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Kambi Group plc
Q1 Report 2017
26 Apr i l 2017
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Outline for today
1 Kambi overview and highlights
2 Financial update
3 New customer signing
4 Regulation update
5 Retail update
6 Summary
7 Q&A
26/4/2017
Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
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Kambi overview
TURNKEY SPORTS BETTING SERVICE TOP PERFORMING OPERATORS
26/4/2017
Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
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M A N I L A
S Y D N E Y
E M P L O Y E E S
S T O C K H O L M
B U C H A R E S T
M A L T A
L O N D O N
571 EM PL O YEE S
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− Strong turnover growth from our operators
− Continued solid cash flow generation
− Quarter significantly affected by player-friendly results
− One new customer agreement: Greentube
− Kambi awarded the ISO 27001:2013 certification
Highlights and key events
+27%
26/4/2017
Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
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Operator Turnover growth
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Financial headlines
26/4/2017
5
Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
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10
12
14
16
Revenue (€m)
20.5
21
21.5
22
22.5
23
23.5
24
Net cash (€m)
Q1 2017 Q1 2016
0
0.5
1
1.5
2
2.5
Operating Profit (€m)
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Operator turnover & trading margin
Operator trading analysis
− The graph shows Kambi’s operators’
quarterly betting turnover and trading
margin
− Operator turnover increased by 27%
compared to Q1 2016
− Player-friendly results accentuated by
accumulators led to a lower than
average trading margin
− Operator margin before marketing
deductibles was 6.2%
26/4/2017
Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
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79 72 75
90 100
119 109
124
147
163 160
203
221
239
219
242
281
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
50
75
100
125
150
175
200
225
250
275
300
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Q32014
Q42014
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Turnover Index Trading margin % before marketing deductibles
Trading margin % after marketing deductibles
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Accumulators
Operator trading analysis
‒ The chart shows the effect of player friendly
sporting results during the last two quarters
‒ Accumulators have a higher and more
volatile margin than single bets
‒ The trading margin for single bets is higher
for Q1 2017 than in Q1 2016, while the
trading margin for accumulators has almost
halved
26/4/2017
Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
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Q1/16
Q1/17
Singles Accumulators
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Growth in operator turnover and Kambi revenue
Q1 2017 vs Q1 2016
26/4/2017 Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
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0%
5%
10%
15%
20%
25%
30%
35%
FX impact Operator Turnover Growth Operator margin impact Taxes/marketingdeductibles impact
Other* Kambi Revenue Growth
*Other includes the impact of volume-related commission tiers and fixed revenues
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Income statement
26/4/2017
Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
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€m Q1 2017 Q1 2016
Revenue 14.2 13.3
Operating expenses -12.9 -11.3
Operating profit 1.4 2.0
Finance costs / Tax -0.3 -0.2
Profit after tax 1.1 1.8
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Agreement signed with Greentube
26/4/2017
Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
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‒ Agreement signed with operator Greentube, a subsidiary of
Novomatic
‒ Kambi to provide sports betting services to complement
Greentube’s online casino brands in regulated markets such
as Spain, Italy, Germany and Romania
‒ We expect Greentube to launch into its first markets during the
summer
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Regulation update
Licenses: Alderney, Malta, Romania, Spain, UK
Certifications: Denmark, Estonia, Italy
‒ Sweden is planning to regulate the online gambling
market in 2019
‒ The Swedish market is one of the most important
jurisdictions for Kambi
‒ The suggested tax rate of 18% will impact revenues
both for Kambi and its operators
‒ For Kambi, this can lead to opportunities to sign new
operators such as the state owned operators as well
as new entrants to the market
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Bringing the online pace to the retail space
Retail Advancements
26/4/2017 Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
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‒ A major retail gap was closed with a new User Interface for the self service terminals
‒ The depth, speed and quality of the online product, with optimised interaction and content
presentation for the retail space.
‒ Built on the same empowerment platform that all Kambi operators have access to
‒ Showcases Kambi’s Scalable Differentiation model to deliver the most relevant User
Experience
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Summary
26/4/2017
Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
13
Strong growth in
our operators’
turnover, up 27%
New customer
signing - Greentube
Player-fr iendly
outcomes impacted
the trading margin
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Thank you
Q&A