Entain PLC · LSE:ENT
Entain — BetMGM — Investor Day (May 2022)
35 slides from Entain's investor day presentation, May 2022
Slide 1: BetMGM Investor Day
Re) BETMGM INVESTOR DAY MAY 127TH, 2022
Slide 2: Disclaimer
Disclaimer This document does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities in any jurisdiction where such offer or sale is not permitted. Any securities referred to herein, if any, have not been, and will not be, registered under the Securities Act of 19
Slide 3: Agenda
Agenda Introduction Marketing Adam Greenblatt Product Chief Executive Officer Financials Conclusion Q&A 3
Slide 4: Overview of Performance and Targets
Overview of Performance and Targets Strong performance to date and on track to achieve our objectives Delivering against our strategy • Financial Performance: ~$850M of net revenue in 2021 • Live Markets: 23 across the U.S. and Canada • Market Share: 25% active market share in February 2022 with 29%
Slide 5: Total Addressable Market
Total Addressable Market Sports betting and iGaming market in the U.S. and Canada expected to reach $37 billion GGR at maturity Total Addressable Market U.S. • ~38% of the adult population iGaming • Average GGR per adult of ~$160 Canada $4.4B U.S. • ~80% of the adult population $37B North American T
Slide 6: Responsible Gambling
Responsible Gambling Building a sustainable industry through responsible gambling measures BetMGM recognizes the importance of responsible gambling, and we are committed to embedding it across all company activities To meet this commitment, we are focused on the development and continuous improvemen
Slide 7: Market Access and Launches
Market Access and Launches Continuing rapid expansion across the U.S. and Canada +11 New markets since 2021 Investor Day, totaling 23 today WA Ontario ME VT MT ND NH MN NY MA OR 23 CT RI ID WI MI BetMGM branded sportsbooks SD NJ WY PA IA DE OH MD NV NE IL IN WV VA 41% D.C. U.S. population reached ac
Slide 8: Market Share
Market Share Gaining share and established as a leader #1 Active Market Share1 #2 National Market Share2 #1 National iGaming Market Share2 Overall Estimated Active Market Share1 Overall Estimated National Market Share2 30% 30% 15% 15% 0% 0% Q1 2020 Q1 2021 L3M Feb-22 Q1 2020 Q1 2021 L3M Feb-22 Sport
Slide 9: Drivers of Success and Profitability
Drivers of Success and Profitability Leveraging structural cost advantages that drive our superior economic model Key growth and profitability drivers: 9
Slide 10: Agenda
Agenda Introduction Marketing Matt Prevost Product Chief Revenue Officer Financials Conclusion Q&A 10
Slide 11: Commercial Strategy
Commercial Strategy Driven by four key components all underpinned by Business Intelligence Engine Business Intelligence Engine Core differentiators underpinned by our BI Engine and flexible media strategy allows us to Maximize ROI While spending $ hundreds of millions less than competitors 11
Slide 12: Brand
Brand Increased in scale and depth in the last 12 months. On track for target CPA of $250 + + Leverage MGM Assets Increasingly National Brand Expanded Campaign Depth + + Flexible Media Strategy Selective Investments in Content Local Investments in Key Partners 12
Slide 13: Omni & Loyalty
Omni & Loyalty Omni-channel activation is a core differentiator for BetMGM Retail Sportsbooks Loyalty Integration National NationalHarbor, Harbor,MD MD Raiders Tailgate, Las Vegas BetMGM Rewards 23 BetMGM Sportsbooks 100+ Hosted Events in Q1 2022 37M+ MGM Rewards members 20% Of all new players visit
Slide 14: Omni & Loyalty: retail extensions into other venues
Omni & Loyalty … And retail extensions into other venues further expand our footprint Gila River Resorts – Arizona (Q4 2021) Emerald Queen – Washington (Q4 2021) State Farm Stadium – Arizona (Est. Q3 2022) Nationals Park – Washington D.C. (Q1 2022) Thousands of customer & brand interactions per day
Slide 15: Omni & Loyalty: significant ROI benefits
Omni & Loyalty All combining to deliver significant ROI benefits Non-MGM Sourced MGM Sourced1 Est. Normalized Avg. Marketing ROI is 190% 6.5x higher for MGM- sourced players 1 100% 100% Players that are sourced through MGM Hosts are 11x more valuable than average BetMGM 29% customers CPA pNGR 1 MGM
Slide 16: Digital Execution
Digital Execution Powered by an integrated MarTech platform 19% Lower CPAs YoY 16
Slide 17: Personalization
Personalization Tailored experiences yield improved financial results On Product-Team Personalized Specific Offers Experiences Team specific offers Personalized items based on Favorite Team VIP Party, Aria, March Matchups selections Editorial content Odds feeds NASCAR, Pit Row VIP Event 68% YoY impr
Slide 18: Business Intelligence
Business Intelligence Enables optimization across the customer lifecycle Acquisition Conversion Cross-Sell Retention • Predictive analysis pROI • Pinpoint drop off within • Promotion from sports to • Predictive pChurn: extend calculated within 21 days conversion funnel and Gaming and vice versa in p
Slide 19: Commercial Strategy: Looking ahead
Commercial Strategy Looking ahead Brand • Increasingly national brand... with strong momentum Omni-Channel • Higher property visitation post Covid • Potential state regulation – MD, OH, MA, NY • Expanded capabilities with MGM Resorts Digital Execution • Building on robust MarTech and team capabiliti
Slide 20: Agenda
Agenda Introduction Marketing Jarrod Schwarz Chief Product Officer Product Financials Conclusion Q&A 20
Slide 21: Product
Product Strategy focused on 3 key areas Customer Differentiated Technology Experience Product & Content Stack 21
Slide 22: Customer Experience
Customer Experience We continue to improve the core product experience 2022 April 2019 22
Slide 23: Customer Experience: Redesign, Single Account and Wallet
Customer Experience Redesigning the BetMGM digital experience, including single account and wallet BetMGM Redesign Single Account and Wallet • Reimagined visual design • Sign up once, bet anywhere • Improved discovery • Unified wallet for deposits and withdrawals • Optimized betting experiences • Si
Slide 24: Gaming Product and Content
Gaming Product and Content Strengthening our position in iGaming through differentiated product and content #1 Market leader in U.S. iGaming market 1,000+ Games, including top 2 games developed in-house1 134% GGR increase in Live Dealer $80M+ Jackpots paid in the last twelve months Depth, exclusivit
Slide 25: Sports Product and Content
Sports Product and Content Investing into in-play, parlays and omni-channel to drive growth and margins +160% YoY Growth in live sports betting handle In-Play Launch in-play player props +400% YoY Growth in One Game Parlay handle Parlays Improve One Game Parlay product +126% YoY Growth in Customers
Slide 26: Technology
Technology Proprietary tech stack provides competitive advantage and cost-efficiency Unmatched scalability 1B U.S. transactions per Superior operating flexibility Month 71k Trading events globally Multi-brand capabilities 3 in 9 generated per minute Seamless omni-channel offering 3 new markets launc
Slide 27: Agenda
Agenda Introduction Marketing Gary Deutsch Product Chief Financial Officer Financials Conclusion Q&A 27
Slide 28: FY 2021 and Q1 2022 Results
FY 2021 and Q1 2022 Results Strong growth across all markets $850M ($430M) +8 $450M FY 2021 Est. FY 2021 Est. FY 2021 New markets launched Equity drawn in 2021 Net Revenue1 EBITDA 5x ($160M) $210M 6 Digital Sports Increase versus 2020 in prior year drawn in prior years 1 Casino 2 Poker 140% 4 Retail
Slide 29: 2022 & 2023 Outlook
2022 & 2023 Outlook On-track to achieve targets $1.3B+ $450M Est. FY 2022 Of equity Net Revenue1 drawn in 2022 ’22 EBITDA + EBITDA In line with FY During 2023 2021 1 Net revenues are based on how management analyzes the true economic performance of the business, which are not prepared in accordance
Slide 30: Business Model
Business Model NJ & MI already significantly profitable with other markets progressing well New Jersey Michigan TN, VA, CO, AZ Products OSB Gaming Poker OSB Gaming Poker OSB Omni-channel • #1 iGaming Market Share 1 Market • #1 iGaming Market Share 1 • Launched Day 1 Performance • 5 consecutive quart
Slide 31: Business Model: Stacking of profitable markets
Business Model Stacking of individual, profitable markets creates a highly-successful business Acquisition Contribution Breakeven Cumulative Payback Growing Annuity Market/Product Legalization initiates Player cohorts build on top of each other Markets build on top of each other leading to Marketing
Slide 32: Industry Sustainability
Industry Sustainability Sensible policies and initiatives critical to the industry’s prospects Pillars toOF PILLARS Sustainability SUSTAINABILITY 32
Slide 33: EBITDA Bridge
EBITDA Bridge Strong long-term EBITDA margin of 30% - 35% supported by cost advantages from MGM and Entain Long-term Margin Target1 Structural Cost Advantages • Parent tech, brand, and omni-channel strategy drive acquisition and retention cost advantages • In-house technology platform and support se
Slide 34: Conclusion
Strong 2021 and Q1 2022 performance, and delivering against goals Agenda Well-positioned within a large and growing market with TAM of Introduction $37B Marketing Deeper integration of world-class assets driving structural cost Product efficiencies Financials Conclusion Taking the lead on fostering
Slide 35: Q+A
Q+A To ask a question, please connect via the live audio dial-in details below: US: +1 (800) 289 0720 UK: +44 (0) 330 165 4012 International: +1 (323) 701 0160 Conference ID: 661 6118