-12 H1-13 12
Slide 13: EBITDA margin
200 EBITDA margin excl. WHO 70% Adj. EBITDA excl. 60% WHO 150 € Millions 44.6% 50% Total Revenue 100 43.1% 40% 50 30% Adj. EBITDA Margin excl. WHO 0 20% H1-12 H1-13 EBITDA margin excl. WHO, Skywind and acquisitions 200 70% Adj. EBITDA excl. WHO, Skywind & 60% Acq. 150 € Millions 45.5% 50% Total Reve
Slide 14: Adjusted operational costs
€ Millions H1-12 H1-13 Adj. Operational Costs 85.2 100.7 Revenue-driven costs 17.6 19.1 % out of revenue 11.4% 10.8% Adjusted operating expenses excluding revenue driven costs 67.6 81.6 Employee related costs 47.0 69.6% 52.2 64.0% Administration and office costs 7.1 10.5% 8.8 10.8% Travel, exhibitio
Slide 15: Cash flow
€ Millions H1-12 H1-13 Cash from operating activities* 80.4 109.1 Cash (used in) / from investing activities (105.2) 461.3 Net proceeds from sale of WHO stake - 492.5 Proceeds from sale of Sportech - 18.2 Acquisitions (95.2) (37.7) Capitalised development costs (6.9) (8.5) Other (3.1) (3.2) Cash use
Slide 16: Cash balance and upcoming payments
PTTS Earnout Interim Dividend €35.0m c.€22.8m 30 June 2013 31 Cash Balance December €576.2m July October 2013 January Acquisition of PTTS Final PokerStrategy Payment €38.3m* €28.0m * Subject to working capital adjustment. 16
Slide 17: Cash, total assets and total equity
Cash balance Total assets Total equity €576.2m €1.05bn €875.5m (31 Dec 2012: €120.9m) (31 Dec 2012: €784.5m) (31 Dec 2012: €514.2m) S/term deferred • Debt free - bank borrowings of €69.2m repaid during H1-13 €76.4m • Deferred and contingent (31 Dec 2012: €69.7m) consideration relates to PTTS (€62.2m
Slide 18: Acquisition of PokerStrategy
• One of the world’s largest poker affiliate businesses - poker school and player community • Acquisition complementary to both PTTS and Playtech poker offering • Total consideration of €38.3m (subject to post-completion working capital adjustment) • Annualised performance at the time of acquisition
Slide 19: Ladbrokes agreement
Software • Phased migration, Vegas tab launched July generating immediate revenue from launch • Remaining product verticals to be rolled out Services • Ladbrokes restructuring operational teams • Full marketing efforts once all product verticals rolled out • Revenue based on adj. EBITDA uplift over
Slide 20: Review & Strategic Outlook
REVIEW & STRATEGIC OUTLOOK » Mor Weizer, CEO
Slide 21: Casino / Content
CASINO / CONTENT • Superior player experience • New licensee launches (now over 120 licensees) • Strong organic growth driven by existing licensees, LIVE and mobile casino • Growth of bespoke LIVE offering 22
Slide 22: Casino / Content: branded games
CASINO / CONTENT • 16 branded games launched in H113 • more planned for H213 • Over 30 games on mobile and tablet • 3rd party content on open platform 22
Slide 23: Bingo
BINGO • New launches by Betfair, Premier (Spain), Euro Juego Star (Spain) and Caliente (Mexico) • New branded mini games • Mobile bingo improved with new mobile games, multi-stake games 23
Slide 24: Mobenga / Sports
MOBENGA / SPORTS • Strong performances over major sporting events • Mobile sports grown to significant levels for large licensees • Geneity added 3 licensees including Sportech 24
Slide 25: Mobile
MOBILE • New and exciting offering • Consistent triple digit growth over H1 • Only provider offering a single application combining betting and gaming products with a single account and wallet • Enhanced cross-sell opportunities 25
Slide 26: Next Generation Mobile
NEXT GENERATION MOBILE • Speeds-up time to market • Proven base technology • Multi-platform capability • Game-changing development 27
Slide 27: Poker
POKER • Launch of Betclic and Betfair on iPoker network • Launch of iPoker on mobile using mulitplatform support (HTML 5, Native on iOS and Android) • New tournament features and structures to drive traffic • Acquisition of PokerStrategy.com 27
Slide 28: Videobet
VIDEOBET • 1,100 machines added in H113 • New jurisdictions – South America up to 10% of VB revenue • Strong test pipeline in the UK and Finland • Convergence of retail and online 28
Slide 29: Lottery
Lottery • Powers the UK’s second largest lottery • Strong similarity to bingo players • Three European operations • Huge global potential 30
Slide 30: Services
SERVICES • Good underlying performance in H1 • Ladbrokes agreement creating leads • Acquisition of PokerStrategy strengthens offering 31
Slide 31: Strategy
• Attract new licensees • Cross sell products and services • Support organic growth • Improve quality of earnings through greater regulated market penetration • Enhance the Company’s market leading position; increase product, service and distribution capability • Acquisitions remain key 31
Slide 32: Current trading and outlook
• Daily average revenues up over 10% from Q3/12 and broadly in line with Q2/13 • Management confident regarding 2013 and beyond • Full year outcome – Exciting pipeline – Strong growth of mobile – Huge potential of sports, lottery and services 32
Slide 33: Q&A
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