pointsbet for personal use only - asx...2020/07/28 · any forecast or financial information...

PointsBetQ4 FY2020 Business Update

July 2020

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Business Update│ July 2020

Important notice and disclaimerThis document and any oral presentation accompanying it has been prepared in good faith, however, no express or implied representation or warranty is given as to the accuracy or completeness of theinformation in this document, in any accompanying presentation or in any other written or oral communication transmitted or made available to any investor or potential investor (collectively, the “OtherMaterials”). Nothing in this document, in any accompanying presentation or in any Other Materials is, or shall be relied upon as, a promise or representation. All statutory representations and warranties areexcluded, and any liability in negligence is excluded, in both cases to the fullest extent permitted by law. No responsibility is assumed for any reliance on this document or the accompanying presentation or anyOther Materials.

Without limiting the above, this document, any accompanying presentation and any Other Materials may contain forecasts, forward looking statements or statements as to future affairs which are based onestimates, assumptions and expectations of PointsBet Holdings Limited or its subsidiaries (collectively, the “Company”) (some or all of which may not be satisfied or may not occur) that, while used in good faith,necessarily involve (i) subjective judgments; (ii) inherent uncertainties; and (iii) significant contingencies, many of which are beyond the Company’s control or reflect future business decisions which are subjectto change. Any forecast or financial information presented in this presentation any accompanying presentation and any Other Materials must not be taken as a representation as to future matters.

Therefore, there can be no assurance that such forecasts, forward looking statements or statements as to future affairs will be realised or that the Company's actual or future results, or subsequent forecasts,will not vary significantly from such forecasts, forward looking statements and statements as to future affairs. The actual results may vary from the anticipated results and such variations may be material. Anyand all forecasts and financial information in this document, in any accompanying presentation and in any Other Materials are not, and shall not be relied upon as, a promise or representation as to futurematters. The Company accepts no responsibility or liability in relation to the accuracy or completeness of any forecasts, forward looking statements or statements as to future affairs, or whether they areachievable. The Company does not assume any obligation to revise or update this document, any accompanying presentation, any Other Materials or any of the estimates, assumptions or expectationsunderlying such forecasts, forward looking statements and statements as to future affairs. No representations or warranties are made as to the accuracy or reasonableness of such estimates, assumptions orexpectations or the forecasts, forward looking statements or statements as to future affairs based thereon. Certain data included herein has been obtained from alternative external sources and as such may beinconsistent given differing underlying assumptions and sources.

Any discrepancies between totals and sums of components in tables and figures contained in this presentation are due to rounding. Tables and figures contained in this presentation have not been amended bythe Company to correct immaterial summation differences that may arise from this rounding convention.

Disclosures in this document, the accompanying presentation or any Other Materials are not investment advice and are not intended to be relied upon as advice to investors or potential investors and do nottake into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with independent professional advice when deciding if an investment isappropriate.

The information contained in this document (including tables) has not been audited in accordance with the Australian Auditing Standards.

This document remains the property of the Company and the Company reserves the right to require the return of this document (and any copies or extracts hereof) at any time.

The receipt of this document by any investor or potential investor shall constitute such investor’s or potential investor’s acceptance of the foregoing terms and conditions.

All amounts disclosed in this document are presented in Australian dollars unless otherwise noted.

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Key Highlights

▪ Strong quarterly performance for the

Australian Trading business with Q-on-Q Net

Win growth of 109%

▪ Record quarterly Net Win achieved for the

Australian Trading business of A$32.4m

▪ Australian Trading business delivered

consecutive positive EBITDA quarters (Q3

and Q4 FY2020)

▪ US achieved Net Win of A$1.2m at a Net Win

Margin of 2.5%

▪ Achieved 8.7% New Jersey handle online

market share for the quarter(1)

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Notes: (1) Based on total New Jersey online sports betting handle for the quarter, as reported by the New Jersey Division of Gaming Enforcement (“NJDGE”); (2) Subject to PointsBet’s

partner Hawthorne Racecourse Inc. receiving its Master Sports Wagering license; (3) Initially on races held at Monmouth Park, with scope to expand to additional tracks and

jurisdictions, subject to the receipt of regulatory and all other necessary approvals

▪ Issued a Temporary Operating Permit by the Illinois

Gaming Board(2)

▪ Execution of an agreement in Australia to become

the exclusive wagering partner for Fox Sports AFL

during the 2020 AFL season

▪ Formed a partnership with BetMakers Technology

Group to offer Fixed Odds betting on racing in New

Jersey(3)

▪ Appointed Official Betting Partner of the Detroit

Tigers (MLB)

Business Update │ July 2020

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Strong Growth Across Key KPIs

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TURNOVER

NET WIN

NET WIN %

ACTIVE

CLIENTS(1)

(‘000)

Group Australia US

58%

356%

6.3pp

39%

80%

330%

6.2pp

32%

13%

n.m.

2.8pp

81%

Notes: (1) Clients that have placed a bet in the 12 months preceding the relevant quarter end date

Q4 FY19 Q4 FY20 PCP Increase Q4 FY19 Q4 FY20 PCP Increase Q4 FY19 Q4 FY20 PCP Increase

A$221.3m A$349.4m

A$7.4m

A$33.5m

3.3%

9.6%

80.0

111.4

A$7.5m

A$32.4m

4.5%

10.7%

A$167.8m

A$302.9m

(A$0.2m)

A$1.2m

(0.3%)

2.5%

11.5

20.9 68.5

90.4

A$53.4m A$46.5m

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PointsBet Australia

✓ Strong quarterly performance for the

Australian Trading business with Q-on-Q

Net Win growth of 109%

✓ Record quarterly Net Win achieved for the

Australian Trading business of A$32.4m

✓ Australian Trading business delivered

consecutive positive EBITDA quarters (Q3

and Q4 FY2020)

✓ Continued higher quarter-on-quarter Net

Win Margin partially due to favourable

results and transfer from sports to racing

✓ Hugely successful timing & execution of

Tier 1 Channel 7 Australian horse racing

partnership and Fox Sports AFL

partnership

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PointsBet Australia – Quarterly & PCP Performance (A$m)

Key metrics Q4 FY20 Q4 FY19 Increase on PCP

Turnover 302.9 167.8 80.5%

Gross Win 41.6 15.8 163.1%

Gross Win Margin 13.7% 9.4% +4.3pp

Net Win 32.4 7.5 330.4%

Net Win Margin 10.7% 4.5% +6.2pp

PointsBet Australia – YTD Performance (A$m)

Key metrics Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 FY20 FY19Increase

on PCP

Turnover 164.4 184.8 178.4 302.9 830.5 490.1 69.5%

Gross Win 17.3 20.7 21.2 41.6 100.8 50.5 99.6%

Gross Win Margin 10.6% 11.2% 11.9% 13.7% 12.1% 10.3% +1.8pp

Net Win 12.6 14.6 15.5 32.4 75.1 28.9 159.4%

Net Win Margin 7.7% 7.9% 8.7% 10.7% 9.0% 5.9% +3.1pp

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PointsBet US

✓ Net Win across the quarter of A$1.2m, was impacted by all 4 major US sporting leagues being absent for Q4 FY2020

✓ FY2020 Net Win of A$7.0m

✓ Successful execution of client engagement and activation strategy by offering non-traditional sports wagering markets

✓ The US marketing spend was significantly reduced from pre-COVID19 expectations

✓ Appointed Official Betting Partner of the Detroit Tigers (MLB)

✓ Achieved 8.7% New Jersey handle online market share for the quarter(1)

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PointsBet United States – YTD Performance (A$m)(2)

Key metrics Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 FY20

Turnover 71.4 112.5 90.7 46.5 321.1

Gross Win 1.1 8.1 5.6 1.6 16.5

Gross Win Margin 1.5% 7.2% 6.2% 3.5% 5.1%

Net Win (0.8) 3.4 3.3 1.2 7.0

Net Win Margin (1.1%) 3.0% 3.6% 2.5% 2.2%

Notes: (1) Based on total New Jersey online sports betting handle for the quarter, as reported by the New Jersey Division of Gaming Enforcement (“NJDGE”); (2) The AUD:USD foreign

exchange rate used for the figures in the table was the average rate for the specified period

PointsBet United States – Quarterly & PCP Performance (A$m)

Key metrics Q4 FY20 Q4 FY19 Increase on PCP

Turnover 46.5 53.4 (12.9%)

Gross Win 1.6 1.3 29.4%

Gross Win Margin 3.5% 2.4% +1.2pp

Net Win 1.2 (0.2) n.m.

Net Win Margin 2.5% (0.3%) +2.8pp

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12 months to 31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20

45,828 56,788

68,464 72,011 81,014 83,330

90,422 35

8,243

11,544 15,380

21,141 22,716

20,939

7,927 12,963

24,445

32,913

45,863

65,031

80,008 87,391

102,155 106,046

111,361

Active Clients(1)

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Notes: (1) Active Clients are clients that have placed a bet in the 12 months preceding the relevant date

Active Clients impacted due to sporting

suspensions in Q3 & Q4 FY2020Active Clients US

Active Clients Australia

Clients who have bet in the last twelve months

+ 74%

+ 9%

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Business Update│ July 20208 │

▪ Announced on 3 July 2020 a multi-year

partnership with the Detroit Tigers

▪ First sports betting partnership for any MLB

franchise

▪ First sports betting partnership for a

professional sports team within Michigan

▪ Secured branding at Comerica Park and

features on the Detroit Tigers Radio Network

Comerica Park

Partnership with Detroit Tigers

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Ready for Illinois In-person Launch PeriodMajor cities

Casino (10)

Arlington Park

Sports facility

Hawthorne Race Course

Fairmount Park• Illinois has legislated an in-

person sign-up period for the first 18-months of sports wagering operations

• 75% of Illinois’ population (c. 9.5m people) live within the Chicago Metropolitan Area

• PointsBet is ideally placed with a Flagship sportsbook to be located at the iconic Hawthorne Race Course – c. 13km / 8mi from Downtown Chicago

• PointsBet will also fit-out 3 branded off-track betting establishments throughout the Chicago Metropolitan area

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Aurora

Joliet

DOWNTOWN

CHICAGO

Naperville

SeatGeek

Stadium

Wrigley Field

Soldier Field

Guaranteed

Rate Field

United Center

Joliet Speedway

Chicago

ILLINOIS

Springfield

Naperville

Aurora

Rockford

Peoria

Champaign

Fairmount ParkArgosy Casino AltonGateway motorsports

park

Joliet

6 miles10 km

Hawthorne Race Course

▪ c. 13km / 8mi from

Downtown Chicago

Arlington Park


Downtown Chicago

Grand Victoria Casino


Downtown Chicago


Downtown Chicago


Downtown Chicago


Downtown Chicago

Rivers Casino


Downtown Chicago

Note: Foxbet has a skin via Penn National Gaming

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Quarterly Cash Flows

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(1) Includes Player Cash Accounts of A$9.0m; (2) Majority of corporate cash held in USD

Group Cash Flows (A$m)Q4 FY2020 FY2020

Receipts from Customers 33.4 82.0

Cost of Sales (11.2) (33.1)

Sales and Marketing (9.3) (34.6)

Staff Costs (6.7) (29.4)

Administration and Corporate Costs (5.4) (16.2)

Change in Player Cash Accounts 1.9 0.2

Other operating cash flow 0.3 0.8

Net cash from / (used in) operating activities 3.1 (30.3)

Capex (3.9) (21.4)

Net cash from / (used in) investing activities (3.9) (21.4)

Proceeds from issues of shares - 122.1

Proceeds from exercise of share options - 0.2

Transaction costs related to issues of shares, convertible notes or options - (3.6)

Other financing cash flow 0.2 (0.5)

Net cash from / (used in) financing activities 0.2 118.3

Cash and cash equivalents at beginning of Quarter / Year to Date 156.7 75.9

Net cash flow (0.6) 66.5

Effect of movement in exchange rates on cash held (11.7) 1.9

Cash and cash equivalents at end of quarter(1) 144.3 144.3

• Corporate cash at end of quarter was A$135.4m(2)For

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Remaining Focused on our Vision

✓ Well capitalised with A$135.4m of corporate cash at 30 June 2020. The Company has no borrowings

✓ Australian Trading business delivered consecutive positive EBITDA quarters (Q3 and Q4 FY2020)

✓ In Australia, continue to opportunistically take advantage of industry consolidation and the growing consumer trend to

online behaviour

✓ Forthcoming launches of sportsbook operations in Illinois, Colorado and Michigan

✓ Execute on US media strategy

✓ Continued investment in product and technology platform including iGaming

✓ As the big 4 US sports re-launch concurrently in Q1 FY2021, a historical first, execute brand-led marketing strategy in

Indiana and Illinois to achieve target market share

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pointsbet for personal use only - asx...2020/07/28 · any forecast or financial information...

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