Betr Entertainment Limited · ASX:BBT
Betr Entertainment — BlueBet Holdings — FY2023 Earnings Presentation
29 slides from Betr Entertainment's earnings presentation, Aug 31, 2023
Slide 1: FY23 Results & Investor Presentation
31 August 2023 FY23 Results & Investor Presentation BlueBet Holdings Limited (ASX:BBT) (BlueBet or the Company) is pleased to provide the attached FY23 Results & Investor presentation. AUTHORISATION This announcement has been authorised for lodgement to the ASX by the BlueBet Board of Directors For
Slide 2: FY2023 Results & Investor Presentation
For personal use only FY2023 RESULTS & INVESTOR PRESENTATION August 2023 1
Slide 3: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Acceptance included in this presentation. The non-IFRS financial information in this presentation has not been audited or reviewed in accordance with AAS. All This presentation has been prepared by BlueBet Holdings Ltd (ACN 647 124 641) (BlueBet). By accepting, accessin
Slide 4: FY23 Highlights
FY23 HIGHLIGHTS Continuing to gain share in Australia, invest in Product and make progress in the US For personal use only Active Customers¹ up 25.5% Turnover up 4.8% Robust Net Win 34.8% increase to 66,929 to $536.6m of 10.0% in Sport Turnover Continuing to gain market share Driven by strong growth
Slide 5: Key Operational Highlights – FY23
KEY OPERATIONAL HIGHLIGHTS – FY23 Aug-2023 Apr-2023 Launch of refreshed For personal use only Jul-2022 Launched online branding and Certification and Feb-2023 sports betting positioning approval of our Oct-2022 Exhibitor at Indian operations in spearheaded by platform by GLI Strategic investment Gam
Slide 6: FY23 Key Metrics Dashboard - Group
FY23 KEY METRICS DASHBOARD - GROUP¹ Market share gains driving strong growth in Active Customers, Bet Count and Turnover For personal use only 11.6 million 66,929 Bet Count Active Customers2 (+9.1%) (+25.5%) $536.6 million 10.0% Turnover Net Win margin (+4.8%) (-0.7pp) $71.6 million $428 Gross Win 1
Slide 7: Australian Trading Business
For personal use only AUSTRALIAN TRADING BUSINESS 6
Slide 8: Australia FY23 Key Metrics
AUSTRALIA FY23 KEY METRICS Market share gains drive strong Australia performance FY22 FY23 PCP • Turnover up 3.5% to $530.0m, driven by 24% increase For personal use only 65,415 ACTIVE 53,328 in marketing spend due to seasonality and tactically +22.7% CUSTOMERS¹ increased investment in H1 FY22 FY23
Slide 9: Record Active Customers and Bet Count - Australia
RECORD ACTIVE CUSTOMERS¹ AND BET COUNT² - AUSTRALIA Active Customers up 22.7% to 65,415. 12-month rolling Bet Count now over 11.6m +22.7% on PCP For personal use only 65,415 +8.7% on PCP 63,118 59,632 11.6 11.4 11.2 54,920 11.0 53,328 10.6 49,556 9.7 45,087 8.8 39,195 7.7 32,472 6.5 6.0 26,824 25,54
Slide 10: Turnover by Product - Australia
TURNOVER BY PRODUCT - AUSTRALIA Outperforming the market with Turnover up 3.5% to $530.0m driven by strong growth in Sport For personal use only $530.0m FY23 Turnover Thoroughbred Greyhound Harness Sport $265.0m $129.5m $43.7m $91.8m (FY23) 51% 25% 9% 15% +2.2% -6.3% -5.7% +34.8% $511.9m FY22 Turnov
Slide 11: Mobile First Focus - Australia
MOBILE FIRST FOCUS - AUSTRALIA Mobile Turnover up to 68% of total, with Mobile margin remaining strongest at 11.2% Turnover ($ million) by channel Net Win Margin % by channel For personal use only (FY22 – FY23) (FY22 – FY23) +5.5% 297.1 11.6% 11.5% 11.7% 281.6 11.1% 8.6% 8.0% -3.4% 7.6% 7.3% 166.1 1
Slide 12: Annual Value & Cost of Acquisition - Australia
ANNUAL VALUE & COST OF ACQUISITION - AUSTRALIA CPAs to continue to decline in FY24 Cost of Acquisition For personal use only 500 $447 $449 450 $428 Annual CFTD of $428 has $405 Q4 CTFD was $362 and $386 peaked, reducing 400 5% versus $362 delivered a 2.3x ratio to last quarter and350 delivered 1.9x
Slide 13: Launch of New Positioning & Creative
LAUNCH OF NEW POSITIONING & CREATIVE For personal use only 12
Slide 14: Complete Brand Overhaul in FY24
COMPLETE BRAND OVERHAUL IN FY24 Signed new ambassador, launch new campaign, refreshed brand launch and front-end design For personal use only BlueBet Brand Refreshed brand / Launch of new New Website / Ambassador logo design brand campaign App Launch 13
Slide 15: FY24 Marketing Priorities
FY24 MARKETING PRIORITIES Launch of new brand campaign, refreshed brand design and focus on customer value driving initiatives • Launch of first new brand campaign first for BlueBet in 4 years, featuring well-known For personal use only Enhanced CRM. media and sports personality Matt Nable Better pr
Slide 16: Australia Regulatory Environment
AUSTRALIA REGULATORY ENVIRONMENT BlueBet well positioned to manage any regulatory changes For personal use only Parliamentary enquiry into online wagering Launch of BetStop Responsible Gaming The Federal government recently The National Self-Exclusion Register BlueBet has integrated its systems with
Slide 17: US Market Entry
For personal use only US MARKET ENTRY 16
Slide 18: Current State of Play in US
CURRENT STATE OF PLAY IN US Legal online sports better expected to be available in >40 states by end 20231 and to 96% of US population by 20252 For personal use only Legal sports betting in the US Now 21 states with full mobile betting 4 states with limited mobile betting 10 states with in- person r
Slide 19: US Market Entry Update
US MARKET ENTRY UPDATE ClutchBet up and running in Iowa and Colorado targeting October 2023 go-live in Louisiana and Indiana in January 2024 For personal use only • Team fully established to deliver Phase 1 of US strategy • ClutchBet launched in Iowa August 2022 with an initial focus on product enha
Slide 20: Iowa / Colorado Highlights
IOWA / COLORADO HIGHLIGHTS Successful launch in two markets with Hyper localised marketing approach For personal use only • Iowa local sponsorships include • 3 ClutchBet Sports Lounges in Dubuque, North Liberty and Iowa City • Dubuque Fighting Saints (US Hockey League) • RecPlex Men’s recreational B
Slide 21: Financials
For personal use only FINANCIALS 20
Slide 22: Group Results – Income Statement
GROUP RESULTS – INCOME STATEMENT • Turnover up 4.8% vs. $000'S FY23 FY22 strong PCP, driven by Turnover (gross of GST) 536,647 511,919 For personal use only growth in Active Payouts (gross of GST) (465,055) (441,405) Customers amid strong Gross Revenue 71,592 70,514 competition Promotions given (gro
Slide 23: EBITDA Reconciliation
EBITDA RECONCILIATION Strong Australian performance to outperform the market supports investment in marketing, technology and headcount to support future growth For personal use only EBITDA FY22 (5,484) • Gross profit decreased 8.1%, with a 0.7pp decline in net win margin offsetting turnover growth
Slide 24: Balance Sheet
BALANCE SHEET Well positioned to continue to scale in Australia and execute Capital Lite US entry strategy $000'S 30 JUN 2023 30 JUN 2022 Assets Current assets For personal use only Cash and cash equivalents 22,695 47,268 Trade and other receivables 363 632 Income Tax refund due 46 1,013 Other asset
Slide 25: Summary of Cash Flows
SUMMARY OF CASH FLOWS • Net Cash used in $000'S FY23 FY22 operating activities was For personal use only Cash flows from operating activities ($14.8m) after investing Receipts from customers (Client deposits) 142,035 126,567 ($8.8m) in US and Payments to customers (Client withdrawals) (87,845) (71,2
Slide 26: FY24 Priorities
For personal use only FY24 PRIORITIES 25
Slide 27: Delivering on Our Commitments
DELIVERING ON OUR COMMITMENTS Delivering our strategy, with ongoing product investment to power the next phase of revenue and earnings growth For personal use only Deploying Deploying IT A Strong and Platform US Market Marketing Business Funds Entry Funds Launched new advertising and Significant
Slide 28: FY24 Priorities
FY24 PRIORITIES Strategic execution to achieve scale in Australia and US For personal use only Expect to continue to outperform market and B2C progress to continue with growth in 2 live grow share states and go-live in Louisiana and Indiana Continued product investment, with BlueBet Continue to enha
Slide 29: For personal use only
For personal use only 28