Slide 1: H1 2024 Interim Results
H1 2024 Interim Results 15 August 2024
Slide 2: Summary
SUMMARY H1 in-line with trading update, with strong strategic progress made Positive outlook for H2 2024 and increased confidence in 2025 and 2026 Value Creation Plan ❑ H1 financial results in-line with trading update, online revenues back to growth, but retail lagging and lower than expected return
Slide 3: Current Trading
CURRENT TRADING Decisive action taken to address drivers of H1 underperformance, with encouraging early signs of progress with current trading in line with the guidance of 5-9% growth in H2 Addressing H1 underperformance: • Commercial approach supported by all new commercial team: • Improved custome
Slide 4: Financial review
Financial review Sean Wilkins, CFO 4
Slide 5: H1 2024 Financial Summary
H1 2024 FINANCIAL SUMMARY Online revenue back to growth, offset by softer performance in Retail, which coupled with increased marketing led to lower Adjusted EBITDA Revenue £m H1-24 H1-23 YoY • UK&I Online: back to growth and gaming +5%, but marketing investment not as effective as planned UK&I • UK
Slide 6: Cash Flow
CASH FLOW Strong underlying free cash flow conversion with small cash outflow in the period driven by exceptional costs as we execute the turnaround and exit US B2C H1 2024 movement in net cash (excl. customer balances) (£m) £m Jun-24 Gross debt at par value 1,753.2 IFRS16 liabilities 90.3 Cash (exc
Slide 7: Outlook
OUTLOOK Significant step-up in profitability in the second half mainly driven by controllable items, and the timing benefit of cost savings that are already executed 1. H1 2024 Adjusted EBITDA as reported 2. Marketing costs £35-40m lower in H2 than H1. Controllable and fully executable, in line with
Slide 8: Financial Focus Areas
FINANCIAL FOCUS AREAS Step-change in finance capabilities to provide greater support for commercial decision making to drive high returns ● Transformed finance team and ● Focus on core markets, including ● Continue to take cost out of the ways of working, hired top talent exiting US B2C business ● S
Slide 9: Strategy update
Strategy update Per Widerström, CEO 9
Slide 10: Value Creation Plan
VALUE CREATION PLAN Focus on driving execution to ensure operational excellence and deliver value creation 1 2 3 Drive profitable and sustainable Improve profitability and efficiency Deleverage through disciplined revenue growth through operating leverage capital allocation ● Clear customer value pr
Slide 11: Strategic Framework Overview
STRATEGIC FRAMEWORK OVERVIEW Our strategic framework provides a clear vision of what success looks like and the strategy to get there Our vision Make life more interesting Defining success Improve colleague Achieve medium-term Our goals Increase player days Promote positive play satisfaction financi
Slide 12: H1 2024 Strategic Highlights
H1 2024 STRATEGIC HIGHLIGHTS We are embarking on a total reset of the business, building evoke as a new business to create value Decisive, bold and pacy actions in H1 are showing early signs of success Operational ▪ New operating model implemented: delivering £30m of ▪ Hired world-class talent: AI l
Slide 13: H2 2024 Clear Execution Plan
H2 2024 CLEAR EXECUTION PLAN We are executing a turnaround in short-term trading with clear priorities and decisive actions, while simultaneously building out our competitive advantages to enable mid and long-term value creation 1 2 3 Drive profitable and sustainable revenue Improve profitability an
Slide 14: Q&A Presenters
Q&A Presenters 14
Slide 15: Appendix
Appendix 15
Slide 16: 2024 Technical Guidance
2024 TECHNICAL GUIDANCE Group FY24 Cashflow ● 5-9% revenue growth for H2 ● Capex of c.£75-80m, including investment in strategic initiatives ● Adjusted EBITDA margin of approximately 21% ● One-offs: for H2 ● Cost to achieve savings and exceptional items c.£60m ● Exit fee for US B2C brand licence dea
Slide 17: Debt Structure
DEBT STRUCTURE Stable long-term debt profile with strong liquidity headroom While leverage is temporarily elevated, we see a clear path to rapid leverage reduction to <3.5x in 2026 • May 2024 refinancing to repay Euro TLA and replace with GBP fixed rate notes has improved the debt profile: • Extende
Slide 18: H1 2024 Financial Results – Reported
H1 2024 FINANCIAL RESULTS – REPORTED £m H1-24 H1-23 Revenue 862.0 881.6 • Revenue and Adjusted EBITDA as discussed earlier • Exceptional items discussed overleaf Gross profit 560.2 587.6 • Depreciation and amortisation includes £54.2m of amortisation of Adjusted EBITDA 115.5 155.6 acquired intangibl
Slide 19: Exceptional Items and Adjustments
EXCEPTIONAL ITEMS AND ADJUSTMENTS £m H1-24 H1-23 Key H1-24 items: Regulatory provisions - 3.0 • £29.8m of integration and transformation costs, mainly Integration and transformation costs 29.8 21.9 professional advisors and staff redundancy payments Corporate transaction related costs 41.0 0.5 • Cor
Slide 20: Segmental Performance
SEGMENTAL PERFORMANCE UK&I Online Retail International Group Unaudit ed H1 H1 % H1 H1 % H1 H1 % H1 H1 % £m 2024 2023 Change 2024 2023 Change 2024 2023 Change 2024 2023 Change Average mont hly act ives (000s) 1,277 1,223 +4% 548 536 +2% 1,825 1,760 +4% Sportsbook stakes 1,206.7 1,384.9 -13% 796.0 846
Slide 21: Quarterly Performance – Group
QUARTERLY PERFORMANCE – GROUP Unaudited - Group 2023 2024 £m Q1 Q2 Q3 Q4 H1 H2 FY Q1 Q2 Q3 Q4 H1 H2 FY Average monthly actives (000s) 1,731 1,788 1,648 1,746 1,760 1,697 1,728 1,835 1,815 1,825 Sportsbook stakes 1,427.2 1,388.1 1,249.2 1,309.1 2,815.3 2,558.3 5,373.6 1,351.8 1,263.5 2,615.3 Sportsbo
Slide 22: Quarterly Performance – UK&I Online
QUARTERLY PERFORMANCE – UK&I ONLINE Unaudited - UK&I Online 2023 2024 £m Q1 Q2 Q3 Q4 H1 H2 FY Q1 Q2 Q3 Q4 H1 H2 FY Average monthly actives (000s) 1,172 1,275 1,186 1,206 1,223 1,196 1,210 1,274 1,281 1,277 Sportsbook stakes 694.8 690.1 607.0 602.7 1,384.9 1,209.7 2,594.6 630.6 576.1 1,206.7 Sportsbo
Slide 23: Quarterly Performance – UK Retail
QUARTERLY PERFORMANCE – UK RETAIL Unaudited - UK Retail 2023 2024 £m Q1 Q2 Q3 Q4 H1 H2 FY Q1 Q2 Q3 Q4 H1 H2 FY Sportsbook stakes 411.1 434.9 394.0 389.3 846.0 783.3 1,629.3 393.5 402.5 796.0 Sportsbook net revenue margin 19.8% 18.8% 17.9% 18.9% 19.3% 18.4% 18.9% 19.3% 18.5% 18.9% Betting revenue 81.
Slide 24: Quarterly Performance – International
QUARTERLY PERFORMANCE – INTERNATIONAL Unaudited - International 2023 2024 £m Q1 Q2 Q3 Q4 H1 H2 FY Q1 Q2 H1 Average monthly actives (000s) 559 513 461 540 536 501 519 561 534 548 Sportsbook stakes 321.3 263.2 248.2 317.0 584.4 565.3 1,149.7 327.6 285.0 612.6 Sportsbook net revenue margin 8.2% 9.2% 7.
Slide 25: Disclaimer
DISCLAIMER Forward looking statements ● This presentation may contain certain forward-looking statements, beliefs or opinions, with respect to the financial condition, results of operations and business of the Company. These statements, which contain the wor s “anticipate”, “ elieve”, “inten ”, “est