Kambi Group plc Q2 Report 24 July 2019, Stockholm Q2 Report 24 - - PowerPoint PPT Presentation

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Kambi Group plc Q2 Report 24 July 2019, Stockholm Q2 Report 24 - - PowerPoint PPT Presentation

Jan 12, 2023 44 likes •225 views

Kambi Group plc Q2 Report 24 July 2019, Stockholm Q2 Report 24 July 2019 CEO Kristian Nyln & CFO David Kenyon Agenda 1. Kambi overview & highlights 6. Market trends 2. Financial update 7. Kambi initiatives 3. Customer

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SLIDE 1

Kambi Group plc

Q2 Report 24 July 2019, Stockholm

Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon
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SLIDE 2

Agenda

1. Kambi overview & highlights 2. Financial update 3. Customer signing 4. Customer launches 5. Events after Q2 6. Market trends 7. Kambi initiatives 8. Summary 9. Q&A Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon 2
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SLIDE 3

Kambi at a glance

Leading B2B provider of premium end-to-end sports betting services

Australia | Malta | Philippines | Romania | Sweden | U.K. | U.S. A global
  • rganisation
tu

777

employees Odds & trading Risk management Technical platform User interfaces Real-time sports data B2C Operators End User Sports betting value chain Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon 3
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SLIDE 4

Kambi at a glance

− 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 base is fixed − Continuous investment into proprietary technology to maintain its market leadership − Highest level of corporate probity and integrity

Leading B2B provider of premium sports betting services

20+ Operators Business model Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon 4
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SLIDE 5 − Solid financial performance with 23% YOY revenue growth − Operator turnover growth of 26%, operator trading margin of 8.2% − Signed a new customer, BetWarrior − Took the first legal online sports bet in Pennsylvania with Rush Street Interactive (RSI) − Took the first legal bet in New York state with RSI at Rivers Casino & Resort Sportsbook

23%

Revenue growth

Highlights

5 Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon
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SLIDE 6

Financial headlines

6 10 14 18 22 Q2 Revenue (€m) 2019 2018 16 32 48 H1 Revenue (€m) 2 4 6 H1 Operating Profit (€m) 1 2 3 Q2 Operating Profit (€m) Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon
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SLIDE 7

Operator trading analysis

Kambi operators' turnover and trading margin

7 Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon 221 239 219 242 281 277 254 259 273 307 334 369 398 387 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 100 150 200 250 300 350 400 450 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Turnover Index Margin%
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SLIDE 8

Kambi revenue conversion

Q2 2019 vs Q2 2018

8 Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon 0% 5% 10% 15% 20% 25% 30% 35% Operator Turnover Growth FX impact Operator margin impact Taxes/marketing deductibles impact Other* Kambi Revenue Growth *Other includes the impact of contract renewals, volume-related commission tiers and fixed revenues
  • - Denotes components of NGR from which Kambi's revenue share is calculated
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SLIDE 9

Income statement

9 €m Q2 2019 Q2 2018 Change % H1 2019 H1 2018 Change % FY 2018 Revenue 21.6 17.6 23% 42.6 34.0 25% 76.2 Operating expenses 19.1 15.2 26% 37.5 29.6 27% 63.5 Operating result 2.5 2.4 4% 5.1 4.4 17% 12.7 Result after tax 1.6 1.7
  • 5%
3.6 3.2 11% 9.8 Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon
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SLIDE 10

Q2 Cash flow

€ ‘000

10 Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon 38,000 39,000 40,000 41,000 42,000 43,000 44,000 45,000 46,000 47,000 Opening cash Operating profit Working capital Amortisation/Depn Development costs Tangible assets Other Closing cash
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SLIDE 11 − BetWarrior is a new operator founded by two former PokerStars directors − They will leverage Kambi’s empowerment functionality to create differentiated experiences − Planning to debut a Kambi-powered sportsbook by the end of 2019

Kambi signs BetWarrior

A Latin American focussed online operator

11 Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon
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SLIDE 12 − Rush Street Interactive (RSI) was first online in Pennsylvania with its PlaySugarHouse sportsbook − Kambi also launched RSI brand BetRivers and Greenwood Gaming-owned Parx Casino − Kambi currently powers the first three sportsbooks live in the state, highlighting our speed-to-market − Kambi also supported the launch of a William Hill- branded sportsbook in Sweden

Customer launches in Q2

Kambi processes first legal online wager in Pennsylvania

12 Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon
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SLIDE 13 − Last week, Kambi processed the first legal wager in the state of New York in partnership with RSI − The sportsbook at Rivers Casino & Resort Schenectady includes 14 kiosks and four OTCs − The historic launch underlines Kambi’s ability to quickly gain licensure and launch partners − Kambi strengthened its partnership with Rank Group with a long-term extension. It will launch its Enracha brand online later this year

Events after Q2

Rush Street Interactive take first wager in New York State

13 Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon
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SLIDE 14 − In Q2, Illinois, Iowa, Indiana and Tennessee have had sports betting bills pass into law − Iowa and Indiana are both aiming to have sports betting up and running by Q3 − Tennessee regulation is online only, meaning
  • perators do not need to be tethered to retail
establishment − Buenos Aires City, Argentina, passed sports betting
  • regulation. A minimum of three licences will be issued
− Buenos Aires province together with Buenos Aires City accounts for 40% of Argentinean population

Regulation update

Progress in Latin America and the U.S.

14 Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon
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SLIDE 15 − American football is the most popular sport in US, therefore a premium sports betting product is essential − Kambi’s US network showed 90% of active players placed at least one bet on NFL − Half of new sign-ups placed their first bet on an American football game last season − Kambi is building greater flexibility into technology platform to improve UX − Improvements to trading model will improve in-play markets and reduce market suspensions

Kambi initiatives

American football product improvements

15 Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon

37%

  • f US adults say American
Football is their favorite sport to watch – basketball is next with 11%

15.8m

viewers/week

NFL 2018 average - 5% increase YoY

$500m+

wagered on football in N.J. last season Sources: https://news.gallup.com/poll/224864/football-americans-favorite-sport-watch.aspx https://www.si.com/nfl/2019/01/02/nfl-television-ratings-viewership-rise-five-percent-2018 https://www.thewrap.com/2019-nfl-draft-sets-nielsen-ratings-records/ https://www.nj.gov/lps/ge/docs/Financials/PressRel2018/December2018.pdf
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SLIDE 16

Summary

16 Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon Kambi continues first- mover momentum in the US with Pennsylvania & New York launches Solid financial performance with 23% YOY revenue growth Our market leading Sportsbook continues to provide speed-to- market and financial success for our
  • perators

23%

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SLIDE 17

Q&A

17 Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon
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Thank you

Q2 Report – 24 July 2019 CEO Kristian Nylén & CFO David Kenyon