Northstar Gaming Holdings Inc · TSXV:BET
Northstar Gaming — Q1 2025 Earnings Presentation
23 slides from Northstar Gaming's earnings presentation, May 29, 2025
Slide 1: Investor Deck
Investor Deck May 29, 2025 TSXV:BET OTCQB:NSBBF TSXV: BET OTCQB:NSBBF 1
Slide 2: Disclaimer: Cautionary Statement
DISCLAIMER Cautionary Statement The information contained in this presentation has been prepared by NorthStar Gaming Holdings Inc. (“NorthStar” or the “Company”) and contains confidential information pertaining to the business and operations of the Company. The information contained in this presenta
Slide 3: Disclaimer: Non-IFRS Financial Measures
DISCLAIMER Non-IFRS Financial Measures This presentation includes references to the Company’s “Gross Gaming Revenue” and “Total Wagers”, measures not prescribed by International Financial Reporting Standards (“IFRS”). Management uses certain non-IFRS financial measures and supplementary financial me
Slide 4: Spearheading the Intersection of iGaming and Media
SPEARHEADING THE INTERSECTION OF iGAMING AND MEDIA
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS ~C$8.5B Canadian TAM exposed to NorthStar brand, with 01 Ontario’s regulated market launched in April 2022 and brand launch of NorthStarBets.com in November 2023* 02 Industry leading gaming content and technology Funding in place to reach profitability based on current business
Slide 6: Expanding Addressable Market
EXPANDING ADRESSABLE MARKET Ontario Market Eclipsed C$3.0B for FY24 1 Projected Online Sports Betting and iGaming 2 Alberta Opportunity Market Size (2026E) • Canada’s 4th most populous province with a population (C$ billions) of ~4.4 million (3.3 million adults) with the youngest C$8.5B average adul
Slide 7: Q1 2025 Results At a Glance
Q1 2025 Results At a Glance Revenue Gross Margin $7.8 million 32% $3.0 million 58%
Slide 8: Revenue
REVENUE * First Quarter C$ Millions 7.8 5.9 +32% 2024 2025 Three months ended March 31 * Revenue, including managed services fees, net of bonuses, promotional costs and free bets TSXV: BET OTCQB:NSBBF 8
Slide 9: Gross Margin
GROSS MARGIN First Quarter C$ Millions 3.0 1.9 +58% 2024 2025 Three months ended March 31 31.5% 38.5% % of Revenue TSXV: BET OTCQB:NSBBF 9
Slide 10: Profit Before Marketing and Other Expenses
PROFIT BEFORE MARKETING AND OTHER EXPENSES1 First Quarter C$ Millions 0.6 +200% 2025 -0.6 2024 Three months ended March 31 1 Revenue includes managed services fees, and Gross Gaming Revenue net of bonuses, promotional costs and free bets. TSXV: BET OTCQB:NSBBF 10
Slide 11: Consistent Year-Over-Year Growth Since Launch
CONSISTENT YEAR-OVER-YEAR GROWTH SINCE LAUNCH Revenue C$ Millions 9.5 7.8 7.4 6.7 6.3 5.9 4.5 4.5 3.5 3.1 2.0 0.5 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 * NorthStar Commenced Operations Q2 2022. 1 Represents a Non-IFRS financial measure. See “Non-IFRS Financial Measu
Slide 12: Demonstrating Increasing Operating Leverage
DEMONSTRATING INCREASING OPERATING LEVERAGE Revenue and Gross Margin Growing Faster than Expenses Revenue Steady growth Expenses Relatively stable Launch 2022 Building Scale Covering 2024 Break-even Profitability 2023-24 Overhead TSXV: BET OTCQB:NSBBF 12
Slide 13: Recapitalized Balance Sheet
RECAPITALIZED BALANCE SHEET C$43.4 Loan facility with Beach Point Capital Management, January 2025 Million Long-Term 30-month payment deferral, matures in 2030 Financing Validation of business plan Business Supports continued investment in growth fully-funded to profitability based on current Will m
Slide 14: Q1 2025 Achievements
Q1 2025 ACHIEVEMENTS Raised C$43.4M in long-term debt funding from Beach Point Capital Management LP Gross Margin now covering overheads Customer Retention: Highest in our history in Q1 2025, driven by superior customer experience, innovation and a focus on high-value players Product enhancements: R
Slide 15: The Keys to Our Success
NoRTHSTAR* GAMING THE KEYS TO OUR SUCCESS
Slide 16: Opportunity to Accelerate Consideration
OPPORTUNITY TO ACCELERATE CONSIDERATION Given market pressures, driving first choice consideration through differentiation is more important than ever to acquisition AND retention success. Political and economic conditions present an opportunity to develop pillars of differentiation that are relevan
Slide 17: Establishing Leadership with Innovative Promotions
ESTABLISHING LEADERSHIP WITH INNOVATIVE PROMOTIONS Marketing plans headlined by new promotions progressively broadening category coverage. Spring Tournament Series • Three online tournaments run in March-April 2025 • Blackjack, Slots, Parlay • Differentiated leadership position for NorthStar Builds
Slide 18: Local Market Expertise
LOCAL MARKET EXPERTISE Canada-focused content and promotions • Original Sports Insights articles • Personalized betting selections • Planned events • Emphasis on local roots TSXV: BET OTCQB:NSBBF 18
Slide 19: Insights 2.0
INSIGHTS 2.0 Our industry-leading on-platform content vertical continues to drive higher player values Enhancements and new tools added as part of Sports Insights 2.0: • Improved UX/Home page redesign • More casino content, including game reviews • Live scoreboard with dynamic sportsbook odds • Prem
Slide 20: VIP Growth
VIP GROWTH Segment is critically important to business performance and growth. Program health remains a top priority, especially to counteract market volatility. VIP GGR VIPs $35,000,000 2,500 $30,000,000 2,000 $25,000,000 $22,000,000 1,500 $20,000,000 $13,000,000 $15,000,000 1,000 $10,000,000 $3,00
Slide 21: Flywheel Model
FLYWHEEL MODEL Growing customer database can be tapped to increase customer lifetime value at lower costs – complimenting critically important acquisition investment Customer Base Existing Base New Acquisitions Cost per Acquisition 41% ~$800-$900 61% 59% Cost to re-activate ~$10-$20 100% 39% F22 F23
Slide 22: Key Areas of Focus in 2025-2026
KEY AREAS OF FOCUS IN 2025-2026 2025-2026 Focus Operational Enhanced Excellence Profitability Strategic Product Partnerships Marketing Innovation TSXV: BET OTCQB:NSBBF 22
Slide 23: Capitalization
CAPITALIZATION ($ millions, except per share amounts) C$ Bitove & Torstar Entities.4 17.5% Other Spot Share Price $0.06 Shareholders 36.8% 205.8 million Rivett & 9.7% Basic Shares Outstanding 205.8 shares Related Entities 1 outstanding Options 17.7 2 Warrants 86.8 10.2% 25.8% Fully Diluted Shares Ou
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