Kambi Group plc Q3 Report 25 October 2019, Stockholm Q3 Report 25 - - PowerPoint PPT Presentation

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Kambi Group plc Q3 Report 25 October 2019, Stockholm Q3 Report 25 - - PowerPoint PPT Presentation

Nov 03, 2023 471 likes •693 views

Kambi Group plc Q3 Report 25 October 2019, Stockholm Q3 Report 25 October 2019 1 CEO Kristian Nyln & CFO David Kenyon Agenda 1. Kambi overview & highlights 5. New product launch 2. Financial update 6. Events after Q3 3.

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SLIDE 1

Kambi Group plc

Q3 Report 25 October 2019, Stockholm

Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon 1
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SLIDE 2

Agenda

1. Kambi overview & highlights
  • 2. Financial update
  • 3. Commercial agreements
  • 4. Customer launches
  • 5. New product launch
  • 6. Events after Q3
7. Kambi initiative
  • 8. Q&A
2 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon
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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

834

employees Odds & trading Risk management Technical platform User interfaces Real-time sports data B2C Operators End User Sports betting value chain Q3 Report – 25 October 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
  • perators’ 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 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon 4
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SLIDE 5

− Solid financial performance with 12% YOY revenue growth − Operator turnover growth of 23%,

  • perator trading margin of 8.5%

− Signed two new customers, Penn National Gaming and JACK Entertainment − Completed multiple customer launches, including seven casinos in the US − Took the first legal sports bet in New York and launched on first day of regulation in Iowa and Indiana

50%

  • f US population in states where

Penn National Gaming is present

Highlights

5 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon
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SLIDE 6

Financial headlines

6 10 15 20 25 Q3 Revenue (€m) 2019 2018 10 20 30 40 50 60 70 YTD Revenue (€m) 2 4 6 8 10 YTD Operating Profit (€m) 1 2 3 4 5 Q3 Operating Profit (€m) Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon
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SLIDE 7

Operator trading analysis

Kambi operators' turnover and trading margin

7 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon 221 239 219 242 281 277 254 259 273 307 334 369 398 387 412 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 Q3 2019 Turnover Index Margin%
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SLIDE 8 0% 5% 10% 15% 20% 25% Operator Turnover Growth * FX impact Operator margin impact Taxes/marketing deductibles impact Other ** Kambi Revenue Growth * Operator turnover growth shown is based on Q3 2018 exchange rates **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

Kambi revenue conversion

Q3 2019 vs Q3 2018

8 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon
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SLIDE 9

Income statement

9 €m Q3 2019 Q3 2018 Change % Q3 YTD 2019 Q3 YTD 2018 Change % FY 2018 Revenue 23.0 20.5 +12% 65.6 54.5 +20% 76.2 Operating expenses 19.6 16.3 +20% 57.0 46.0 +24% 63.5 Operating result 3.4 4.2
  • 18%
8.6 8.5 +0% 12.7 Result after tax 2.3 3.3
  • 31%
5.8 6.5
  • 10%
9.8 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon
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SLIDE 10

Q3 Cash flow

€ ‘000

10 Q3 Report – 25 October 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 Opening cash Operating profit Working capital Amortisation/Depn Development costs Tangible assets Other Closing cash
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SLIDE 11 Regulated states Online Retail Population (m) Pennsylvania Y Y 12.8 Illinois Y Y 12.7 New Jersey Y Y 9.0 Indiana Y Y 6.7 Iowa Y Y 3.1 Mississippi 3.0 Nevada Y Y 3.0 West Virginia Y Y 1.8 52.1

Kambi signs Penn National Gaming

Largest regional gaming operator in North America

11 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon Currently unregulated: Colorado, Florida, Kansas, Louisiana, Maine, Massachusetts, Michigan, Missouri, New Mexico, Ohio and Texas − Penn National Gaming operates 41 gaming properties across 19 US states, equal to half of the US population − Already live with Kambi’s on-property sportsbook in five casinos across Iowa, Indiana and Pennsylvania − Will leverage Kambi’s empowerment capability to launch a bespoke online product in 2020 − Ambitious management team with clear aim of being a market leader in the US
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SLIDE 12 − Jack Entertainment operates the JACK Cleveland Casino and JACK Thistledown Racino, both in Ohio − Has an established online presence in Ohio, the seventh most populous state in the US − Will launch on-property and online sportsbooks upon the passing of enabling legislation − Partnership could be extended into further US jurisdictions should commercially attractive
  • pportunities arise

Kambi signs JACK Entertainment

One of the leading gaming brands in Ohio

12 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon
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SLIDE 13

Kambi extends deals with DraftKings and NagaWorld

Renewed contracts in both the US and Cambodia

13 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon − New agreement significantly increased the number of states covered by the agreement to nine − Since signing, Kambi has launched with DraftKings in New York, Pennsylvania, Indiana, Iowa and West Virginia − NagaWorld will continue to use Kambi to power its two flagship properties in Cambodia − The operator will take a more comprehensive live package as it looks to continue its YOY growth
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Customer launches in Q3

Kambi continues to lead in online and retail delivery

14 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon

1stin IA &IN

Launched on day
  • ne of regulated
market opening in both Iowa and Indiana Unibet made US debut online in New Jersey and later launched retail in Pennsylvania Took the first legal bet in New York State when launching with Rush Street at Rivers Casino & Resort In total, Kambi launched customers into six US states across
  • nline and retail

1stin NY

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SLIDE 15

Building out Bet Builder capability

Multi Builder next evolution of accumulator betting

15 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon − Bet builders and in-event combinations have quickly become hygiene factors for top tier sportsbooks, particularly in Europe − In Q3, Kambi launched Multi Builder, enabling players to combine Bet Builders, in-event combos and selections from other events − This provides players with unparalleled flexibility from a B2B perspective and is unmatched by all B2Cs, bar one − Kambi’s continuous focus on product shows why outsourcing the sportsbook to a premium provider is the right solution for tier one
  • perators

50%

within three weeks of launch, half of all in-event combinations were Multi Builders

500,000+

more than half a million Multi Builder bets were placed in Q3 following its August launch
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SLIDE 16

Events after Q3

Further launches and award win

16 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon Momentum continues with seven US launches successfully completed so far in Q4 Took first legal online bets in Indiana with Rush Street and DraftKings Launched with Penn National Gaming in two properties in Pennsylvania Operational excellence recognised when named Digital Supplier
  • f the year at Global
Gaming Awards
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SLIDE 17

Kambi initiatives

Regulation and compliance increasingly a competitive advantage

17 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon − Kambi’s long-term focus on regulated markets leaves it well positioned to succeed in a regulated global market − Kambi is proactive in developing strong relationships with regulators, sharing best practice at an early stage − When combined with its scalable technology, Kambi’s partners can launch at speed, often first to market − Kambi’s approach to regulation and compliance has given its partners a competitive advantage, as seen in US
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Summary

18 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon

Signed two major customers, giving Kambi significant market access in the US Solid financial performance with momentum building throughout the quarter Global Gaming Award recognising Kambi’s continued global excellence

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SLIDE 19

Q&A

19 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon
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SLIDE 20

Thank you

20 Q3 Report – 25 October 2019 CEO Kristian Nylén & CFO David Kenyon