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Kambi Group plc
Q1 Report 2017
26 Apr i l 2017
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
2
Kambi overview
TURNKEY SPORTS BETTING SERVICE TOP PERFORMING OPERATORS
26/4/2017
Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
3
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
− 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
4
Operator Turnover growth
Financial headlines
26/4/2017
5
Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
8
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)
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
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
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
Income statement
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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
Agreement signed with Greentube
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Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
10
‒ 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
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
Bringing the online pace to the retail space
Retail Advancements
26/4/2017 Q1 Report 2017 – CEO Kristian Nylén & CFO David Kenyon
12
‒ 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
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
Thank you
Q&A