Entain PLC · LSE:ENT
Entain — GVC Holdings — Investor Day (May 2017)
110 slides from Entain's investor day presentation, May 25, 2017
Slide 1: Capital Markets Day
Click to edit Capital Markets Day Kenneth Alexander CEO 25 May 2017
Slide 2: Disclaimer
Disclaimer Click to edit NOT FOR PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT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”). This presentation
Slide 3: Schedule
Schedule Click to edit Technology and operations Brands 14:05 – 14:25 Shay Segev (COO) 15:45 – 16:05 Adam Lewis (Group Head of Sports Brands) Overview of Technology and Operations Sports Brand Strategy 14:25 – 14:35 Sandeep Tiku (CTO) 16:05 - 16:15 Jon Salmon (Group Head of Casino Brands) Scale & Po
Slide 4: Introduction
Introduction Click to edit The purpose of today GVC 10y share price 800 • GVC Gaming To give greater Brands insight into Group’s operations 700 600 • Demonstrate the scale of our technology and why 500 we feel it so valuable 400 300 • Provide a greater understanding of our brands 200 100 • Meet some
Slide 5: Overview – GVC today
Click to edit Overview – GVC today • €4.6bn sports wagering • €0.9bn NGR Financial* • €206m Clean EBITDA • 17 territories with over 2% NGR • 2,800 FTEs Corporate • 15 offices across four continents • 19 licences • Highly scalable and robust platform • Proprietary sportsbook, casino and poker Technol
Slide 6: KPIs and current trading
Clickand KPI’s to edit current trading Q1- CC Highlights Per day in €000's Q1-2017 20161 Change Change 90 days 91 days • Q1 17 Group daily NGR +13% (14%) vs pro Sports brands forma Q1 16 Sports wagers 12,908 12,866 0% 3% • Sports Brands daily sports NGR +12% Sports margin 9.6% 8.5% • Sports Gaming/o
Slide 7: Key messages
Key Clickmessages to edit Technology – a unique and powerful platform with substantial upside from further optimisation Brands – highly valuable portfolio of global gaming brands being reinvigorated Talent – one of the most experienced and successful teams in the industry 7
Slide 8: Technology & Operations
Click to edit Technology & Operations Shay Segev COO GVC Capital Markets Day 25 May 2017
Slide 9: Introduction
Introduction Click to edit Key experience Over 15 years in online gaming sector GVC Gaming Brands including: • Playtech (COO) • Videobet (CEO) • Gala Coral (Chief Strategy Officer) Agenda Shay Segev • Management structure COO • Our technology platform and product set • How we manage integration • Wh
Slide 10: Management Structure
Management Click to edit Structure COO Shay Segev CUSTOMER TECHNOLOGY PRODUCT TRADING ENGAGEMENT Group Chief Group VP Chief Technology Product Head Trading Customer Officer Officer & Ops Engagement Sandeep Tiku Liron Snir Jim Humberstone Roni Maman Industry leading talent assembled to run efficient
Slide 11: Powerful Technology & Product Set
Powerful Technology & Product Set Click to edit DIGITAL TOUCHPOINT FRAMEWORK CONTENT MANAGEMENT SYSTEM GAMING PRODUCTS Sports Casino Poker PLAYER LIFECYCLE MANAGEMENT PLATFORM Common CRM Responsible Business Account & Acquisition Gaming Intelligence 11 95% of revenue derived and processed through pr
Slide 12: Businesses Integrating
Click to editBusinesses Integrating bwin.party in 2016 × Declining revenue for a number of years × Significant technical debt Sportingbet in 2013 × Complicated organisation × Product development gaps × Under-utilised Sportingbet web domains × Low cross-sell between sports and gaming × Poor financial
Slide 13: Integration Approach
Integration Click to editApproach Set clear • Establish overall financial guidance 1 integration • Set targets by business areas (e.g. Marketing, Operations) targets • Derive required capabilities and necessary requirements for technology • Define comprehensive programme structure Establish solid 2
Slide 14: Execution
Execution Click to edit bwin.party Integration Financial Guidance • €125m synergies • Double-digit growth across the business Operations Product Marketing CS People • Restructure label • Close product • Reshape • Implement a hub • Retain key people operations gaps approach for structure for marketin
Slide 15: The Results
The ClickResults to edit Results after one year* IT Costs • 12%# NGR growth to €894.6m Growth • Sports wagers per day +7%# • party brands first growth in 6 years -44% 2015 2016 2017 • Clean EBITDA increased by 26% to €205.7m Efficiency • €125 annualised synergies on track • CAPEX reduced by c€20-25m
Slide 16: Migration Update
GVC ClickMigration to edit Update Migration Approach & Progress • Challenge of migrating core platform for growing business • Technology integration completed • Risk-based approach used to sequence market migration (start with small markets, learn & improve) • Migrations to date very successful (CEE
Slide 17: More to Come
More to Click Toedit Come DIGITAL TOUCHPOINT FRAMEWORK Strong focus on further growth initiatives over the next 12 months CONTENT MANAGEMENT SYSTEM • Complete technical migration to a single platform GAMING PRODUCTS • Deliver product enhancements, new betting opportunities and more games Sports Casi
Slide 18: Key messages
Key Clickmessages to edit 1 Fully integrated technology platform with substantial scale and flexibility 2 Proven track record of technology integration 3 Platform supports significant future growth with limited incremental cost 18
Slide 19: Technology
Click to edit Technology Sandeep Tiku CTO GVC Capital Markets Day 25 May 2017
Slide 20: Introduction
Click to edit Introduction Key Experiences GVC Gamin Gaming Brands Over 18 years of deep technical expertise delivering digital solutions including: • Valtech Software Services (Practice Head - Digital Solutions) • bwin.party (IT Director) Agenda • Power of the platform / technology of GVC Sandeep T
Slide 21: GVC Technology – Overview
GVC ClickTechnology to edit – Overview POWERFUL PROPRIETARY HIGHLY MARKET-UNIQUE PLATFORM COMPLETE AVAILABLE PRODUCT SET GVC MASSIVELY OMNI SCALABLE CHANNEL EASILY CAPABLE MULTI FULLY EXTENDABLE 1000+ IT STAFF BRAND & B2B REGULATED Proprietary technology and strong product portfolio 21 yields a sign
Slide 22: GVC Technology – Daily Volumes
GVC ClickTechnology to edit – Daily Volumes 4.5 DAILY VOLUMES 1.32 BILLION BILLION API Calls Platform Events 6.2 15.1 BILLION MILLION SQL Execution GVC Page Views 11.2 46% 71% 64% 11.5 BILLION MILLION YTD YTD YTD Cache Events Affiliates Impression Sports Bet Slips Casino Spins Poker Hands Billions o
Slide 23: GVC Technology – Continuous Enhancements
GVC Technology Click to edit – Continuous Enhancements 9,823 9,823 Enhancements deployed in 2016 Enhancements 26% : Infra 74% : Software Changes 100+: NFR Projects + 43% vs 2014 deployed in 2016 4,478 28% : Infra Enhancements deployed in Q1 2017 72% : Software Changes 35+: NFR Projects YTD + 62% vs
Slide 24: GVC Technology – Availability & Quality
GVC ClickTechnology to edit – Availability & Quality • ~2.1 Hours YTD downtime taken to Availability 2016 2015 2017 date • Improvement equivalent to an Planned availability 99.95% 99.86% 99.69% additional day of trading per annum • Significant improvement in overall customer Incidents 2016 2015 expe
Slide 25: GVC Technology – Under the hood
GVC ClickTechnology to edit – Under the hood Platform upgraded to Next 165 Executed and more to come 50% Gen Infrastructure NFR Avg. 75% improvement in system performance UP Avg. 50% performance improvement in response time (in 24 months) 10X Fast Forward Games 37 Disaster Recovery switch in Faster
Slide 26: GVC Technology – Extensibility
GVC ClickTechnology to edit – Extensibility Previously Now 20 to 24 2 to 3 • 780% reduction in time To Integrate a new to integrate new games Game Provider Weeks Weeks provider To setup a new 8 to 9 1 to 2 • 467% improvement in Label (Business) time to set-up new white Weeks Weeks label To adapt to
Slide 27: GVC Technology – Security
GVC ClickTechnology to edit – Security Security Attacks 10 Daily MAJOR DDOS BRUTE FORCE ATTACKS ATTACKS Average 15% of daily traffic Peak 220 Gbits | since 2016 SAFE 3 3.0 0 0 0 Services Impact Services Impact Nov 1st, Attack * Red lines indicate brute force attack 27 Proven proprietary security pla
Slide 28: GVC Technology – Cost optimised
GVC ClickTechnology to edit – Cost optimised Comparison 2016 2017 Comparison 2017 vs 2015 vs 2014 vs 2015 vs 2016 Datacenter -16% -36% -45% Hosting/Housing Internet Upstream/ -18% -12% -28% Cost Bandwidth OPEX Availability Volume Delivery Maintenance -30% -15% -48% Speed 2015 2016 2017 License Renew
Slide 29: Key takeaways
Key Clicktakeaways to edit 1 Powerful and Robust – inherent ability P to scale on demand and provide reliable uptime 2 Extensible – flexible to integrate and ready for future growth (organic/inorganic) 3 Safe and Secure – resilient against malicious attacks and data theft 29
Slide 30: Product
30 Click to edit Product Liron Snir Chief Product Officer GVC Capital Markets Day 25 May 2017
Slide 31: Introduction
Introduction Click to edit Key experience GVC Gamin Gaming Over Brands 17 years in online gaming sector including: • Playtech (VP Product & Strategy) • Playtech (VP Customer Relations) • 888 Holdings (Business Intelligence Lead) Areas of responsibility • Sports product Liron Snir • Gaming product Ch
Slide 32: Sports
Sports Click to edit What we found What we did × Minimal gaming opportunities on mobile Low Cross-sell navigation re-worked & new offering added Cross-sell × Navigation lagging behind industry on both mobile and desktop standards Sub-optimal × Betting opportunities not well positioned Introduced
Slide 33: Sports UX Enhancements
Sports Click to edit UX Enhancements 300% More Betting Opportunities Old Desktop UX Updated Desktop UX • Cleaner UI, easier to read and preferred structure based on qualitative research • Huge increase of betting opportunities in a single view • Unparalleled flexibility for both customers & operat
Slide 34: Sports Tennis Visualisations & Statistics
Sports Click to edit Tennis Visualisations & Statistics 20% Increased Time on Device • Rounds off the product aesthetically and translates the feeling of live action • More match statistics available to the user in order to trigger further engagement with the product • Low mobile data usage allows
Slide 35: Sports: what we achieved, what's to come
Sports Click to edit What we achieved What’s to come Number of Bets +8% YoY • Merged pre-match & in-play Q1 2016 vs Q1 2017 offer Gap • Horse racing and Virtual Closures Sports • Enhanced Cash Out experience Q1 Q2 Q3 Q4 Q1 2016 2017 Sports In-Play Margin % +1.4% YoY • Extended live offer with more 1
Slide 36: Gaming
Gaming Click to edit What we found What we did Weak × Limited 3rd party content & in-house Over 20 new providers added & in-house titles Content not available on mobile relaunched on HTML5 across all channels Offering × No High Roller offering Below × Overall offer outdated New renovated bwin st
Slide 37: Gaming Expanded Offer
Gaming Click to edit Expanded Offer 600+ New Titles added New Gaming Providers added including: - Merkur, Yggdrasil, Blueprint, iSoftBet & Play n Go New categories of instant win games added to supplement slots & table: - Gamevy & IWG Now over 1,350 games available (20% in-house, 80% via 3rd
Slide 38: Gaming Live Casino
Gaming Click to edit • Complete studio revamp • Multi-brand support • Tailored VIP offer 38 New live casino 11 tables added
Slide 39: Gaming UX Enhancements
Gaming Click to edit UX Enhancements 20%+ More Time on Device New Mobile Casino Lobby Upgraded Live Casino on Desktop • Proper Categorisation • Consistent single navigation • Better content discovery (like • Clear icons Netflix) • Promoted content/games • Clear icons Significant enhancements acros
Slide 40: Gaming: what we achieved, what's to come
Gaming Click to edit What we achieved What’s to come Games - Average Revenue per User +23% YoY Q1 2016 vs Q1 2017 • More content focused on reg. markets Content push • More exclusive & In-House Content with 30+ new titles per year Q1 Q2 Q3 Q4 Q1 2016 2017 Live Dealer - Revenue Evolution +56% YoY • N
Slide 41: Portal and marketing tools
Portal Click toand editmarketing tools What we found What we did × Conversion rates below market Onboarding journey rebuilt for registration & Poor standards KYC User Journey Performance × Low approval rate for transactions, New Cashier has been re-launched with better especially in regulated ma
Slide 42: Portal and marketing tools results
Portal Click toand editmarketing tools What we achieved What’s to come Mobile Conversion UAPs +24% YoY Q1 2016 vs Q1 2017 • Real-time Messaging and Pro-Active Chat Advanced Retention • Real-time Churn Detection Capabilities system • New deposit routing engine Customer Lifetime Value CLV 3m +16%, CLV
Slide 43: Key messages
Key Clickmessages to edit 1 Large gaps in product offer identified with quality in certain areas below standard 2 Games offer now highly competitive with gaps in sports soon to be closed 3 Key focus going forward is on innovation across core product line to become market leader 43
Slide 44: Business Operations
44 Click to edit Business Operations Roni Maman VP Business Operations GVC Capital Markets Day 25 May 2017
Slide 45: Introduction
Introduction Click to edit Key experience GVC Gamin Gaming Brands • Over 13 years in online gaming sector • Previously SVP Business operations at 888 Holdings • Responsibilities included development of Risk, CS, Marketing operations, Bingo CH, Telemarketing Responsible for Roni Maman • Customer serv
Slide 46: Optimising the customer experience
Optimising Click to editthe customer experience Empower the frontline Design the Use metrics experience that matter Understand your Engage the customer back office Ensure Put customer- Drive visible continuous centricity at the customer- improvement focused core of your through leadership business f
Slide 47: What we found
What weedit Click to found Customer Service Risk Management × Process orientated vs. results orientated × Risk rules were out of date × Structure is not scalable nor efficient × Lack of optimisation of AR × Lack of KPI’s × Lack of optimisation of Cash out × Systems and tools required updating × Lack
Slide 48: Immediate measures
Immediate Click to editmeasures Actions Impact Regional structure Scalability /flexibility + .FR, .IT better SLA Customer Chat and proactive + Align with events Service 2nd level responses + Started responding to Costumers 5 or more contacts per week + Recovery process Cash out cycle + Ali
Slide 49: What's to come
What’s Click toto come edit • Aim to cut or simplify 25% of processes Improved customer experience • Introduce new tools for risk management • Continue to improve against KPIs: (FTR/QA/SLA/Productivity) • Work more closely with CRM to improve customer journeys Improved player retention • Introduce s
Slide 50: Key messages
Key Clickmessages to edit 1 Introduced customer centric approach and focus on improving lifetime value 2 Shifted the culture and mind-set 3 Simplified processes and introduced the tools to support this approach 50
Slide 51: Trading Review
Click to edit Trading Review Jim Humberstone Group Head of Trading GVC Capital Markets Day 25 May 2017
Slide 52: Introduction
Click to edit Introduction Key experience GVC Gamin Gaming Brands • Over 15 years in online gaming sector with Sportingbet and GVC (since 2010) • COO (2014-2016), Group Trading and Operations Director (2012-2014), Head of Sportsbook (2010- 2012) Agenda Jim Humberstone • Composition of sportsbook Gro
Slide 53: Composition of GVC Sportsbook
Click and Scale to edit Composition of GVC Sportsbook • Combined sportsbook wagers €4.6bn pro Sports 2014 2015 2016 2017 (to forma in 2016 21 May) Turnover €4.2bn €4.4bn €4.6bn €1.88bn • Gross win margin 9.6% vs 8.5% (2015) GGR €373m €372m €437m €183m GGR% 8.9% 8.5% 9.6% 9.7% Total GGR GGR by Sport
Slide 54: Trading Review – bwin Turnaround
Click toReview Trading edit – bwin Turnaround What we found What we have done Only three sports used quality live New deals with all the major live data data suppliers Live Sports Data All other live sports data inputted Commitment to use highest manually utilising low quality quality live d
Slide 55: Trading Review – bwin Gross Margin %
Click toReview Trading edit – bwin Gross Margin % 2014 2015 2016 2017 (to 21 May) Football 10.1% 9.9% 12.2% 10.4% • Margin improvement across all sports in 2016 post acquisition Tennis 5.8% 5.1% 7.3% 7.6% • Margin improvement without increase in Basketball 4.9% 4.8% 5.8% 5.8% overround Other Sports
Slide 56: Trading Review – League Exposure (2016)
Click toReview Trading edit – League Exposure (2016) Football Tennis Ranking League/Event Ranking League/Event 1 Euro 2016 1 Tennis Majors 2= German Bundesliga 2 ATP 2= Spanish La Liga 3 WTA 4 Champions League 4 ITF 5 Europa League 5 ATP Challenger 6 English Premier League 7 Italian Serie A 8 Club F
Slide 57: Trading Review – Gross Margin % Comparison
Click toReview Trading edit – Gross Margin % Comparison GVC acquires bwin.party 11% • Marked improvement in bwin sports margin since acquisition Q1 2016 10% • Comparison with continental 9% European sportsbooks 8% 7% 6% 5% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Unibe
Slide 58: Trading Review – Live Event Uplift
Click toReview Trading edit – Live Event Uplift bwin Live GGR vs. # of live events GGR Live Events Live Events Projected 50,000 • Increased number of 45,000 live events driving GGR 40,000 • Continued expansion in 35,000 live events 30,000 Live Events 25,000 • Strong correlation between GGR and 20,00
Slide 59: Trading Review – bwin Tennis Case Study
Click to–edit Trading bwin Tennis Case Study 4,000,000 Integrated data 9.00% Official data usage begins 3,500,000 8.00% New Tennis model • New tennis model 7.00% 3,000,000 goes live introduced in April 2016, just two months 6.00% 2,500,000 GVC acquires after the bwin.party bwin.party acquisition 5.0
Slide 60: What's to Come
Click to What’s toedit Come • Greater automation in Customer Profiling using machine learning techniques • Further expansion in trading content using best-in-breed data • Increased expectancy in gross margin percentage through improved modelling, real time data and healthy customer database • Richer
Slide 61: Key Messages
Key ClickMessages to edit 1 GVC trading expertise fully embedded into bwin sportsbook 2 Better risk management, better tools, better data driving improved margin 3 Future enhancements to drive volume 61 61
Slide 62: Technology & Operations Q&A
Click to edit Technology & Operations Q&A
Slide 63: Sportsbook Marketing
Sportsbook Marketing Adam Lewis Group Head of Sportsbook Brands GVC Capital Markets Day 25 May 2017 63
Slide 64: Introduction
Introduction Introduction Key experience GVC Gaming Brands • Over 17 years in the online gaming sector • Joined GVC as Sportingbet CMO in 2013 • On acquisition of bwin.party took responsibility for all Group sports brands Agenda • Marketing structure Adam Lewis • bwin challenges Group Head of Sports
Slide 65: Marketing – regional and central teams
Marketing Marketing – regional and central teams WESTERN DACH EUROPE DIGITAL MARKETING (ACQUISITION) TV & ATL MARKETING CUSTOMER RELATIONSHIP MARKETING CASINO MARKETING CUSTOMER ENGAGEMENT & OPERATIONS LATAM CEE BUSINESS INSIGHT 65 Regional approach supporting by strong central teams
Slide 66: The Challenge We Faced at bwin
The Challenge The challenge We Faced at bwin we faced Limited accountability for results Limited marketing technology/tools No vision or common objectives Limited visibility Limited player engagement Critical teams separated by Limited focus on key player segments location, culture & purpose, compou
Slide 67: Our Immediate Actions
Our Immediate Our immediate Actions actions Set clear and Implemented a Enable complete common short-term regional structure transparency of objectives and central expertise results and KPIs Began engaging and Introduced VIP Established relevant regional CRM management teams Casino cross sell 67 67
Slide 68: bwin Annual NGR
bwin Annual Bwin annual NGR revenue +16% • Returned bwin to growth almost immediately post acquisition • Improved gross win margin • Improved cross-sell • Prudent marketing spend 2013 2014 2015 2016 68 Rapid improvement from early actions
Slide 69: Acquisition Momentum Continues
Acquisition Momentum Acquisition momentum Continues continues! • Increase in • Increase in +19% new players acquired +5% revenue per unique new player • Play casino in • Marketing 32% 20.4% their first 4- spend to NGR months vs 26% ratio vs 18.3% SPLY SPLY SPLY: same period last year 69 Key Performa
Slide 70: Marketing spend mix
Marketing spend mix Acquisition momentum continues! 20% 56%Digital • Digital largest channel for marketing spend TV/ATL • TV and above the line 12% Affiliates continue to be important channels, particularly when building brand awareness Marketing and personality 5% Sponsorship spend by channel • Mor
Slide 71: Current Performance YTD
Current Performance Current performance: YTD CRM YTD vs SPLY vs SPLY Marketing campaigns per month +31% increase in player +12% increase in revenue 2015 1571 deposits per player 2017 6943 • Marketing activity significantly increased in 2017 +9% increase in -5% decrease in • Cost per acquisition incr
Slide 72: Growth in Key Player Segments
Growth in Key Growth in key playerPlayer Segments segments DIAMOND VIPS GOLD VIPS +66% +37% PLATINUM VIPS SILVER VIPS +92% +17% 72 Around 15,000 VIPs and growing
Slide 73: Sportsbook Casino
Sportsbook Casino Sportsbook Casino CASINO NGR Active • +31% Casino players • +18% Cross sell from Sports to Casino Revenue per active • +12% Casino player Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 12 7
Slide 74: 2016 Was Good, 2017 is Better
2016 Was 2016 was Good, good, 2017 is2017 better!is Better +23% NGR 2014 2015 2016 2017 74 Increasing momentum in 2017
Slide 75: Brand – Sea of Sameness
Brand – Sea Brand - Sea of Sameness of Sameness 75
Slide 76: bwin Brand Strategy
bwin Brand Bwin brand Strategy strategy HEART HEAD HAND Differentiate from Reassure rationally & show Make conversion competition and connect bwin is competitive in a quick and easy emotionally with people commoditized category & drive affinity CONSUMER OUTTAKE “bwin is different to other “bwin has
Slide 77: bwin Campaign Plan
bwin Campaign Plan 2017 2018 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun BRAND RESPONSE Brand response Brand response Brand response Chapter 1 Chapter 2 The race WC1 DIRECT RESPONSE Direct Response Direct Response Direct Response Direct Response Direct Response Direct Response The race The r
Slide 78: 2017 H2 Campaign
2017 H2 Campaign 78
Slide 79: Key Messages
Key This isMessages just the start… 1 We have a proven talented team investing in key marketing expertise with scalable structure 2 We have effective acquisition more players and more revenue per player 3 We have increased player value more revenue from existing player base 4 Our mission: To make bw
Slide 80: Casino Brands
Click to edit Casino Brands Jon Salmon Group Head of Casino Brands GVC Capital Markets Day 25 May 2017
Slide 81: Introduction
Introduction Click to edit Key experience GVC Gamin Gaming Brands Over 17 years in online gaming sector with: • InterCasino • PartyGaming • GVC (since 2009) Over 35 years marketing experience with: • Argos • Associated British Foods Jon Salmon Group Head of • Ladbrokes Casino Brands • Heinz Agenda •
Slide 82: Core Casino Brands
82 Core Click Casino to edit Brands % of Group NGR Q1 2017 • Key markets: UK, Northern Continental Europe, Canada, New Jersey and ROW 12% • Key market: Italy Casino Brands • Key markets: Northern and Central Continental Europe Key stats • In Q1 17, core casino brands generated 12% of NGR • 135 staff
Slide 83: Online Casino Market
Online Click toCasino edit Market • Global online market estimated at €10.5bn GGR in Online Casino GGR (€m)* 2016* 15,000 • Growth forecast >GDP • Dependable growth, with less volatility than 10,000 sportsbook 5,000 0 But… • Industry player churn levels high, competition huge and aggressive • Market
Slide 84: Casino Club
Casino Click toClub edit • Established 2001 targeting DACH, based in Tel Aviv • The original GVC business NGR Distribution • Top 3 pure casino brand in the region by revenue 2016-2017 2001-2003 • Niche casino positioned as a club for high rollers 15% 18% who love table games >40 year old, male. 2013
Slide 85: partycasino
partycasino partycasino Click to edit What we found What we’ve done Not operated as a pure casino but as an Decoupled from partypoker adjunct to partypoker New dedicated team No dedicated team 12 month product and service improvement Starved of development resources programme Customer
Slide 86: partycasino
partycasino Click to edit • The roadmap • Improve marketing tools to raise ARPU • Re-position the brand as a destination for affluent 25-40 year olds, >€500 deposit per month • Re-style logo and website, change tone of voice, give choice of promotions • Focus on UK and Canada • Use TV advertising in
Slide 87: Gioco Digitale
Gioco Digitale Click to edit What we found What we’ve done A neglected, under invested brand Refreshed team A lack of identity Re-position as an entertaining soft gaming Poor slots product brand Poor CRM tools Focus on casino and cross-sell from bingo and sport Integration of third-p
Slide 88: Key messages
Key Clickmessages to edit 1 Well-established portfolio of brands 2 Decline in bwin.party casino brands halted and now stabilised 3 Clear road map back to growth being implemented with early positive results 88
Slide 89: Bingo Brands
89 Click to edit Bingo Brands Adele Lawton Group Head of Bingo GVC Capital Markets Day 25 May 2017
Slide 90: Introduction
Introduction Click to edit Key experience Over 18 years in gambling industry experience in senior GVC Gaming Brands management roles, including 8 years in retail and 10 years in digital. B2B and B2C experience across start-ups and large corporates, including: • Playtech • SkyBet • Bet365 Adele Lawto
Slide 91: UK Online Bingo Market
UK Online Click Bingo Market to edit UK Bingo Market 91 UK a vibrant but highly competitive market
Slide 92: Cashcade Brands
Cashcade Brands Click to edit Premium brand for Cashcade established in 2005 and one of the leading Bingo brands in the UK. 67% of NGR Foxy Casino launched in 2015 to target new audience utilising Foxy brand equity. 12% of NGR 13 bingo white labels on Cashcade known as the Bingo Network with Cheeky
Slide 93: Cashcade Challenges
Cashcade Challenges Click to edit Business runs on Business on declining Dragonfish platform Excessive Bonuses trend due to via 888, only part of 122% average in 2016 weaknesses in bingo GVC not using own on Bingo, 50% overall ecosystem technology TV regulation changes Bingo White Label for Bingo fr
Slide 94: Cashcade Improvements
Cashcade Improvements Click to edit Fixed Bingo ecosystem Terminated TV Exploring platform by overhauling game Sponsorship of Jeremy options to improve schedules and removing Kyle show due to product offering to bonus abusers from the diminishing returns and enable growth in Bingo system negative br
Slide 95: New Foxy Campaign
New ClickFoxy Campaign to edit 95
Slide 96: Q1 Year on Year Comparison
Q1 Year Click on Year Comparison to edit -15% +210% +259% -61% 2016 2017 NGR Marketing Contribution EBITDA • NGR 15% behind last year and linked to 61% saving on marketing spend • Overall business more profitable with contribution 210% ahead of last Year and Clean EBITDA by 259% • Strategically budg
Slide 97: Key messages
Key Clickmessages to edit 1 Bingo business in decline when GVC purchased business 2 2017 – consolidation year as we fix business foundations 3 2018 – return business to top line growth 97
Slide 98: partypoker
Click to edit partypoker Tom Waters Group Head of partypoker GVC Capital Markets Day 25 May 2017
Slide 99: Introduction
Introduction Click to edit Key experience GVC Gamin Gaming Brands • Over 12 years experience in the online gaming industry • ACA qualified • 5 years experience of gaming at BDO LLP • 7 years at GVC/bwin.party across bingo, casino and poker Tom Waters Agenda Group Head of partypoker • Accelerating gr
Slide 100: Online poker market
Onlinetopoker Click edit market • Global online poker market estimated at €2.4bn GGR in 2016* Global online poker GGR (€m) • Market CAGR -1% since 2006 3,500 • Structural earthquakes 3,000 • 2006 UIGEA 2,500 • 2011 Black Friday 2,000 • Three global competitors 1,500 • Largest operator >60% market sh
Slide 101: What we found
What weedit Click to found Challenges Historical Performance Under invested business Historical NGR and Customer Player Days (CPDs) Lack of product development 100 Poor customer service levels 80 Rebased to 100 Weak ecology 60 Lack of focus 40 Disillusioned management 20 0 Q1 Q2 Q3 Q4 Q1
Slide 102: What we've done
What we’ve Click to edit done Actions Primary markets FY 2012 Daily average CPDS Changed management and new dedicated team 8% Increased investment 12% First product development in three years Localised market focus Other 65% 15% Removed withdrawal fees Created and expanded Power Series &
Slide 103: But we've only just begun…
The Clickfuture to edit But we’ve only just begun… 103
Slide 104: Product refresh
Product refresh Click to edit New loyalty scheme Refreshed lobby Table design refresh Mobile developments 104 Product redesigned with customer experience focused design
Slide 105: partypoker
partypoker Click to edit Mobile side games New mobile user screen Optimised touch ID flow New mobile filters and sort Brand reinvigorated through investment in product development, new 105 market positioning and greater focus on key markets
Slide 106: partypoker live – the story so far
partypoker Click to editlive – the story so far 106
Slide 107: Key messages
Key Clickmessages to edit 1 Reinvigorating one of the world’s most iconic online gaming brands 2 Significant turnaround already achieved 3 This is just the beginning – there is much more to come 107
Slide 108: Brands Q&A
108 Click to edit Brands Q&A
Slide 109: Key messages
Key Clickmessages to edit Technology – a unique and powerful platform with substantial upside from further optimisation Brands – highly valuable portfolio of global gaming brands being reinvigorated Talent – one of the most experienced and successful teams in the industry 109
Slide 110: Capital Markets Day Thank you
Click to edit Capital Markets Day Thank you