Kambi Group Plc Class B · OMXSTO:KAMBI
Kambi Group Plc Class B — Q2 2014 Earnings Presentation
16 slides from Kambi Group Plc Class B's earnings presentation, Aug 6, 2014
Slide 1: Kambi Group plc Q2 Report 2014
4 { KAMB! SPORTS SOLUTIONS Kambi Group plc Q2 Report 2014 6 August 2014
Slide 2: Agenda
Kambi in Brief Quarterly Highlights Trading Analysis Financial Update The World Cup & Events after Q2 Product Development The Market Conclusion Q&A ́
Slide 3: Kambi in Brief
Proprietary System Intellectual Property Scalable Model Our business model and experience Premium turnkey sports betting solution for position Kambi for further growth all channels Our customers are 11 fully serviced customers outperforming the market ́
Slide 4: Quarterly Highlights
97% Revenue increase 2 New customers signed 3 Customers launched Successful World Cup - strong offering and stability European State Lotteries & Toto Association member ́
Slide 5: Operator Turnover and Margin
Operator Turnover and Margin 150 10.0% 125 9.0% 100 8.0% 75 7.0% 50 6.0% 25 0 5.0% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Turnover Index (Q1 2014=100) Betting Margin % ́
Slide 6: Revenue, Operating profit, Cash flow
Revenue Q2 9.5m +97% YTD 17.2m +84% Operating profit Q2 0.8m, 9% margin YTD 0.7m, 4% margin Cash flow Q2 1.0m YTD 1.0m ́
Slide 7: Income statement Q2 and H1
EUR m Q2 Q2 H1 H1 2014 2013 2014 2013 Revenue 9.5 4.8 17.2 9.4 Operating expenses -8.1 -6.8 -15.9 -13.6 Result before items affecting comparability: 1.4 -2.0 1.3 -4.2 Amortisation of acquired intangible assets 0.0 -1.5 0.0 -3.2 Transaction costs -0.6 0.0 -0.6 0.0 Result from operations 0.8 -3.5 0.7
Slide 8: Cash flow bridge
EUR ‘000 25,000 20,000 15,000 10,000 5,000 - -5,000 -10,000 -15,000 Opening cash Operating cash Capital Repayment to Equity issue Convertible Closing cash flow expenditure Unibet issue ́
Slide 9: Strong operational performance, earnings growth, robust balance sheet
Strong operational performance Earnings growth Robust balance sheet
Slide 10: A unique offering driven by end-user entertainment value
A unique offering driven by end- user entertainment value proved to be very successful ́
Slide 11: Events after Q2: strong start to Q3
Strong start to Q3 with 10 remaining dg World Cup matches July and August seasonally slow months, the major European football leagues start in mid to end August August – World Championships in Basketball 888 soon to launch the Kambi sportsbook in Spain ́
Slide 12: OTC terminals strengthen Kambi's retail portfolio
First version of OTC terminals launched Terminals are operational with NagaWorld and Iveriabet The addition of OTC terminals strengthens Kambi’s retail portfolio and opens up new markets ́
Slide 13: Short term, Kambi's focus is to grow in Europe
European online sports betting development Short term, Kambi’s focus is to grow in Europe 7.0 European online sports betting gross win development (EURbn) 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Source: H2 Gambling Capital Jan -14 ́
Slide 14: Re-regulation across Europe continues
Re-regulation across Europe continues: UK Q4 2014 and the Netherlands to follow mid 2015 earliest Positives: Access to new customers and improved marketing opportunities for existing customers Negatives: Commission affected N by higher betting duties, increased compliance and technical complexity ́
Slide 15: Conclusion: record revenue boosted by the World Cup
Record revenue 2 new customers Positioned as a boosted by the signed premium supplier World Cup ́
Slide 16: Thank you for your interest
Q&A Thank you for your interest 5¢ KAMBI GROUP PLC