Esports Entertainment Group, Inc. · OTC:GMBL
Esports Entertainment — Investor Presentation (July 2022)
30 slides from Esports Entertainment's investor presentation, July 2022
Slide 1: Esports Entertainment Group Investor Presentation
Esports Entertainment Group Investor Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements The information contained herein includes forward-looking Any forward-looking statement reflects our current views with statements. These statements relate to future events or to our respect to future events and is subject to these and other risks, future financial perform
Slide 3: Company Overview
Company Overview 01. 02. Combining the best of Esports (EEG Games) Esports and iGaming o Esports for every gamer o Diverse array of o In-person experiences and properties online tournaments o Player-vs-player wagering 03. 04. iGaming (EEG iGaming) Founded in 2015 o Tier-1 licenses Nasdaq: GMBL o esp
Slide 4: Investment Highlights
Investment Highlights 01. 02. 03. Large, Rapidly Diverse Revenue Strong Brand Growing Esports and Streams Partnerships in Key iGaming Markets Sports Leagues 04. 05. 06. One-Stop Esports Attractive Margin $100M in Expected Industry Infrastructure Opportunity F2022 Revenue Solution POS
Slide 5: What is Esports?
What is Esports? Global Esports Viewership 01. 02. (in millions) 7% CAGR 725 Competitive video Significant global 636 679 gaming watched as base of players 557 595 a spectator event o 2.5 billion players o 550+ million global worldwide 2021E 2022E 2023E 2024E 2025E viewers in 2021 o 225+ million U.S
Slide 6: Esports Viewers are Engaged
Esports Viewers are Engaged SOURCE: www.esportsearnings.com - SullyGnome 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 $38M in all-time prize money 578M hours watched on 768M hours
Slide 7: EEG Games
EEG Games Esports Entertainment For Every Gamer
Slide 8: EEG Games Overview: B2B Offerings
EEG Games Overview: B2B Offerings 01. 02. o Services 600 venues across o Online tournament 15,000 screens platform for gamers o Automated competitions with loyalty rewards and prizes 03. o ALPHA Crypto mining o Complete turnkey installation o Sold on SAAS / outright sale o Offered as add-on basis fo
Slide 9: EEG Games Overview: B2C Offerings
EEG Games Overview: B2C Offerings 01. PvP Skill Betting o Platform for player v. player wagering o Turnkey solution for casinos and gaming centers 02. AtHome Software o Long-term opportunity to bring wagering to homes
Slide 10: Fully-Owned Technology Platform
Fully-Owned Technology Platform 01. Key platforms o GGCircuit (software for centers controls all play / Alpha / Omega / AtHome) o EGL (tournament platform) o Phoenix (in-development proprietary iGaming / Esports betting platform) 02. Benefits of full platform control include: o No third-party paymen
Slide 11: EEG iGaming
EEG iGaming Winning in iGaming With Broad Brand Offerings
Slide 12: EEG iGaming Overview
EEG iGaming Overview Current Key Tier-1 Licenses 01. Full portfolio of real money offerings o Casino o Sportsbook o Platform is esports-centric / caters to millennial esports bettors and traditional sports bettors 02. Profitable cross-sell o Esports “on-ramp” o Cost-effective customer acquisition o
Slide 13: Diverse Portfolio of iGaming Brands
Diverse Portfolio of iGaming Brands o One of a kind, esports- o Full online sports wagering o Full proprietary iGaming o Full online sports focused wagering platform platform offering pre- platform including affiliate wagering platform o Supports live esports match and in-play markets marketing, pay
Slide 14: Significant Global TAM
Significant Global TAM Global OSB Total Addressable Market ($ 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 SOURCE: H2 Gaming 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 01. 02. 03. Omnichannel Marketing PvP Skill Betting o Active cross-sales o Led by high-profile o Key component bridging between iGaming and professional sports team the gap between iGaming esports offerings partnerships and Esports 04. 05. Vie.gg F2022 Outlook P
Slide 17: Omnichannel
Omnichannel Two key avenues for omnichannel growth: 01. Online events bring players to gaming centers o Centers host league and tournament play o Centers offer STEM education / team development 02. Audience cross-sales o iGaming has a proven global market with $100+ billion TAM o Esports is a nascen
Slide 18: Pro Sports Team Partnerships (part 1)
Pro Sports Team Partnerships (part 1) Current roster of 12 pro sports partnerships with combined fan base of 75 million
Slide 19: Pro Sports Team Partnerships (part 2)
Pro Sports Team Partnerships (part 2) 01. 02. EEG promoted as EEG hosts online and team’s official partner in-person events o Teams provide apparel, o Competitions drive tickets, social media engagement between and prizes teams / fans 03. 04. Teams market EEG Team fans fed into EEG o In-stadium prom
Slide 20: Esports Infrastructure: PvP Skill Betting
Esports Infrastructure: PvP Skill Betting Premier peer-to-peer skill-based wagering platform designed specifically for Esports 01. 02. Key features Deployment timing o Community creation o Initial pilot event hosted at o Matchmaking for competitive balance Hard Rock Atlantic City in o One-on-one fri
Slide 21: Large Vie.gg North American Opportunity
Large Vie.gg North American Opportunity 01. North America Total Addressable Market Vie.gg $25.0 o Unique esports-centric wagering platform $20.0 02. 03. $15.0 New Jersey Additional growth o Vie.gg platform approved in o Company positioned to $10.0 January 2022 enter additional states and o State is
Slide 22: Appendix
Appendix
Slide 23: Income Statement
Income Statement THREE MONTHS ENDED SEPTEMBER 30 2021 2020 Net revenue $16,408,291 $222,392 Total operating expenses $25,012,891 $4,080,001 Operating income (loss) ($8,604,600) ($3,857,609) Net income (loss) ($552,381) ($1,808,493) Basic and diluted earnings (loss) per share ($0.03) ($0.15) Weighted
Slide 24: Income Statement
Income Statement SIX MONTHS ENDED DECEMBER 31 2021 2020 Net revenue $30,939,338 $2,584,585 Total operating expenses $51,570,763 $12,211,480 Operating income (loss) ($20,631,425) ($9,626,895) Net income (loss) ($34,887,010) ($9,098,530) Basic and diluted earnings (loss) per share ($1.57) ($0.73) Weig
Slide 25: Balance Sheet
Balance Sheet SEPTEMBER 30, 2021 JUNE 30, 2021 Cash $926,983 $19,917,196 Restricted cash $2,945,654 $3,443,172 Other current assets $9,156,249 $6,349,875 Current assets $13,037,886 $29,710,243 Long-term assets $115,757,563 $90,024,796 Total assets $128,795,449 $119,735,039 Long-term debt $8,107,597
Slide 26: EBITDA Reconciliation
EBITDA Reconciliation To supplement its consolidated financial statements, which are THREE MONTHS ENDED DECEMBER 31 prepared and presented in accordance with Generally Accepted Accounting Principles (GAAP), the Company uses adjusted EBITDA, a 2021 2020 non-GAAP financial measure. The presentation of
Slide 27: EBITDA Reconciliation
EBITDA Reconciliation To supplement its consolidated financial statements, which are SIX MONTHS ENDED DECEMBER 31 prepared and presented in accordance with Generally Accepted Accounting Principles (GAAP), the Company uses adjusted EBITDA, a 2021 2020 non-GAAP financial measure. The presentation of t
Slide 28: Comparable Valuation
Comparable Valuation PRICE MARKET ENTERPRISE 2023E 2023E COMPANY TICKER SHARES NET DEBT (as of 1/5/22) CAP VALUE REVENUE EV/REVENUE 888 Holdings 888.L GBP 307.20 377.4 GBP 1,159.3 (GBP 192.9) GBP 966.4 GBP 788.8 1.2x DraftKings DKNG $24.65 403.8 $9,954.8 ($1,147.1) $8.807.7 $2,510.0 3.5x Elys Game T
Slide 29: Key EEG Building Blocks
Key EEG Building Blocks 01. EEG iGaming o Argyll Entertainment (sports betting / iGaming in the UK, Ireland and Malta) o Lucky Dino Gaming (iGaming in Malta) o Bethard (sports betting in Sweden) o Vie.gg 02. EEG Esports o Esports Gaming League (tournament organizer) o GG Circuit (B2B software platfo
Slide 30: Management Team
Management Team Grant Johnson Damian Mathews John Brackens Stuart Tilly Chairman and CEO CFO, Director CIO/CTO COO, Director o CEO since 2013 o CFO since April 2022 o CIO / CTO since 2019 o COO since 2022 (previously served Operations Director for Carte as Chief Legal Officer since 2020) o Served as
Esports Entertainment Group — Investor Presentation (July 2022) on 6ix