Pointsbet Holdings Ltd. · ASX:PBH
Pointsbet — FY2020 Earnings Presentation
60 slides from Pointsbet's earnings presentation, Aug 28, 2020
Slide 1: NBCUniversal Partnership & FY2020 Results
NBCUNIVERSAL PARTNERSHIP & FY2020 RESULTS AUGUST 2020
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This document and any oral presentation accompanying it has been prepared in good faith, Materials are not, and shall not be relied upon as, a promise or representation as to future matters. The however, no express or implied representation or warranty is given as to
Slide 3: Agenda
AGENDA NBCUniversal Media Partnership US Opportunity Group Highlights FY20 Results & Commentary What’s Next
Slide 4: PointsBet + NBCUniversal Partnership
POINTSBET + NBCUNIVERSAL PARTNERSHIP PointsBet has entered into a 5-year exclusive media partnership with NBCUniversal(1) THE PARTNERSHIP DELIVERS: Notes: (1) 5-year partnership (with potential 2-year extension upon mutual agreement of the parties); (2) Subject to shareholder approval N B C U N I V
Slide 5: Introduction to NBC Sports
INTRODUCTION TO NBC SPORTS One of the most iconic and trusted media brands in the US with the largest sports audience SELECT ASSETS 11 O&O 200+ Affiliates 29 local stations Sources: comScore; Monthly Active Uniques; Aug’16-July’20; Yahoo Sports-NBC Sports Network N B C U N I V E R S A L M E D I A P
Slide 6: Market Leading Portfolio of Sports Rights
MARKET LEADING PORTFOLIO OF SPORTS RIGHTS Select properties featured do not permit sports betting advertising as of the Effective Date 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 6
Slide 7: The Largest Sports Audience
THE LARGEST SPORTS AUDIENCE SPORTS AUDIENCE (mm) 184 SPORTS MEDIA 177 COMPANY 1 SPORTS MEDIA 174 COMPANY 2 SPORTS MEDIA 169 COMPANY 3 SPORTS MEDIA 104 COMPANY 4 100MM Sources: Nielsen, Live+Same Day, P18+ average yearly reach 2014-15 to 2018-19 seasons (5 years), Total Day, 75% unification, 6 minute
Slide 8: Massive Footprint Covering the Entire U.S.
MASSIVE FOOTPRINT COVERING THE ENTIRE U.S. Local, regional and national properties and platforms extend reach across the country SPORTSNET NEW YORK National integration opportunities across linear and digital with ability to customize marketing programs at national, regional and local levels N B C U
Slide 9: The Most Diverse Set of Properties – Television Networks
THE MOST DIVERSE SET OF PROPERTIES – TELEVISION NETWORKS SELECT PROPERTIES Combination of national and regional networks along with local television assets provides ability to create bespoke marketing strategies to reach any audience OVERVIEW: • NBC Sports is one of the most iconic and trusted media
Slide 10: National Broadcast Network
NATIONAL BROADCAST NETWORK ASSET OVERVIEW: • NBC Broadcast Network distributes sports, news and entertainment programming nationwide • Delivers programming to virtually all U.S. television households via its 200+ NBC-affiliated local TV stations in key markets (including 11 owned and operated statio
Slide 11: National Cable Networks
NATIONAL CABLE NETWORKS PointsBet will be integrated across NBC Sports portfolio of sports-focused cable networks ASSET OVERVIEW: • National cable networks are pay television channels available to MVPD and vMVPD subscribers as part of a bundle or add-on channel • NBC Sports cable networks are also d
Slide 12: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS INTEGRATION OPPORTUNITIES Pre-game / In-game / Post-game Across the Regional Sports Networks Exclusive sports betting game day integrations across NBC Sports Regional Networks ASSET OVERVIEW: • RSNs are cable TV networks dedicated to providing sports programming to a spe
Slide 13: Telemundo Network
TELEMUNDO NETWORK TELEVISION FIFA World Cup Coverage Telemundo is a leading Hispanic media company to reach the Hispanic sports betting population ASSET OVERVIEW: • Features original Spanish-language entertainment, news and sports content reaching 94% of U.S. Hispanic TV households in 210 markets DI
Slide 14: Local Television Stations
LOCAL TELEVISION STATIONS Integrated into NBC’s local sports conversation ASSET OVERVIEW: • Serving both English and Spanish audiences in key markets, covering 48% of U.S. homes • Features 42 NBC and Telemundo owned stations, over 40 websites and apps, two multicast networks (COZI TV and TeleXitos),
Slide 15: Exclusive Sports Betting Integrations Across Broadcast Networks
EXCLUSIVE SPORTS BETTING INTEGRATIONS ACROSS BROADCAST NETWORKS Integrated sports betting partner across NBC Sports linear properties 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 15
Slide 16: The Most Diverse Set of Properties - Digital
THE MOST DIVERSE SET OF PROPERTIES - DIGITAL OVERVIEW: • High traffic and high growth digital assets provide exclusive gaming integration opportunities allowing PointsBet to connect with sports fans 24 / 7 / 365 • Ability for NBC and PointsBet to geo-target users via NBC Sports high growth Digital p
Slide 17: Streaming Platform
STREAMING PLATFORM • Peacock is NBCUniversal's new streaming service, featuring TV shows, movies, original series, live sports, and news programs • Launched nationwide in the U.S. on July 15 • 10+ million sign-ups as of July 30, 2020 • Projecting 30-35mm active accounts by 2024 • Sports-related offe
Slide 18: NBC Sports Predictor
NBC SPORTS PREDICTOR • Market leading, free-to-play sports gaming application with over 1.1mm downloads • 630,000 peak monthly active users • Awarded over $3mm in cash prizes to date • Aggressive product roadmap for expansion of sports, teams and Spanish language games • Deep integration of PointsBe
Slide 19: Golf Digital Properties
GOLF DIGITAL PROPERTIES • GolfNow is the largest, online booking service for tee times at golf courses in the world – 3.8mm+ registered/opted-in golfers • Exclusive Integration with Golf specific brands: GOLFNOW, GOLF ADVISOR, TEEOFF, and GOLFPASS across email, tee-time • GolfNow bonus offer confirm
Slide 20: Rotoworld
ROTOWORLD • A market leader in fantasy and sports betting content providing insightful news and analysis for NFL, MLB, NBA, NHL, CFB, Golf, EPL and NASCAR • Focused on being THE destination for fantasy players and sports bettors • New betting tools launched in July 2020 • Betting-focused content tea
Slide 21: Digital Platform Integrations
DIGITAL PLATFORM INTEGRATIONS Opportunities with sponsorships, Free-to-Play games and live odds integration on digital platforms MOBILE APPLICATIONS • Partnership allows PointsBet to leverage full suite of NBC Sports digital assets across websites, direct-to-consumer streaming services, mobile apps,
Slide 22: Exclusive Opportunity with the Xfinity Voice Remote
EXCLUSIVE OPPORTUNITY WITH THE XFINITY VOICE REMOTE Unique engagement opportunity COMCAST VOICE ACTIVATION Opportunities with the award-winning Xfinity voice remote Partnership delivers proven channels to drive conversions in addition to innovative new technology that aligns with PointsBet’s premium
Slide 23: PointsBet Well-Positioned in the State of Illinois
POINTSBET WELL-POSITIONED IN THE STATE OF ILLINOIS Illinois market opportunity • In July 2019, PointsBet announced a 20-year partnership with Hawthorne Race Course, a Chicago-area landmark and the longest continuously run family owned racetrack in North America • 75% of Illinois’ population (~9.5mm
Slide 24: PointsBet Well Positioned in the State of Illinois
POINTSBET WELL POSITIONED IN THE STATE OF ILLINOIS VALUE OF THE CHICAGO REGIONAL SPORTS NETWORK • Exclusive integrations and key calls to action across RSNs, portfolio of websites, podcasts, and social media handles • Digital reach of 5.2mm in the Chicago market across NBC Sports Chicago, NBC Chicag
Slide 25: NBCUniversal Partnership Details
NBCUNIVERSAL PARTNERSHIP DETAILS • 5-year partnership • Total committed marketing spend of US$393 million allocated in progressively increasing amounts over the 5-year media partnership, together with incentives payable to NBCUniversal for customer referrals COMMERCIAL • Premium placement and agreed
Slide 26: Partnership Accelerates Strategy to Build a Market Leader
PARTNERSHIP ACCELERATES STRATEGY TO BUILD A MARKET LEADER Path to 1mm+ U.S. Active Clients and 10% market share 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 26
Slide 27: Agenda
AGENDA NBCUniversal Media Partnership US Opportunity Group Highlights FY20 Results & Commentary What’s Next
Slide 28: NBCUniversal Deal Aligns with 2025 US$12bn Opportunity
NBCUNIVERSAL DEAL ALIGNS WITH 2025 US$12BN OPPORTUNITY MORGAN STANLEY(1) JP MORGAN(2) GVC(3) iGaming, US$6.8bn iGaming, US$3.5bn iGaming, US$4.6bn Potential combined Potential combined Potential combined 2025 market of 2025 market of 2025 market of US$20.3bn US$12.1bn US$12.3bn Sports, Sports, Sport
Slide 29: At Maturity: US Sports Betting and iGaming Total Addressable Market
AT MATURITY: US SPORTS BETTING AND IGAMING TOTAL ADDRESSABLE MARKET US IGAMING MARKET GGR US SPORTS BETTING MARKET GGR AT MATURITY AT MATURITY(4) US$ US$ Market size estimates have $30bn (5) been growing over time $27bn (3) $22bn (2) $17bn (1) April 2019 September 2019 May 2020 Retail + Online Retai
Slide 30: PointsBet's In-House Platform
POINTSBET’S IN-HOUSE PLATFORM Enhanced client experience PointsBet's priority is to provide a fast and immersive client experience. PointsBet's product and technical decisions are driven to support the goal of a continuously improving client experience. Engagement across all channels PointsBet engag
Slide 31: PointsBet's In-House Technology Platform Capability
POINTSBET’S IN-HOUSE TECHNOLOGY PLATFORM CAPABILITY POINTSBET Providing all necessary end-to-end capability High-performance player application P Advanced quantitative models and algorithms P Front End Tech Back End Tech In-house bet and trading engines P Pre-match fixed odds sports, in-play fixed o
Slide 32: Agenda
AGENDA NBCUniversal Media Partnership US Opportunity Group Highlights FY20 Results & Commentary What’s Next
Slide 33: Strong Growth Across Key KPIs
STRONG GROWTH ACROSS KEY KPIS GROUP AUSTRALIA US(2) All figures in A$ FY19 FY20 PCP Increase FY19 FY20 PCP Increase FY19 FY20 PCP Increase $830m $321m TURNOVER $1,152m $490m $567m 103% 69% $77m 317% $82m $75m NET WIN $28m $29m $7m 191% 159% n.m. ($0.7m) 9.0% NET WIN % 7.1% 5.0% 5.9% 2.2pp 3.1pp 2.2%
Slide 34: PointsBet's Transformational US Journey
POINTSBET’S TRANSFORMATIONAL US JOURNEY POINTSBET US MARKET ACCESS(1)(2) AS AT 30 JUNE 2019 POINTSBET CURRENT US MARKET ACCESS(1)(2) Vermont Maine Maine Washington Vermont Washington North Dakota New New New New Montana Minnesota York Hampshire Montana North Dakota Hampshire Minnesota York Massachus
Slide 35: Key Highlights
KEY HIGHLIGHTS SECURED TRANSFORMATIONAL MEDIA STRONG FY20 GROUP CONTINUED US EXECUTION OF STRATEGIC PARTNERSHIP PERFORMANCE EXPANSION PARTNERSHIPS ✓ Transformational media ✓ Strong performance with ✓ Launched retail and online ✓ Exclusive Channel 7 horse partnership secured with year-on-year Net Win
Slide 36: PointsBet's Journey
POINTSBET’S JOURNEY Publicly Partnership with Partnership with Launch of market-first listed on ASX Channel 7 Fox Sports AFL A$122.1m sports PointsBetting equity raise product Included in S&P ASX300 Index First of 7 consecutive positive EBITDA AUSTRALIA months for Launch of fixed Australian odds spo
Slide 37: Active Clients
ACTIVE CLIENTS(1) With targeted US marketing resuming in late Clients who have bet in the last twelve months July and the return of US sport, client activity and engagement has rebounded Active clients impacted due to Active clients US suspensions in Q3 & Q4 FY2020 Active clients + 9% Australia 134,
Slide 38: Agenda
AGENDA NBCUniversal Media Partnership US Opportunity Group Highlights FY20 Results & Commentary What’s Next
Slide 39: Continued Growth in Australia
CONTINUED GROWTH IN AUSTRALIA POINTSBET AUSTRALIA – TURNOVER (A$) POINTSBET AUSTRALIA – PCP PERFORMANCE (A$M) Key metrics FY19 FY20 Increase +69% $830.5m Turnover 490.1 830.5 69.5% Gross Win 50.5 100.8 99.6% Gross Win Margin 10.3% 12.1% +1.8pp $490.1m Net Win 28.9 75.1 159.4% Net Win Margin 5.9% 9.0
Slide 40: Australia – The Roadmap for the US
AUSTRALIA – THE ROADMAP FOR THE US Jun 20: First EBITDA PointsBet’s Australian Trading Business has achieved a positive EBITDA result in less than 3 years (1) positive year Sep 17: Launch of fixed odds racing Dec 19: First of 7 consecutive Statutory EBITDA product $43.4m positive EBITDA months for R
Slide 41: Year on Year Growth in the US
YEAR ON YEAR GROWTH IN THE US POINTSBET US – TURNOVER (A$)(1) POINTSBET US – PCP PERFORMANCE (A$M)(1) Key metrics FY19 FY20 Increase $321.1m +317% Turnover 77.0 321.1 316.8% Gross Win 2.2 16.5 651.9% Gross Win Margin 2.8% 5.1% +2.3pp $77.0m Net Win (0.7) 7.0 n.m. Net Win Margin (0.9%) 2.2% +3.1pp Ne
Slide 42: Group Results – Normalised
GROUP RESULTS – NORMALISED Australian Marketing Normalised A$20.1 million for the Reporting Period, which increased versus the PCP. All amounts in A$m(1) FY19 FY20 US Marketing Net revenue 25.6 75.2 A$15.3 million, an increase year-on-year reflecting PointsBet’s first full year of US operations. Cos
Slide 43: Group Results – Summary
GROUP RESULTS – SUMMARY A$m(1) FY19 FY20 Growth (%) Revenue 25.6 75.2 193% Statutory results Australia Trading EBITDA (10.8) 6.9 USA EBITDA (20.0) (38.2) Technology EBITDA (2.7) (2.9) Corporate EBITDA (3.7) (5.5) Statutory EBITDA (37.2) (39.7) (7%) Loss for the year (41.9) (41.5) 1% Basic loss per s
Slide 44: Balance Sheet
BALANCE SHEET All amounts in A$m(1) As at 30 Jun 19 As at 30 Jun 20 Cash and cash equivalents Cash and cash equivalents 75.9 144.3 Trade and other receivables 0.5 0.3 The group had $144.3 million in cash (of which $9.0 million represented Other current assets 0.8 1.5 client cash), the majority of wh
Slide 45: Summary of Statutory Cash Flows
SUMMARY OF STATUTORY CASH FLOWS Statutory All amounts in A$m(1) FY19 FY20 Net cash outflow from operating activities (21.1) (30.3) Net operating outflows Receipts from customers (inclusive of GST) 28.2 81.9 ($30.3) million which includes investment in Payments to suppliers and employees marketing, s
Slide 46: Agenda
AGENDA NBCUniversal Media Partnership US Opportunity Group Highlights FY20 Results & Commentary What’s Next
Slide 47: Delivering on Our Objectives
DELIVERING ON OUR OBJECTIVES Jul 18 P Access secured in New Jersey – first market access agreement with New Meadowlands Racetrack LLC Jan 19 P First US state operation launched in New Jersey P Significant market access deal with Penn National Gaming – 5 further states Aug 19 P First retail operation
Slide 48: Appendix
APPENDIX NBC Sports Regional Networks Board & Management Breakdown of US KPIs Reconciliation to Statutory P&L Glossary
Slide 49: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS Total Households 6.6MM 290+ 1,015+ LIVE events Hours of LIVE event per year coverage each year 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 49
Slide 50: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS Total Households 5.1MM 140+ 490+ LIVE events Hours of LIVE event per year coverage each year 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 50
Slide 51: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS Total Households 4.9MM 70+ 245+ LIVE events Hours of LIVE event per year coverage each year 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 51
Slide 52: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS Total Households 4.1MM 290+ 1,015+ LIVE events Hours of LIVE event per year coverage each year 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 52
Slide 53: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS Total Households 8.9MM 130+ 525+ LIVE events Hours of LIVE event per year coverage each year 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 53
Slide 54: Regional Television Networks
REGIONAL TELEVISION NETWORKS Total Households 4.9MM 290+ 1,015+ LIVE events Hours of LIVE event per year coverage each year 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 54
Slide 55: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS Total Households 4.9MM 220+ 770+ LIVE events Hours of LIVE event per year coverage each year 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 55
Slide 56: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS Total Households 2.0MM 70+ 245+ LIVE events Hours of LIVE event per year coverage each year 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 56
Slide 57: Experienced Board and Management
EXPERIENCED BOARD AND MANAGEMENT Brett Paton Nick Fahey Johnny Aitken Andrew Fahey Eric Foote Non-executive Executive Director, CEO, US Chief Marketing Chief Commercial Chairman Group Chief Officer (Co-Founder) Officer, US Commercial Officer (Co-Founder) Sam Swanell Becky Harris Manjit Singh Rick Ma
Slide 58: Trading Performance by US State
TRADING PERFORMANCE BY US STATE PointsBet US – FY20 (A$m) Key metrics New Jersey Iowa Indiana US Total Digital Retail Digital Total Digital Turnover 307.3 6.0 4.6 10.6 3.3 321.1 Gross Win 16.1 0.2 0.1 0.3 0.1 16.5 Gross Win Margin 5.2% 3.3% 2.3% 2.9% 3.4% 5.1% Net Win 6.8 0.2 0.0 0.2 0.0 7.0 Net Win
Slide 59: Statutory P&L
STATUTORY P&L Statutory All amounts in A$m FY19 FY20 Net revenue 25.6 75.2 Cost of sales (14.8) (36.9) Gross profit 10.9 38.2 Other income (0.2) 0.4 Sales and marketing expense (24.9) (35.4) Employee benefits expense (15.6) (30.9) Product and technology expense (1.9) (6.0) Administrative and other e
Slide 60: Reconciliation to Statutory P&L
RECONCILIATION TO STATUTORY P&L FY20 Significant items FY20 All amounts in A$m Normalised and adjustments Statutory All amounts in A$m FY20 Net revenue 75.2 - 75.2 Net foreign exchange (losses) 2.3 Cost of sales (3.9) - (36.9) Share option expense (3.4) Gross profit 38.2 - 38.2 Impact of AASB 16 (0.