Entain PLC · LSE:ENT
Entain — Gaming VC Holdings — Corporate Update (January 2010)
12 slides from Entain's corporate update, Jan 26, 2010
Slide 1: Relaunch of CasinoClub and sportsbook offering; Intended special dividend; Trading update
Relaunch of CasinoClub and sportsbook offering Appointment of key industry management Intended special dividend Trading update RNS, 26 January 2010 Kenneth Alexander, Chief Executive :: Richard Cooper, Group Finance Director
Slide 2: Contents
Contents ♠ Key themes ♠ Trading update ♠ Explanation of strategy ♠ Business summaries ♠ Dividend issues ♠ Timetable of events 1
Slide 3: Key themes
Key themes ♠ Expansion strategy intended to: ♦ Build cash generative businesses ♦ Continue to spread market & regulatory risk away from Germany ♦ Use cashflow from existing business to make eps enhancing investments ♦ Leverage existing & new management team ♦ Provide basis for future dividend growth
Slide 4: Q4 2009 and current trading
Q4 2009 and current trading ♠ Estimated NGR for FY 2009: up 7.2% at €53.7 million (2008: €50.1 million) ♦ Revenues from sports: up 38% at €8.7 million (2008: €6.3 million) ♦ Revenues from gaming: up 3% at €45.0 million (2008: €43.8 million) ♠ Average daily revenues for FY 2009: €142k ♦ €24k from spo
Slide 5: Strategy
Strategy ♠ Aggressive expansion plans into international markets ♦ expansion and re-launch of CasinoClub outside core German market ♦ launch of additional language versions of sportsbook offering into new territories ♦ investment of €7 million during 2010 to establish these businesses ♠ Significant
Slide 6: Business lines and management
Business lines and management . Business Platform Strategy Key personnel Their background Casino club Germany & Austria Boss Media Milk and defend T Tietjen Titan Casino club - Other Cryptologic Launch and grow J Salmon PartyGaming Betaland sports & gaming, Italy Wirex Grow & defend F. Arena Sportin
Slide 7: Background
Background ♠ German VIP business will continue to decline, putting at risk current divi policy if no action taken. ♦ E.g 75% of current year pbt = €12.2m = current dividend ♦ Any decline would therefore result in a declining dividend ♠ Furtherance of strategy through recruitment of quality/experienc
Slide 8: Dividend policy
Dividend policy ♠ Policy is 75% of net retained cash ♠ Special dividend ♦ Modelled at 50c ♣ Key risks – poor sports results, big casino wins ♦ follows proposed redomiciliation of the Group to the Isle of Man for tax efficiency ♦ de-risks expansion plans/regulatory issues for investors ♠ To incentivi
Slide 9: Intended special dividend
Intended special dividend ♠ Intended special dividend follows proposed redomiciliation of the Group to the Isle of Man (“IoM”) ♠ Special dividend of not less than €0.50 cents per share ♦ in lieu of 2009 final dividend ♦ IoM tax legislation means special dividend attracts no withholding tax ♦ payment
Slide 10: Timetable
Timetable Re-dom ♠ End February First circular to shareholders ♠ March-April Shareholder meetings ♠ Mid-May Legal move to Isle of Man ♠ Late May Special dividend Other dates ♠ Early April 2010 Preliminary Results ♠ 22 May 2010 AGM ♠ September Interim results ♠ Q4 2010 Interim dividend ♠ Mid-Q2 2011
Slide 11: Summary
Summary ♠ Continued diversification of casino business outside of Germany ♠ Aggressive expansion plans in international markets ♠ Key additions to management team ♠ Payment of special dividend ♠ Net Gaming Revenue up for FY 2009 10
Slide 12: Important information disclaimer
The information in this presentation, which is for background purposes only, is preliminary in nature and is subject to change. This presentation sets out certain features of Gaming VC Holdings S.A. and does not purport to provide a complete description of Gaming VC Holdings S.A or its shares. This