Evoke Plc · LSE:EVOK
Evoke — 888 Holdings — Investor Presentation (November 2021)
30 slides from Evoke's investor presentation, November 2021
Slide 1: 888 Holdings Plc Corporate Presentation
888 Holdings Plc Corporate Presentation November 2021
Slide 2: Disclaimer
DISCLAIMER ◎ This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commi
Slide 3: Agenda
AGENDA 1 Introduction to 888 2 Overview of William Hill International Transaction 3 H1 2021 Results and Q3 2021 Trading Update 4 Summary 3
Slide 4: Introduction to 888
INTRODUCTION TO 888 4
Slide 5: 888: A Global Leader
888: A GLOBAL LEADER A leading online betting and gaming company; growth strategy underpinned by four key pillars Regulated market leadership Proprietary technology powering Revenue mix by product – H1 2021 supports global diversification product-leadership B2B 4% Betting ➢ Licensed in 16 jurisdicti
Slide 6: Regulated Market Footprint
REGULATED MARKET FOOTPRINT Well diversified geographic mix with a focus on regulated markets Secured new German license with long term potential still multiple times current TAM Diversified revenue mix (H1 2021) Denmark 16 Licenses RoW 2% Ireland UK ▪ UK Americas ▪ Gibraltar 12% Sweden ▪ Ireland ▪ G
Slide 7: US Brand Partnership
US BRAND PARTNERSHIP Strategic partnership with the iconic Sports Illustrated brand to launch SI Sportsbook Strong foundations to drive market share gains and exploit long-term opportunity Scalable Proprietary Technology Integrated Content, Product Media & Leadership Gaming Iconic Operational Leadin
Slide 8: Proprietary Technology
PROPRIETARY TECHNOLOGY Unique infrastructure with scalable and proven in-house technology ◎ Highly scalable and secure proprietary Customer-facing interface: mobile, tablet, and desktop platform underpins competitive advantages ◎ UX / responsiveness / speed / segmentation and personalisation / Contr
Slide 9: Product Leadership
PRODUCT LEADERSHIP Best-in-class features; differentiated proprietary content; and AI-driven personalisation Customer Engagement Safety Content Industry leading UX, built Leadership with a customer-first focus 888’s quick and intuitive 888’s in-house games Industry innovations like Betfeed Control C
Slide 10: Data Driven Investments
DATA DRIVEN INVESTMENTS Highly effective, automated, and flexible data-driven marketing machine Significant growth in new customers in 2020 vs. 2019 Product and marketing investments successfully driving retention as well as FTDs Monthly average active customers1 2015-H1 2021 (‘000) 160% 150% Monthl
Slide 11: Safer Gambling
SAFER GAMBLING Safer. Better. Together strategy roll-out, with 8 commitments 1 2 3 4 CULTURE OF PREVENTING RAISING RESEARCH, RESPONSIBILITY HARM STANDARDS EDUCATION AND TREATMENT We are committed to change We are committed to We are committed to within our business, creating a identifying those pote
Slide 12: Overview of William Hill International Transaction
OVERVIEW OF WILLIAM HILL INTERNATIONAL TRANSACTION 12
Slide 13: Asset to be Acquired
ASSET TO BE ACQUIRED William Hill International comprises all operations outside the US of William Hill and Mr Green Trusted, iconic brand with strong Revenue1: $650m Revenue Split by Online Revenue Split Retail Revenue Split UK Retail Geography (2020A)2 by Product (2020A) by Product (2020A) sports
Slide 14: A Transformational Combination
A TRANSFORMATIONAL COMBINATION Placing the business in the best position to capitalise on significant growth opportunities ◎ Enhanced exposure to sports betting, the world’s largest and fastest growing online segment Portfolio of Diversifying revenue mix leading brands ◎ Increases regulated and taxe
Slide 15: Multiple Strategic Benefits
MULTIPLE STRATEGIC BENEFITS Combining complementary businesses creates significant growth opportunities Sports betting is the fastest growing segment Scale and capabilities creates a virtuous circle ◎ Access to a leading brand with strong sports heritage ◎ Influx of operating expertise in sports bet
Slide 16: Attractive Regulated Markets
ATTRACTIVE REGULATED MARKETS Enhanced position in attractive end markets, supporting superior growth profile Established and enhanced presence in attractive, growing online markets1 Clear route to becoming a global leader 2020 Online gambling revenue ($bn) and 5 Combined market: CAGR year CAGR (2015
Slide 17: Diversified Geography and Scale
DIVERSIFIED GEOGRAPHY AND SCALE Well diversified geographic split and enhanced regulated mix 1 Enlarged group1 RoW 2% Americas 1% Americas 4% RoW 1% Americas 11% EMEA Geographic UK Spain 17% UK EMEA UK 2% 21% mix Online Online Online EMEA 39% 38% 39% (by revenues) Italy 3% 30% UK Spain Retail 4% UK
Slide 18: Improving Customer Experience
IMPROVING CUSTOMER EXPERIENCE Leverage best in class product features across brands to enhance customer proposition ◎ AI driven personalisation ◎ Shared ethos to make products as safe ◎ Differentiated product as possible and raise industry standards features ◎ Industry leading Control Centre product
Slide 19: Attractive Financial Profile
ATTRACTIVE FINANCIAL PROFILE Strong shareholder value creation, with optimised longer term capital structure Financial profile Capital management framework Debt ◎ Obtained fully committed debt financing of £2.1 billion financing 2020 WHI Revenue: $1,486m ◎ Intention to raise gross proceeds of approx
Slide 20: Synergies
SYNERGIES Significant synergy potential to drive immediate value creation and fuel growth ◎ Pre-tax cost synergies of c.£100m1 p.a. including c.£15m A broad range of benefits across the whole cost base capex synergies, to be realised by the end of 2025 Summary ◎ Estimated one-time cash costs ~1x syn
Slide 21: H1 2021 Results and Q3 2021 Trading Update
H1 2021 RESULTS AND Q3 2021 TRADING UPDATE 21
Slide 22: H1 2021 Financial Highlights
H1 2021 FINANCIAL HIGHLIGHTS Record revenues, Adjusted EBITDA and Adjusted EPS US$ millions H1 2021 H1 2020 YoY B2C 509 361 +41% ◎ Revenue growth of +39% (+29%cc1) driven by expansion in regulated markets Revenue B2B 19 18 +8% Total 528 379 +39% ◎ Stable Adjusted EBITDA margin, with strong scale ben
Slide 23: Q3 2021 Trading Update
Q3 2021 TRADING UPDATE Q3 performance underpins the Board’s full year expectations ◎ The Group’s Q3 2021 performance was in line with the Board’s expectations US$mm Q3 2020 Q3 2021 YoY ◎ Group revenue +7% (+3% CC1) driven by continued expansion in regulated markets, despite a tough comparator period
Slide 24: Summary
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Slide 25: Summary
SUMMARY Continued momentum and well positioned to deliver further strategic progress ◎ Transformational acquisition of William Hill International, creating a high-growth global leader with significant scale ◎ Continued positive trading performance of 888 underpins full year expectations despite addi
Slide 26: Appendix
APPENDIX 26
Slide 27: Quarterly Group Revenue
QUARTERLY GROUP REVENUE US$m 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 B2C Gaming 107 111 109 114 131 186 175 200 221 208 194 B2C Betting 23 22 22 23 26 19 32 46 42 39 27 B2C 130 133 131 137 157 204 206 247 263 246 220 B2B 8 7 7 8 8 10 9 8 10 10 10 Total 137 140 138 145 165 214 216 255 273 256
Slide 28: H1 2021 Revenue by Product
H1 2021 REVENUE BY PRODUCT Revenue H1 2021 vs H1 2020 ($ millions) ◎ Strong momentum continued into H1 2021 with +39% +41% 39% revenue growth 528 509 ◎ Gaming up 35%, benefitting from new content +35% launches, improved AI features and effective 429 marketing 379 361 ◎ Betting up 82%, benefitting fr
Slide 29: WHI Transaction Overview
WHI TRANSACTION OVERVIEW ◎ William Hill International (“WHI”) comprises all operations outside the US of William Hill and Mr Green Asset to be ◎ William Hill is one of the UK’s leading bookmakers, with >1,400 retail betting shops across the UK, and c.2 million UK online actives acquired ◎ Core terri
Slide 30: Proforma Online Revenue Mix
PROFORMA ONLINE REVENUE MIX Enlarged group Americas ROW Americas ROW Americas ROW 11% 2% 2% 0% 6% 1% Well diversified UK EMEA geographic split 39% 27% EMEA 29% UK and enhanced EMEA 52% 30% Spain UK regulated mix 3% 63% Italy Italy 10% Spain 5% Spain 5% Italy 8% 7% B2B B2B 4% 2% Balanced Sports produ