Pointsbet Holdings Ltd. · ASX:PBH
Pointsbet — Investor Presentation (August 2024)
37 slides from Pointsbet's investor presentation, Aug 22, 2024
Slide 1: FY24 Results Presentation
FY24 RESULTS PRESENTATION | August 2024 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
Slide 2: Important Notice and Disclaimer
FY24 RESULTS PRESENTATION AUG 2024 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, no
Slide 3: Agenda
FY24 RESULTS PRESENTATION AUG 2024 AGENDA AUSTRALIA CANADA GROUP FY24 POINTSBET FY25 BUSINESS BUSINESS FINANCIAL APPENDIX HIGHLIGHTS OUTLOOK GUIDANCE REVIEW REVIEW PERFORMANCE 3
Slide 4: FY24 Key Business and Financial Highlights
FY24 RESULTS PRESENTATION AUG 2024 FY24 KEY BUSINESS AND FINANCIAL HIGHLIGHTS FY24 Results Reflect Strong Completion of US Business Sale and Business Momentum Successful Capital Return • FY24 Normalised EBITDA of ($1.8m), a $47.2 m • Completed sale of US Business to Fanatics Betting improvement on t
Slide 5: Recap: Achieved and Exceeded FY24 Profit & Loss Guidance
FY24 RESULTS PRESENTATION AUG 2024 RECAP: ACHIEVED AND EXCEEDED FY24 PROFIT & LOSS GUIDANCE All figures in A$ FY24 Guidance FY24 Achieved FY24 TOTAL NET WIN TO BE 10%-20% HIGHER THAN FY23 WHICH $267.1M NET WIN EQUATES TO $253-$276M 16% higher GROSS PROFIT MARGIN GROSS PROFIT MARGIN IN FY24 TO BE c
Slide 6: Group Trading and Financial Metrics
FY24 RESULTS PRESENTATION AUG 2024 FY24 GROUP TRADING AND FINANCIAL METRICS All figures in A$ FY24 FY23 PCP Turnover / Handle1 $2,931.8m $2,827.3m +4% Gross Record Group Revenue of $245.5m, up 11.5% 11.4% +0.2pp Win2 Margin % 17% on the PCP SPORTS Gross Win2 $338.2m $321.4m +5% BETTING Net Win3 Ma
Slide 7: Agenda
FY24 RESULTS PRESENTATION AUG 2024 AGENDA AUSTRALIA CANADA GROUP FY24 POINTSBET FY25 BUSINESS BUSINESS FINANCIAL APPENDIX HIGHLIGHTS OUTLOOK GUIDANCE REVIEW REVIEW PERFORMANCE 7
Slide 8: Australia FY24 Trading and Financial Metrics
FY24 RESULTS PRESENTATION AUG 2024 AUSTRALIA FY24 TRADING AND FINANCIAL METRICS All figures in A$ FY24 FY23 PCP Record Revenue result of $211.5m up 10% vs the PCP Turnover / Handle1 $2,676.8m $2,632.6m +2% Gross Profit Margin of 52.9% vs 51.2% Gross Win2 Margin % 11.8% 11.7% +0.0pp in the PCP du
Slide 9: Australia: Commitment to Funding Racing and Sports, Customer Protection
FY24 RESULTS PRESENTATION AUG 2024 AUSTRALIA WE ARE PROUD OF OUR COMMITMENT TO FUNDING RACING AND SPORTS, AND BEST IN CLASS CUSTOMER PROTECTION National Consumer Protection Framework $111m Taxes and Fees paid in FY24 deliverables plus other initiatives now complete 1 GST (to Federal): $21.2M Integra
Slide 10: Australia: PointsBet Supports Gambling Advertising Reform
FY24 RESULTS PRESENTATION AUG 2024 AUSTRALIA POINTSBET SUPPORTS GAMBLING ADVERTISING REFORM TO SIGNIFICANTLY REDUCE RISK OF EXPOSURE TO KIDS, FAMILIES AND VULNERABLE PEOPLE Possible reforms discussed in media Additional reform PointsBet supports Ban Gambling advertising +/- 1 hour before and after l
Slide 11: Agenda
FY24 RESULTS PRESENTATION AUG 2024 AGENDA AUSTRALIA CANADA GROUP FY24 POINTSBET FY25 BUSINESS BUSINESS FINANCIAL APPENDIX HIGHLIGHTS OUTLOOK GUIDANCE REVIEW REVIEW PERFORMANCE 11
Slide 12: Canada FY24 Trading and Financial Metrics
FY24 RESULTS PRESENTATION AUG 2024 CANADA FY24 TRADING AND FINANCIAL METRICS1 All figures in A$ FY24 FY23 PCP Turnover / Handle2 $255.0m $194.8m +31% Statutory Segment EBITDA loss Gross reducing to ($19.7m) compared to a 9.0% 6.4% +2.6pp Win3 Margin % loss of ($35.8m) in the PCP SPORTS Gross Win3
Slide 13: Canada: iGaming Product Improvements Key to Canada Opportunity
FY24 RESULTS PRESENTATION AUG 2024 CANADA | IGAMING PRODUCT IMPROVEMENTS KEY TO CAPITALIZING ON CANADA OPPORTUNITY OPPORTUNITY TO ACCELERATE REVENUE GROWTH WITH IMPROVED IGAMING PRODUCT Previous Improved iGaming is a significant portion of the Canadian capability capability (H1 FY25) Market Integr
Slide 14: Agenda
FY24 RESULTS PRESENTATION AUG 2024 AGENDA AUSTRALIA CANADA GROUP FY24 POINTSBET FY25 BUSINESS BUSINESS FINANCIAL APPENDIX HIGHLIGHTS OUTLOOK GUIDANCE REVIEW REVIEW PERFORMANCE 14
Slide 15: Normalised Group Results Summary Continuing Operations
FY24 RESULTS PRESENTATION AUG 2024 NORMALISED1 GROUP RESULTS SUMMARY CONTINUING OPERATIONS All amounts in A$m2 FY24 FY23 REVENUE3 Revenue in FY24 increased by 17% over the PCP. Revenue 245.5 210.3 GROSS PROFIT Gross profit margin of 52.8% , up on the PCP, driven by increased global Cost of sales (11
Slide 16: Balance Sheet
FY24 RESULTS PRESENTATION AUG 2024 BALANCE SHEET A$m1 FY24 FY23 Cash and cash equivalents 42.2 212.1 CASH AND CASH EQUIVALENTS Investments held at fair value 0.0 340.9 At 30 June 2024, the Company had $28.1 million2 in Corporate Cash. Right-of-use assets 2.0 3.5 NET ASSETS MOVEMENTS Intangible asset
Slide 17: Cash Flows
FY24 RESULTS PRESENTATION AUG 2024 CASH FLOWS A$m1 FY24 FY232 Cash flows from operating activities Receipts from customers (inclusive of GST) 267.1 402.2 Payments to suppliers and employees (inclusive of GST) (263.7) (628.5) As at 30 June 2024, the Company had $28.1 million Cash generated from / (us
Slide 18: Agenda
FY24 RESULTS PRESENTATION AUG 2024 AGENDA AUSTRALIA CANADA GROUP FY24 POINTSBET FY25 BUSINESS BUSINESS FINANCIAL APPENDIX HIGHLIGHTS OUTLOOK GUIDANCE REVIEW REVIEW PERFORMANCE 18
Slide 19: PointsBet Continuing Operations Revenue Growth FY19-FY24
FY24 RESULTS PRESENTATION AUG 2024 POINTSBET | CONTINUING OPERATIONS REVENUE GROWTH FY19-FY24 POINTSBET HAS CONSISTENTLY DELIVERED REVENUE GROWTH SINCE INCEPTION ONTARIO LAUNCH (4 APRIL 2022) +17% 56% COVID-19 CAGR 245.5 210.3 34.0 NET REVENUE A$M 195.4 18.2 151.0 211.5 195.2 192.1 68.2 151.0 26.3 6
Slide 20: Australia and Canada Growing Net Revenue TAM
FY24 RESULTS PRESENTATION AUG 2024 POINTSBET | AUSTRALIA AND CANADA GROWING NET REVENUE TAM POINTSBET’S TOTAL ADDRESSABLE MARKET (NET REVENUE) ACROSS ONLINE SPORTSBOOK (PRE-MATCH AND IN- PLAY) AND IGAMING IS SIGNIFICANT TAM - Net Revenue (A$BN)1 BRITISH COLUMBIA EXPECTED ALBERTA GO LIVE EXPECTED GO
Slide 21: Canada: Market Share
FY24 RESULTS PRESENTATION AUG 2024 CANADA | MARKET SHARE POINTSBET HAS ESTABLISHED ITSELF AND STEADILY GROWN SHARE SINCE LAUNCHING IN APRIL 2022 PointsBet Net Win Market Share by Product Market Share Value (Net Win) Total OSB iGaming By FY28, it is estimated that 1% of Market Share will be worth 2.9
Slide 22: Customer - Australia: Cohort Analysis
FY24 RESULTS PRESENTATION AUG 2024 CUSTOMER - AUSTRALIA | COHORT ANALYSIS POINTSBET HAS A PROVEN TRACK RECORD OF SUSTAINABLE NET WIN GROWTH Net Win by Year of Sign Up (A$M) FY18 Cohort FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Slide 23: Customer - Canada: Cohort Analysis (Cont.)
FY24 RESULTS PRESENTATION AUG 2024 CUSTOMER - CANADA | COHORT ANALYSIS (CONT.) Net Win by Year of Sign Up (C$M) 2022 Cohort FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 Net Win per Net Win Cash Actives Net Win per Active Client 28 602 754 Cash Active 23
Slide 24: Client Promotion: Personalised Value
FY24 RESULTS PRESENTATION AUG 2024 CLIENT PROMOTION | PERSONALISED VALUE OUR MULTI-YEAR INVESTMENT IN DATA SCIENCE, PRODUCT AND CRM CAPABILITIES IS NOW BEING REALISED Key focus areas FY24 Case Study: Australia Predict each customer’s value $45.2m 26.0% Marketing Expense Client Promotion3 % • Data sc
Slide 25: Technology & Product: Sports – Australia and Canada
FY24 RESULTS PRESENTATION AUG 2024 TECHNOLOGY & PRODUCT | SPORTS – AUSTRALIA AND CANADA POINTSBET IS PRIORITISING ITS INNOVATION IN SPORT & SGM, POWERED BY ODDSFACTORY INVESTMENT PointsBet Proprietary Sports Platform • 63% of Sports Actives use SGM in FY24 vs 45% in FY21 OddsFactory & Sport Platform
Slide 26: Operations: End to End Customer Experience Through Global 24/7 Operating Model
FY24 RESULTS PRESENTATION AUG 2024 OPERATIONS | END TO END CUSTOMER EXPERIENCE THROUGH GLOBAL 24/7 OPERATING MODEL POST US BUSINESS SALE, POINTSBET IS SET UP TO HANDLE GLOBALLY DIVERSE OPERATING REQUIREMENTS 24/7 Follow The Sun Operating Model Global Teams Customer Service Trading & Risk Management
Slide 27: Financials: Significant Operating Leverage
FY24 RESULTS PRESENTATION AUG 2024 FINANCIALS | SIGNIFICANT OPERATING LEVERAGE INVESTMENT IN MARKETING, TECHNOLOGY AND PRODUCT DRIVING TOP LINE GROWTH NOW SUPPORTED BY STABILISING FIXED COST BASE Technology1 & Marketing Spend as % Revenue Fixed Costs2 as % Revenue 200.0 40.0% 39% 180.0 35.0% 200.0 4
Slide 28: Financials: EBITDA
FY24 RESULTS PRESENTATION AUG 2024 FINANCIALS | EBITDA POINTSBET IS TRANSITIONING TO EBITDA POSITIVITY AND ON THE PATH TO 20% EBITDA MARGIN 30% 30 20% TECH CAPEX 20 (5%) (Proxy for MT 10% D&A1) 10 (1%) 15% (1.8) 0 (6%) (10%) (10) (23%) (20) (30%) (9%) (30) (40) (49.0) (50%) (50) (60) (70%) (70) FY23
Slide 29: Agenda
FY24 RESULTS PRESENTATION AUG 2024 AGENDA AUSTRALIA CANADA GROUP FY24 POINTSBET FY25 BUSINESS BUSINESS FINANCIAL APPENDIX HIGHLIGHTS OUTLOOK GUIDANCE REVIEW REVIEW PERFORMANCE 29
Slide 30: Guidance: FY25 Guidance – Strong Revenue Growth Off Established Cost Base
FY24 RESULTS PRESENTATION AUG 2024 GUIDANCE | FY25 GUIDANCE – STRONG REVENUE GROWTH OFF ESTABLISHED COST BASE All figures in A$ FY25 FY24 Guidance Assumptions • Australia – Continue to outperform the market and grow market share REVENUE $280M – $290M $245.5M • Canada – Continue to outperform the mar
Slide 31: Guidance: EBITDA
FY24 RESULTS PRESENTATION AUG 2024 GUIDANCE | EBITDA POINTSBET IS ON THE PATH TO 20% EBITDA MARGIN AND OUR EBITDA TRAJECTORY IS CLEAR 100 35% 80 60 20% 25% 40 15% 20 5% (1%) 11.0 - 16.0 0 (1.8) (5%) (20) (49.0) (15%) (40) (60) (23%) (25%) FY23 FY24 FY25 FY26 MT Target (Illustrative) EBITDA A$M (LHS)
Slide 32: Agenda
FY24 RESULTS PRESENTATION AUG 2024 AGENDA AUSTRALIA CANADA GROUP FY24 POINTSBET FY25 BUSINESS BUSINESS FINANCIAL APPENDIX HIGHLIGHTS OUTLOOK GUIDANCE REVIEW REVIEW PERFORMANCE 32
Slide 33: Statutory Group Results Summary
FY24 RESULTS PRESENTATION AUG 2024 STATUTORY GROUP RESULTS SUMMARY A$m1 FY24 FY23 Change (%) Australia Trading 211.5 192.1 10% Canada Trading 34.0 18.2 87% Technology 0.0 0.0 Corporate 0.0 0.0 Statutory Revenue2 245.5 210.3 17% Australia Trading 26.8 0.1 Canada Trading (19.7) (35.8) Technology 0.0 (
Slide 34: Statutory P&L
FY24 RESULTS PRESENTATION AUG 2024 STATUTORY P&L A$m1 FY24 FY23 Revenue2 245.5 210.3 Cost of sales (115.9) (104.6) Gross profit 129.6 105.7 Other income 0.0 0.0 Sales and marketing expense (71.0) (90.3) Employee benefits expense (44.5) (64.9) Product and technology expense (9.8) (14.0) Administratio
Slide 35: Statutory P&L Reconciliation
FY24 RESULTS PRESENTATION AUG 2024 STATUTORY P&L RECONCILIATION FY24 FY24 A$m1 Adjustments A$m1 FY24 Normalised Statutory Revenue2 245.5 0.0 245.5 Share based payments (non-cash) – employee share option plan (ESOP) and Key Employee Equity Plan (KEEP) 2.3 Cost of sales (115.9) 0.0 (115.9) Impact of A
Slide 36: Reconciliation of Net Win to Revenue
FY24 RESULTS PRESENTATION AUG 2024 RECONCILIATION OF NET WIN TO REVENUE A$m1 FY24 Net Win (inclusive of Goods and Services Tax) 267.1 Deduction for Goods and Services Tax (21.2) Fair Value adjustments (0.4) Total Reported Revenue 245.5 1. Average AUD/CAD rate was 0.8882 for FY24 and 0.9016 for FY23.
Slide 37: Financials: Cash Flow
FY24 RESULTS PRESENTATION AUG 2024 FINANCIALS | CASH FLOW FY23 to FY24 Cash Flow bridge (14.2) 5.5 0.9 0.4 (58.2) 37.1 (306.2) 248.0 (145.7) (159.9) FY23 Discontinued FY23 Increased Decreased Decreased Financing FY24 Proceeds FY24 Statutory Net Operations P/F Net Cash Receipts Payments to Investing
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