Pointsbet Holdings Ltd. · ASX:PBH
Pointsbet — FY2021 Earnings Presentation
38 slides from Pointsbet's earnings presentation, Aug 31, 2021
Slide 1: FY21 Results Presentation
FY21 RESULTS PRESENTATION AUGUST 2021 FY21 RESULTS PRESENTATION | AUGUST 2021
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER • This document and any oral presentation accompanying it has been prepared in good faith, however, no express or implied representation or warranty is given as to the accuracy or completeness of the information in this document, in any accompanying presentation or in
Slide 3: Agenda
AGENDA FY21 HIGHLIGHTS Group Financial Performance Australian Business Review US Business Review Canada Opportunity Technology Conclusion Appendix FY21 RESULTS PRESENTATION | AUGUST 2021 3
Slide 4: PointsBet has put the pieces in place to be a market leader
POINTSBET HAS PUT THE PIECES IN PLACE TO BE A MARKET LEADER Established & Expanding North Marquee Media Partnership Leading Brand Ambassadors American Market Access Profitable Australian In-house market-leading Premium Strategic Business Coupled with technology stack Partnerships Strong U.S. Market
Slide 5: FY21 Achievements
FY21 ACHIEVEMENTS P Announced a transformational 5-year media partnership with NBCUniversal, providing PointsBet with deep access and integration into NBCUniversal’s world-leading broadcast and digital assets Achieved strong momentum in both our Australian and US businesses, with the Australian Trad
Slide 6: Key FY21 Trading Metrics
KEY FY21 TRADING METRICS GROUP AUSTRALIA US(1) All figures in A$ FY20 FY21 PCP FY20 FY21 PCP FY20 FY21 PCP TURNOVER / HANDLE(2) $1,151.6m $3,781.4m + 228% $830.5m $1,989.0m + 140% $321.1m $1,792.4m + 458% GROSS WIN % 10.2% 9.3% (0.9pp) 12.1% 12.9% + 0.8pp 5.1% 5.3% + 0.2pp SPORTS BETTING GROSS WIN(3
Slide 7: Active Clients
ACTIVE CLIENTS(1) Clients who have placed a cash bet in the last twelve months Cash Active Clients Australia Cash Active Clients US +117% on PCP 196,585 +661% on PCP 159,321 158,041 142,992 127,470 124,715 90,422 81,014 83,330 68,094 68,464 72,011 56,788 39,816 21,141 22,716 20,939 11,544 15,380 8,2
Slide 8: Agenda
AGENDA FY21 Highlights GROUP FINANCIAL PERFORMANCE Australian Business Review US Business Review Canada Opportunity Technology Conclusion Appendix FY21 RESULTS PRESENTATION | AUGUST 2021 8
Slide 9: Group Results – Normalised
GROUP RESULTS – NORMALISED A$m(1) FY20 FY21(4) • Australian marketing expense Revenue (2) 75.2 194.7 A$51.4 million for the Reporting Period, which increased versus the PCP utilising a refreshed brand campaign featuring NBA MVP Shaquille O'Neal Cost of sales (36.9) (107.0) Gross profit 38.2 87.6 • U
Slide 10: Segment Results – Statutory
SEGMENT RESULTS – STATUTORY A$m(1) FY20 FY21 Change (%) Revenue(2) 75.2 194.7 159% Statutory EBITDA Statutory results Australia Trading USA 6.9 (38.2) 9.2 (149.6) Technology (2.9) (9.6) Corporate (5.5) (12.4) Total Statutory EBITDA (39.7) (162.3) (309%) Loss for the year (41.5) (187.1) (351%) Basic
Slide 11: Balance Sheet – Statutory
BALANCE SHEET – STATUTORY A$m(1) As at 30 Jun 20 As at 30 Jun 21 Cash and cash equivalents 144.3 276.2 • Cash and cash equivalents Intangible assets 56.8 142.6 The group had $276.2 million in cash (of which $30.6 million represented client cash), a proportion Right-of-use assets 8.3 9.1 of which is
Slide 12: Cash Flows – Statutory
CASH FLOWS – STATUTORY A$m(1) FY20 FY21 Cash flows from operating activities Receipts from customers (inclusive of GST) 81.9 210.2 Payments to suppliers and employees (inclusive of GST) (113.7) (349.2) • At 30 June 2021 The Group had a cash balance of $276.2m, including (31.8) (139.0) $30.6m of clie
Slide 13: Agenda
AGENDA FY21 Highlights Group Financial Performance AUSTRALIAN BUSINESS REVIEW US Business Review Canada Opportunity Technology Conclusion Appendix FY21 RESULTS PRESENTATION | AUGUST 2021 13
Slide 14: Australia – Continued Momentum
AUSTRALIA – CONTINUED MOMENTUM POINTSBET AUSTRALIA – SPORTS BETTING TURNOVER / HANDLE (AUD) POINTSBET AUSTRALIA – PCP PERFORMANCE (AUD) Key metrics FY20 FY21 Change $1,989.0m Turnover / Handle $830.5m $1,989.0m + 140% Gross Win Margin 12.1% 12.9% + 0.8pp +140% Gross Win $100.8m $257.3m + 155% $830.5
Slide 15: PointsBet's Australian Business in Context
POINTSBET’S Comparative population size(1) Key market participants(3) (millions) (Online turnover market share) 329 AUSTRALIAN BUSINESS IN 26 19 #5 CONTEXT by online 13 market share(3) 9 AUS NJ IL NY USA (Launched in 2018) AUSTRALIA: +A$4BN Australian racing and sports wagering turnover(2) (A$bn, 30
Slide 16: Agenda
AGENDA FY21 Highlights Group Financial Performance Australian Business Review US BUSINESS REVIEW Canada Opportunity Technology Conclusion Appendix FY21 RESULTS PRESENTATION | AUGUST 2021 16
Slide 17: Our US Strategy Is Clear
OUR US STRATEGY IS CLEAR PointsBet will continue to invest to become a top 5 player, targeting 10% sports betting market share in all key US jurisdictions(1) ▪ Highly experienced team recognised for excellence in execution Market Leading ▪ Continued investment in critical technology, product and str
Slide 18: PointsBet's North American Market Access
POINTSBET’S NORTH AMERICAN MARKET ACCESS Ontario, Canada(3) Maine Washington Vermont New New Montana North Dakota Hampshire Minnesota York New Massachusetts Oregon York Wisconsin Rhode Island Idaho South Dakota Connecticut Michigan Wyoming(2) Pennsylvania New Jersey Iowa Nebraska Ohio Delaware Nevad
Slide 19: Goal: Achieve a 10% Market Share Across US States
POINTSBET’S GOAL: ACHIEVE A 10% MARKET SHARE ACROSS THE US STATES THAT IT ENTERS QUARTERLY SPORTS BETTING ONLINE HANDLE MARKET SHARE ACHIEVED(1) Illinois Michigan New Jersey Indiana Colorado Iowa 10% target 7.7% 7.8% 4.9% 5.5% 5.0% 3.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 20: PointsBet US – Delivering Growth
POINTSBET US – DELIVERING GROWTH POINTSBET US – SPORTS BETTING TURNOVER / HANDLE (AUD) POINTSBET US – PCP PERFORMANCE (AUD) $1,792.4m Key metrics FY20 FY21 Change Sports Betting Turnover / Handle $321.1m $1,792.4m + 458% Sports Betting Gross Win Margin 5.1% 5.3% + 0.2pp +458% Sports Betting Gross Wi
Slide 21: Successful Launch of PointsBet's Inaugural iGaming Product
SUCCESSFUL LAUNCH OF iGAMING POINTSBET’S INAUGURAL EXPANSION iGAMING PRODUCT ROADMAP A$1.5m Michigan’s iGaming Net Win from 5 May to 30 June P MICHIGAN Q4 FY21 ~71% P NEW JERSEY Q1 FY22 of all iGaming players have placed an in-play wager(1) WEST VIRGINIA H1 FY22 ~40% PENNSYLVANIA H2 FY22 of Michigan
Slide 22: National vs. Regional
NATIONAL REGIONAL NATIONAL In FY21 PointsBet utilised Chicago, VS. REGIONAL Washington, Philadelphia and New York RSNs The partnership with NBC Sports 2 of 11 owned local stations 2 of 29 owned local stations affords PointsBet the opportunity to fully integrate into both national and regional proper
Slide 23: NBC Predictor
NBC PREDICTOR FREE TO PLAY PointsBet is fully integrated into NBC's FTP app, Predictor 1.73 million NBC Predictor downloads(1) 353 thousand leads generated for PBH(2) PointsBet has exclusive advertising rights to the Predictor app FY21 RESULTS PRESENTATION | AUGUST 2021 Notes: (1) As per Boom Sports
Slide 24: NBC Partnership Year 1: Familiarized Our Brand with New Audiences
NBC PARTNERSHIP YEAR 1: FY21 BRAND AWARENESS GROWTH FAMILIARIZED OUR BRAND WITH NEW AUDIENCES +104% MORE FAVOURABLE VIEW P MAXIMIZED IN-STATE PRESENCE THROUGH PREMIUM LOCAL PLACEMENTS OF POINTSBET BRAND(5) ‒ “Storylines” and “Live Lines” integrations across MLB, NBA, and NHL RSN coverage in PA, IL,
Slide 25: Delivered Cutting Edge Experiences & Multiple Firsts
DELIVERED CUTTING EDGE EXPERIENCES & MULTIPLE “FIRSTS” FOR THE POINTSBET BRAND ‒ First ever betting-themed simulcast for a PGA Tour event, Waste Management Phoenix Open, which featured PointsBet odds, signup offers, and talent (Jay Croucher, Teddy Greenstein) across four days of coverage WMPO BETCAS
Slide 26: NBC Partnership Year 2: Unlocking New Opportunities
NBC PARTNERSHIP YEAR 2: INTEGRATING INTO NBC’S MOST PREMIUM PROPERTIES UNLOCKING NEW OPPORTUNITIES ENHANCED IN-STATE PRESENCE THROUGH PREMIUM LOCAL PLACEMENTS ‒ In addition to NBA, MLB, and NHL, similar odds-focused integrations will appear during RSN NFL pre/post game coverage ‒ Virtual Signage in
Slide 27: PointsBet Is Ready for the NFL Season
POINTSBET IS READY FOR THE NFL SEASON AUTHORISED NFL PARTNER: 1 of 7 OPERATORS PERMITTED TO TOP RATED TV PROGRAM AVERAGE AUDIENCE OF ADVERTISE DURING NFL GAMES ~17M VIEWERS THE LEAD UP GAME DAY ▪ Commercial units planned across various NBC O&Os, ALL DAY ▪ Fully integrated into FTP Predictor game, RS
Slide 28: Agenda
AGENDA FY21 Highlights Group Financial Performance Australian Business Review US Business Review CANADA OPPORTUNITY Technology Conclusion Appendix FY21 RESULTS PRESENTATION | AUGUST 2021 28
Slide 29: Significant Canadian Opportunity
SIGNFICANT CANADIAN OPPORTUNITY Ontario expected to launch sports betting by January 2022 C$14bn (1) Annual illegal sports betting spend in 5th largest Canada North American jurisdiction (2) YUKON Ontario expected to be first to launch NUNAVUT NORTHWEST TERRITORY US$3bn (3) NEWFOUNDLAND Estimated Ca
Slide 30: Agenda
AGENDA FY21 Highlights Group Financial Performance Australian Business Review US Business Review Canada Opportunity TECHNOLOGY Conclusion Appendix FY21 RESULTS PRESENTATION | AUGUST 2021 30
Slide 31: Continued Investment in Product & Technology in FY21
CONTINUED INVESTMENT IN PRODUCT & TECHNOLOGY IN FY21 KEY NEW PRODUCT LAUNCHES & ENHANCEMENTS Single Game Parlay (Same Game Multi) for NFL, Significant improvement to the client deposit P NBA, MLB and Cricket P experience with the launch of Quick Deposit P Odds Boost for Single Game Parlay P Introduc
Slide 32: Poised to Be a Leader in In-Play Betting
POISED TO BE A LEADER IN IN-PLAY BETTING THE FUTURE OF THE US SPORTS BETTING OPPORTUNITY IS IN-PLAY THE ACQUISITION OF BANACH TECHNOLOGY POSITONS POINTSBET TO BE A MARKET LEADER Estimated US handle(1) IN IN-PLAY SPORTS BETTING - IN-PLAY CURRENTLY REPRESENTS C. 75% OF THE EUROPEAN MARKET(2) - US SPOR
Slide 33: Conclusion
AGENDA FY21 Highlights Group Financial Performance Australian Business Review US Business Review Canada Opportunity Technology CONCLUSION Appendix FY21 RESULTS PRESENTATION | AUGUST 2021 33
Slide 34: Carrying Momentum into FY22
CARRYING MOMENTUM INTO FY22 • Continued investment in Responsible Gambling initiatives • Now have all the pieces in place as we look to 2022 and beyond • Australian Trading business well positioned for the upcoming spring sporting finals and racing carnival • US business ready for upcoming NFL seaso
Slide 35: Appendix
APPENDIX FY21 RESULTS PRESENTATION | AUGUST 2021 35
Slide 36: Statutory P&L
STATUTORY P&L Statutory A$m FY20 FY21 Revenue(2) 75.2 194.7 Cost of sales (36.9) (107.0) Gross profit 38.2 87.6 Other income 0.4 0.3 Sales and marketing expense (35.4) (170.7) Employee benefits expense (30.9) (51.4) Product and technology expense (6.0) (13.8) Administration and other expenses (6.1)
Slide 37: Reconciliation to Statutory P&L
RECONCILIATION TO STATUTORY P&L A$m FY21 FY21 Adjustments A$m FY21(2) Normalised Statutory Revenue(3) 194.7 - 194.7 Interest on financial liability 3.4 Cost of sales (107.0) - (107.0) Share based payments (non-cash) – employee share option plan 6.4 Gross profit 87.6 - 87.6 (ESOP) and Key Employee Eq
Slide 38: Trading Metrics by US State
TRADING METRICS BY US STATE PointsBet US – State-by-State FY21 Performance (A$m)(1) FY21 New Jersey Illinois(2) Michigan(3) Indiana Colorado(4) Iowa(5) Total Key metrics Turnover / Handle 992.2 475.1 65.7 135.6 80.6 43.2 1,792.4 Gross Win Margin 4.1% 6.7% 6.7% 6.9% 7.3% 8.2% 5.3% SPORTS BETTING Gros