H Financial Results

Transcription

1 H1 217 Financial Results Analyst Conference Call 31 st August 217 fortunagroup.eu FORTUNA ENTERTAINMENT GROUP N.V.

2 Agenda 1 Introduction Outlook & Guidance Update 2 H1 217 Key Highlights 3 H1 217 Financial Results fortunagroup.eu 2

3 Introduction fortunagroup.eu 3

4 Fortuna Entertainment Group s Strategic Framework Our Recipe for Transformation VISION Fortuna the No.1 licensed sports betting & gaming operator in CEE with the most trusted and exciting multi-channel betting & gaming brands By end of 219 we will be the No.1 licensed betting & gaming operator in CEE (5 markets) have the most trusted & exciting betting & gaming brands have entered into at least one additional CEE market be a regional leader on both GW and EBITDA basis Mission INNOVATION CUSTOMER EXPERIENCE MULTI-CHANNEL FINANCIAL PERFORMANCE Competitive Advantage Multichannel Retail network Brand Established position BI & Analytics driven Local People Customer Service Strategic initiatives Operational Excellence Step-change Value Creation fortunagroup.eu 4

5 EBITDA The Journey 3 Main Pillars & 2 Key Phases Building the Foundation Going for the Vision Step-change value creation BAU Operational excellence SIs Future expansion Scalable MC/MP platform Hattrick Sports Group Fortbet RO Entities Online Gaming Regulation & Compliance M&A / Internationalisation SIs Operational excellence People management Customer Life Cycle Mgt. BI & KVDs Retail Brand Risk Management BAU AS-IS Low Margin products Market liberalization Higher Taxation fortunagroup.eu 5

6 Acquisition Strategy and Key Success Factors 1 Replication of proven business model based on operational excellence on the back of a cutting edge customised technology platform 3 Major strengthening of no. 1 position in sports betting and gaming in CEE 4 Consolidation of the Romanian market to become clear no. 1 multichannel operator in sports betting and gaming 2 Scalable operating model utilising local knowledge and group-wide best practices 5 Strategic expansion into markets with solid macro fundamentals, favourable regulatory framework and attractive industry dynamics FEG B2C FEG B2B FEG acquisition in progress 6 Dedicated integration team fortunagroup.eu 6

7 Fortuna Entertainment Group Leading Regulated Operator in the CEE Czech Republic Pop. 1.5 million 385k registered users No. 2 market position (31%) Retail & Online Reg. vs. offshore market: EUR 78 MM vs. EUR 5 MM Poland Pop million 274k registered users No. 2 market position (33%) Retail & Online Reg. vs. offshore market: EUR 2 MM vs. EUR 1.1 BN Slovakia Pop. 5.4 million 183k registered users No. 2 market position (35%) Retail & Online Reg. vs. offshore market: EUR 365 MM vs. EUR 1 MM B2B territories - Spain - Montenegro - Bosnia & Herzegovina Croatia PSK Pop. 4.2 million 52k registered users No. 2 market position (25%) Retail & Online Reg. vs. offshore market: EUR 15 MM vs. EUR 3 MM FEG B2C FEG B2B FEG acquisition in progress Romania Brand License / Casa Pariurilor Pop million Combined no. 1 position in retail and TOP 5 in online Retail & Online Reg. vs. offshore market: EUR 17 MM vs. EUR 3 MM Regulated vs. off-shore market size indications based on management estimates and H2GC fortunagroup.eu 7

8 H1 217 Key Highlights fortunagroup.eu 8

9 H1 217 Key Highlights Amounts Staked growing across all markets & channels with Hattrick acquisition ensuring further acceleration Total Amounts Staked increased by 4.9% yoy to EUR 72.7 million Gross Win increased by 24.5% to EUR 1.2 million Total EBITDA amounted to EUR 7.6 million down 22.% yoy excl. M&A/Integration one-offs EBITDA up by 7.9% Net Profit EUR 2.5 million, down 53.1% yoy excl. one-offs Net Profit up by 3.2% Hattrick acquisition consolidated since May 217 with integration kick-started Lottery business sold in May 217 reported as discontinued operations fortunagroup.eu 9

10 H1 217 Financial Results fortunagroup.eu 1

11 H1 217 Financial Results (in EUR MM) Amounts Staked Revenues* % % +31.2% AS Sports Betting & Gaming AS Lottery AS Hattrick % % % 54.5 Revenues Sports Betting & Gaming Revenues Lottery Revenues Hattrick EBITDA* Net Profit* % % % EBITDA Hattrick EBITDA Lottery EBITDA Sports Betting & Gaming % % -13.7% Net Profit Hattrick Net Profit Lottery Net Profit Sports Betting & Gaming fortunagroup.eu *) Revenues, EBITDA and Net Profit split between Lottery and Sports Betting & Gaming is including intersegment 11

12 (in EUR MM) EBITDA H1 217 Financial Results Net Profit % % % 8.5 EBITDA adj EBITDA Hattrick EBITDA Lottery EBITDA Sports Betting & Gaming % % % -.3 EBITDA Hattrick EBITDA Lottery EBITDA Sports Betting & Gaming % % % Net Profit Sports Betting & Gaming Net Profit Lottery Net Profit Hattrick Net Profit adj % % % Net Profit Sports Betting & Gaming Net Profit Lottery Net Profit Hattrick EBITDA and Net Profit split between Lottery and Sports Betting & Gaming is including intersegment income and expenses unlike financial statements fortunagroup.eu EBITDA and Net profit adjusted for Hattrick acquisition costs one-offs 12

13 H1 217 Financial Results (in EUR MM) Gross Win % % % 9. GW Sports Betting & Gaming GW Lottery GW Hattrick Gross Win Sports Betting* Gross Win / Net Gross Win Margin 2% 15% 15.7% 13.9% 1% 1.2% 9.1% 5% % Gross Win Margin Net Gross Win Margin Net Gross Win Sports Betting* % % % % 62.7 Gross Win SB Online Gross Win SB Retail % Net Gross Win Online +7.6% Net Gross Win Retail fortunagroup.eu *includes FEG and Hattrick sports betting (ex. Lottery and gaming) 13

14 Sports Betting & Gaming by Country H1 217 Amounts Staked Gross Win SK 33% PL 12% H1 216 CR 55% RO 2% PL 13% SK 27% H1 217 HR 6% CR 52% H1 216 PL 24% SK 32% CR 44% H1 217 RO HR 3% 5% PL 25% SK 27% CR 4% Hattrick Sports Group has been consolidated since May 2 th 217 Increasing share of Polish online business at the back of improved key value drivers driven by operational excellence and blocking of off-shore operators Czech Republic includes online gaming which was launched by end of February 217 Croatia (HR) includes also Romanian (RO) online business which is licensed and operated by the Croatian entity Hattrick PSK Romania (RO) includes Casa Pariurilor retail business fortunagroup.eu 14

15 In EUR MM Revenue development Revenue Q1 Q2 Q3 Q4 Consolidated Revenue incl. Lottery and Hattrick fortunagroup.eu 15

16 H1 217 Taxes, OPEX & Net Debt (in EUR MM) Group Taxes & OPEX % +3.2% % Betting Taxes Staff OPEX Other OPEX Net Debt/ Debt % +2,648.5% Net Debt Debt As of As of Increase in Betting Tax due to higher betting volumes (+27.5%) and consolidation of Hattrick Sports Group (Hattrick) since May 217 (EUR 1.7 million) Staff OPEX increased due to inflationary increase in retail, new hires related to acquisitions and Group restructuring (+13.6%). Hattrick Staff OPEX represented with EUR 2.9 million Other OPEX increased due to higher variable costs and one-off acquisition costs. Hattrick Other OPEX represented with EUR 4.9 million Higher indebtedness as a result of Hattrick acquisition financing fortunagroup.eu 16

17 217 Outlook & Guidance Update fortunagroup.eu 17

18 217 Outlook & Guidance Update The company confirms its previously announced full year guidance excl. Hattrick acquisition. Robust Underlying Business Unlocking Regulatory Opportunities Investments into Future Growth Continuing Strong Online Growth Capitalising on Regulatory Change Operational Excellence & Step Change Value 217 Guidance (incl. Hattrick): Amounts Staked EUR 1.7bn EBITDA increase by 55-6% CAPEX spending estimated to EUR 11-13m CZ Online Gaming PL virtual games Blocking of offshore operators Investment into multi-product, -channel, and -jurisdiction platform Operational excellence & people New marketing activities & sponsoring Integration of Hattrick Sports Group and Fortbet Romanian companies Internationalisation opportunities fortunagroup.eu 18

19 IR Contact Klára Klímová IR Consultant Phone: fortunagroup.eu 19

20 Disclaimer This document has been prepared by Fortuna Entertainment Group N.V:. (the Company ) solely for use at the Presentation. Any forward looking statements concerning future economic and financial performance of the Company contained in this Presentation are based on assumptions and expectations of future development of factors having a material influence on the future economic and financial performance of the Company. These factors include, but are not limited to, the legal environment, the future macroeconomic situation, the market competition, the future demand for betting services. The actual development of these factors, however, may be different. Consequently, the actual future financial performance of the Company could materially differ from that expressed in any forward looking statements contained in this Presentation. Although the Company makes every effort to provide accurate information, we cannot accept liability for any misprints or other errors. In preparation of this document we used certain publicly available data. While the sources we used are generally regarded as reliable we did not verify their content. Fortuna does not accept any responsibility for using any such information. This document is provided for information and as a matter of record only. It does not constitute an offer to sell or a solicitation of an offer to buy or sell securities or other financial instruments in any jurisdictions or any advice or recommendation with respect to such securities or other financial instruments of the Company. The distribution of this document in certain jurisdictions may be restricted by law. This document may not be used for, or in connection with, and does not constitute, any offer to sell, or an invitation to purchase, any securities or other financial instruments of the Company in any jurisdiction in which such offer or invitation would be unlawful. Persons in possession of this document are required to inform themselves about and to observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction fortunagroup.eu 2