Esports Entertainment Group, Inc. · OTC:GMBL
Esports Entertainment — Investor Presentation (April 2022)
28 slides from Esports Entertainment's investor presentation, April 2022
Slide 1: Esports Entertainment Group Investor Presentation
Esports Entertainment Group Investor Presentation April 2022
Slide 2: Forward Looking Statements
Forward Looking Statements The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity
Slide 3: Company Overview
Company Overview Combining the best of esports and iGaming ▪ Diverse array of properties esports (EEG Games) ▪ esports for every gamer ▪ In-person experiences and online tournaments ▪ Player-vs-player wagering iGaming (EEG iGaming) ▪ Tier-1 licenses ▪ esports gambling platform ▪ Full casino and spor
Slide 4: Investment Highlights
Investment Highlights POS HIGHLIGHT 1 Large, Rapidly Growing Esports and iGaming Markets 2 Diverse Revenue Streams 3 Strong Brand Partnerships in Key Sports Leagues 4 One-Stop Esports Industry Infrastructure Solution 5 Attractive Margin Opportunity 6 $70-75M in Expected F2022 Revenue
Slide 5: What is esports?
What is esports? Competitive video gaming watched as a Global Esports Viewership (in millions) spectator event 725 ▪ 550+ million global viewers in 2021 679 636 595 Significant global base of players 557 ▪ 2.5 billion players worldwide ▪ 225+ million U.S. players 2021E 2022E 2023E 2024E 2025E Attrac
Slide 6: Esports Viewers are Engaged
Esports Viewers are Engaged Dota 2 CS: GO Fortnite League of Legends PUBG • $277M in all-time prize money • $126M in all-time prize money • $108M in all-time prize money • $90M in all-time prize money • $38M in all-time prize money • 497M hours watched on Twitch • 714M hours watched on Twitch • 1.1B
Slide 7: EEG Games
EEG Games Esports Entertainment For Every Gamer
Slide 8: EEG Games Overview: B2B Offerings
EEG Games Overview: B2B Offerings ggCircuit ▪ Services 600 venues across 15,000 screens ▪ Automated competitions with loyalty rewards and prizes ▪ ALPHA ▪ Complete turnkey installation ▪ Sold on SAAS / outright sale basis ▪ OMEGA ▪ Self-service esports attraction for businesses ▪ Sold on a distribut
Slide 9: EEG Games Overview: B2C Offerings
EEG Games Overview: B2C Offerings LANDuel ▪ Platform for player v. player wagering ▪ Turnkey solution for venues of all types and sizes ▪ Debut tournament on March 19-20 in Atlantic City, NJ ▪ AtHome software ▪ Long-term opportunity to bring wagering to homes
Slide 10: Fully-Owned Technology Platform
Fully-Owned Technology Platform Key platforms ▪ GGCircuit (software for centers controls all play / Alpha / Omega / AtHome) ▪ EGL (tournament platform) ▪ Phoenix (in-development proprietary iGaming / esports betting platform) Benefits of full platform control include: ▪ No third-party payments ▪ No
Slide 11: EEG iGaming
EEG iGaming Winning in iGaming With Broad Brand Offerings
Slide 12: EEG iGaming Overview
EEG iGaming Overview Full portfolio of real money offerings Current Key Tier-1 Licenses ▪ Casino Sweden Malta ▪ Sportsbook ▪ Platform is esports-centric / caters to millennial esports bettors and traditional sports bettors Profitable cross-sell Ireland UK ▪ esports “on-ramp” ▪ Cost-effective custome
Slide 13: Diverse Portfolio of iGaming Brands
Diverse Portfolio of iGaming Brands Vie SportNation Lucky Dino Bethard • One of a kind, esports-focused • Full online sports wagering • Full proprietary iGaming • Full online sports wagering wagering platform platform offering pre-match platform including affiliate platform • Supports live esports w
Slide 14: Significant Global TAM
Significant Global TAM Global OSB/iGaming Total Addressable Market ($ in billions) $40.0 $37.0 $33.0 $31.0 $27.0 $28.0 $21.0 $58.0 $62.0 $48.0 $53.0 $40.0 $42.0 $34.0 2019 2020 2021E 2022E 2023E 2024E 2025E Online Sports Betting iGaming SOURCE: H2 Gambling Capital; Wall Street estimates
Slide 15: Strategic Growth Opportunities
Strategic Growth Opportunities Leveraging the Intersection of iGaming and Esports
Slide 16: Active Strategic Growth Opportunities
Active Strategic Growth Opportunities POS OPPORTUNITY DESCRIPTION 1 Omnichannel Active cross-sales between iGaming and esports offerings 2 Marketing Led by high-profile professional sports team partnerships 3 LANDuel Key component bridging the gap between iGaming and esports 4 Vie.gg Drives entry in
Slide 17: Omni-Channel
Omni-Channel Two key avenues for omnichannel growth: Online events bring players to in-person events Audience cross-sales ▪ iGaming a proven global market with $100+ billion TAM ▪ esports is a nascent wagering opportunity that is completely untapped in the U.S. ▪ esports players have a propensity to
Slide 18: Pro Sports Team Partnerships
Pro Sports Team Partnerships Current roster of 12 pro sports partnerships with combined fan base of 75 million
Slide 19: Pro Sports Team Partnerships
Pro Sports Team Partnerships EEG promoted as team’s official partner ▪ Teams provide apparel, tickets, social media and prizes EEG hosts online and in-person events ▪ Competitions drive engagement between teams / fans Teams market EEG ▪ In-stadium promotions, social media, web, mobile, etc. Team fan
Slide 20: Esports Infrastructure: LANDuel
Esports Infrastructure: LANDuel Premier peer-to-peer skill-based wagering platform designed specifically for esports Key features ▪ Community creation ▪ Matchmaking for competitive balance ▪ One-on-one friend matches ▪ Prizes and rewards ▪ Match monitoring for fair play Deployment timing ▪ Pilot eve
Slide 21: Large Vie.gg North American Opportunity
Large Vie.gg North American Opportunity Vie.gg North America Total Addressable Market ▪ Unique esports-centric wagering platform $25.0 New Jersey $20.0 ▪ Vie.gg platform approved in January 2022 ▪ State is first in the U.S. to allow legal esports wagering $15.0 ▪ Vie.gg access pursuant to five-year
Slide 22: Appendix
Appendix
Slide 23: Income Statement
Income Statement Three Months Ended Six Months Ended December 31, December 31, 2021 2020 2021 2020 Net revenue $14,531,047 $2,362,193 $30,939,338 $2,584,585 Total operating expenses 26,557,872 8,131,481 51,570,763 12,211,480 Operating income (loss) ($12,026,825) ($5,769,288) ($20,631,425) ($9,626,89
Slide 24: Balance Sheet
Balance Sheet December 31, 2021 June 30, 2021 Cash $1,040,051 19,917,196 Restricted cash 2,412,617 3,443,172 Other current assets 8,589,539 6,349,875 Current assets 12,042,207 29,710,243 Long-term assets 112,185,714 90,024,796 Total assets $124,227,921 $119,735,039 Debt (current and long-term) 37,18
Slide 25: EBITDA Reconciliation
EBITDA Reconciliation Three Months Ended Six Months Ended December 31, December 31, 2021 2020 2021 2020 Net income (loss) ($34,334,629) ($7,290,037) ($34,887,010) ($9,098,530) Adjusted for: Interest expense 2,412,716 - 4,757,912 - Income tax benefit (5,503,861) - (5,503,861) - Depreciation and amort
Slide 26: Comparable Valuation
Comparable Valuation Price Enterprise 2023E Company Ticker (as of 3/14/22) Shares Market Cap Net Debt Value 2023E Revenue EV/Revenue 888 Holdings 888.L GBP 1.94 377.7 GBP 733.5 (GBP 174.5) GBP 559.0 GBP 811.3 0.7x DraftKings DKNG $15.26 402.5 $6,142.2 ($904.4) $5,237.8 $2,648.0 2.0x Elys Game Techno
Slide 27: Key EEG Building Blocks
Key EEG Building Blocks EEG iGaming ▪ Argyll Entertainment (sports betting / iGaming in the UK, Ireland and Malta) ▪ Lucky Dino Gaming (iGaming in Malta) ▪ Bethard (sports betting in Sweden) ▪ Vie.GG EEG Esports ▪ Esports Gaming League (tournament organizer) ▪ GG Circuit (B2B software platform) ▪ EE
Slide 28: Management Team
Management Team Grant Johnson Damian Matthews John Brackens Stuart Tilly Chairman and CEO CFO, Director CIO/CTO COO, Director • CEO since 2013 • CFO since April 2022 • CIO / CTO since 2019 • COO since 2022 (previously served as • Chairman of the Audit Committee and Chief Legal Officer since 2020) •
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