Pointsbet Holdings Ltd. · ASX:PBH
Pointsbet — FY2023 Earnings Presentation
25 slides from Pointsbet's earnings presentation, Aug 31, 2023
Slide 1: FY23 Results Presentation
FY23 RESULTS PRESENTATION 31 August 2023 N B C U N I V E R S A L M E D I A P A R T N E R S H I P & F Y 2 0 R E S U L T S P R E S E N T A T I O N │ A U G U S T 2 0 2 0 1
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This document and any oral presentation accompanying it has been Therefore, there can be no assurance that such forecasts, forward The information contained in this document (including tables) has not prepared in good faith, however, no express or implied representati
Slide 3: Agenda
AGENDA FY23 delivered growth in Net Win, Cash Active Clients, product and technology enhancements as well as the sale of the US Business to Fanatics Betting and Gaming SALE OF US BUSINESS GROUP OPERATIONAL OPERATIONAL OUTLOOK & FINANCIAL HIGHLIGHTS PERFORMANCE GUIDANCE RESPONSIBLE PERFORMANCE WAGERI
Slide 4: Update on the Sale of the US Business to Fanatics Betting and Gaming and Capital Distribution
UPDATE ON THE SALE OF THE US BUSINESS TO FANATICS BETTING AND GAMING AND CAPITAL DISTRIBUTION • Shareholder approval of Sale of the US Business to Fanatics Betting & Gaming on 30 June 2023 • Headline consideration of US$225m/AUD$333m1 • The Company intends to distribute to shareholders the net sale
Slide 5: ESG: Responsible Wagering FY23 Highlights
ESG: RESPONSIBLE WAGERING Australia USA & Canada FY23 Highlights Responsible Wagering Communications Responsible Wagering Communications 153,000 12 MONTH GLOBAL UNIQUE VIEWS RSG Page Australia c. 77,000 North America c. 76,000 28,000 12 MONTH NORTH AMERICA RSG IN-APP MESSAGES 11,700 AVERAGE MONTHLY
Slide 6: Agenda
AGENDA SALE OF US BUSINESS GROUP OPERATIONAL OPERATIONAL OUTLOOK & FINANCIAL HIGHLIGHTS PERFORMANCE GUIDANCE RESPONSIBLE PERFORMANCE WAGERING 6
Slide 7: Statutory Segment Results Summary
STATUTORY SEGMENT RESULTS SUMMARY AUSTRALIAN TRADING SEGMENT • IN FY23: - REVENUE FELL 2% VS FY22 Consolidated Continuing Operations - EBITDA FELL VS FY22 DUE TO INCREASED POINT OF A$m 1 FY23 FY22 FY23 Change (%) CONSUMPTION TAX AND SLIGHTLY HIGHER OPERATING EXPENSES Australia Trading 195.2 192.1 -2
Slide 8: Normalised Continuing Operations & Consolidated Results
NORMALISED3 CONTINUING OPERATIONS & CONSOLIDATED RESULTS Consolidated Continuing Operations NET REVENUE4 All amounts in A$m 1 FY23 FY22 FY23 Net Revenue in FY23 increased by 7.6% over the PCP. Net Revenue is expected to grow 10%-20% in FY24 Net revenue 383.1 195.4 210.3 GROSS PROFIT Gross profit mar
Slide 9: Balance Sheet
BALANCE SHEET All amounts in A$m1 FY22 FY232 CASH AND CASH EQUIVALENTS Cash and cash equivalents 519.6 212.1 At the 30 June 2023, the Company had $194.6 million in corporate cash, with Adjusted Corporate Cash3 of $202.1 million. Investments held at fair value - 340.9 Right-of-use assets NET ASSETS M
Slide 10: Consolidated Cash Flows
CONSOLIDATED CASH FLOWS 1 A$m2 FY22 FY23 Cash flows from operating activities Receipts from customers (inclusive of GST) 328.2 402.2 Payments to suppliers and employees (inclusive of GST) (541.2) (628.5) (213.0) (226.3) Interest received 1.1 8.5 Interest paid on lease liabilities (0.9) (1.0) At the
Slide 11: Agenda
AGENDA SALE OF US BUSINESS GROUP OPERATIONAL OPERATIONAL OUTLOOK & FINANCIAL HIGHLIGHTS PERFORMANCE GUIDANCE RESPONSIBLE PERFORMANCE WAGERING 11
Slide 12: Key Operational Highlights for Continuing Performance
KEY OPERATIONAL HIGHLIGHTS FOR CONTINUING PERFORMANCE 01 Retained our #3 ranking in Eilers & Krejcik’s app testing for the 5th consecutive quarter TOTAL NET WIN + 7% 02 Enhancements through Oddsfactory of live betting products drove Canadian in-play sportsbook handle as a % of total handle to 63% in
Slide 13: Agenda
AGENDA SALE OF US BUSINESS GROUP OPERATIONAL OPERATIONAL OUTLOOK & FINANCIAL HIGHLIGHTS PERFORMANCE GUIDANCE RESPONSIBLE PERFORMANCE WAGERING 13
Slide 14: Group FY23 Trading Metrics
GROUP FY23 TRADING METRICS1 Continuing Operations Discontinued Operations Group All figures in A$ FY22 FY23 PCP FY22 FY23 PCP FY22 FY23 YoY Turnover / Handle $2,552.4m $2,827.3m +11% $2,454.0m $2,917.2m +19% $5,006.3m $5,744.6m +15% Gross Win Margin % 13.3% 11.4% (1.9pp) 6.5% 6.7% +0.2pp 9.9% 9.0% (
Slide 15: Australia FY23 Trading Metrics
AUSTRALIA FY23 TRADING METRICS All figures in A$ FY22 FY23 YoY Turnover / Handle $2,536.4.m $2,632.6m +4% Gross Win Margin % 13.3% 11.7% (1.6pp) SPORTS Gross Win $338.4m $309.1m (9%) BETTING Net Win Margin % 8.5% 8.0% (0.5pp) Net Win $215.4m $211.7m (2%) • Turnover increased 4% compared to the PCP,
Slide 16: Canada FY23 Trading Metrics
CANADA FY23 TRADING METRICS1 All figures in A$ FY22 FY23 YoY Turnover / Handle $16.0m $194.8m +1,120% Gross Win Margin % 4.2% 6.4% +2.2pp SPORTS Gross Win $0.7m $12.4m +1,758% BETTING Net Win Margin % (3.0%) 3.5% +6.5pp Net Win ($0.5m) $6.8m n.m iGAMING Net Win $0.7m $11.5m +1,652% TOTAL Total Net W
Slide 17: US FY23 Trading Metric – Discontinued Operations
US FY23 TRADING METRIC – DISCONTINUED OPERATIONS1 All figures in A$ FY22 FY23 YoY Turnover / Handle $2,454.0m $2,917.2m +19% Gross Win Margin % 6.5% 6.7% +0.2pp SPORTS Gross Win $158.7m $194.5m +23% BETTING Net Win Margin % 3.0% 4.0% +1.0pp Net Win $74.1m $117.3m +58% 2,454m 158.7m 93.9m iGAMING Net
Slide 18: Agenda
AGENDA SALE OF US BUSINESS GROUP OPERATIONAL OPERATIONAL OUTLOOK & FINANCIAL HIGHLIGHTS PERFORMANCE GUIDANCE RESPONSIBLE PERFORMANCE WAGERING 18
Slide 19: PointsBet 2.0 - Momentum into FY24
POINTSBET 2.0 - MOMENTUM INTO FY24 AUSTRALIA CANADA • Clear path to secure top 4 position • Tier 1 sports betting product • Tier 1 sports betting and racing product • Growing position in a market with attractive unit economics • TOP LINE GROWTH • Strong brand recognition • In-play and iGaming • Well
Slide 20: PointsBet 2.0 – Australia & Canada: Outlook & Guidance
POINTSBET 2.0 – AUSTRALIA & CANADA: OUTLOOK & GUIDANCE THE COMPANY ANTICIPATES TO DELIVER POSITIVE GROUP EBITDA IN FY25 THE COMPANY EXPECTS FY24 TOTAL THE COMPANY EXPECTS FY24 TOTAL THE COMPANY EXPECTS GROUP NET WIN1 TO BE 10%-20% HIGHER MARKETING EXPENSE2 TO BE 15% - EBITDA TO BE AT OR CLOSE TO THA
Slide 21: Appendix / Q&A
Appendix Q&A 21
Slide 22: Appendix
Appendix Appendix 22
Slide 23: Statutory P&L
STATUTORY P&L FY22 A$m1 FY23 Restated Revenue2 195.4 210.3 Cost of sales (94.9) (104.6) Gross profit 100.5 105.7 (Other expense)/other income 14.3 6.1 Expenses Marketing expenses (74.2) (90.3) Employee benefits expenses (33.4) (64.9) Information technology costs (9.8) (14.0) Administration expenses
Slide 24: Reconciliation to Statutory P&L
RECONCILIATION TO STATUTORY P&L A$m1 FY23 Adjustments FY23 A$m1 FY232 Normalised Statutory Share based payments (non-cash) - employee share option 9.5 Revenue 3 210.3 - 210.3 plan and key employee equity plan (KEEP) Impact of AASB 16 Leases (0.1) Cost of sales (104.6) - (104.6) Unrealised FX (gains)
Slide 25: Reconciliation of Net Win to Net Revenue
RECONCILIATION OF NET WIN TO NET REVENUE A$m 1 FY23 RemainCo Net Win (inclusive of Goods and Services Tax) 230.0 Deduction for Goods and Services Tax (19.2) Fair Value adjustments and B2B / ADW revenue streams (0.5) Total Reported Revenue 210.3 Note: 1.. Average AUD / USD FX rate 0.6736 for FY23 and