Pointsbet Holdings Ltd. · ASX:PBH
Pointsbet — Investor Presentation (February 2021)
33 slides from Pointsbet's investor presentation, Feb 25, 2021
Slide 1: H1 FY21 Investor Presentation & Trading Update
H1 FY21 INVESTOR PRESENTATION & TRADING UPDATE February 2021
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This document and any oral presentation accompanying it has been prepared in good faith, however, no express or implied representation or warranty is given as to the accuracy or completeness of the information in this document, in any accompanying presentation or in a
Slide 3: Agenda
AGENDA Half Year Highlights Financial Results What’s Next
Slide 4: Key Highlights
KEY HIGHLIGHTS $ H1 FY21 Highlights Secured Transformational Media Operating Highlights January 2021 Trading Update Partnership ✓ Group Net Win of A$82.8m up 177% on ✓ Transformational media partnership ✓ Active Clients(3) in the US up 222% on ✓ Group Net Win of A$22.9m from 1 PCP secured with NBCUn
Slide 5: Key H1 KPIs and YTD FY21 Trading Update
KEY H1 KPIS AND YTD FY21 TRADING UPDATE GROUP AUSTRALIA US(2) YTD FY21 YTD FY21 YTD FY21 All figures in A$ H1 FY20 H1 FY21 (24-Jan-21) H1 FY20 H1 FY21 (24-Jan-21) H1 FY20 H1 FY21 (24-Jan-21) $2,127.7m $1,189.4m $1,890.0m + 255% + 345% $938.3m TURNOVER $1,071.0m + 207% $819.1m $533.1m $349.2m $183.9m
Slide 6: Active Clients
ACTIVE CLIENTS(1) Clients who have bet in the last twelve months Active Clients Australia Active Clients US +77% on PCP 142,992 +222% on PCP 68,094 124,715 90,422 81,014 83,330 39,816 68,464 72,011 56,788 21,141 22,716 20,939 15,380 11,544 8,243 12 months to 31 Mar 19 30 Jun 19 30 Sep 19 31 Dec 19 3
Slide 7: Australia – Continued Momentum
AUSTRALIA – CONTINUED MOMENTUM POINTSBET AUSTRALIA – TURNOVER (AUD) POINTSBET AUSTRALIA – PCP PERFORMANCE (AUD) Key metrics 1H FY20 1H FY21 Change FY21 YTD(1) +207% Turnover $349.2m $1,071.0m 207% $1,189.4m $1,071.0m Gross Win $38.1m $136.1m 257% $150.4m Gross Win Margin 10.9% 12.7% +1.8pp 12.6% Net
Slide 8: PointsBet US – Strong FY21 YTD Performance
POINTSBET US – STRONG FY21 YTD PERFORMANCE POINTSBET US – TURNOVER (AUD)(1) POINTSBET US – PCP PERFORMANCE (AUD)(1) Key metrics 1H FY20 1H FY21 Change FY21 YTD(2) +345% $819.1m Turnover $183.9m $819.1m 345% $938.3m Gross Win $9.2m $17.7m 92% $35.7m Gross Win Margin 5.0% 2.2% (2.9pp) 3.8% $183.9m Net
Slide 9: Revenue by US State
REVENUE BY US STATE PointsBet US – State-by-state H1 FY21 Performance (A$m) FY21 YTD Trading Update Total US Versus on MTD Jan-21 YTD FY21 Key metrics New Jersey Illinois(1) Indiana Iowa(2) Colorado(3) H1 FY20 H1 FY21 PCP (24-Jan-21) (24-Jan-21) Turnover 588.3 165.1 47.7 12.2 5.8 819.1 183.9 345.5%
Slide 10: Super Bowl LV
SUPER BOWL LV Strong trading, acquisition and technology performance Super Bowl LV ▪ Offered the most markets on the Super Bowl (see right) Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 (15 mins prior to kickoff) ▪ On average across all PBH states - 99.9% of bets placed within Game Day markets 765 526 5
Slide 11: Agenda
AGENDA Half Year Highlights Financial Results What’s Next
Slide 12: Group Results – Normalised
GROUP RESULTS – NORMALISED Normalised(3) All amounts in A$m(1) H1 FY20 H1 FY21 Net revenue 27.4 75.1 Australian marketing expense A$21.1 million for the Reporting Period, which increased versus the PCP. Cost of sales (15.1) (49.5) US marketing expense Gross profit 12.3 25.6 A$41.8 million, an increa
Slide 13: Group Results – Summary
GROUP RESULTS – SUMMARY A$m(1) H1 FY20 H1 FY21 Change (%) Revenue 27.4 75.1 174% Statutory results Australia Trading EBITDA (3.4) 8.0 USA EBITDA (22.1) (69.2) Technology EBITDA (2.1) (3.6) Corporate EBITDA (1.7) (6.4) Statutory EBITDA (29.3) (71.3) 143% Loss for the half (32.3) (85.6) 165% Basic los
Slide 14: Balance Sheet
BALANCE SHEET All amounts in A$m(1) As at 30 Jun 20 As at 31 Dec 20 Cash and cash equivalents 144.3 388.3 Cash and cash equivalents The group had $388.3 million in cash (of which $29.2 million represented client cash), a Intangible assets 56.8 69.0 proportion of which is held in USD. The group had n
Slide 15: Summary of Statutory Cash Flows
SUMMARY OF STATUTORY CASH FLOWS Statutory All amounts in A$m(1) H1 FY20 H1 FY21 Net cash outflow from operating activities (23.0) (48.8) At 31 December 2020 The Group had a cash balance of Receipts from customers (inclusive of GST) 29.8 82.7 $388.3m, including $29.2m of client cash Payments to suppl
Slide 16: Statutory P&L
STATUTORY P&L Statutory All amounts in A$m H1 FY20 H1 FY21 Net revenue 27.4 75.1 Cost of sales (15.1) (49.5) Gross profit 12.3 25.6 Other income 0.1 0.4 Sales and marketing expense (20.6) (62.9) Employee benefits expense (15.4) (22.6) Product and technology expense (2.5) (6.0) Administrative and oth
Slide 17: Reconciliation to Statutory P&L
RECONCILIATION TO STATUTORY P&L H1 FY21 Significant items H1 FY21 All amounts in A$m Normalised and adjustments Statutory All amounts in A$m H1 FY21 Net revenue 75.1 - 75.1 9.6 Net foreign exchange losses Cost of sales (49.5) - (49.5) 0.6 Interest on financial liability Gross profit 38.2 - 25.6 3.4
Slide 18: Partnership Accelerates Strategy to Build a Market Leader
PARTNERSHIP ACCELERATES STRATEGY TO BUILD A MARKET LEADER Path to 1mm+ U.S. Active Clients and 10% market share H1 FY21 INVESTOR PRESENTATION │ FEBRUARY 2021 18
Slide 19: PointsBet + NBCUniversal Partnership
POINTSBET + NBCUNIVERSAL PARTNERSHIP PointsBet has entered into a 5-year exclusive media partnership with NBCUniversal(1) THE PARTNERSHIP DELIVERS: . Notes: (1) 5-year partnership (with potential 2-year extension upon mutual agreement of the parties); (2) Subject to shareholder approval, NBCUniversa
Slide 20: NBCUniversal Partnership Details
NBCUNIVERSAL PARTNERSHIP DETAILS • 5-year partnership • Total committed marketing spend of US$393 million allocated in progressively increasing amounts over the 5-year media partnership, together with incentives payable to NBCUniversal for customer referrals COMMERCIAL • Premium placement and agreed
Slide 21: Introduction to NBC Sports
INTRODUCTION TO NBC SPORTS One of the most iconic and trusted media brands in the US with the largest sports audience SELECT ASSETS 11 O&O 200+ Affiliates 29 local stations Sources: comScore; Monthly Active Uniques; Aug’16-July’20; Yahoo Sports-NBC Sports Network H1 FY21 INVESTOR PRESENTATION │ FEBR
Slide 22: The Largest Sports Audience
THE LARGEST SPORTS AUDIENCE SPORTS AUDIENCE (mm) 184 SPORTS MEDIA 177 COMPANY 1 SPORTS MEDIA 174 COMPANY 2 SPORTS MEDIA 169 COMPANY 3 SPORTS MEDIA 104 COMPANY 4 100MM Sources: Nielsen, Live+Same Day, P18+ average yearly reach 2014-15 to 2018-19 seasons (5 years), Total Day, 75% unification, 6 minute
Slide 23: PointsBet Has Secured Several Market-Leading Marquee Partnerships
POINTSBET HAS SECURED SEVERAL MARKET-LEADING MARQUEE PARTNERSHIPS ✓ Multi-year partnership as official and exclusive ✓ Multi-year strategic partnership as an “Official gaming partner of the Denver Nuggets, Colorado Sports Betting Partner” of the National Hockey Avalanche, Colorado Mammoth and the Ba
Slide 24: NBC Sports Integrations Across Linear and Digital Assets
NBC SPORTS INTEGRATIONS ACROSS LINEAR AND DIGITAL ASSETS Name A Bet NBC Predictor Free-to-Play Game Story Lines pre-game show on NBC Sports Chicago Sign-Up Offers Email Marketing NBC Sports BetCast powered by PointsBet H1 FY21 INVESTOR PRESENTATION │ FEBRUARY 2021
Slide 25: PointsBet's In-House Platform
POINTSBET’S IN-HOUSE PLATFORM Proprietary technology PointsBet is one of few companies globally which owns 100% of its sportsbook technology platform, fully developed by its own in-house development team. Enhanced client experience PointsBet's priority is to provide a fast and immersive client exper
Slide 26: PointsBet's In-House Technology Platform Capability
POINTSBET’S IN-HOUSE TECHNOLOGY PLATFORM CAPABILITY POINTSBET Providing all necessary end-to-end capability High-performance player application P Advanced quantitative models and algorithms P In-house bet and trading engines P Front End Tech Back End Tech Pre-match fixed odds sports, in-play fixed o
Slide 27: Our In-House Technology Platform
OUR IN-HOUSE TECHNOLOGY PLATFORM DELIVERING NEW IGAMING PLATFORM • Owning and controlling in-house technology stack will become an increasingly important strategic advantage • PointsBet has complete control over its product roadmap, unlike some competitors that are reliant on B2B services • PointsBe
Slide 28: Award Winning Sports Betting Operator
AWARD WINNING SPORTS BETTING OPERATOR ✓ Sports Betting Operator of the Year ✓ Socially Responsible Operator of the Year ✓ US Rising Star Honors Judging Panel Commentary: • "Impressive performance off proprietary technology and without the European grounding that many of its big-name competitors can
Slide 29: New Brand Ambassadors
NEW BRAND AMBASSADORS Shaquille O’Neal – NBA Legend Paige Spiranac – Highest Engagement in Golf & Top 20 for All Sport Celebrities Australian Brand Ambassador Global Lead On-Air Talent & Brand Ambassador H1 FY21 INVESTOR PRESENTATION │ FEBRUARY 2021 29
Slide 30: Agenda
AGENDA Half Year Highlights Financial Results What’s Next
Slide 31: Delivering on Our Objectives
DELIVERING ON OUR OBJECTIVES Aug 19 P Significant market access deal with Penn National Gaming – 5 further states P FY20 – first annual EBITDA positive year for Australian Trading Business Jun 20 P Re-launch of Indiana operations Jul 20 P Market leading media deal with NBCUniversal Aug 20 P Launch o
Slide 32: What's Next - 2021
WHAT’S NEXT - 2021 Opportunity in Continue iGaming launches Grow Canada and New Technology First in MI and NJ US Brand York strategy H1 FY21 INVESTOR PRESENTATION │ FEBRUARY 2021 32
Slide 33: The US Represents a US$12 Billion Opportunity
THE US REPRESENTS A US$12 BILLION OPPORTUNITY MORGAN STANLEY(1) JP MORGAN(2) GVC(3) iGaming, US$6.8bn iGaming, US$3.5bn iGaming, US$4.6bn Potential combined Potential combined Potential combined 2025 market of 2025 market of 2025 market of US$20.3bn US$12.1bn US$12.3bn Sports, Sports, Sports, US$8.5
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