Pointsbet Holdings Ltd. · ASX:PBH
Pointsbet — H1 FY22 Earnings Presentation
36 slides from Pointsbet's earnings presentation, Feb 25, 2022
Slide 1: H1 FY22 Results Presentation
H1 FY22 : RESULTS PRESENTATION | February 2022 DREW BREES GLOBAL BRAND AMBASSADOR
Slide 2: Important Notice and Disclaimer
1H 22 RESULTS PRESENTATION FEB 2022 IMPORTANT NOTICE AND DISCLAIMER This document and any oral presentation accompanying it has been Therefore, there can be no assurance that such forecasts, forward Disclosures in this document, the accompanying presentation or any prepared in good faith, however, n
Slide 3: Agenda
1H 22 RESULTS PRESENTATION FEB 2022 AGENDA HALF YEAR HIGHLIGHTS GROUP FINANCIAL RESULTS AUSTRALIAN BUSINESS REVIEW US BUSINESS REVIEW OPPORTUNITY TECHNOLOGY OUR PEOPLE BUILDING BLOCKS ARE IN PLACE Q&A APPENDIX
Slide 4: Key Operational Highlights H1'22
1H 22 RESULTS PRESENTATION FEB 2022 KEY OPERATIONAL HIGHLIGHTS H1’22 19 AUGUST 2021 ANNOUNCED AS AN 23 JULY 2021 APPROVED SPORTSBOOK LAUNCHED IGAMING OPERATOR BY THE 16 DECEMBER 2021 IN NEW JERSEY, NATIONAL FOOTBALL 16 SEPTEMBER 2021 2 NOVEMBER 2021 8 DECEMBER 2021 LAUNCH OF MOBILE representing the
Slide 5: Key Operational Highlights Calendar Year to Date
1H 22 RESULTS PRESENTATION FEB 2022 KEY OPERATIONAL HIGHLIGHTS CALENDAR YEAR TO DATE MARCH 2022 EXPECTED LAUNCH OF iGAMING IN PENNSYLVANIA 11 JANUARY 2022 27 JANUARY 2022 4 FEBRUARY 2022 APRIL 2022 ANNOUNCED AS EXCLUSIVE SPORTS BETTING LAUNCH OF IGAMING IN WEST APPROVED AS A LICENCED EXPECTED LAUNCH
Slide 6: H1 FY22 Trading Metrics
1H 22 RESULTS PRESENTATION FEB 2022 H1 FY22 TRADING METRICS GROUP AUSTRALIA US1 All figures in A$ H1 FY21 H1 FY22 PCP H1 FY21 H2 FY22 PCP H1 FY21 H2 FY22 PCP Turnover / Handle $1,890.0m $2,305.9m +22% $1071.0m $1358.4m +27% $819.1m $947.5m +16% Gross Win % 8.1% 10.9% +2.7pp 12.7% 13.3% +0.6pp 2.2% 7
Slide 7: Agenda
1H 22 RESULTS PRESENTATION FEB 2022 AGENDA HALF YEAR HIGHLIGHTS GROUP FINANCIAL RESULTS AUSTRALIAN BUSINESS REVIEW US BUSINESS REVIEW OPPORTUNITY TECHNOLOGY OUR PEOPLE BUILDING BLOCKS ARE IN PLACE Q&A APPENDIX
Slide 8: Group Results Normalised
1H 22 RESULTS PRESENTATION FEB 2022 GROUP RESULTS NORMALISED Normalised NET REVENUE5 US MARKETING EXPENSE All amounts in A$m1 H1 FY21 H1 FY22 Net Revenue comprises Net –A$78.2 million (US$57.2 million), Net revenue 75.1 139.1 Win from sports betting and an increase versus the PCP due Cost of sales (
Slide 9: Segment Results Summary
1H 22 RESULTS PRESENTATION FEB 2022 SEGMENT RESULTS SUMMARY Statutory Results A$m1 H1 FY21 H1 FY22 Change (%) Australia Trading 77.1 97.6 AUSTRALIA TRADING EBITDA United States Trading (2.0) 40.3 The Company expects the Australian Trading business to Technology - 1.2 be EBITDA positive for FY22. Cor
Slide 10: Balance Sheet
1H 22 RESULTS PRESENTATION FEB 2022 BALANCE SHEET All amounts in A$m1 As at 30 Jun 21 As at 31 Dec 21 CASH AND CASH EQUIVALENTS The group had $569.0 million in cash (of which $45.7 million represented client Cash and cash equivalents 276.2 569.0 cash), a proportion of which is held in USD. The group
Slide 11: Cash Flows Statutory
1H 22 RESULTS PRESENTATION FEB 2022 CASH FLOWS STATUTORY A$m1 H1 FY21 H1 FY22 – At 31 December 2021, the group had a cash balance of $569.0m, including $45.7m of client cash and $523.3m of corporate cash. Cash flows from operating activities Receipts from customers (inclusive of GST) 82.7 162.8 – To
Slide 12: Agenda
1H 22 RESULTS PRESENTATION FEB 2022 AGENDA HALF YEAR HIGHLIGHTS GROUP FINANCIAL RESULTS AUSTRALIAN BUSINESS REVIEW US BUSINESS REVIEW OPPORTUNITY TECHNOLOGY OUR PEOPLE BUILDING BLOCKS ARE IN PLACE Q&A APPENDIX
Slide 13: Highlights: Australia H1 FY22 Achievements
1H 22 RESULTS PRESENTATION FEB 2022 HIGHLIGHTS: AUSTRALIA H1 FY22 ACHIEVEMENTS A$1,358.4m A$180.1m POINTSBET AUSTRALIA – PCP PERFORMANCE (A$) Turnover / Handle Gross Win Key metrics H1 FY21 H1 FY22 Change UP 27% ON PCP UP 32% ON PCP Turnover / Handle $1071.0m $1358.4m + 27% A$107.9m 13.3% 7.9% Gross
Slide 14: Australia Cash Active Clients
1H 22 RESULTS PRESENTATION FEB 2022 AUSTRALIA CASH ACTIVE CLIENTS1 CLIENTS WHO HAVE PLACED A CASH BET IN THE LAST TWELVE MONTHS +63% 232,875 on PCP 222,662 142,992 31 MAR 19 30 JUN 19 30 SEP 19. 31 DEC 19 31 MAR 20 30 JUN 20 30 SEP 20 31 DEC 20 31 MAR 21 30 JUN 21 30 SEP 21 31 DEC 21 1. Clients acro
Slide 15: Agenda
1H 22 RESULTS PRESENTATION FEB 2022 AGENDA HALF YEAR HIGHLIGHTS GROUP FINANCIAL RESULTS AUSTRALIAN BUSINESS REVIEW US BUSINESS REVIEW OPPORTUNITY TECHNOLOGY DIVERSITY BUILDING BLOCKS ARE IN PLACE Q&A APPENDIX
Slide 16: Highlights: US H1 FY22 Achievements
1H 22 RESULTS PRESENTATION FEB 2022 HIGHLIGHTS: US H1 FY22 ACHIEVEMENTS A$947.5m A$70.8m POINTSBET US – PCP PERFORMANCE (A$) Key metrics H1 FY21 H1 FY22 Change SPORTS BETTING SPORTS BETTING Sports Betting Turnover / Handle $819.1m $947.5m + 16% Turnover / Handle Gross Win Sports Betting Gross Win Ma
Slide 17: Highlights: US H1 FY22 Highlights
1H 22 RESULTS PRESENTATION FEB 2022 HIGHLIGHTS: US H1 FY22 HIGHLIGHTS Launched sports wagering Will be one of only 6 operators operations in West Virginia, with Tri-State coverage in Virginia, New York and New York, New Jersey and Pennsylvania in August, Pennsylvania December, January and February r
Slide 18: US Cash Active Clients
1H 22 RESULTS PRESENTATION FEB 2022 US CASH ACTIVE CLIENTS1 CLIENTS WHO HAVE PLACED A CASH BET IN THE LAST TWELVE MONTHS +210% 211,113 on PCP 185,880 68,094 31 MAR 19 30 JUN 19 30 SEP 19 31 DEC 19 31 MAR 20 30 JUN 20 30 SEP 20 31 DEC 20 31 MAR 21 30 JUN 21 30 SEP 21 31 DEC 21 1. Clients across all v
Slide 19: Key US Partnerships
1H 22 RESULTS PRESENTATION FEB 2022 KEY US PARTNERSHIPS NBC/NFL Partnerships NFL Marketing Strategy Leading Integrations AUTHORISED NFL PARTNER: – In-game commercial units throughout the season featuring NFL legend Drew – PointsBet and NBC developed the first ever sports betting integration inside 1
Slide 20: Super Bowl LVI
1H 22 RESULTS PRESENTATION FEB 2022 SUPER BOWL LVI Super Bowl LV Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 RECORD ACTIVITY Overall Offered the most in-play and game day markets on Game Day 932 719 707 512 426 397 298 Super Bowl LVI 1 markets First ever sports betting integration into Super Bowl
Slide 21: Agenda
1H 22 RESULTS PRESENTATION FEB 2022 AGENDA HALF YEAR HIGHLIGHTS GROUP FINANCIAL RESULTS AUSTRALIAN BUSINESS REVIEW US BUSINESS REVIEW OPPORTUNITY TECHNOLOGY OUR PEOPLE BUILDING BLOCKS ARE IN PLACE Q&A APPENDIX
Slide 22: US Market Access, Near-Term Launches and Strategic Partnerships
1H 22 RESULTS PRESENTATION FEB 2022 US MARKET ACCESS, NEAR-TERM LAUNCHES AND STRATEGIC PARTNERSHIPS Maine Washington Vermont New North Dakota Montana Minnesota Hampshire Massachusetts Oregon New York Wisconsin Rhode Island DECEMBER 2021 JANUARY 2022 EXPECTED TO LAUNCH Idaho South Dakota Connecticut
Slide 23: US & Canada Increasing TAM
1H 22 RESULTS PRESENTATION FEB 2022 US & CANADA INCREASING TAM ADULT POPULATION IN PBH US/CANADA ROADMAP1 160M NORTH AMERICA GGR 2033 TOTAL ADDRESSABLE MARKET 140M 120M 100M US$18b iGAMING 80M 60M 40M US$70b2 OPPORTUNITY 20M US$10b US$42b HORSE RACING SPORTS 0 10 LIVE ON 7 MORE END OF STATES 2022 1.
Slide 24: Agenda
1H 22 RESULTS PRESENTATION FEB 2022 AGENDA HALF YEAR HIGHLIGHTS GROUP FINANCIAL RESULTS AUSTRALIAN BUSINESS REVIEW US BUSINESS REVIEW OPPORTUNITY TECHNOLOGY OUR PEOPLE BUILDING BLOCKS ARE IN PLACE Q&A APPENDIX
Slide 25: Continued Investment in Product and Technology
1H 22 RESULTS PRESENTATION FEB 2022 CONTINUED INVESTMENT IN PRODUCT AND TECHNOLOGY Delivering in-play excellence and key product features Same Game Parlay, Name-A-Bet, PointsBetting, Vision, Personalisation and iGaming – One Global Team – Loosely couple – Proven during peak – Fast, easy to use – 99%
Slide 26: PointsBet Ranks Second in Eilers & Krejcik's App-by-App Testing
1H 22 RESULTS PRESENTATION FEB 2022 POINTSBET RANKS SECOND IN EILERS & KREJCIK’S APP-BY-APP TESTING OVERALL APP 100% OWNED RANK TECH STACK? Overall Rank 1 2nd/34 UNLIKE SPORTSBOOKS 2 / 34 MANY OF ITS PEERS, POINTSBET 3 OWNS AND Methodology CONTROLS 4 ITS OWN Eilers & Krejcik, an independent US resea
Slide 27: NFL In-Play Improvements Post Banach Upgrade
1H 22 RESULTS PRESENTATION FEB 2022 NFL IN-PLAY IMPROVEMENTS POST BANACH UPGRADE BETTING EXPERIENCE + PRODUCT EXPANSION = RESULTS 100% 40% 1 4x 1 Industry first in-play uptime REDUCTION BETTING During NBC's Saturday Playoff Game on INCREASE IN January 15th, our customers experienced 44 SUSPENSIONS B
Slide 28: Agenda
1H 22 RESULTS PRESENTATION FEB 2022 AGENDA HALF YEAR HIGHLIGHTS GROUP FINANCIAL RESULTS AUSTRALIAN BUSINESS REVIEW US BUSINESS REVIEW OPPORTUNITY TECHNOLOGY OUR PEOPLE BUILDING BLOCKS ARE IN PLACE Q&A APPENDIX
Slide 29: Our People
1H 22 RESULTS PRESENTATION FEB 2022 OUR PEOPLE POINTSBET INITIATIVES THIS HALF INCLUDE: 1. Focus on Diversity, Equity and Inclusion (DEI), and Employee Wellness 3. Employee Wellness has remained incredibly important during the program challenges of COVID, we have: 2. Within DEI we have: – Launched a
Slide 30: Agenda
1H 22 RESULTS PRESENTATION FEB 2022 AGENDA HALF YEAR HIGHLIGHTS GROUP FINANCIAL RESULTS AUSTRALIAN BUSINESS REVIEW US BUSINESS REVIEW OPPORTUNITY TECHNOLOGY OUR PEOPLE BUILDING BLOCKS ARE IN PLACE Q&A APPENDIX 30
Slide 31: PointsBet Has the Building Blocks in Place to Be a Market Leader
1H 22 RESULTS PRESENTATION FEB 2022 POINTSBET HAS THE BUILDING BLOCKS IN PLACE TO BE A MARKET LEADER MARQUEE MEDIA PARTNERSHIP LEADING BRAND AMBASSADORS LAUNCHED IGAMING PRODUCT MICHIGAN, NEW JERSEY IN-HOUSE PREMIUM AND WEST VIRGINIA MARKET-LEADING STRATEGIC PARTNERSHIPS TECHNOLOGY STACK $523.3M PRO
Slide 32: Appendix
1H 22 RESULTS PRESENTATION FEB 2022 APPENDIX AGENDA HALF YEAR HIGHLIGHTS GROUP FINANCIAL RESULTS AUSTRALIAN BUSINESS REVIEW US BUSINESS REVIEW OPPORTUNITY TECHNOLOGY OUR PEOPLE BUILDING BLOCKS ARE IN PLACE Q&A APPENDIX 32
Slide 33: Appendix
1H 22 RESULTS PRESENTATION FEB 2022 AGENDA APPENDIX HALF YEAR HIGHLIGHTS GROUP FINANCIAL RESULTS AUSTRALIAN BUSINESS REVIEW US BUSINESS REVIEW OPPORTUNITY TECHNOLOGY OUR PEOPLE BUILDING BLOCKS ARE IN PLACE Q&A APPENDIX
Slide 34: Statutory P&L
1H 22 RESULTS PRESENTATION FEB 2022 STATUTORY P&L A$m1 H1 FY21 H1 FY22 Revenue2 75.1 139.1 Cost of sales (49.5) (84.4) Gross profit 25.6 54.7 Other income 0.4 0.2 Sales and marketing expense (62.9) (124.1) Employee benefits expense (22.6) (44.2) Product and technology expense (6.0) (7.9) Administrat
Slide 35: Reconciliation to Statutory P&L
1H 22 RESULTS PRESENTATION FEB 2022 RECONCILIATION TO STATUTORY P&L A$m1 H1 FY22 Adjustments H1 FY22 A$m1 H1 FY222 Normalised Statutory Revenue3 139.1 - 139.1 Interest on financial liability 2.9 Cost of sales (84.4) - (84.4) Fair value loss on financial liability 1.6 Gross profit 54.7 - 54.7 Share b
Slide 36: Reconciliation of Net Win to Net Revenue
1H 22 RESULTS PRESENTATION FEB 2022 RECONCILIATION OF NET WIN TO NET REVENUE A$m1 H1 FY22 Net Win (inclusive of Goods and Services Tax) 146.7 Deduction for Goods and Services Tax (9.8) Fair Value adjustments and B2B / ADW revenue streams 2.2 Total Reported Revenue 139.1 Note: 1. Average AUD / USD FX