Betr Entertainment Limited · ASX:BBT
Betr Entertainment — BlueBet Holdings — FY2022 Earnings Presentation
28 slides from Betr Entertainment's earnings presentation, Aug 30, 2022
Slide 1: FY2022 Annual Results & Investor Presentation
For personal use only FY2022 ANNUAL RESULTS & INVESTOR PRESENTATION August 2022 FY2022 ANNUAL RESULTS & INVESTOR PRESENTATION 1 AUGUST 2022
Slide 2: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER For personal use only Acceptance Effect of rounding This presentation has been prepared by BlueBet Holdings Ltd (ACN 647 124 641) (BlueBet). A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the
Slide 3: Delivering on Our Commitments
DELIVERING ON OUR COMMITMENTS For personal use only Prospectus commitments delivered Deploying Deploying IT A strong US Market Australian business Business Marketing and Platform Entry Funds Funds continues to grow and take share US business well Successful IPO Launched new New AUS Website M
Slide 4: FY22 Key Highlights
FY22 KEY HIGHLIGHTS For personal use only Australian business Strong top-line growth in Australia, with Turnover up 48.5% to $511.9 million and Net Win up 53.5% to well positioned for $54.6 million driven by increased marketing investment, while remaining operating cash flow positive continued growt
Slide 5: FY22 Key Metrics Dashboard versus PCP
FY22 KEY METRICS DASHBOARD VERSUS PCP1 For personal use only Strong growth across all key metrics in FY22, with Australian 10.6 million 53,328 Bet Count Active Customers2 business well (+64.7%) (+64.2%) placed for continued market share gains in FY23 $54.6 million 10.7% Net Win Net Win margin (+53.5
Slide 6: Strong Growth Across All Key Metrics
STRONG GROWTH ACROSS ALL KEY METRICS For personal use only FY21 FY22 PCP • Net Win increased by 53.5% to $54.6 million, driven by: 53,328 ACTIVE CUSTOMERS¹ 32,472 +64.2% • Turnover increased by 48.5% to $511.9 million, driven by a 191% increase in FY21 FY22 $511.9m marketing & advertising expenditur
Slide 7: Active Customers and Bet Count
ACTIVE CUSTOMERS¹ AND BET COUNT² For personal use only Strong momentum in +64.2% on PCP +64.7% on PCP customer acquisition 53,328 10.6 continues with Active 49,556 9.7 Customers increasing 45,087 64.2% to 53,328 as IPO 8.8 funds are deployed to 39,195 7.7 Australian marketing investment 32,472 6.5 6
Slide 8: Australian Trading Business
For personal use only AUSTRALIAN TRADING BUSINESS FY2022 ANNUAL RESULTS & INVESTOR PRESENTATION 8 AUGUST 20228
Slide 9: Turnover by Product
TURNOVER BY PRODUCT For personal use only Strong growth across all product offerings Turnover on Sports increased 43.8% with FY22 $511.9m Bet count on Sport Thoroughbred $259.4m Greyhound $138.1m Harness $46.3m Sport Turnover (FY22) $68.1m increasing 81.3% 51% 27% 9% 13% demonstrating the +49.1% +51
Slide 10: Mobile First Focus
MOBILE FIRST FOCUS For personal use only 66% of Turnover came Turnover ($ million) by channel Net Win Margin % by channel (FY21 – FY22) (FY21 – FY22) from mobile apps in FY22, the highest 281.6 growth and highest margin channel – a 11.7% 11.6% 11.5% 11.5% +4pp increase on the +55% prior year 182.0 8
Slide 11: Annual Value & Cost of Acquisition
ANNUAL VALUE & COST OF ACQUISITION For personal use only Annual Customer Value to Cost to Acquire a $1,095 $1,025 First Time Depositor ratio was 2.7x, providing an attractive return on marketing investment Cost per First Time Depositor increased to $386 driven by brand $386 building, with marketing
Slide 12: Australian Marketing Strategy: Above the Line
AUSTRALIAN MARKETING STRATEGY For personal use only Continued investment ABOVE THE LINE in the BlueBet brand • Increased investment in marketing and media to increase awareness spend led by ‘The BlueBet Kind of Guy’ and recognition advertising campaign to be launched ahead of 2022 Spring Racing Carn
Slide 13: Australian Marketing Strategy: Below the Line
AUSTRALIAN MARKETING STRATEGY For personal use only Focus on accelerated BELOW THE LINE growth through key • Increased digital marketing investment to drive acquisition periods & accelerated growth from strategic targeted continual promotion of paid media buying across sporting & news high margin pr
Slide 14: US Market Entry
For personal use only US MARKET ENTRY FY2022 ANNUAL RESULTS & INVESTOR PRESENTATION 14 14 AUGUST 2022
Slide 15: Current State of Play in US
CURRENT STATE OF PLAY IN US For personal use only Currently 17 States with Legal sports betting in the USA full mobile betting 4 States with limited mobile betting 10 States with in-person retail only 4 States Pending Industry commentators see >40 states potentially legalising sports betting by 2023
Slide 16: US B2C Market Launch Update (Stage 1)
US B2C MARKET LAUNCH UPDATE (STAGE 1) For personal use only BlueBet well • Market access secured in Iowa, Colorado, positioned to execute Louisiana and Indiana – states with a B2C US entry to combined population of over 20 million demonstrate the people capability of team, technology and • Each stat
Slide 17: B2B: Sportsbook-as-a-Solution (Stage 2)
B2B: SPORTSBOOK-AS-A-SOLUTION (STAGE 2) For personal use only Partnering with entities with existing BlueBet Potential partners brand presence can be Sportsbook-as-a-Solution a highly effective and BENEFIT TO PARTNER capital light means of • Create new revenue stream Client onboarding expanding into
Slide 18: What Each Partner Is Responsible For?
WHAT EACH PARTNER IS RESPONSIBLE FOR? For personal use only Each partner brings a BlueBet responsibilities unique skillset which combine to deliver a more engaging and Client onboarding and verification Marketing profitable model Banking – all deposits and withdrawals Fraud protection Responsible wa
Slide 19: Financials
For personal use only FINANCIALS FY2022 ANNUAL RESULTS & INVESTOR PRESENTATION 19 19 AUGUST 2022
Slide 20: Group Results – Income Statement
GROUP RESULTS – INCOME STATEMENT For personal use only $000'S FY22 FY21 Wagering revenue Turnover 511,919 344,733 growth of 53.5% as a Payouts (441,405) (300,508) result of the team Gross Revenue 70,514 44,225 executing on our Promotions given (15,880) (8,639) strategy of customer GST (4,966) (3,235
Slide 21: Balance Sheet
BALANCE SHEET For personal use only $000'S FY22 FY21 Assets Well capitalised and Current assets Cash and cash equivalents 47,268 56,104 strongly positioned to Trade and other receivables 632 188 execute on dual- Income Tax refund due Other assets 1,013 787 - 570 growth strategy Total current assets
Slide 22: Summary of Cash Flows
SUMMARY OF CASH FLOWS For personal use only Operating Cash Flow $000'S FY22 FY21 Cash flows from operating activities (before interest and Receipts from customers (Client deposits) 126,567 83,108 tax) were $1.5 million, Payments to customers (Client withdrawals) (71,258) (46,465) (or $3.8 million Pa
Slide 23: Strategic Update
For personal use only STRATEGIC UPDATE FY2022 ANNUAL RESULTS & INVESTOR PRESENTATION 23 23 AUGUST 2022
Slide 24: A Strong Australian Business
A STRONG AUSTRALIAN BUSINESS For personal use only Focused on execution to deliver the best experiences for our Maintain the Australia business as customers Operating Cash Flow positive Keep investing in Australian brand and product to drive acquisition and customer loyalty Keep achieving strong ret
Slide 25: US Market Entry
US MARKET ENTRY For personal use only Focused on execution Execute Stage 1 of our B2C to deliver the best experiences for our ClutchBet market entry in 4 initial customers markets (Iowa, Colorado, Louisiana, Indiana) Secure partners for Stage 2 B2B Sportsbook-as-a-Solution offering Invest in product
Slide 26: Investment in Product
INVESTMENT IN PRODUCT For personal use only Focused on execution to deliver the best experiences for our Reinvest strong returns from FY22 Australian customers marketing investment in Product and Innovation Differentiate product offering and UX to attract customers to bet with BlueBet Continue to fo
Slide 27: Investment in Innovation
INVESTMENT IN INNOVATION For personal use only BlueBet will continue Benefits of investment in innovation to innovate and differentiate to keep • Increased competitiveness taking share from major industry competitors • Improved brand recognition • Appeal to a younger, emerging target market • Brand
Slide 28: For personal use only
For personal use only FY2022 ANNUAL RESULTS & INVESTOR PRESENTATION 28 AUGUST 2022