Entain PLC · LSE:ENT
Entain — Investor Presentation (November 2020)
42 slides from Entain's investor presentation, Nov 12, 2020
Slide 1: GVC – The way forward
GVC – The way forward 12 November 2020
Slide 2: Disclaimer
Disclaimer NOT FOR PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION. This presentation has been prepared by GVC Holdings PLC (“GVC”) and comprises the written materia
Slide 3: Agenda
agenda INTRODUCTION SHAY SEGEV SUSTAINABILITY ROB HOSKIN GROWTH SHAY SEGEV Q&A Shay SEGEV Rob Hoskin Rob wOOD
Slide 4: The Entain Story
THE ENTAIN STORY VISION The world leader in sports betting and gaming entertainment PURPOSE Revolutionise gambling to create the most exciting and trusted entertainment for every customer STRATEGY TECHNOLOGY ENABLED Sustainability Growth Focus on regulated markets Leadership in the US Lead on
Slide 5: Our Technology is built around the customer
Our Technology is built around the customer SCALE FLEXIBILITY CHOICE PROTECTION 2m+ 120+ 6,000+ Changes per Games: 550 in sports bets day with house games Predictive Markers of per day zero downtime & 130+ providers analysis protection Available on 100M+ 100+ 250,000+ Casino spins Events across Mobi
Slide 6: With capability, agility and flexibility built in
With capability, agility and flexibility built in GROW OUR PERSONALISE ADAPT TO CONSTANTLY SUPERIOR MARKETING REGULATION EVOLVE FOR THE PRODUCT SET FUTURE ENHANCE DYNAMIC CONTINUOUSLY CUSTOMER GROW AHEAD UPDATE DATA CUSTOMER EXPERIENCE OF COMPETITION ANALYTICS PROTECTION OMNI- INTEGRATING DYNAMIC EN
Slide 7: Greater efficiencies through technology
greater efficiencies through technology OPEX TO REDUCE AS PERCENTAGE OF NGR1 TECHNOLOGY COSTS REDUCE AS PERCENTAGE OF NGR2 2017 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 NGR % NGR Notes: Series3 % NGR 7 1. NGR as per analysts consensus 2. Tech costs as a proportion of NGR on GVC Tech platfor
Slide 8: Sustainability
GVC intcttanie SUSTAINABILITY
Slide 9: New sustainability charter
New sustainability charter REGULATION RESPONSIBILITY CORPORATE GOVERNANCE PEOPLE & COMMUNITIES Only operate in Scientific approach Best in class Best place to work regulated markets to safer gambling corporate governance 100% regulated Leverage technology Strengthened Reduce environmental markets by
Slide 10: Regulation
REGULATION REGULATION Only operate in regulated markets 100% regulated markets by end of 2023 96% to 99% IN 2020 1 Pro-active regulator engagement Review of UK Gambling Act due shortly Notes: 10 1. By end of 2020 99% of revenue will come from regulated or regulating markets
Slide 11: Responsibility
RESPONSIBILITY RESPONSIBILITY Scientific approach to safer gambling Prof. Mark Griffiths ENGAGEMENT Leverage technology for player safety ARC - Advanced Responsibility & Care New responsibility algorithms Affordability algorithms & enhanced thresholds Remuneration tied to responsibility Responsibili
Slide 12: Corporate governance
Corporate governance Corporate Governance Best in class corporate governance COMMITTEES AND OVERSIGHT Strengthened Board NEW CHAIRMAN And board appointments Strengthened Processes Greater REGULATION And accountability 12
Slide 13: People & communities
People & communities COMMUNITIES PEOPLE & Communities Best place to work Reduce environmental impact £100m to Entain Foundation over 5 years eNVIRONMENT 13
Slide 14: Growth
GROWTH Shay Segev
Slide 15: Growth
GROWTH Leadership Grow Core in the us markets ENTER New EXPAND TO New markets audiences 15
Slide 16: Leadership in the US
LEADERSHIP in the US Shay Segev
Slide 17: BetMGM on target as momentum builds
Betmgm on target as MOMENTUM BUILDS MARKET OPPORTUNITY STRONG PROGRESS TO DATE5 Market Share $20.3bn 15% - 20% 20% Sports ~$13.5bn expected market share iGaming ~$6.8bn 15% Key Metrics 10% 18% Current market share2 17% Online Market share3 5% 23% NJ iGaming market share 15%-20% Online market share i
Slide 18: Strong progress with Yahoo Sports
Strong progress with YAHOO SPORTS NO.1 AFFILIATE DIRECT ACCESS TO BETMGM FANTASY INTEGRATION Streamlined registration and onboarding experience Relevant odds added Yahoo Sports c50 million monthly average users between the Yahoo Sports app1 to Yahoo Fantasy app2 Notes: 18 1. Available in states wher
Slide 19: The M Life advantage
The M Life advantage 34M Large and engaged customer base MLIFE & Membership & Tier points BETMGM 25% BetMGM customers active on M life1 2X Higher spend2 $ Lower acquisition cost Notes 19 1. BetMGM customers acquired over last 6 months having an active relationship with M life 2. Higher spend amongst
Slide 20: Leveraging the omni-channel opportunity
Leveraging the OMNI-channel opportunity SEAMLESS EXPERIENCE DRIVING VALUE Omni-channel customers value IS 4 1 significantly higher than Sole Retail GUEST customers CHECKOUT & GUEST RETURN TO BOOKING HOME STATE 3 2 GUEST GUEST ARRIVAL TO ON-PROPERTY MGM RESORTS EXPERIENCE PROPERTY Retail Casino Retai
Slide 21: New features
New features Single app launched Parlay product New campaigns 21
Slide 22: Grow core markets
GVC intcttanie GROW CORE MARKETS ad Shay Segev
Slide 23: Strong track record with inbuilt growth
Strong track record with inbuilt growth 19 quarters of double digit online growth With inbuilt growth 800 700 80% 600 OF ONLINE NGR from markets THAT ARE growing >5% 500 NGR £m 400 93% 300 OF online NGR FROM MARKETS 24% 22% 25% 17% 18% 12% 13% 26% 15% 25% 29% 15% 18% 17% 11% 11% 19% 23% 28% where we
Slide 24: Digital marketing powered by technology
Digital marketing powered by technology Powerful data analytics Self-learning digital market Segmentation 160M+ 270tb+ Customer base & profiles Of customer data Measurement Propositions AI 600+ 50+ 10.00am Horse bet on is non-runner AI prediction models Data scientists Execution 10.01am Customer inf
Slide 25: Competitive edge through retail
Competitive edge through retail Technology Driving Digital growth Brand advantage EFFICIENT MODEL Significant investment in: Maximise digital app Significant advertising c.£100m per annum downloads value cash generation1 Integrated EPOS system 200,000 online FTDs per Ladbrokes spontaneou
Slide 26: New markets
GVC | iticrtaniten NEW MARKETS Shay Segev
Slide 27: New market opportunities
New market opportunities AFRICA POPULATION: c.850m • Recreational market GDP: c.€1.6trn • Emerging technology POTENTIAL GGR: >$10bn • 20 regulated markets LATIN AMERICA POPULATION: c.300m • Bwin brand recognition through football GDP: c.$2.7trn • Foothold through Brazil & now Colombia POTENTIAL GGR:
Slide 28: Strong track record of M&A
STRONG TRACK ReCORD of M&A Our attributes of proprietary scalable technology and leading product portfolio give us a unique opportunity to create value • Quick and efficient market entry and deployment • Geographic diversification • No reliance on 3rd party to 3rd party integrations • Global scale •
Slide 29: Emerging trends
Emerging trends Gaming is the new online ecosystem music social news search 2.7bn 72% 28% c.$1bn shopping video Gamers in 2020 Gamers over 18 e-sports CAGR E-sports betting events Theme parks 2019-24 market by 2024 Digital activities sports dating inside of games fashion banking browsing 100m 5G ~80
Slide 30: New audiences
New audiences Bet on yourself Bet on esports E-sports, skill gaming & Digital entertainment replacing Bet on streamers video streaming as favoured digital entertainment Bet on virtual Bet on sports 75% prefer to use smartphones over other devices Bet on FAVOURITE GAME Bet with your friends 60% say t
Slide 31: Summary
SUMMARY Entain is a technology led entertainment business Clear strategic imperatives Leadership in responsibility Significant growth opportunities Deliver for: Customers – great experience Our people – great place to work Communities – give something back Shareholders – value and
Slide 32: Q&A
Shay Segev Group CEO Rob Wood Q&A Group CFO Robert Hoskin Chief Governance Officer
Slide 33: Appendix
Appendix
Slide 34: Management team
MANAGEMENT TEAM Shay Segev Group CEO 14 years industry experience Rob Wood Robert Hoskin Sandeep Tiku Group CFO Chief Governance Officer Group COO & CTO 8 years industry experience 15 years industry experience 21 years industry experience Simon O’Halloran Adam Lewis Grainne Hurst Chief People Office
Slide 35: One platform underpinned by best-in-class infrastructure
One platform underpinned by best-in-class infrastructure one technology solution: 3000+ 29 18k+ 3300+ 6B+ Tech experts datacentres 772% Servers SQL Server API calls daily Increase in API 47 (Physical & Virtual) Databases calls in 3 yrs Offices 35
Slide 36: BetMGM - Driving momentum through key strategic pillars
BetMGM - Driving momentum through key strategic pillars KEY STRATEGIC ENABLERS CURRENT STATUS • Prime MGM assets in key states • Access to 20 markets secured Market • Additional access secured via other partners • Operational in 9 markets access • Proprietary platform enables entering markets • Expe
Slide 37: BetMGM - Our capabilities outstrip the competition
Betmgm - Our capabilities outstrip the competition Broad, direct market access BETMGM’S In-house technology and product development STRATEGIC “FOUR KEY Strong entertainment, sports and gaming brands PILLARS” Omni-channel customer acqn and marketing strategy Large and established rewards program Broa
Slide 38: BetMGM - strategic market access enables day 1 launch
BetMGM - strategic market access enables day 1 launch as more states go live To date, BetMGM has secured market access in 20 states1 and is live in nine states, with the expectation of being live in 11 states by year end 2020 ME Online WA Live States Retail Sports Online Sports Online Poker VT Cas
Slide 39: BetMGM - Increased share in key markets
BetMGM - Increased share in key markets to become top #3 operator Market Market YTD September YTD2Q20 Share 3Q20 Share Market Share Position1 Position1 Position1 NJ 17.9% #1 20.3% #1 #1 IGAMING MARKET SHARE1 WV N/A N/A 23.8% #2 #2 Consistently the #1 brand in NJ iGaming, with WV ramping up NV 4.6% U
Slide 40: BetMGM - User acquisition advantage
Betmgm - User acquisition advantage driven by brands, partnerships and customer database Cost of customers acquired via partners 13 Omni-channel brand experience Locations $0 - $150 >2x Omni vs single-channel customer value Cost of customers acquired directly 34m+ Customer rewards Customer database
Slide 41: BetMGM - Powerful marketing
Betmgm - POWERFUL MARKETING 41
Slide 42: BetMGM - Powerful marketing
Betmgm - POWERFUL MARKETING 42