Ten Lifestyle Group Plc · LSE:TENG
Ten Lifestyle — H1 2024 Earnings Presentation
32 slides from Ten Lifestyle's earnings presentation, Apr 22, 2024
Slide 1: Interim Results for the Six Months to 29 February 2024
INTERIM RESULTS FOR THE SIX MONTHS TO 29 FEBRUARY 2024 April 2024 Prepared for Analyst Presentation H1 2024. © Copyright Ten Lifestyle Group 2024. All rights reserved. 1 ×
Slide 2: Agenda
• H1 2024 Highlights • Business Model • Financial Results • Tech Update • Outlook • Q&A Underwater suite in Atlantis the Palm, Dubai - a Ten partner Prepared for Analyst Presentation H1 2024. © Copyright Ten Lifestyle Group 2024. All rights reserved. 2 ×
Slide 3: H1 2024 Highlights
• Net Revenue1 at £30.9m in line with H1 2023; up £1.1m (4%) at constant currency • Record Adj. EBITDA2 up 7% to £5.3m (H1 2023: £5.0m); up 10% at constant currency • Record Adj. EBITDA margin3 up to 17.2% (H1 2023: 16.1%) • Positive PBT of £0.3m (H1 2023: £0.4m) • New contract wins and contract ext
Slide 4: To become the world's most trusted service platform
To become the world’s most trusted service platform, working behind global brands Prepared for Analyst Presentation H1 2024. © Copyright Ten Lifestyle Group 2024. All rights reserved. 4 ×
Slide 5: Ten's service proposition
• Full travel service IATA • AIM = “The world’s best • Access to the best • Personal shopping • In-depth City Guides licensed dining recommendation seats, VIP packages and • Member events • Sourcing coveted • Articles and interviews • Exclusive benefits at and booking service” face value tickets, no
Slide 6: Business Model
Prepared for Analyst Presentation H1 2024. © Copyright Ten Lifestyle Group 2024. All rights reserved. 6 ×
Slide 7: Client retention rates
• Ten’s corporate partners improve customer Client Retention Rates acquisition, retention and grow customer value Client retention rates p.a (%) - Users are 3 times more likely to be retained - Users have higher average card spend vs non-users and grow Assets Under Management (AuM) • Ten’s corporate
Slide 8: Income from premium brands to drive loyalty
• • • Tech and Proposition Income from premium #1 in market investment delivers better brands to drive loyalty of #1 in tech and assets client ROI and improving their most profitable Long-term, well retained efficiency, which drives more customers contracts, global, engaged scale and profit, allows
Slide 9: Large member base and a maturing global platform
Large member base and Scaling a maturing global platform Healthy proposition in travel, Iterating, leveraging digital dining, entertainment, retail Winning new contracts, growing Strong in financial services existing contracts Allows ‘growth engine’ Profitable and generates cash investment or balanc
Slide 10: Growing Proposition, Profitability and Scale
Growing Proposition, Profitability and Scale Watch the Growth Engine video at www.tenlifestylegroup.com/investors/ Prepared for Analyst Presentation H1 2024. © Copyright Ten Lifestyle Group 2024. All rights reserved. 10 ×
Slide 11: Six Senses in the Maldives
Six Senses in the Maldives, part of Ten’s Global Hotel Collection Prepared for Analyst Presentation H1 2024. © Copyright Ten Lifestyle Group 2024. All rights reserved. 11 ×
Slide 12: Typical Contract
Supplier revenue Typical Contract 12% High-touch Requests ££ Per High-touch Digital Requests £ Per Digital 88% Corporate revenue Total Corporate Client Revenue Long term contracts often with agreed minimums Prepared for Analyst Presentation H1 2024. © Copyright Ten Lifestyle Group 2024. All rights r
Slide 13: Eligible and Active Members by value segment
Eligible Members have an eligible product, employment, account or card Active Members have used the service at least once in the past 12 offered by a corporate client and have access to the service months Eligible Members in High and Very High value segments (‘000) Total Active Members by value segm
Slide 14: Active Member Penetration
Higher ACTIVE MEMBER PENETRATION • Member journey • Personalisation content with digital calls-to-action • Digital proposition • Incentives • AI & Chat Lower Low High DIGITAL MIX VERY HIGH value HIGH value MEDIUM value customer segment customer segment customer segment to corporates to corporates to
Slide 15: Average Revenue per Active Member by value segment
Average Revenue per Active Member varies by value segment Concierge Revenue per Active Members by value segments (£m) Medium High Very High Prepared for Analyst Presentation H1 2024. © Copyright Ten Lifestyle Group 2024. All rights reserved. 15 ×
Slide 16: Deseo Bar & Restaurant, Dubai
Image to be updated Deseo Bar & Restaurant, Dubai – part of Ten’s Global Hotel Collection Prepared for Analyst Presentation H1 2024. © Copyright Ten Lifestyle Group 2024. All rights reserved. 16 ×
Slide 17: Income statement
• Net Revenue in line with prior year at £30.9m, (H1 2023: Income statement for year ending 29 February 2024 YOY £30.9m) and up £1.1m (4%) at constant currency £m H1 2024 H1 2023 change £m £m £m - supplier revenue up 15% to £3.8m (H1 2023: £3.3m) Revenue 33.3 32.4 0.9 - corporate revenue of £27.1m i
Slide 18: Net Revenue Growth H1 2024 vs H1 2023
Net Revenue Growth H1 2024 vs H1 2023 (£m) • Net Revenue in line with prior year at £30.9m 40.0 (4% increase at constant currency) 35.0 30.9 (1.1) 0.2 0.4 0.5 30.9 • Net Corporate Revenue Retention Rate of 101% 30.0 30.9 • Base Corporate revenue increase of £0.2m 25.0 20.0 • £0.4m from new mandates
Slide 19: Supplier Revenue
• Supplier revenue (mostly travel) of Supplier Revenue by half-year (£m) £3.8m (H1 2023: £3.3m) up 15% 8.0 14.0% 13.0% • 12.2% of Net Revenue (H1 2023: 11.0%) 12.8% 12.2% 7.0 12.0% 11.4% • H2 bookings are traditionally higher 6.0 10.7% 10.8% 11.0% 10.0% due to travel seasonality Supplier Revenue (£m
Slide 20: Net Revenue by region
Europe Net Revenue by region (£m) £m H1 2024 H1 2023 % change • Net Revenue increased 4% (5% at constant currency) £m £m driven by both corporate and supplier revenue. Europe 12.9 12.4 +4% Americas 12.5 13.1 -4% AMEA 5.5 5.4 +3% • As a result, and combined with operational efficiencies, 30.9 30.9 0%
Slide 21: Over £52m invested in technology to date
The Group has invested over £52m in the development of our technology to date Cash Spend on Technology Platform, Comms and Infrastructure (£m per FY) • Continued ‘good to great’ 13.6 13.9 14.0 investment in Ten Digital Platform, 12.2 12.2 12.0 11.5 TenMAID, content, IT infrastructure and communicati
Slide 22: Cashflow
Cashflow £m H1 2024 • Operating Cash flow of £3.4m reflects £m Profit before tax 0.3 - profit before tax of £0.3m Net finance expense 0.4 Working capital changes (1.9) - Increased net working capital of £1.9m Non-cash items (share-based payments, depreciation and 4.6 amortisation) - Add back non-cas
Slide 23: Tech Update
Prepared for Analyst Presentation H1 2024. © Copyright Ten Lifestyle Group 2024. All rights reserved. 23 ×
Slide 24: £52m+ invested in tech, live with 40+ brands across 50+ markets
£52m+ invested in tech, live with 40+ brands across 50+ markets Ten Platform is the perfect home for Fully transactional travel module on Our members tell us what they This service replaces any sensitive inspiring our members through Ten's Ten Platform. Book flights, hotels, cars love through Ten Pl
Slide 25: Continued optimisation of the Hotels module
Continued optimisation of our Hotels Building out new, secure capabilities so Addition of events, excursions and Ability to book online full range of module ensuring that it never stands Lifestyle Managers provide superb attractions to create more tickets, including "not available to still and conti
Slide 26: Digital ticket booking
Members can digitally book tickets including Ten-only inventory alongside aggregators with “better availability than the internet” to the world's most in-demand theatre, music and sporting events. Drives engagement, revenues and NPS / commercial impact Some clients have been waiting for this to ramp
Slide 27: Expanding Entertainment, Dining, Events and Hotels Proposition
• New Entertainment Module Expanding Entertainment, Dining, integrated with TicketMaster, other Events and Hotels Proposition APIs, and Ten Box Office including seating charts • New Dining Module integrated with market leading APIs • New Events Module integrated with Ten Event Box Office • Improved
Slide 28: Outlook
Prepared for Analyst Presentation H1 2024. © Copyright Ten Lifestyle Group 2024. All rights reserved. 28 ×
Slide 29: Additional Geographies, Verticals and Clients
Additional Geographies, Verticals and Clients New Clients: New Clients: New Clients: Contracts In Signed Contracts Pipeline Negotiation Current Clients: Current Clients: Current Clients: New Contracts Increased Active Increased Usage per (Eligible and Active Members Active Member Members) Current Cl
Slide 30: Change in Material Contracts
Change in Material Contracts (FY 2023 to 19 April 2024) Changes to a Framework Agreement (2 Large contracts) • 3 x Extra Large L (no change) • Multiple year extension of one of the Large contracts on renegotiated terms • 7 x Large (+ 1) • The client will withdraw concierge services under • 10 x Medi
Slide 31: Outlook statement
“Since the end of the first half of the financial year, Ten has launched new contracts, most notably a Medium contract with Emirates NBD Bank, and continues to convert its strong pipeline of new business. These contract developments at the beginning of H2 2024 are expected to underpin revenue growth
Slide 32: Investor Relations contact
InvestorRelations@tengroup.com www.tenlifestylegroup.com/investors Prepared for Analyst Presentation H1 2024. © Copyright Ten Lifestyle Group 2024. All rights reserved. 32 ×