XLMedia Plc · OTC:XLMDF
XLMedia — Investor Day (February 2023)
42 slides from XLMedia's investor day presentation, Feb 1, 2023
Slide 1: XLMedia Capital Markets Day
XLMedia | CMD Q1 2023 XLMEDIA CAPITAL MARKETS DAY 1 February 2023
Slide 2: Speakers from the XLMedia Team
XLMedia | CMD Q1 2023 2 SPEAKERS FROM THE XLMEDIA TEAM DAVID CAROLINE KAREN KING ACKROYD TYRRELL CEO CFO CP&OO Joined July 2022 Joined March 2022 Joined Sept 2022 KEVIN DUFFEY MIKE WERNER CODY DARWICK ROMAN ISRAELI President, XLM North America VP, Partnerships Sr. Director, Media Partnerships VP, Ga
Slide 3: Table of Contents
XLMedia | CMD Q1 2023 3 TABLE OF CONTENTS 1 Introduction (David King, CEO) 2 EU/UK Portfolio and Initiatives (Karen Tyrrell, CP&OO) 3 NA Portfolio and Plans (Kevin Duffey, President of XLMedia North America) 4 Media Partnerships (Cody Darwick, Senior Director of Media Partnerships) 5 Revenue Diversi
Slide 4: XLMedia is a leading global digital media company
XLMedia | CMD Q1 2023 4 XLMEDIA IS A LEADING GLOBAL DIGITAL MEDIA COMPANY We create compelling content that attracts highly engaged audiences and connect them to relevant advertisers
Slide 5: Media meets betting
XLMedia | CMD Q1 2023 5 BRANDS CONTENT MEDIA MEETS SPORTS BETTING BETTING GAMING MEDIA AUDIENCES PARTNERS
Slide 6: XLMedia has been re-engineered
XLMedia | CMD Q1 2023 6 XLMEDIA HAS BEEN RE-ENGINEERED Right knowledge, assets, footprint, plans and people Complex, Thin content, Non- decentralized Casino-led no brand regulated & bespoke equity tech PAST PRESENT Regulated Lean, Brand loyalty markets – exit non-core Sports-led & engaging responsib
Slide 7: We understand the markets & environments
XLMedia | CMD H1 2022 Q1 2023 Results 7 WE UNDERSTAND PACE OF OPERATOR CPA MODEL THE MARKETS & EVOLUTION DISCRETION ENVIRONMENTS IN WHICH WE CAPITAL & RESOURCE ALLOCATION OPERATE FOOTPRINT, REACH Increasing sustainable revenue REGULATION & RETENTION will come from audience retention and revenue dive
Slide 8: Insight into US state launch preparation & patterns
XLMedia | CMD Q1 2023 8 INSIGHT INTO US STATE LAUNCH PREPARATION & PATTERNS PRE LEGISLATION STATE POST LEGISLATION PASSES LAUNCH LAUNCH ● Monitor state legislation ● Content teams ● Enjoy healthy CPA during ● State revenue runs to a progress and initial strategically plan, build initial state launch
Slide 9: XLMedia to participate in the acquisition of the bettor & in the bet
XLMedia XLMedia || Privileged CMD Q1 2023& Confidential 9 9 XLMEDIA TO PARTICIPATE IN THE ACQUISITION OF THE BETTOR & IN THE “BET” PROJECTED US ONLINE SPORTS BETTING GROSS GAMING REVENUE (US$bn) Currently, in the US, we are paid for each customer we deliver to each operator, i.e., $19.3bn 0% we parti
Slide 10: Audience interest seasonality cycles
XLMedia | CMD Q1 2023 10 US SPORTS CALENDAR BY AVERAGE HISTORIC TV VIEWERSHIP ESTIMATES PER GAME (Ms) LEAGUE # OF REGULAR SEASON GAMES AVG PER GAME AUDIENCE INTEREST SEASONALITY CYCLES NFL 272 22M NBA 1230 1.6M NCAA F 1560 2M NCAA B 3700 1M MLB 2430 2.1M NHL 1312 0.8M MLS 952 0.3M Data is indicative
Slide 11: New state launches create an initial spike in revenue
XLMedia | CMD Q1 2023 11 NEW STATE LAUNCHES CREATE AN INITIAL SPIKE IN REVENUE BEFORE RETURNING TO A NORMALISED RHYTHM New York & Louisiana Kansas Maryland Launch Launch Launch REVENUE SPORTS NEW US STATE LAUNCHES (SPORTS)* GAMING *Post state launch, revenue falls into normalised rhythm.
Slide 12: UK/EU Portfolio and Initiatives
XLMedia | CMD Q1 2023 12 UK/EU Portfolio and Initiatives
Slide 13: EU/UK sports portfolio update
XLMedia | CMD Q1 2023 13 EU/UK SPORTS PORTFOLIO UPDATE Having undergone a significant change in the last few years, experience and expertise lead REFINED XLMEDIA OPERATOR PORTFOLIO CREDENTIALS RELATIONSHIPS ● Established in markets ● Retained brand equity ● Quality content ● Replatformed ● Profitable
Slide 14: Mature markets can act as incubators for product development & innovation
XLMedia | CMD Q1 2023 17 MATURE MARKETS CAN ACT AS INCUBATORS FOR PRODUCT DEVELOPMENT & INNOVATION UNIVERSAL DATA & NEW AD FORMATS AND TECHNOLOGY MEASUREMENT CONTENT MANAGEMENT First to move websites to a cutting Providing the business Innovation & automation focus: edge dynamic platform (ArcXP) to
Slide 15: Experience in UK/EU provides learning and insights into US market
XLMedia | CMD Q1 2023 18 EXPERIENCE IN UK/EU PROVIDES DEVELOPING MATURE LEARNING AND INSIGHTS INTO ● XLM now uses the UK as an incubator for further expansion LIKELY FUTURE ● Continues to attract new bettors in mature markets US MARKET ● Partner with EU/UK operators in US market (hybrid deals) TRAJE
Slide 16: North America Portfolio and Plans
XLMedia | CMD Q1 2023 19 North America Portfolio and Plans
Slide 17: US online sports betting market
XLMedia | CMD Privileged Q1 2023 & Confidential 20 US ONLINE NH ME MN OR MA NY SPORTS MI RI WY CT IA PA NJ OH NV IL IN DE BETTING WV WV VA CO MD CA CO KS CA NC TN SC MARKET AZ AR GA TX LA XLMedia ‘Live, Legal’ market FL presence. LIVE, LEGAL HIGH PRIORITY LIVE, LEGAL DATE PENDING LIVE, LEGAL OTHER KE
Slide 18: Portfolio brands and media partners: national coverage across all 50 states
XLMedia | CMD Q1 2023 21 PORTFOLIO MEDIA NATIONAL COVERAGE ACROSS BRANDS PARTNERS ALL 50 STATES National college and Authoritative, high quality, professional sports coverage well-known publishers
Slide 19: Portfolio mix to capitalise on the market
XLMedia | CMD Q1 2023 22 PORTFOLIO MIX TO CAPITALISE ON THE MARKET OWNED & OPERATED BRANDS MEDIA PARTNERSHIP BUSINESS (BUY & BUILD) (PARTNER) O&O brands are sports media and sports betting MPB is a collective of leading sports media and sites that tap into fandoms providing news, insights, news publ
Slide 20: National college sports coverage
XLMedia | CMD Q1 2023 23 NATIONAL COLLEGE SPORTS COVERAGE Brands that cover every region to reach fans across the country 182m+ 65.5% individuals have a of teen/adult favourite college population identify team they follow as college sports regularly fans Spend 1.6x more likely to have ~$3.5bn income
Slide 21: National professional sports coverage
XLMedia | CMD Q1 2023 24 MOST POPULAR SPORTS AMONG FANS IN THE UNITED STATES AS OF APRIL 2022* NATIONAL 51% PROFESSIONAL interested in American 40% interested in basketball 39% interested in baseball SPORTS football COVERAGE MOST TRUSTED ADVERTISING CHANNELS WORLDWIDE AS OF SEPTEMBER 2021** 89% trus
Slide 22: Our brands are designed to engage audiences, build trust and drive retention
XLMedia | CMD Q1 2023 25 OUR BRANDS ARE DESIGNED TO ENGAGE AUDIENCES, BUILD TRUST AND DRIVE RETENTION AUDIENCES CONTENT MEASURE & OPTIMISE MONETISE Creative storytelling to Nurture authentic Maximise engagement & Further diversifying capture interest and engagement retention revenue streams activate
Slide 23: Continuous cycle that taps into audience engagement & drives retention
XLMedia | CMD Q1 2023 26 CONTINUOUS CYCLE THAT TAPS INTO AUDIENCE ENGAGEMENT & DRIVES RETENTION PRE-GAME GAME POST GAME BETWEEN GAME REPEAT BETWEEN GAME PRE-GAME Layer coverage with off-field Lead-up to build excitement content to add deeper Retention means and anticipation for upcoming engagement se
Slide 24: Media Partnerships
XLMedia | CMD Q1 2023 27 Media Partnerships
Slide 25: Media partnership business
XLMedia | CMD Q1 2023 28 MEDIA PARTNERSHIP BUSINESS Combines our commercial sports betting content with our partners’ great sports coverage to engage their audiences. The Group is now an industry leader in partnering with media businesses.
Slide 26: Commitment to delivering impactful results for our partners
XLMedia | CMD Q1 2023 29 WHAT WE DELIVER TO MEDIA PARTNERS COMMITMENT Highly engaging Excellent client service sports betting content TO DELIVERING New revenue streams Manage commercial deals with regulated operators IMPACTFUL New content offering for RESULTS FOR Portfolio support audiences OUR PART
Slide 27: Current North America footprint
XLMedia | CMD Q1 2023 30 CURRENT NORTH AMERICA FOOTPRINT Monthly Uniques (MUs) is defined as the number of individuals (browsers) who visit a site at least once in a 30-day period. LEGAL, LIVE & LEGALISED POTENTIAL TOTAL ACROSS PENDING LAUNCH STATES FUTURE STATES 50 STATES O&O Monthly O&O Monthly O&O
Slide 28: North America Revenue Growth and Diversification
XLMedia | CMD Q1 2023 31 North America Revenue Growth and Diversification
Slide 29: Building a sustainable continuous stream of monetisable engagement
XLMedia | CMD Q1 2023 32 BUILDING A SUSTAINABLE CONTINUOUS STREAM OF MONETISABLE ENGAGEMENT Understanding our Retention from Diverse advertisers audiences with high-value, engaged provide multiple first-party data audiences attracts high revenue streams drives retention quality advertisers
Slide 30: Diversification for sustainable revenue
XLMedia | CMD Q1 2023 33 DIVERSIFICATION FOR SUSTAINABLE REVENUE MARKET OPPORTUNITY CPA-led revenue Develop hybrid and rev share, provide new offerings (daily sports fantasy), new ad products (contextual ads) Limited number of operators in Partner with more operators & sports-adjacent advertisers th
Slide 31: Revenue streams to balance North America sports seasonality
XLMedia | CMD Q1 2023 34 REVENUE STREAMS TO BALANCE NORTH AMERICA SPORTS SEASONALITY New US New Brands States Legalise New US New Markets Media Partners New Verticals Expand EU (Fantasy Casino Sports) New US Expand Display Casino Legal Ads States Expand EU Sports
Slide 32: Gaming Portfolio Approach
XLMedia | CMD Q1 2023 35 Gaming Portfolio Approach
Slide 33: Gaming: reducing risk and building sustainable revenue
XLMedia | CMD Q1 2023 41 QUALITY GAMING: CONTENT REDUCING RISK AND DATA HIGH MARGIN, ENGAGING INSIGHT GROW TAIL UX/UI BUILDING REVENUE SUSTAINABLE REVENUE REDUCE RISK
Slide 34: Our management method is already yielding growth and recovery
XLMedia | CMD Q1 2023 42 COMBINED OUR MANAGEMENT METHOD IS ALREADY YIELDING NEW GROWTH AND RECOVERY Sessions Per Month Google Analytics 1 April 2022 - 31 December 2022 Sessions Per Month
Slide 35: Gaming portfolio update
XLMedia | CMD Q1 2023 43 GAMING PORTFOLIO UPDATE REFINED PORTFOLIO FOCUS ON PERFORMANCE ● Nettikasinot.com saw YoY growth of 20% in sessions and 12% in clickouts ● Casino.se had YoY increase of 141% in traffic since April 2022 compared to the same period in 2021 ● Offset sports cycles (less seasonal)
Slide 36: Financial Approach & Capital Allocation
XLMedia | CMD Q1 2023 44 Financial Approach & Capital Allocation
Slide 37: Business revenue mix
XLMedia | CMD Privileged Q1 2023 & Confidential 45 BUSINESS REVENUE MIX Sports and Gaming identified as core. Other identified as non-core. Sports 73% Gaming 21% North America Sports 83% Other 6% EU Sports 17% SPORTS GAMING OTHER
Slide 38: Target core business gross margin
XLMedia | CMD Privileged Q1 2023 & Confidential 46 TARGET CORE BUSINESS GROSS MARGIN EU SPORTS NA SPORTS GAMING ~60% ~40-50% ~70% O&O MPB MARGIN MARGIN ~60-70% ~40-50% Revenue Share CPA-led Revenue Share
Slide 39: Financial approach
XLMedia | CMD Q1 2023 47 FINANCIAL APPROACH Overall purpose is to deliver value to shareholders. Critical to all our plans is the financial health of the business. We are prudent with cash management. FOCUS ENSURE THE GROUP HAS WORKING CAPITAL SUFFICIENT TO SUPPORT ● Simplify business, exit non-core
Slide 40: Summary
XLMedia | CMD Q1 2023 48 Summary
Slide 41: Clarity + innovation = growth
XLMedia | CMD Q1 2023 49 CLARITY + INNOVATION = GROWTH Clarity to allow us to focus on innovation, innovation to promote growth, growth to drive shareholder value. Quality content and Brands, engagement, North America market best practice trust and retention and Media Partnerships Diversify revenue
Slide 42: Q&A
XLMedia | CMD Q1 2023 50 Q&A