Entain Plc · LSE:ENT
Entain — GVC Holdings — Investor Presentation (November 2017)
16 slides from Entain's investor presentation, November 2017
Slide 1: Strong Brands, Technology & Talent
Click to edit Strong Brands, Technology & Talent November 2017
Slide 2: Disclaimer
Disclaimer Click to edit NOT FOR PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION. This presentation has been prepared by GVC Holdings PLC (“GVC”). This presentation
Slide 3: Overview – GVC today
Overview – GVC today • €4.6bn sports wagering • €0.9bn NGR Financial* • €206m Clean EBITDA • 17 territories with over 2% NGR • Shares in issue as at 1 November 2017: 301,702,912 • 2,800 FTEs Corporate • 15 offices across four continents • 19 licences • Highly scalable and robust platform • Proprieta
Slide 4: Strategy
Strategy Click to edit Vision Delivery • To build further scale and international diversification • Organic - Largest market just 25% of group NGR - Return marketing investment to normalised levels - 17 countries contribute 2% or more to NGR - Product & service development - Grow regulated and marke
Slide 5: Disposal of Turkish facing operations
Click to of Disposal edit Turkish facing operations • Maximum deferred consideration up to €150m Key financial • Consideration payable over 5 years and receivable monthly highlights • 2016 Clean EBITDA c€35m of businesses being sold • Completion expected by the end of 2017 • Focus on regulated marke
Slide 6: GVC product suite
GVC Clickproduct to edit suite Integrated Owned Product Suite • Based on bwin’s leading sports risk platform adjusted to each market • Real-time data driven by leading sports data feeds, video streaming and GVC quants SPORTS • Improved trading tools leveraged by GVC quants tuning prices and risk per
Slide 7: GVC product and technology summary
GVC Clickproduct to edit and technology summary GVC Product and Technology Platform • Proprietary technology stack supporting complete product suite and player management system • Unique capability to execute strategic and operational actions quickly and with full-flexibility • Sound product roadmap
Slide 8: Performance update
Click to edit Performance update
Slide 9: 2017 H1 key highlights
2017 H1 key highlights +10% to €486.2m vs €441.8m (pro forma1 H1 2016) • Group NGR (+12% in constant currency ) • Clean EBITDA2 +28% to €133.9m vs €104.4m (pro forma H1 2016) • Clean EBITDA margin % 28% vs 24% (pro forma H1 2016) • Adjusted PBT3 +99% to €101.9m • Adjusted fully diluted EPS +55% to 3
Slide 10: Sports Brands – H1 overview
Sports Brands – H1 overview Constant Pro forma in €m H1 2017 H1 2016# Change currency • Sports margin 9.8% vs 9.1% prior year Sports wagers 2,265.2 2,298.6 (1%) 0% • Sustainable sports margin target remains 10% Sports margin % 9.8% 9.1% • Total value of bwin first time deposits Sports NGR 172.7 163.
Slide 11: Sports Brands – progress & outlook
Sports Brands – progress & outlook bwin casino NGR rebased to Feb 2016 160 What’s to come 150 • Merged pre-match & in-play 140 offer 130 120 Gap • Horse racing and Virtual Closures Sports 110 100 • Enhanced Cash Out 90 experience Aug-16 Aug-17 Sep-16 Jun-16 Jul-16 Nov-16 Oct-16 Jun-17 Jul-17 Feb-16
Slide 12: Games Brands – H1 overview
Games Brands – H1 overview Constant H1 2017 H1 2016# Change currency • Improving performance, H1 NGR +10% in constant currency Sports wagers 34.8 31.1 12% 11% • Contribution margin in H1 35% vs 43% Sports margin % 13.9% 8.4% in H1 2016 Sports NGR 1.9 2.3 (19%) (20%) • Marketing investment in partypo
Slide 13: Games Brands – progress and outlook
Games Brands – progress and outlook Y-on-Y partypoker growth 100% 88% What’s to come 80% 60% 48% 51% 47% • More content focused on 35% regional markets 40% 27% 32% Content 21% push 20% • More exclusive & In- House Content with 30+ 0% new titles per year FTDs First Deposit Deposits Total NGR Amount 2
Slide 14: Technology – Progress
Technology Click to edit – Progress Challenge What we’ve done Impact • Enhanced security & business • 30% improvement in player continuity response time Stability and scalability • Reduced architectural complexity • >99.95% platform stability • Strengthened management and • >70% reduction in critica
Slide 15: GVC Today – Brands, Technology & Talent
GVC ClickToday to edit– Brands, Technology & Talent Technology – a unique and powerful platform with substantial upside from further optimisation Brands – highly valuable portfolio of global gaming brands being reinvigorated Talent – one of the most experienced and successful teams in the industry 1
Slide 16: Pro forma quarterly KPIs
Pro forma quarterly KPIs Q1-2016 Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 In €000s Sports Brands Sports wagers 12,866 12,394 11,228 12,573 12,908 12,125 11,308 Sports margin % 8.5% 9.9% 10.5% 9.7% 9.6% 10.1% 11.2% Sports NGR 843 952 951 894 948 960 982 Gaming NGR / other revenue 838 890 828 9