Pointsbet Holdings Ltd. · ASX:PBH
Pointsbet — Investor Presentation (September 2020)
65 slides from Pointsbet's investor presentation, Sep 7, 2020
Slide 1: Capital Raising September 2020
For personal use only CAPITAL RAISING SEPTEMBER 2020
Slide 2: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER This investor presentation (Presentation) has been prepared by PointsBet Holdings Limited (ACN 621 179 351) (PBH or the Company) This Presentation has been prepared without taking account of any person’s individual investment objectives, financial situation or For pe
Slide 3: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER Future performance and forward-looking statements Disclaimer For personal use only This Presentation contains certain ‘forward looking statements’, including but not limited to projections, guidance on future revenues, Neither Bell Potter Securities Limited or MST Fi
Slide 4: Agenda
For personal use only AGENDA Executive Summary Capital Raising & FY20 Financial Results Summary NBCUniversal Media Partnership Appendices • Risk Factors • International Selling Restrictions • Summary of Offer Management & Underwriting Agreement • NBC Sports Regional Networks
Slide 5: Executive Summary
EXECUTIVE SUMMARY Capital raising of ~A$353 million (“Capital Raising”) For personal use only • Fully underwritten, 1 for 6.5 accelerated, pro-rata renounceable entitlement offer (with retail rights trading) to raise A$153.2 million and 1 for 2 free attaching options (“Entitlement Offer”) • Institut
Slide 6: Agenda
For personal use only AGENDA Executive Summary Capital Raising & FY20 Financial Results Summary NBCUniversal Media Partnership Appendices • Risk Factors • International Selling Restrictions • Summary of Offer Management & Underwriting Agreement • NBC Sports Regional Networks
Slide 7: Entitlement Offer Overview
ENTITLEMENT OFFER OVERVIEW Accelerated, pro rata renounceable entitlement offer with retail rights trading to raise ~A$153.2 million • Fully underwritten 1 for 6.5 pro-rata accelerated institutional renounceable entitlement offer of new fully paid ordinary shares (“New Shares”) with retail rights Fo
Slide 8: Placement Overview
PLACEMENT OVERVIEW Placement to institutional shareholders to raise A$200 million For personal use only • Institutional placement to raise A$200 million by the issue of 18.2 million New Shares STRUCTURE AND – the Placement represents 12% of the total shares outstanding prior to the Capital Raising S
Slide 9: NBCUniversal Partnership
NBCUNIVERSAL PARTNERSHIP For personal use only • 5-year partnership • Total committed marketing spend of US$393 million allocated in progressively increasing amounts over the 5-year media partnership, together with incentives payable to NBCUniversal for customer referrals • Premium placement and agr
Slide 10: Capital Raising and Use of Funds
CAPITAL RAISING AND USE OF FUNDS For personal use only • Capital Raising to raise A$353 million comprising: CAPITAL RAISING – Fully underwritten Entitlement Offer to raise A$153.2 million; and – Placement to raise A$200 million % of Capital Use of funds A$ million Raising proceeds • US marketing cos
Slide 11: Capital Raising Timetable
CAPITAL RAISING TIMETABLE Event Date (2020) For personal use only Trading halt and announcement of Capital Raising (after-market) Wednesday, 2 September Placement bookbuild opened (after-market) Wednesday, 2 September Placement closed Friday, 4 September Institutional Entitlement Offer opens Monday,
Slide 12: Strong Growth Across Key KPIs
STRONG GROWTH ACROSS KEY KPIS For personal use only GROUP AUSTRALIA US(2) All figures in A$ FY19 FY20 PCP Increase FY19 FY20 PCP Increase FY19 FY20 PCP Increase $830m $321m TURNOVER $1,152m $490m $567m 103% 69% $77m 317% $82m $75m NET WIN $28m $29m $7m 191% 159% n.m. ($0.7m) 9.0% 7.1% NET WIN % 5.0%
Slide 13: Continued Growth in Australia
CONTINUED GROWTH IN AUSTRALIA For personal use only POINTSBET AUSTRALIA – TURNOVER (A$) POINTSBET AUSTRALIA – PCP PERFORMANCE (A$M) Key metrics FY19 FY20 Increase +69% $830.5m Turnover 490.1 830.5 69.5% Gross Win 50.5 100.8 99.6% Gross Win Margin 10.3% 12.1% +1.8pp $490.1m Net Win 28.9 75.1 159.4% N
Slide 14: Year on Year Growth in the US
YEAR ON YEAR GROWTH IN THE US For personal use only POINTSBET US – TURNOVER (A$)(1) POINTSBET US – PCP PERFORMANCE (A$M)(1) Key metrics FY19 FY20 Increase $321.1m +317% Turnover 77.0 321.1 316.8% Gross Win 2.2 16.5 651.9% Gross Win Margin 2.8% 5.1% +2.3pp $77.0m Net Win (0.7) 7.0 n.m. Net Win Margin
Slide 15: Group Results – Normalised
GROUP RESULTS – NORMALISED For personal use only Normalised(3) All amounts in A$m(1) FY19 FY20 Australian Marketing Net revenue 25.6 75.2 A$20.1 million for the Reporting Period, which increased versus the PCP. Cost of sales (14.8) (36.9) US Marketing Gross profit 10.9 38.2 A$15.3 million, an increa
Slide 16: Pro Forma Balance Sheet
PRO FORMA BALANCE SHEET Impact of All amounts in A$m * As at NBCUniversal Impact of 30 Jun 2020 For personal use only Notes 30 Jun 2020 Partnership(1) Capital Raising (pro forma) Cash and cash equivalents 2 144.3 - 341.4 485.8 Trade and other receivables 0.3 - - 0.3 Other current assets 1.5 - - 1.5
Slide 17: Pro Forma Adjustments to the Balance Sheet
PRO FORMA ADJUSTMENTS TO THE BALANCE SHEET Note (1) NBCUniversal Media Partnership: On 28 August 2020, the Company announced that its wholly owned subsidiary PointsBet USA Inc (PointsBet USA) and NBCUniversal Media LLC (NBC Universal), a subsidiary of Comcast Corporation, have entered into a five-ye
Slide 18: Agenda
For personal use only AGENDA Executive Summary Capital Raising & FY20 Financial Results Summary NBCUniversal Media Partnership Appendices • Risk Factors • International Selling Restrictions • Summary of Offer Management & Underwriting Agreement • NBC Sports Regional Networks
Slide 19: PointsBet + NBCUniversal Partnership
POINTSBET + NBCUNIVERSAL PARTNERSHIP For personal use only PointsBet has entered into a 5-year exclusive media partnership with NBCUniversal(1) THE PARTNERSHIP DELIVERS: . Notes: (1) 5-year partnership (with potential 2-year extension upon mutual agreement of the parties); (2) Subject to shareholder
Slide 20: Introduction to NBC Sports
INTRODUCTION TO NBC SPORTS For personal use only One of the most iconic and trusted media brands in the US with the largest sports audience SELECT ASSETS 11 O&O 200+ Affiliates 29 local stations Sources: comScore; Monthly Active Uniques; Aug’16-July’20; Yahoo Sports-NBC Sports Network CAPITAL RAISIN
Slide 21: Market Leading Portfolio of Sports Rights
MARKET LEADING PORTFOLIO OF SPORTS RIGHTS For personal use only Select properties featured do not permit sports betting advertising as of the Effective Date CAPITAL RAISING PRESENTATION │ SEPTEMBER 2020 21
Slide 22: The Largest Sports Audience
THE LARGEST SPORTS AUDIENCE For personal use only SPORTS AUDIENCE (mm) 184 SPORTS MEDIA 177 COMPANY 1 SPORTS MEDIA 174 COMPANY 2 SPORTS MEDIA 169 COMPANY 3 SPORTS MEDIA 104 COMPANY 4 100MM Sources: Nielsen, Live+Same Day, P18+ average yearly reach 2014-15 to 2018-19 seasons (5 years), Total Day, 75%
Slide 23: Massive Footprint Covering the Entire U.S.
MASSIVE FOOTPRINT COVERING THE ENTIRE U.S. For personal use only Local, regional and national properties and platforms extend reach across the country SPORTSNET NEW YORK National integration opportunities across linear and digital with ability to customize marketing programs at national, regional an
Slide 24: The Most Diverse Set of Properties – Television Networks
THE MOST DIVERSE SET OF PROPERTIES – TELEVISION NETWORKS SELECT PROPERTIES For personal use only Combination of national and regional networks along with local television assets provides ability to create bespoke marketing strategies to reach any audience OVERVIEW: • NBC Sports is one of the most ic
Slide 25: National Broadcast Network
NATIONAL BROADCAST NETWORK For personal use only ASSET OVERVIEW: • NBC Broadcast Network distributes sports, news and entertainment programming nationwide • Delivers programming to virtually all U.S. television households via its 200+ NBC-affiliated local TV stations in key markets (including 11 own
Slide 26: National Cable Networks
NATIONAL CABLE NETWORKS For personal use only PointsBet will be integrated across NBC Sports portfolio of sports-focused cable networks ASSET OVERVIEW: • National cable networks are pay television channels available to MVPD and vMVPD subscribers as part of a bundle or add-on channel • NBC Sports cab
Slide 27: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS For personal use only INTEGRATION OPPORTUNITIES Pre-game / In-game / Post-game Across the Regional Sports Networks Exclusive sports betting game day integrations across NBC Sports Regional Networks ASSET OVERVIEW: • RSNs are cable TV networks dedicated to providing sport
Slide 28: Telemundo Network
TELEMUNDO NETWORK For personal use only TELEVISION FIFA World Cup Coverage Telemundo is a leading Hispanic media company to reach the Hispanic sports betting population ASSET OVERVIEW: • Features original Spanish-language entertainment, news and sports content reaching 94% of U.S. Hispanic TV househ
Slide 29: Local Television Stations
LOCAL TELEVISION STATIONS For personal use only Integrated into NBC’s local sports conversation ASSET OVERVIEW: • Serving both English and Spanish audiences in key markets, covering 48% of U.S. homes • Features 42 NBC and Telemundo owned stations, over 40 websites and apps, two multicast networks (C
Slide 30: Exclusive Sports Betting Integrations Across Broadcast Networks
EXCLUSIVE SPORTS BETTING INTEGRATIONS ACROSS BROADCAST NETWORKS For personal use only Integrated sports betting partner across NBC Sports linear properties CAPITAL RAISING PRESENTATION │ SEPTEMBER 2020 30
Slide 31: The Most Diverse Set of Properties – Digital
THE MOST DIVERSE SET OF PROPERTIES - DIGITAL For personal use only OVERVIEW: • High traffic and high growth digital assets provide exclusive gaming integration opportunities allowing PointsBet to connect with sports fans 24 / 7 / 365 • Ability for NBC and PointsBet to geo-target users via NBC Sports
Slide 32: Streaming Platform
STREAMING PLATFORM For personal use only • Peacock is NBCUniversal's new streaming service, featuring TV shows, movies, original series, live sports, and news programs • Launched nationwide in the U.S. on July 15 • 10+ million sign-ups as of July 30, 2020 • Projecting 30-35mm active accounts by 2024
Slide 33: NBC Sports Predictor
NBC SPORTS PREDICTOR For personal use only • 630K Market leading, free-to-play sports gaming application with over 1.1mm downloads • 630,000 peak monthly active users MONTHLY ACTIVE USERS • Awarded over $3mm in cash prizes to date 1.1MM • Aggressive product roadmap for expansion of sports, teams and
Slide 34: Golf Digital Properties
GOLF DIGITAL PROPERTIES For personal use only • GolfNow is the largest, online booking service for tee times at golf courses in the world – 3.8mm+ registered/opted-in golfers • Exclusive Integration with Golf specific brands: GOLFNOW, GOLF ADVISOR, TEEOFF, and GOLFPASS across email, tee-time • GolfN
Slide 35: Rotoworld
ROTOWORLD For personal use only • A market leader in fantasy and sports betting content providing insightful news and analysis for NFL, MLB, NBA, NHL, CFB, Golf, EPL and NASCAR • Focused on being THE destination for fantasy players and sports bettors • New betting tools launched in July 2020 2MM • B
Slide 36: Digital Platform Integrations
DIGITAL PLATFORM INTEGRATIONS For personal use only Opportunities with sponsorships, Free-to-Play games and live odds integration on digital MOBILE APPLICATIONS platforms • Partnership allows PointsBet to leverage full suite of NBC Sports digital assets across websites, direct-to-consumer streaming
Slide 37: Exclusive Opportunity with the Xfinity Voice Remote
EXCLUSIVE OPPORTUNITY WITH THE XFINITY VOICE REMOTE For personal use only Unique engagement opportunity COMCAST VOICE ACTIVATION Opportunities with the award-winning Xfinity voice remote Partnership delivers proven channels to drive conversions in addition to innovative new technology that aligns wi
Slide 38: PointsBet Well-Positioned in the State of Illinois
POINTSBET WELL-POSITIONED IN THE STATE OF ILLINOIS For personal use only Illinois market opportunity • In July 2019, PointsBet announced a 20-year partnership with Hawthorne Race Course, a Chicago-area landmark and the longest continuously run family owned racetrack in North America • 75% of Illinoi
Slide 39: PointsBet Well Positioned in the State of Illinois
POINTSBET WELL POSITIONED IN THE STATE OF ILLINOIS For personal use only VALUE OF THE CHICAGO REGIONAL SPORTS NETWORK • Exclusive integrations and key calls to action across RSNs, portfolio of websites, podcasts, and social media handles • Digital reach of 5.2mm in the Chicago market across NBC Spor
Slide 40: Partnership Accelerates Strategy to Build a Market Leader
PARTNERSHIP ACCELERATES STRATEGY TO BUILD A MARKET LEADER For personal use only Path to 1mm+ U.S. Active Clients and 10% market share CAPITAL RAISING PRESENTATION │ SEPTEMBER 2020 40
Slide 41: Agenda
For personal use only AGENDA Executive Summary Capital Raising & FY20 Financial Results Summary NBCUniversal Media Partnership Appendices • Risk Factors • International Selling Restrictions • Summary of Offer Management & Underwriting Agreement • NBC Sports Regional Networks
Slide 42: Key Risks – Business Risks
KEY RISKS – BUSINESS RISKS This section discusses some of the key risks associated with any investment in PointsBet together with risks relating to participation in the Placement and Entitlement Offer which may affect the For personal use only future operating and financial performance of PointsBet
Slide 43: Key Risks – Business Risks
KEY RISKS – BUSINESS RISKS For personal use only The recent outbreak of the novel coronavirus (COVID-19), a virus causing potentially deadly respiratory tract infections, presents an emerging risk for the Company. Efforts to date to contain the effect of COVID-19 have included travel restrictions, r
Slide 44: Key Risks – Business Risks
KEY RISKS – BUSINESS RISKS For personal use only The provision of wagering services is subject to extensive laws, regulations and, where relevant, licence conditions (Regulations) in most jurisdictions. The Regulations vary from jurisdiction to jurisdiction but typically address the responsibility,
Slide 45: Key Risks – Business Risks
KEY RISKS – BUSINESS RISKS The Company’s growth strategy includes expansion overseas, and in particular into the developing wagering industry in the United States. For personal use only The striking down by the United States Supreme Court of the Professional and Amateur Sports Protection Act of 1992
Slide 46: Key Risks – Business Risks
KEY RISKS – BUSINESS RISKS The Company may require additional capital in order to support and implement its growth plans. This is particularly so if the impacts of COVID-19 on the growth of the wagering For personal use only industry continue on for an extended period of time. The Company may requir
Slide 47: Key Risks – Business Risks
KEY RISKS – BUSINESS RISKS The Company processes personal customer data and therefore must comply with strict data protection and privacy laws in Australia and other jurisdictions. The Company is For personal use only Risks relating to the exposed to the risk that this data could be wrongfully acces
Slide 48: Key Risks – Capital Raising and General Risks
KEY RISKS – CAPITAL RAISING AND GENERAL RISKS General economic conditions, movements in interest and inflation rates and currency exchange rates may have an adverse effect on the Company's business and production For personal use only activities, as well as on its ability to fund those activities. E
Slide 49: Key Risks – Capital Raising and General Risks
KEY RISKS – CAPITAL RAISING AND GENERAL RISKS PointsBet has entered into an offer management and underwriting agreement with Bell Potter Securities Limited and MST Financial Services Pty Ltd (Joint Lead Managers) For personal use only (Agreement) pursuant to which the Joint Lead Managers have agreed
Slide 50: Agenda
For personal use only AGENDA Executive Summary Capital Raising & FY20 Financial Results Summary NBCUniversal Media Partnership Appendices • Risk Factors • International Selling Restrictions • Summary of Offer Management & Underwriting Agreement • NBC Sports Regional Networks
Slide 51: International Selling Restrictions
INTERNATIONAL SELLING RESTRICTIONS This document does not constitute an offer of entitlements to acquire shares (Entitlements) or new fully paid ordinary shares (New Shares) of the Company in any jurisdiction in which it would For personal use only be unlawful. In particular, this document may not b
Slide 52: International Selling Restrictions
INTERNATIONAL SELLING RESTRICTIONS This document and any other materials relating to the Securities have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority For personal use only of Singapore. Accordingly, this document and any other document or m
Slide 53: International Selling Restrictions
INTERNATIONAL SELLING RESTRICTIONS This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The Securities have not been, and will not be, registered For personal use only under the US Securities Act of 1933 or the securities laws of
Slide 54: Agenda
For personal use only AGENDA Executive Summary Capital Raising & FY20 Financial Results Summary NBCUniversal Media Partnership Appendices • Risk Factors • International Selling Restrictions • Summary of Offer Management & Underwriting Agreement • NBC Sports Regional Networks
Slide 55: Summary of Offer Management & Underwriting Agreement
SUMMARY OF OFFER MANAGEMENT & UNDERWRITING AGREEMENT The Company entered into an Offer Management and Underwriting Agreement (Agreement) with Bell Potter Securities Limited as Lead Manager and MST Financial Services Pty Ltd as Junior Lead Manager For personal use only (together the Joint Lead Manage
Slide 56: Summary of Offer Management & Underwriting Agreement
SUMMARY OF OFFER MANAGEMENT & UNDERWRITING AGREEMENT • (notifications) any of the following occur: • an application is made by ASIC for an order under Part 9.5 of the Corporations Act in relation to the Entitlement Offer or Placement or the Offer Materials or ASIC commences an investigation or heari
Slide 57: Agenda
For personal use only AGENDA Executive Summary Capital Raising & FY20 Financial Results Summary NBCUniversal Media Partnership Appendices • Risk Factors • International Selling Restrictions • Summary of Offer Management & Underwriting Agreement • NBC Sports Regional Networks
Slide 58: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS For personal use only Total Households 6.6MM 290+ 1,015+ LIVE events Hours of LIVE event per year coverage each year CAPITAL RAISING PRESENTATION │ SEPTEMBER 2020 58
Slide 59: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS For personal use only Total Households 5.1MM 140+ 490+ LIVE events Hours of LIVE event per year coverage each year CAPITAL RAISING PRESENTATION │ SEPTEMBER 2020 59
Slide 60: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS For personal use only Total Households 4.9MM 70+ 245+ LIVE events Hours of LIVE event per year coverage each year CAPITAL RAISING PRESENTATION │ SEPTEMBER 2020 60
Slide 61: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS For personal use only Total Households 4.1MM 290+ 1,015+ LIVE events Hours of LIVE event per year coverage each year CAPITAL RAISING PRESENTATION │ SEPTEMBER 2020 61
Slide 62: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS For personal use only Total Households 8.9MM 130+ 525+ LIVE events Hours of LIVE event per year coverage each year CAPITAL RAISING PRESENTATION │ SEPTEMBER 2020 62
Slide 63: Regional Television Networks
REGIONAL TELEVISION NETWORKS For personal use only Total Households 4.9MM 290+ 1,015+ LIVE events Hours of LIVE event per year coverage each year CAPITAL RAISING PRESENTATION │ SEPTEMBER 2020 63
Slide 64: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS For personal use only Total Households 4.9MM 220+ 770+ LIVE events Hours of LIVE event per year coverage each year CAPITAL RAISING PRESENTATION │ SEPTEMBER 2020 64
Slide 65: NBC Sports Regional Networks
NBC SPORTS REGIONAL NETWORKS For personal use only Total Households 2.0MM 70+ 245+ LIVE events Hours of LIVE event per year coverage each year CAPITAL RAISING PRESENTATION │ SEPTEMBER 2020 65
PointsBet Holdings — Investor Presentation (September 2020) on 6ix