Rank Group Plc · LSE:RNK
Rank — Investor Day (November 2023)
70 slides from Rank's investor day presentation, Nov 30, 2023
Slide 1: Delivering seamless experiences
Delivering seamless experiences Investor Event – Rank Digital 30 November 2023
Slide 2: Agenda
Agenda The Rank investment case Richard Harris, CFO Rank Digital strategy Jon Martin, COO and Enric Monton, International MD Platforms for growth Jon Plumb, CIO Seamless experiences Jon Martin, COO Summary Richard Harris, CFO Concluding remarks John O’Reilly, CEO Q&A 2
Slide 3: Rank investment case
Cash maximisation Grosvenor recovery Rank in bingo and growth investment case Digital growth Gambling Act Review Technology Safer People and data gambling and culture 3
Slide 4: Significant medium-term opportunity
Significant medium-term opportunity Cash maximisation in bingo Double digit operating profit in Mecca Grosvenor recovery and growth NGR > £7m per week Digital growth Gambling Act Review Relative size of operating profit opportunity 4
Slide 5: Improving cash generation profile
Improving cash generation profile Now – Next 18 months 18 months – 3 years 3 - 5 years Investing for growth Balancing investment Growing shareholder and returns returns Operating Operating Operating profit Capex profit Capex profit Capex Cash flow neutral Modest cash generation Strong cash generatio
Slide 6: Digital medium term opportunity
UK International To excite and to entertain Platform Platform Brands Brands Customer Digital medium term opportunity Revenue growth 8-12% CAGR Margin expansion 400-500 bps 6
Slide 7: Rank Digital
UK International Rank Digital Customer Jon Martin & Enric Monton 7
Slide 8: A clear Rank digital strategy
A clear Rank digital strategy Delivering great customer experience Leading brands and strong Powered by our proprietary Data driven marketing capabilities technology 8
Slide 9: Our UK digital portfolio
Our UK digital portfolio MAGICAL VEGAS
Slide 10: Rank's UK digital journey so far, taking control of our technology
Rank’s UK digital journey so far, taking control of our technology Stride plc acquisition Operating Grosvenor Mecca Migrate to insourcing proprietary model migration launched Bede technology integration onto Ride online 2006 2018 2020 2022 2016 2019 2021 Grosvenor Digital Alignment of player Mecca l
Slide 11: A large and attractive market
A large and attractive market UK market UK market product segmentation £7.0bn £3.7bn £6.6bn £6.5bn £6.3bn £6.1bn £5.6bn Bingo led market £2.3bn (including slots is estimated at £1bn) £0.2bn £0.1bn CY18 CY19 CY20 CY21 CY22 CY23 Sport Casino and Bingo Poker Total Betting Total Gaming Slots Rank market
Slide 12: Growing market share; large headroom opportunity
Growing market share; large headroom opportunity UK market total Rank Digital UK market share* Rank UK Digital Flutter inc Tombola 2.9% Entain 2.2% Market share % 888 inc. WH Gamesys Kindred Other FY21 FY22 FY23 Q1 FY24 Gros Mecca Other UK* * Excludes Passion Gaming. Source: UKGC 12
Slide 13: Building momentum post pandemic
Building momentum post pandemic Mecca Grosvenor Other UK* 77 73 69 68 67 Impact of aligning 62 62 player protection practices with Rank 57 52 50 47 42 43 41 NGR (£m) 36 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 * Excludes Passion Gaming. 13
Slide 14: Well positioned to accelerate our UK digital growth
Well positioned to accelerate our UK digital 100+ venues across the UK, with over 1.5m unique customers growth Large crossover of customers between venues and online Proprietary technology platform Leading brands, strong marketing capabilities 14
Slide 15: How we accelerate our UK digital growth
How we accelerate our UK digital growth and take further UK market share Delivering great customer experience Product and customer journey Seamless cross channel offering improvements Drive greater returns from marketing investment 15
Slide 16: Key areas of opportunity
Product Development Key areas of opportunity “Recognise me” personalisation Insourcing mobile app development Product and customer journey improvements 16
Slide 17: Recognise me
Product Development “Recognise me” The right interaction, at right time, in the right channel Improved data science capabilities Protecting our customers 17
Slide 18: Product and customer journey improvements
Product Development Product and customer journey improvements Easier to use and more engaging experiences Bonusing and gamification Rich product and content strategy 18
Slide 19: Insourcing our mobile app development
Product Development Insourcing our mobile app development 23% of digital customers use our apps App players are more valuable Target over 50% of our digital customers engaged via our apps 19
Slide 20: Our opportunity in the UK market and in our venues
Cross channel Our opportunity in the UK market, 100+ Over 50% of UK casino and bingo and in our venues across the players visit a UK with over 1.5 venue and play venues today million customers online Only 9% of Mecca These customers and 5% of are twice as Grosvenor venue valuable to the customers al
Slide 21: What our customers tell us they want
Cross channel What our customers tell us they want Improved journeys Unified membership Reward customer loyalty Source: Toluna 21
Slide 22: Delivering a seamless customer experience
Cross channel Delivering a seamless customer experience “Recognise me” Unified membership is a critical enabler Real time rewards and loyalty Live play experiences from our venues 22
Slide 23: Driving improved returns on our marketing investment
Scale marketing investment Driving improved returns on our marketing investment Scale investment above the line Selective sponsorships Maximise returns through analytics 23
Slide 24: Specific marketing investment across our portfolio
Scale marketing investment Specific marketing investment across our portfolio Mecca – extend our reach Grosvenor – drive consideration Other UK brands – scale marketing investment 24
Slide 25: Accelerate growth and take further market share
Accelerate growth and take further market share Product and customer journey improvements Seamless offering to the cross channel customer Driving increased returns on marketing investment 25
Slide 26: International
UK International International Customer Enric Monton
Slide 27: Rank's international digital journey so far
Rank’s international digital journey so far Migration of Rank launches EnRacha.es to the website the BingoSoft EnRacha.es Launch of platform YoCasino 2018 2020 2022 2012 2017 2019 2021 Acquisition of Launch of BingoSoft with YoSports the YoBingo brand 27
Slide 28: A growing digital business
Revenue FY23 €27.7m A growing digital business Revenue evolution €m CAGR: 14% FY19 FY20 FY21 FY22 FY23 28
Slide 29: Competitive market backdrop
Competitive Regulated since 2012 No new licences are market issued backdrop >60 Active operators Moderated Gaming Tax Regulated since 2012, currently no new licences are granted, but with a high number of competitors Games allowed Restrictive advertising regulation Sources: Dirección General de Orde
Slide 30: Restrictive advertising regulations
Restrictive advertising regulations Only from 1.00am to No sponsorship or use of 5.00am influencers is allowed The Commercial Communications Decree passed in May 2021 establishes a very restrictive online Welcome bonus prohibited Very few options to gambling advertising advertise framework 30
Slide 31: Market is recovering post regulatory changes
Market is recovering post regulatory changes Spanish online gambling evolution €963m Contests 0 14 Bingo €850m 8 €815m 90 Poker 2 €748m 17 14 Casino €699m 3 110 85 Sports 1 13 13 81 €557m 82 498 6 11 351 €426m 60 238 273 407 7 9 171 €317m 58 4 8 116 60 67 365 378 365 360 309 306 236 178 CY15 CY16 CY
Slide 32: Bingo accounts for 1.5% of the total market
€963m market size Spanish market has grown significantly from the €252m the first full year of operation after regulation Bingo accounts to the current €963m in 2022 Poker €90.0m for 1.5% of the 9.4% total market Bingo €14.2m 1.5% TV Contests €0.3m 0.03% Casino €498.0m 51.7% Sports €360.0m 37.4% Sou
Slide 33: Our proposition
Our proposition 43% FTDs 22% FTDs 18% FTDs 17% FTDs 65% NGR 26% NGR 3% NGR 6% NGR YoBingo® YoCasino® YoSports® EnRacha® Launched in 2012 Launched in Dec 2019 Launched in Sep 2022 Migrated in May 2021 Source: FY23 33
Slide 34: We want to be the leading online bingo brand in Spanish and Portuguese speaking markets
We want to be the leading online bingo brand in Spanish and Portuguese speaking markets Consolidate our leadership in bingo in Spain; improve efficiency and gain market share in casino and sports First online bingo operator in Portugal Expand our operations into new territories 34
Slide 35: Leveraging our core capabilities
Leveraging Proprietary platform our core capabilities Proprietary bingo product Flexibility A talented team culturally adapted to our target countries Adaptation Community The YO® community An alternative formula for success 35
Slide 36: Live Bingo is a new way to deliver our bingo product
Live Bingo is a new and exciting way to deliver our bingo product The traditional Chat Moderator who interacts in writing with our users comes to life through streaming It energises the gaming experience and enhances the concept of community Powered by proprietary technology and studios 36
Slide 37: From 'here' to 'there'
From ‘here’… To ‘there’… Real time streaming Integrated chat Transactional widget
Slide 38: Portugal
Portugal Plan to replicate the Spanish strategy The natural next territory First online bingo operator in Portugal for expansion Tough regulatory approval process Planned for Q4 FY24 38
Slide 39: Portugal
Portugal Strong growth in online gambling The market has tripled from its level in 2019 to the current level %Var €656m digital market size FY21 The Portuguese market size is proportionally bigger than in Spain €656m +29% Poker €11.8m 1.8% €508m 358.7 Bingo €0m Casino, slots, poker (gambling) 0.0% S
Slide 40: Driving sustainable growth
Driving sustainable growth Organic growth Casino and sports growth Consolidate our bingo leadership in Spain Live bingo New markets Bingo as entry to Portugal Prospecting new jurisdictions 40
Slide 41: Platforms for growth
UK International Platforms for growth Platform Platform Customer Jon Plumb
Slide 42: A tech function leveraging global skillsets
A tech function leveraging global skillsets UK International Customer CRM CEP CRM CEP Analytics Analytics 42
Slide 43: Competitive delivery model
Competitive UK delivery model Service support, venue engineering, delivery Two proprietary gaming Spain platforms Gibraltar Yo platform delivery Delivery, support, product management Over 250 technology professionals employed Mauritius worldwide Service support, Infrastructure and network management
Slide 44: Attributes for success
Attributes for success Delivering great customer experience Scalability and speed Seamless delivery Better personalisation Platform modernisation Single CMS, Apps Data, AI 44
Slide 45: Two proprietary platforms
Platform modernisation Two proprietary platforms Cloud infrastructure Proprietary technology Yo platform upgrade Unified Microservices membership 45
Slide 46: Cloud infrastructure
Platform modernisation Cloud Cloud infrastructure infrastructure Proprietary Yo platform technology upgrade Scalable/flexible infrastructure Better customer management Unified Microservices membership Cost efficiency – Pay as you use 46
Slide 47: Proprietary technology
Platform modernisation Proprietary technology Cloud infrastructure Proprietary technology Yo platform upgrade Product and feature development on our own terms Quicker to market releases Unified Microservices membership Cost effective 47
Slide 48: Microservices
Platform modernisation Microservices Cloud Proprietary Yo platform infrastructure technology upgrade Build once, deploy to all brands Faster release to market for products and services Unified Microservices membership Sharing technology and code between platforms 48
Slide 49: Unified membership
Platform modernisation Unified membership Cloud infrastructure Proprietary technology Yo platform upgrade True single account for customers irrespective of channel Microservices Manage our customers at a Unified brand level membership Strong data governance and quality 49
Slide 50: Yo platform upgrade
Platform modernisation Yo platform upgrade Cloud infrastructure Proprietary technology Yo platform upgrade Scaling the infrastructure and supporting a growing customer base Unified Microservices membership The new bingo product is built Upgrading the platform 50
Slide 51: Single CMS
Single CMS All our UK brands under one roof In its current state, we manage and develop The core objective of Single CMS is to bring all through four different CMS instances: 3 versions of our brands under a single, unified CMS; with EpiServer and a legacy in-house CMS called RAD2 services provided
Slide 52: App development
Apps App development In-house app development team recruited in Cape Town New products and features Mobile application framework built (FlutterFlow) New designs and customer journeys Embedded with the new CMS 52
Slide 53: Creating a single source of truth
Data Creating a single source of truth Enabling Simplifying commercial value 100’s of systems Marketing Mecca Reporting Central Engagement Grosvenor Platform Data science Digital Player protection Corporate 53
Slide 54: Already delivering benefits for customers and colleagues
The application of AI Already delivering benefits for customers and colleagues Customer service Safer gambling Automated marketing campaigns 54
Slide 55: Platforms for growth
Platforms for growth Platform modernisation Proprietary apps Cloud Migration – Delivered Grosvenor Casino – Q3 FY24 Yo Platform – Q1 FY25 Mecca Bingo – Q1 FY25 Microservices – Q2 FY25 Central Consolidated CMS Engagement Platform Bella – Delivered Data platform – Delivered Grosvenor & Mecca – Q3 FY24
Slide 56: Seamless experiences
UK International Seamless brand Platform Platform Brands Brands Customer experiences Jon Martin
Slide 57: Customer Name: Beth
Customer Name: Beth Age: 53 years old Club: St Helens, Merseyside History: played with the brand for 21 years Venue play: Bingo on Mecca Max tablets Online play: slots 57
Slide 58: Personalising our communication with players
Personalising our communication with players 58
Slide 59: Seamless customer experience in venue
Seamless customer experience in venue 59
Slide 60: Seamless customer experience in venue
Seamless customer experience in venue Realtime data in the hands of our colleagues 60
Slide 61: Personalising the homepage
Personalising the homepage 61
Slide 62: Customer Name: Daniel
Customer Name: Daniel Age: 46 years old Club: The Victoria, London Registered: digital since August 2019, venues member since Sept 2020 Venue play: cash poker games and roulette Online play: Live and Direct roulette table The Vic 62
Slide 63: Protecting our players
Protecting our players Proprietary tools for player protection between venues and online 63
Slide 64: Customer Name: Tom
Customer Name: Tom Age: 35 years old Club: The Vic, London History: Grosvenor poker player since 2017 Venue play: Poker Online play: Poker, Live Casino 64
Slide 65: Seamless play between venues
Seamless play between venues 65
Slide 66: Summary
UK International Summary Platform Platform Brands Brands Customer Richard Harris
Slide 67: Key delivery milestones
Key delivery milestones Single CMS Cloud Launch of Live Grosvenor Yo platform All (Bella) migration Bingo (Spain) App upgrade microservices Oct 2023 Dec 2023 Mar 2024 Jun 2024 Sept 2024 Aug 2023 Nov 2023 Jan 2024 Mar 2024 Sept 2024 Dec 2024 Central Spanish licence Single CMS Launch of Mecca App Enga
Slide 68: Our digital products and capabilities are starting to enable seamless experiences
Proprietary platform Market leading brands in ownership casino and bingo Our digital products and capabilities are starting to enable delivery of Pipeline of Personalised Talented teams seamless customer product customer focused on local experiences online development experience markets and in venue
Slide 69: Concluding remarks
Concluding remarks John O’Reilly
Slide 70: Q&A
Q&A Investor Event – Rank Digital 30th November 2023