Kambi Group Plc Class B · OMXSTO:KAMBI
Kambi Group Plc Class B — Q3 2020 Earnings Presentation
20 slides from Kambi Group Plc Class B's earnings presentation, Nov 6, 2020
Slide 1: Kambi Group plc Q3 Report
Kambi Group plc Q3 Report 6 November 2020
Slide 2: Agenda
Agenda 1. Kambi overview 2. Quarterly highlights 3. Financial update 4. Partner wins and extensions 5. Partner launches 6. Events after Q3 7. Summary 8. Q&A Q3 Report – 6 November 2020 2 CEO Kristian Nylén & CFO David Kenyon
Slide 3: Kambi at a glance
Kambi at a glance Leading B2B provider of premium end-to-end sports betting services Real-time B2C Operators End User sports data Technical Risk platform management Odds & User trading interfaces Sports betting value chain A global organisation 860 tu employees Australia | Malta | Philippines | Roma
Slide 4: Kambi at a glance
Kambi at a glance Leading B2B provider of premium sports betting services Business model 30+ Operators − Kambi mainly operates on a revenue share model, thus Kambi’s growth is dependent on its operators’ success − The foundation of the strategy is based on scalability and the majority of its cost ba
Slide 5: Q3 highlights
Q3 highlights − Record quarter with operator turnover and 62% revenue up 62% and 22% respectively − Improved operating margin of 23% − Signed new partner in US through Churchill Downs and its BetAmerica brand − Extended partnership with LeoVegas to include additional brands increase in − Multiple pa
Slide 6: Financial headlines
Financial headlines €m Q3 Revenue YTD Revenue Q3 Operating Profit YTD Operating Profit 30 75 7 12 11 6 70 10 25 9 5 8 65 4 7 20 6 60 3 5 4 2 15 3 55 1 2 1 10 50 0 0 2019 2020 Q3 Report – 6 November 2020 6 CEO Kristian Nylén & CFO David Kenyon
Slide 7: Operator trading analysis
Operator trading analysis Kambi operators' turnover and trading margin 700 12.0% 669 650 11.0% 600 10.0% 560 550 9.0% 505 500 8.0% 450 7.0% 412 398 400 387 6.0% 369 350 334 5.0% 307 300 281 4.0% 277 273 254 259 259 250 239 242 3.0% 221 219 200 2.0% Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3
Slide 8: Operator GGR
Operator GGR By geographical area 100% 80% 60% 40% 20% 0% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Europe Americas Other Q3 Report – 6 November 2020 8 CEO Kristian Nylén & CFO David Kenyon
Slide 9: Kambi revenue conversion
Kambi revenue conversion Q3 2020 vs Q3 2019 80% 70% 60% 50% 40% 30% 20% 10% 0% Operator Turnover Growth FX impact Operator margin impact Taxes/marketing Other ** Kambi Revenue Growth * deductibles impact * Operator turnover growth shown is based on Q3 2019 exchange rates ** Other includes the impact
Slide 10: Income statement
Income statement €m Q3 2020 Q3 2019 Change % YTD 2020 YTD 2019 Change % Revenue 28.1 23.0 +22% 70.8 65.6 +8% Operating expenses 21.6 19.6 +10% 60.8 57.0 +7% Operating profit 6.5 3.4 +92% 10.0 [1] 8.6 +17% Operating margin 23.3% 14.9% 14.2% 13.0% Profit after tax 5.1 2.3 +122% 6.8 [2] 5.8 +16% [1] Op
Slide 11: Q3 Cash flow
Q3 Cash flow €m 54.0 53.0 52.0 51.0 50.0 49.0 48.0 47.0 46.0 45.0 44.0 Opening cash Operating profit Working capital Amortisation/Depn Development costs Tangible assets Other Closing cash Q3 Report – 6 November 2020 11 CEO Kristian Nylén & CFO David Kenyon 11
Slide 12: New partner win
New partner win Churchill Downs selects Kambi − In August, Kambi entered into partnership with Churchill Downs, a US company with great sports heritage − Kambi was selected to upgrade the operator’s BetAmerica sports betting product, online and on-property − Churchill Downs’ popular TwinSpires racin
Slide 13: Partnership extended
Partnership extended LeoVegas Group − Kambi and LeoVegas Group have extended their partnership for the long-term − The contract also includes additional brands operated by LeoVegas − LeoVegas has been successful using Kambi technology to offer a differentiated client Q3 Report – 6 November 2020 13 C
Slide 14: Online launch with Penn National Gaming
Online launch with Penn National Gaming Barstool Sportsbook app illustrates operator empowerment #1 − Barstool sports betting app launched in Pennsylvania in September Most downloaded Sports Betting and Sports App − PNG leveraged Kambi’s flexible sportsbook Nationally technology to develop a unique
Slide 15: Q3 launches
Q3 launches Rapid US expansion Kambi continued its US expansion throughout the quarter, supporting 17 17 online and on-property partner launches Involved seven partners across seven states: Colorado, Illinois, Indiana, Michigan, New Hampshire, New Jersey, and Pennsylvania Post PASPA, the Kambi Sport
Slide 16: Events after Q3: 12th US state launch
Events after Q3 12th US state launch − On 1 November, Kambi went live in the US state of Tennessee, marking its 12th state launch 12th − Kambi enabled DraftKings to be in the first group of operators to launch in the state on day one US state − Due to Tennessee having no land-based casinos, the stat
Slide 17: US coverage reaching scale
US coverage reaching scale Kambi currently live in 12 states 2 −Kambi live in 12 states and 5 online in nine 7 −Sportsbook in 45 properties, 4 8 more than any other 2 −Further states to open up in 5 3 2021 and partners keen to 3 expand 1 Kambi currently live Online and retail Retail only Online only
Slide 18: Summary
Summary Record performance Scalability proven Accelerating growth Q3 Report – 6 November 2020 18 CEO Kristian Nylén & CFO David Kenyon
Slide 19: Q&A
Q&A Q3 Report – 6 November 2020 19 CEO Kristian Nylén & CFO David Kenyon
Slide 20: Thank you
Thank you Q3 Report – 6 November 2020 20 CEO Kristian Nylén & CFO David Kenyon