Fdj United · EURONEXT:FDJU
Fdj United — Kindred Group — Q1 2019 Earnings Presentation
13 slides from Fdj United's earnings presentation, Apr 24, 2019
Slide 1: Q1 2019 Outline
Henrik Tjärnström CEO Q1 2019 24 April 2019 1 • Highlights • Financial results Outline • Business overview • Summary © Kindred Group plc 2019 2
Slide 2: Sweden update
© Kindred Group plc 2019 3 SWEDEN • Live from 1st January 2019 with our local licence • Strong growth in new depositing and active customers • Launched a well-received responsible gaming campaign together with Henrik Lundqvist + 30/30 foundation UPDATE • Short term margin pressure due to betting dut
Slide 3: Q1 2019 Key Report Highlights
Q1 2019 Key Report Highlights Gross GWR from Earnings Active winnings EBITDA per share mobile customers revenue GBP 224.4m GBP 173.8m GBP 30.6m GBP 0.067 1,631,636 (+8%) (+17%) (-35%) (-49%) (+18%) © Kindred Group plc 2019 5 Financial results © Kindred Group plc 2019 6
Slide 4: Gross winnings revenue
Q1 2019 All-time high in active customers but, as expected, profits for the quarter significantly impacted by the new local licence in Sweden.” © Kindred Group plc 2019 7 Gross winnings revenue GBPm 907.6 751.4 250.1 238.0 544.1 230.7 152.8 354.1 193.6 Q4 312.0 268.0 111.4 142.3 219.0 226.7 78.0 Q3
Slide 5: Geographic growth and mobile gross winnings revenue
Geographic growth – Key Report Highlights Q1 2019 vs Q1 2018 GWR as reported Organic GWR in in GBP constant currency Nordics -16% -14% Western Europe +21% +23% © Kindred Group plc 2019 9 Gross winnings revenue from mobile GBPm X%% ++17 200 180 160 140 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 6: Q1 2019 P&L FX impact and EBITDA
Q1 2019 P&L FX impact v Q1 2018 Avg rate Q1 2018 Q1 2019 Movement SEK 11.292 11.939 -5.7% NOK 10.911 11.167 -2.3% Weighted average movement EUR 1.132 5.4 1.146 -1.2% in FX rates: approx. -2% DKK 8.431 8.553 -1.4% AUD 1.770 1.828 -3.3% GBPm Gross winnings revenue -3.8 Cost of sales / Opex 3.5 FX gain
Slide 7: A scalable business model absorbing betting duties
A scalable business model… 30% Underlying EBITDA margin % (trailing 12m) 25% 20% 15% 10% Betting duties % of GWR (trailing 12m) 5% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 2016 2017 2018 2019 © Kindred Group plc 2019 13 …showing our ability to abso
Slide 8: Other Costs analysis and IFRS 16
Other Costs analysis Excl. Non-recurring items Excl. IFRS16 Reported 2015 2016 2017 2018 2019 2019 GBPm FY FY FY FY Q1 Q1 Reported Other Costs 43.1 69.4 109.1 122.4 25.1 25.0 Depreciation & Amortisation -13.0 -23.8 -42.6 -46.8 -10.4 -12.2 FX loss/gain on Opex -0.7 -0.6 -1.5 -1.2 3.2 3.2 Other Costs
Slide 9: EPS development; Business overview
EPS development – Excl 2014 one-off items GBP 0.60 0.580 0.55 0.516 0.50 0.173 0.45 0.40 0.366 0.223 0.35 0.163 0.30 0.129 0.25 0.244 Q4 0.131 0.20 0.084 0.091 0.112 Q3 0.15 0.057 0.059 0.090 0.10 Q2 0.059 0.131 0.05 0.087 0.072 0.044 0.067 Q1 0.00 2012 2013 2014 2015 2016 2017 2018 2019 © Kindred G
Slide 10: Active customers and sports betting gross margin
Active customers Thousands ATH ATH 1,600 1,400 1,200 1,000 800 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 2016 2017 2018 2019 © Kindred Group plc 2019 19 Sports betting gross margin Combined Before free be
Slide 11: Product & geographic balance; US update
Product & geographic balance Gross winnings revenue over time By product, % By geography, % Other 4 3 3 2 2 3 2 2 2 Other 2 2 2 3 2 3 2 2 2 Casino & 45 48 46 48 Western 46 50 47 50 52 Games 51 51 51 Europe 55 55 56 56 59 62 2 2 Poker 2 2 2 2 2 2 3 CES 7 7 21 6 22 22 7 7 7 8 Live betting 20 23 26 23
Slide 12: Summary Q1 2019
Summary Q1 2019 SB margin GWR after FB EBITDA +8 % 7.9% -35% Active GWR from locally- EPS customers regulated markets -49 % +18 % 57% © Kindred Group plc 2019 23 © Kindred Group plc 2019 24
Slide 13: Contact and calendar
Contact Calendar 24 July 2019 Investor Relations Q2 will be published at 7.30 CEST Inga Lundberg 25 October 2019 +44 788 799 6116 Q3 will be published at 7.30 CEST ir@kindredgroup.com 12 February 2020 Q4 will be published at 7.30 CEST © Kindred Group plc 2019 25 © Kindred Group plc 2019 26