NorthStar Gaming Holdings Inc · TSXV:BET
NorthStar Gaming — Investor Presentation (February 2025)
21 slides from NorthStar Gaming's investor presentation, February 2025
Slide 1: Investor Deck
Investor Deck February 2025 TSXV:BET OTCQB:NSBBF TSXV: BET OTCQB:NSBBF 1
Slide 2: Disclaimer: Cautionary Statement
DISCLAIMER Cautionary Statement The information contained in this presentation has been prepared by NorthStar Gaming Holdings Inc. (“NorthStar” or the “Company”) and contains confidential information pertaining to the business and operations of the Company. The information contained in this presentat
Slide 3: Disclaimer: Non-IFRS Financial Measures
DISCLAIMER Non-IFRS Financial Measures This presentation includes references to the Company’s “Gross Gaming Revenue” and “Total Wagers”, measures not prescribed by International Financial Reporting Standards (“IFRS”). Management uses certain non-IFRS financial measures and supplementary financial meas
Slide 4: Spearheading the Intersection of iGaming and Media
SPEARHEADING THE INTERSECTION OF iGAMING AND MEDIA
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS ~C$8.5B Canadian TAM exposed to NorthStar brand, with 01 Ontario’s regulated market launched in April 2022 and brand launch of NorthStarBets.com in November 2023* 02 Industry leading gaming content and technology Funding in place to reach profitability based on current business
Slide 6: Expanding Addressable Market
EXPANDING ADRESSABLE MARKET Ontario Market to Surpass C$3.0B for FY24 1 Projected Online Sports Betting and iGaming 2 Alberta Opportunity Market Size (2026E) • Canada’s 4th most populous province with a population (C$ billions) of ~4.4 million (3.3 million adults) with the youngest C$8.5B average ad
Slide 7: Q4 2024 Results At a Glance
Q4 2024 Results At a Glance* Total Wagers Gross Gaming Revenue $303 million 42% $10 million 32% Revenue Gross Margin $9.6 million 48% $4.4 million 76% QUARTER 4 2024 * Preliminary numbers as per February 11, 2025, press release 7
Slide 8: Total Wagers
TOTAL WAGERS1 +51% +42% Three months ended December 31 Twelve months ended December 31 1 Represents a Non-IFRS financial measure. See “Non-IFRS Financial Measures” above for more information. TSXV: BET OTCQB:NSBBF 8
Slide 9: Revenue
REVENUE * +53% +48% Three months ended December 31 Twelve months ended December 31 * Revenue, including managed services fees, net of bonuses, promotional costs and free bets TSXV: BET OTCQB:NSBBF 9
Slide 10: Gross Margin
GROSS MARGIN +76% +76% Three months ended December 31 Twelve months ended December 31 Percent of 39% 46% 36% 42% Revenue TSXV: BET OTCQB:NSBBF 10
Slide 11: Consistent Year-over-Year Growth Since Launch
CONSISTENT YEAR-OVER-YEAR GROWTH SINCE LAUNCH * NorthStar Commenced Operations Q2 2022. 1 Represents a Non-IFRS financial measure. See “Non-IFRS Financial Measures” above for more information. TSXV: BET OTCQB:NSBBF 11
Slide 12: Revenue and Gross Margin Growing Faster than Expenses
DEMONSTRATING INCREASING OPERATING LEVERAGE Revenue and Gross Margin Growing Faster than Expenses Revenue Steady growth Expenses Relatively stable Launch 2022 Building Scale Covering 2024 Break-even Profitability 2023-24 Overhead TSXV: BET OTCQB:NSBBF 12
Slide 13: LTM Activities/Achievements
LTM ACTIVITIES/ACHIEVEMENTS Raised C$43.4M in long-term debt funding from Beach Point Capital Management LP Gross Margin now covering overheads Surpassed C$1.8B in wagers since the launch of NorthStarBets in May 2022 Product enhancements: Released NorthStar’s industry leading Insights 2.0 vertical;
Slide 14: The Keys to Our Success
NorRTHSTAR* GAMING THE KEYS TO OUR SUCCESS
Slide 15: Our Approach to Product Innovation
OUR APPROACH TO PRODUCT INNOVATION Balance of "Consistently Better" and “Fundamentally Different” Better Different Optimization Fundamentally Differentiation Reliability Different Loyalty Driver Trust Perceived Value Consistently Speed Innovation Better Simplicity Competitive Performance Reason to B
Slide 16: Premium Positioning
PREMIUM POSITIONING YTD 24 vs. YTD 23* Accelerating Casino revenue +59 −Differentiated % positioning as a +32 premium platform Steady growth in active players % delivering a superior customer experience +22 Higher new player values % *YTD numbers reflective as of Q3 2024 TSXV: BET OTCQB:NSBBF 16
Slide 17: Targeted Marketing Strategies
TARGETED MARKETING STRATEGIES • Ambition to disrupt with innovative locally focused marketing and promotions • Strategic focus on high-value Casino segments – Progressive Slots and Blackjack • Emphasis on first-class customer service USP paired with new products • Selective capitalization on Sports o
Slide 18: Sports Insights 2.0
SPORTS INSIGHTS 2.0 We’ve taken our industry-leading on-platform content vertical to new heights in 2024 Enhancements and new tools added to Sports Insights throughout 2024: • Improved UX/Home page redesign • Live scoreboard integrated with sportsbook • More casino content, including game reviews •
Slide 19: Priorities for Continued Growth
PRIORITIES FOR CONTINUED GROWTH
Slide 20: Key Areas of Focus in 2025-2026
KEY AREAS OF FOCUS IN 2025-2026 2025-2026 Focus Operational Market Excellence Expansion Strategic Product Partnerships Innovation TSXV: BET OTCQB:NSBBF 20
Slide 21: Capitalization
CAPITALIZATION Bitove & Torstar Entities.4 Other Shareholders 205.8 million Rivett & shares Related Entities outstanding Directors & Playtech Senior Officers 1. Weighted average strike price of $0.29 2. Weighted average strike price of $0.40 3. Debentures convertible at $0.20, 8% interest paid-in-kin
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