Betr Entertainment Limited · ASX:BBT
Betr Entertainment — BlueBet Holdings — H1 FY2023 Earnings Presentation
26 slides from Betr Entertainment's earnings presentation, Feb 28, 2023
Slide 1: H1 FY23 Results & Investor Presentation ASX Announcement
For personal use only ASX Announcement (ASX:BBT) 28 February 2023 H1 FY23 Results & Investor Presentation BlueBet Holdings Limited (ASX:BBT) (BlueBet or the Company) is pleased to provide the attached H1 FY23 Results and Investor presentation. AUTHORISATION This announcement has been authorised for
Slide 2: H1 FY23 Results & Investor Presentation
For personal use only H1 FY23 RESULTS & INVESTOR PRESENTATION February 2023 1 H1 FY2023 RESULTS & INVESTOR PRESENTATION
Slide 3: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER For personal use only Acceptance Although BlueBet believes these non-IFRS financial measures provide useful information to investors in measuring the This presentation has been prepared by BlueBet Holdings Ltd (ACN 647 124 641) (BlueBet). By accepting, accessing or fina
Slide 4: Delivering on Our Commitments
DELIVERING ON OUR COMMITMENTS For personal use only Delivering our strategy, with ongoing product Deploying Deploying IT investment to A strong Marketing and Platform US Market power the next Business Funds Funds Entry phase of revenue and earnings growth Grew Annual Turnover by Launched new adv
Slide 5: H1 FY23 Highlights
H1 FY23 HIGHLIGHTS For personal use only Continuing to gain Active Customers¹ up 33.8% to 60,328 and continuing to gain market share in Australia share in Australia, despite increased competition invest in Product and make progress Turnover up 6.1% to $280.5m driven by strong growth in Sports and mo
Slide 6: H1 FY23 Key Metrics Dashboard - Group
H1 FY23 KEY METRICS DASHBOARD - GROUP¹ For personal use only Market share gains driving strong 6.0 million 60,328 growth in Active Bet Count Active Customers2 Customers, Bet (+11.1%) (+33.8%) Count and Turnover $280.5 million 9.7% Turnover Net Win margin (+6.1%) (-1.1pp) $36.2 million $447 12 Month
Slide 7: Australian Trading Business
For personal use only AUSTRALIAN TRADING BUSINESS 6 6 H1 FY2023 RESULTS & INVESTOR PRESENTATION
Slide 8: Australia H1 FY23 Key Metrics
AUSTRALIA H1 FY23 KEY METRICS For personal use only H1 FY22 H1 FY23 PCP • Net Win decreased by 4.9% to $27.2m, Market share gains 59,632 driven by: drive strong ACTIVE 45,087 +32.3% Australia CUSTOMERS¹ • Turnover increased by 5.6% to performance H1 FY22 H1 FY23 $279.3m, after a 54% increase in $279
Slide 9: Active Customers and Bet Count - Australia
ACTIVE CUSTOMERS¹ AND BET COUNT² - AUSTRALIA For personal use only +27.6% on PCP Record monthly +32.3% on PCP 11.2 11.0 Actives achieved 10.6 59,632 in September and 9.7 again in October 54,920 53,328 8.8 49,556 Active Customers 45,087 7.7 up 32.3% to 59,632 as BlueBet 39,195 6.5 continues to gain 6
Slide 10: H1 Turnover by Product - Australia
H1 TURNOVER BY PRODUCT - AUSTRALIA For personal use only Turnover up 5.6% to $279.3m, with strong growth in Sport $279.3m FY23H1 Turnover Thoroughbred Greyhound Harness Sport $143.5m $70.1m $24.5m $41.2m (FY23 H1) 51% 25% 9% 15% +4.8% -3.6% +0.5% +34.7% $264.5m FY22H1 Turnover $136.9m $72.7m $24.3m
Slide 11: Mobile First Focus - Australia
MOBILE FIRST FOCUS - AUSTRALIA For personal use only Mobile Turnover up Turnover ($ million) by channel Net Win Margin % by channel (H1 FY22 – H1 FY23) (H1 FY22 – H1 FY23) to 68% of total, with Mobile margin +6.5% remaining 157.9 strongest at 10.8% 148.1 11.7% 11.9% 11.2% 10.7% 9.1% +1.9% 7.6% 83.5
Slide 12: Paid Media Performance - Australia
PAID MEDIA PERFORMANCE - AUSTRALIA EFFICIENT CUSTOMER ACQUISITION For personal use only Improved marketing Strong year-on-year improvement Carrying strong momentum into H2 efficiencies across 4,450 4,500 $400 all channels with 4,500 $300 Paid Media FTDs up $255 4,000 $350 4,000 66%, and CPA $250 dec
Slide 13: Australian Brand Marketing Strategy
AUSTRALIAN BRAND MARKETING STRATEGY For personal use only “BLUEBET KIND OF GUY” CAMPAIGN H1 spend up 54%, ABOVE THE LINE driving record • ‘BlueBet Kind of Guy’ omni-channel brand Actives despite campaign ran across a variety of formats, increased including Seven Network NFL broadcast competition • F
Slide 14: H2 Marketing Priorities
H2 MARKETING PRIORITIES • Sophisticated customer segmentation using customer data to drive For personal use only more efficient media targeting, improved promotional effectiveness and Focused on strategic better conversion brand initiatives to • BlueBet brand strategy project using customer research
Slide 15: US Market Entry
For personal use only US MARKET ENTRY 14 14 H1 FY2023 RESULTS & INVESTOR PRESENTATION
Slide 16: Current State of Play in US
CURRENT STATE OF PLAY IN US For personal use only Legal online sports Now 19 states with Legal sports betting in the US better expected to full mobile betting be available in >40 states by end 20231 5 states with limited and to 96% of US population by 20252 mobile betting 9 states with in- person re
Slide 17: US Market Entry Update
US MARKET ENTRY UPDATE For personal use only ClutchBet up and • Team fully established to deliver Phase running in Iowa and 1 of US strategy targeting mid-March go-live in Colorado • ClutchBet soft launched in Iowa with an initial focus on product enhancement • Further functionality including HyperL
Slide 18: Iowa Highlights
IOWA HIGHLIGHTS For personal use only Successful soft • ClutchBet ranked #10 by Revenue launch on and #13 by Handle among 19 30 August 2022 active operators in Iowa in Q2 • Continued investment in product with additional deposit methods and new product functionality: • Clutch Clash Player Matchups •
Slide 19: Financials
For personal use only FINANCIALS 18 18 H1 FY2023 RESULTS & INVESTOR PRESENTATION
Slide 20: Group Results – Income Statement
GROUP RESULTS – INCOME STATEMENT For personal use only H1 FY23 H1 FY22 Turnover up 6.1% $000'S Turnover (gross of GST) 280,512 264,485 driven by growth in Payouts (gross of GST) (244,287) (228,022) Active Customers, Gross Revenue 36,225 36,463 despite cycling a Promotions given (gross of GST) (9,088
Slide 21: EBITDA Reconciliation
EBITDA RECONCILIATION For personal use only Strong Australian EBITDA H1 FY22 (151) • Gross profit decreased 10.7%, with performance a 1.1pp decline in net win margin supports investment in Key H1 FY23 movements offsetting turnover growth of 6.2% marketing, Gross Profit (1,565) technology and AU Empl
Slide 22: Balance Sheet
BALANCE SHEET $000'S 31 DEC 2022 30 JUN 2022 For personal use only Assets Current assets Well positioned to Cash and cash equivalents Trade and other receivables 32,159 474 47,268 632 continue to scale Income Tax refund due 1,055 1,013 Other assets 1,320 787 in Australia and Total current assets 35,
Slide 23: Summary of Cash Flows
SUMMARY OF CASH FLOWS For personal use only Net Cash used in $000'S 31 DEC 2022 31 DEC 2021 operating activities in Cash flows from operating activities H1 was ($8.6m) after Receipts from customers (Client deposits) 74,602 65,406 investing ($3.7m) in Payments to customers (Client withdrawals) (47,59
Slide 24: FY23 H2 Priorities
For personal use only FY23 H2 PRIORITIES 23 23 H1 FY2023 RESULTS & INVESTOR PRESENTATION
Slide 25: H2 Priorities
H2 PRIORITIES For personal use only Well funded and positioned for Colorado go-live and licencing Return Australian business to continued growth progress for Louisiana and positive Operating Cash Flow Indiana Continue to invest in product, with Continue to enhance US product BlueBet Global Platform
Slide 26: For personal use only
For personal use only 25 H1 FY2023 RESULTS & INVESTOR PRESENTATION