for personal use only - asx...2016/07/01 · transaction overview 3 acquisition consideration •2...
TRANSCRIPT
DateTix Group (ASX:DTX) to Acquire Lovestruck
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July 1, 2016
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Disclaimer
This presentation has been prepared by Datetix Group Ltd and Lovestruck Limited. Each recipient of this presentation is deemed to have agreed to accept the qualifications, limitations and disclaimers set out below.
None of Datetix Group Ltd, Lovestruck Limited, and/or any of its subsidiaries or their respective directors, officers, employees, advisers or representatives (Beneficiaries) make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information contained in this presentation, including any forecast or prospective information. The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, the Beneficiaries. Actual future events may vary materially from the forward looking statements and the assumptions on which those statements are based. Given these uncertainties, you are cautioned to not place undue reliance on such forward looking statements.
This presentation is a general overview only and does not purport to contain all the information that may be required to evaluate an investment in Datetix Group Ltd. The information in this presentation is provided personally to the recipient as a matter of interest only. It does not amount to an express or implied recommendation with respect to any investment in Datetix Group Ltd. nor does it constitute financial product advice.
The recipient, intending investors and respective advisers, should:• conduct their own independent review, investigations and analysis of Datetix Group Ltd and Lovestruck Limited (as the case may be) and of the information contained or referred to in this presentation; and/or• seek professional advice as to whether an investment in Datetix Group Ltd. is appropriate for them, having regard to their personal objectives, risk profile, financial situation and needs.
Nothing in this presentation is or is to be taken to be an offer, invitation or other proposal to subscribe for shares in Datetix Group Ltd.
Except insofar as liability under any law cannot be excluded, none of the Beneficiaries shall have any responsibility for the information contained in this presentation or in any other way for errors or omissions (including responsibility to any persons by reason of negligence).
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Transaction Overview
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Acquisition consideration
• 2 million ordinary shares in DateTix (ASX:DTX), escrowed for 24 months after settlement
• Contingent earn-out consideration of up to A$270,000 payable in two equal instalments upon reaching certain revenue milestones three and six months after settlement
• Cash consideration equivalent to Lovestruck’s existing net cash balance at settlement date
Pro forma capital structure post-acquisition
Pro Forma Market Capitalization A$12M
Share Price as of 29 June 2016 $0.40
Pro Forma Shares on Issue1 31.06M
Performance Shares2 12.00M
Options3 2.00M
Cash Balance as of 31 March 2016 A$2.8M
1Includes 2M shares to be issued to Lovestruck vendors and 12.5M shares escrowed until November 2017
2Issuable in 3 equal tranches on achieving share prices of $0.60,$0.80,$1.00 and specific revenue or download milestones
31.7mm at $0.40 exp. Dec 2020 / 1.2mm at $0.84 exp. Jul 2019 / 0.2mm at $1.00 exp. Oct 2019
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Strategic Rationale
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Combines two highly complementary businesses with substantial geographic overlap to significantly increase DateTix’s overall market share in Hong Kong and Singapore1
Expands DateTix’s product and brand portfolio to capture older user demographic that tend to seek serious long-term relationships2
Significant potential for profitable expansion by localising Lovestruck for China and other high growth markets, and by launching DateTix into Europe via Lovestruck’s United Kingdom footprint3
Revenue synergies from cross-selling to each other’s user base, and increasing number of sales leads to upsell to the offline matchmaking business4
Cost synergies from combining technology platforms and operations, and migrating bulk of Lovestruck’s cost base from the United Kingdom to China5F
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Lovestruck Overview
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A leading premium online dating platform currently operating in Hong Kong, Singapore and UK
A$2.3 million2015 revenues1
35,500+Monthly active users in
May 2016
4,500+Active paying subscribers at
end of May 2016
1 Based on unaudited financial results provided by Lovestruck Limited
Globally Scalable Premium Online Dating Platform
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Highly Scalable Software Platform
Proprietary software platform easily expandable and adaptable globally
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• Device-agnostic: 4 platforms
• iOS app
• Android app
• Website
• Mobile website
• Mobile dating pioneers
• Over 700,000 downloads
• 25%+ of revenues from mobile
• “Mobile First” strategy
World-Class Proprietary Mobile and Web Technology Platform
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Proven Subscription-Based Revenue Model
Recurring subscription-based membership revenues diversified across international markets
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2015 Revenue by Product 2015 Revenue by Geography
96.3%53.6%
2.8% 0.9% 16.0% 0.1%
Membership subscriptions
Events
Advertising
United Kingdom
Hong Kong
Singapore
Other
30.3%
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Impressive International Footprint
Proven revenue and cash flow generating platform across different international markets
1 Based on unaudited financial results provided by Lovestruck Limited
A$0.7 million
8,700+
1,400+
2015 revenues1
Monthly active users in May 2016
Active paying subscribers at end of May 2016
A$0.4 million
6,800+
1,000+
2015 revenues1
Monthly active users in May 2016
Active paying subscribers at end of May 2016
A$1.2 million
19,900+
2,100+
2015 revenues1
Monthly active users in May 2016
Active paying subscribers at end of May 2016
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Hong Kong
Singapore
United Kingdom
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Premium Brand Positioning with High ARPU
Lovestruck is a premium, aspirational brand that commands high subscription price points
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1 As of market close on June 29, 20162 Revenue for Match Group is Total Dating Revenue and excludes non-dating related revenue3 Monthly Active Users for Lovestruck is for May 2016, Match Group is for the quarter ended Sep 30, 2015, Momo is for Mar 2016, MeetMe is for Mar 2016
Revenue per Monthly Active User (A$)
Market cap (A$)1
2015 Revenue (A$)2 $2.3 million $1.2 billion
$4.7 billion
$180 million
$2.4 billion
$64.80
$20.34$14.53
$2.49
Monthly Active Users3 35,500+ 59.0 million 72.3 million
Match Group MeetMe Momo
$77 million
$347 million
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Proven profitability in paying subscriber acquisitions driven by award-winning marketing
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Highly Profitable and Attractive Unit Economics
1 ROI for a city calculated based on revenue per subscriber divided by marketing spend per subscriber for that city
United Kingdom Singapore
Marketing Spend per Subscriber
Revenue per Subscriber
Marketing Spend per Subscriber
Revenue per Subscriber
ROI per Paying Subscriber (A$)1
$325$391
$241$266
1 ROI for a region is estimated using revenue per subscriber divided by marketing spend per subscriber for that city
Ready to Accelerate Paying Subscriber Growth via ROI-Driven Marketing
Hong Kong
Marketing Spend per Subscriber
Revenue per Subscriber
$232
$381
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Attractive User Demographics
Highly educated and affluent user base seeking serious long-term relationships
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Who uses Lovestruck?
Where do they work?
34yoMedian age
45%Over age 35
60%Male
35
A$60k/yrAverage annual
income
73%College or above education level
Banking and financial
IT and e-commerce
Art, design and fashion
Engineering Business administration
Marketing and PR
Public sector
Healthcare
11% 7% 6% 6% 4%4%5% 4%
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Trusted and Highly Reputable Dating Brand
Award-winning and trusted dating brand with a tier-one URL domain name
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Leading reputation in the industry
Winner ‘Online Dating Brand of the Year’ 2015
Highly Commended ‘Safer Dating’ 2015
Highly Commended ‘Events Brand of the Year’ 2015
Highly Commended ‘Best Customer Service’ 2015
Excellent reputation outside of the industry
9th Fastest Growing Tech Company, Deloitte Fast 50 2014
City AM Leap 100 Member 2015
Santander Breakthrough 50 Member 2014
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Strategically Complementary Positioning to DateTix
Expands DateTix Group’s product portfolio to older demographic seeking serious long-term relationships
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Older
Younger
Serious Relationships
Casual Dating
26yo
Median age
34yo
Median age
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Exceptional Founding Team
Experienced management team with deep industry expertise and proven track record of growth
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Managing Director and co-founder
Brett Harding
Laurence Holloway
Technical Director and co-founder
formerly
formerly
• 7 years’ multi-disciplined conceptualising, marketing and managing of Lovestruck to become a pre-eminent, multi award-winning premium online dating brand in UK and Asia
• Previously 12 years account management in some of London’s top digital and creative advertising agencies, delivering a plethora of successful above and below-the-line campaigns for an eclectic range of blue-chip clients
• Diploma (Distinction, including “Student of the Year”) at the Institute of Direct and Digital Marketing and a 2:1 degree in Business Studies
• Web technology and e-commerce specialist with 18 years experience in product development, management, design, deployment and measurement
• Previously a consultant and development team lead delivering blue chip technology and marketing projects for media, retail and banking clients
• 1st Class degree in Computer Science and Linguistics from University of Leeds
• Board member of the Online Dating Association, working to uphold and improve standards in the industry and for the public
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Diverse and scalable revenue model built on top of large & engaged combined user base
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Membership
Subscriptions1 Virtual Items2
E-commerce3 Advertising4
Matchmaking5 Events6
Online Revenues
Offline Revenues
DateTix Group Post-Acquisition
Large & Engaged User Base
Attractive Monetisation Model Supported by Multiple Revenue Streams
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DateTix Group Post-Acquisition
A scalable dating services platform with broad footprint across China, Asia and the United Kingdom
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Highly Scalable Online Platform with Significant Potential for Expansion
65.1 million population
United Kingdom
Hong Kong7.3 million population
Shenzhen, China10.8 million population
Singapore5.5 million populationF
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Our Vision and Roadmap
Our Vision: to become the world’s largest online marketplace for dates
20132014
2015
2016
2017
2018
2019
2020
Start Up PhaseVirtual date tickets used to
host dates, send virtual gifts, etc.
R&D
Developed proprietary technology platform and
algorithms
Platform Launch
Launch of DateTix website and apps
User Acceleration
Become dominant market leader in initial target cities
Revenue Acceleration
Revenue growth accelerates from user growth and
monetization
Geographic Expansion
Expand into major cities around the world
EBITDA Acceleration
EBITDA growth accelerates from operating leverage
World’s Largest Online Marketplace
for DatesDominant market leader in
major cities around the world
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“Join us in building the world’s largestonline marketplace for dates”
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