Pointsbet Holdings Ltd. · ASX:PBH
Pointsbet — FY2019 Earnings Presentation
25 slides from Pointsbet's earnings presentation, Aug 29, 2019
Slide 1: FY2019 Results presentation
PointsBet FY2019 Results presentation 29 August 2019
Slide 2: Important notice and disclaimer
Important notice and disclaimer This document and any oral presentation accompanying it has been prepared in good faith, however, no express or implied representation or warranty is given as to the accuracy or completeness of the information in this document, in any accompanying presentation or in a
Slide 3: Agenda
Agenda Introduction FY 2019 Financial and Operational highlights Business Update Q&A
Slide 4: FY19 Highlights
FY19 Highlights STRONG FINANCIAL EXPANDING US ACCESS BUILDING A LEADING PERFORMANCE TEAM Registered Clients: 254% yoy Signed transformational multi-State Continued strategic hiring across Betting Turnover: 244% yoy deal with Penn National Gaming business to support growth Net Win: 17
Slide 5: Key milestones
Key milestones 123,180 114,487 105,905 Registered clients 93,895 78,126 69,290 63,033 59,411 51,883 46,053 41,478 34,779 37,627 28,450 24,261 19,809 15,334 8,123 338 1,708 Feb-17 Mar-17 Sep-17 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 Ma
Slide 6: Well positioned to take advantage of US opportunity
Well positioned to take advantage of US opportunity PointsBet US access – Estimated market US online sports betting legalisation(4): size in FY23(1)(2): Estimated total revenue in US$ millions New York 1,350 Vermont Maine Washington North Dakota New New Illinois 784 Montana(7) Minnesota York(3) Hamp
Slide 7: Agenda
Agenda Introduction FY 2019 Financial and Operational highlights Business Update Q&A
Slide 8: FY19 Highlights
FY19 Highlights A$m FY19 FY18 Growth (%) Revenue 25.6 9.4 173% Statutory EBITDA (32.7) (6.1) nmf Results Australia Trading USA (10.2) (19.5) Normalised results Technology (2.0) Corporate (1.0) Loss for the year (34.4) (6.5) nmf Basic Earnings per Share (cps) (59.1) (15.1) A$m FY19 FY18 Growth (%) Re
Slide 9: FY19 Highlights cont'd
FY19 Highlights cont'd First time bettors (#) Turnover (A$m) 37,612 357.5 23,880 209.6 17,243 120.8 5,486 44.2 2,423 1.7 FY2017 1H FY2018 2H FY2018 1H FY2019 2H FY2019 FY2017 1H FY2018 2H FY2018 1H FY2019 2H FY2019 Gross Win (A$m) Net Win (A$m) 14.9 30.9 13.3 21.8 6.4 10.6 3.8 6.3 1.1 0.4 FY2017 1H
Slide 10: Group results breakdown - normalised
Group results breakdown - normalised Sales and marketing expense (A$m) All amounts in A$m FY 2019 FY 2018 Continuing operations 24.9 Revenue 25.6 9.4 Cost of sales (14.8) (4.3) 6.2 Gross profit 10.9 5.1 0.6 Other income 0.5 0.4 FY 2017 FY 2018 FY 2019 Expenses Number of Clients(1) Marketing expenses
Slide 11: Group results - normalised
Group results - normalised Normalised All amounts in A$m FY2019 FY2018 • Net Revenue is measured at the fair value of consideration Net revenue 25.6 9.4 received all receivable from Clients less GST, free bets, promotions, bonuses and other fair value adjustments Cost of sales (14.8) (4.3) Gross pro
Slide 12: Balance sheet
Balance sheet Statutory as at 30 Statutory as at 30 All amounts in A$m June 2019 June 2018 Cash and cash equivalents 75.9 7.5 • Raised $75m in the IPO in June 2019 Trade and other receivables 0.5 0.1 Other current assets 0.8 0.6 • Intangibles include costs associated with Total current assets 77.1 8
Slide 13: Summary of Statutory Cash Flows
Summary of Statutory Cash Flows Statutory Operating cash flow All amounts in A$m FY2019 FY2018 EBITDA (37.2) (6.3) • Non-cash items in EBITDA mainly reflect share options expense, share based payments, and other non-cash operating expenses Non-cash items in EBITDA 3.1 1.0 Change in working capital 7
Slide 14: Agenda
Agenda Introduction FY 2019 Financial and Operational highlights Business Update Q&A
Slide 15: PointsBet Australia
PointsBet Australia Strong Net Win growth (A$m) 28.9 • Experiencing very strong growth in Net Win • PointsBet Australia continues to effectively execute its strategy to acquire and retain clients using targeted + 181% media assets • Growth to-date demonstrates PointsBet’s technology and operational
Slide 16: Positive start to FY20
Positive start to FY20 All amounts in A$m Aus US Total FY19 Results • Strong top-line growth, achieving 244% yoy growth in Turnover Turnover 490.1 77.0 567.1 • High promotional expenditure in the US as PointsBet Gross win 50.5 2.2 52.7 builds its market share, with proven results, achieving 5.4% sha
Slide 17: PointsBet's expanding US exposure
PointsBet’s expanding US exposure Following its initial agreements to gain access to New Jersey and New York, PointsBet has secured access to a further eight US states(1) Penn National Gaming – Ohio, Indiana, Missouri, West Virginia and Louisiana US online sports betting legalisation(4): • Announced
Slide 18: US market opportunity: Market size and access
US market opportunity: Market size and access The US is a new market for all corporate PointsBet US access – Estimated market size in bookmakers FY23(2)(3): Estimated total revenue in US$ millions • Key market drivers include(1): New York 1,350 − pace of regulation Illinois 784 − availability of reg
Slide 19: Agenda
Agenda Company Overview FY 2019 Financial and Operational highlights Business Update Q&A
Slide 20: Thank you
Thank you pow, TSBET
Slide 21: Appendix
Appendix Statutory P&L Board & Management
Slide 22: Statutory P&L
Statutory P&L Statutory All amounts in A$m FY2019 FY2018 Net revenue 25.6 9.4 Cost of sales (14.8) (4.3) Gross profit 10.9 5.1 Other income / (other expense) (0.2) 0.4 Sales and marketing expense (24.9) (6.2) Employee benefits expense (15.6) (4.4) Product and technology expense (1.9) (0.3) Administr
Slide 23: Reconciliation to statutory P&L
Reconciliation to statutory P&L FY2019 FY2019 Abnormals All amounts in A$m FY2019 All amounts in A$m Normalised Statutory Net revenue 25.6 - 25.6 IPO Transaction Costs 1.5 Cost of sales (14.8) - (14.8) Interest on Convertible Notes 1.8 Gross profit 10.9 - 10.9 Fair Value Adjustment of Convertible No
Slide 24: Appendix
Appendix Statutory P&L Board & Management
Slide 25: PointsBet's experienced Board & Management
PointsBet’s experienced Board & Management Brett Paton Johnny Aitken Non-executive Chairman, appointed November 2018 CEO, US • Extensive experience in corporate financing and advisory, with 23 years at UBS and 5 years at • Over 15 years’ experience in wagering through all facets of the industry Citi