Gamenet Group 9M 2017 Results. Ended September 30, 2017

Transcription

1 Gamenet Group 9M 2017 Results Ended September 30, 2017

2 Disclaimer This presentation includes certain forward looking statements, projections, objectives and estimates reflecting the current views of the management of the Company with respect to future events. Forward looking statements, projections, objectives, estimates and forecasts are generally identifiable by the use of the words may, will, should, plan, expect, anticipate, estimate, believe, intend, project, goal or target or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation those regarding the Company's future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where the Company participates or is seeking to participate. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward looking statements as a prediction of actual results. The Company's ability to achieve its projected objectives or results is dependent on many factors which are outside management's control. Actual results may differ materially from (and be more negative than) those projected or implied in the forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions. All forward-looking statements included herein are based on information available to the Company as of the date hereof. The Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. This presentation include certain unaudited preliminary financial information prepared by management. Our independent auditors have not audited, reviewed, compiled or performed any procedures with respect to such unaudited preliminary financial information for the purpose of its inclusion herein and accordingly, they have not expressed an opinion or provided any form of assurance with respect thereto. Furthermore, the unaudited preliminary financial information does not take into account any circumstances or events occurring after the period it refers to. The unaudited prospective financial information set out above is based on a number of assumptions that are subject to inherent uncertainties subject to change. In addition, although we believe the unaudited preliminary financial information to be reasonable, our actual results may vary from the information contained above and such variations could be material. As such, you should not place undue reliance on the inclusion of such unaudited preliminary financial information and it should not be regarded as an indication that it will be an accurate prediction of future events. 2

3 Agenda Business Update Guglielmo Angelozzi - CEO 9M 2017 Results Mario Bruno - CFO 3

4 Business Update 4

5 Highlights Business & Financial performance Bet in 9M 2017 at 5,217M same trend of the first half: (+14.5% reported, +0.1% aggregated) following the particularly strong growth of Online (+36.3% aggregated) and Retail & Street Operations (+8.9% aggregated) solid VLT performance (+2.2% aggregated) AWP bet still negative on an YTD basis but with a strong quarter vs quarter recovery (Q3 +1.0% vs same period of last year). Revenues in 9M 2017 at 450.7M (+21.5% reported, +2.4% aggregated). Ebitda in 9M 2017 at 57.4M vs 9M 2016 at 55.7M (aggregated); even though penalized by negative impact of betting payout (worth 5.4M) and increase of PREU (worth 3.5M). NFP at 156.5M ( 9.3M down vs same period of last year). Leverage ratio at 2.0x Synergies: revised 2018 target of 11.8M confirmed (40% ahead of original plan) of which 7.2M in 2017 ( 5.9M already realized as of September 2017). 5

6 Key figures (1/2) 9M 2017 vs 9M M M 2017 Change Change % Bet 4, , % Revenues % Contribution Margin % EBITDA % 6

7 Key figures (2/2) 3Q 2017 vs 3Q 2016 vs 2Q 2017 GAMENET ONLY GAMENET GROUP GAMENET GROUP 2Q Q Q Q 2017 Change 3Q 2017 vs 3Q 2016 Δ % Change 3Q 2017 vs 2Q 2017 Δ % Bet 1, , , , % (24.2) -1.4% Revenues (0.2) -0.1% % Contribution Margin % % EBITDA % % 7

8 Bet by segment YOY ( Million) Aggregated Reported 5, % 5,217 5, (1) (**) +8.9% +14.0% 4, (1) (***) +8.9% >100% 2,334 2, % 2,302 2, % 2,095 1,953 (*) -6.8% 1,765 1, % 9M M M M 2017 (**) Betting & Online Retail 9M 17: 350.7M ( 334.0M LY Aggregated) Online 9M 17: 185.7M ( 136.2M LY Aggregated) (*) AWP Q vs Q1 2016: -13.0% Q vs Q2 2016: -7.3% Q vs Q3 2016: +1.0% (***) Betting & Online Retail 9M 17: 350.7M ( 125.4M LY) Online 9M 17: 185.7M ( 50.0M LY) (1) Does not include bet generated by company owned gaming halls connected to Gamenet Group s concessionaires. After including it, the total 2017 bet relating to Retail & Street Operation segment is 674M in 2017 vs 531M in

9 KPIs 38,427 Number of AWPs/VLTs in operation (EoP) +10.8% 42,573 8, % 8,292 9M M 2017 AWP VLT Online Wagers Retail Sports Betting Payout Trend 89.5% 83.0% 88.6% 83.0% 80.7% 81.4% 79.2% 82.2%82.8% 80.0% 82.5% 81.1% 80.3% 74.6% 78.4% 76.9% 77.4% 72.8% Q Market payout trend (*) Gamenet Group Payout Retail & Street Ops Wagers Q Q Market trend over the last 6 years shows a cyclic payout evolution with Q value way out of historical trend. In Q2 and Q the trend is coming back to pre-q spike levels M M M M 2017 ( Million) ( Million) 9M 2016 reported (includes Intralot contribution only in Q3) Figures on aggregated basis (*) Source: Company estimates based on ADM data 9

10 9M 2017 Results 10

11 Revenues 9M 2017 vs 9M 2016 ( Million) M (1.2) (3.0) M '16 AWP VLT Betting & Online Retail & Street Ops Other 9M '17 AWP: Year on year bet growth: M Absence of the negative imbalance between timing of PREU increase and timing of payout reduction which characterized 9M 2016 (+ 42.5M) partially offset by the increase in the AWP related PREU tax rate, from 17.5% to 19.0%, implemented since April 2017 (- 16.8M) Betting & Online: Revenues increase due to Intralot acquisition partially offset by retail sports betting year on year payout increase VLT: Year on year bet growth: + 5.5M Partially offset by the increase in the VLT related PREU tax rate, from 5.5% to 6.0%, implemented since April 2017 (- 6.8M) Retail & Street Operations: Mainly driven by acquisitions finalized in the period as well as by organic growth / improved performance of existing operations 11

12 Contribution Margin 9M 2017 vs 9M 2016 ( Million) M (0.9) 9M '16 AWP VLT Betting & Online Retail & Street Ops Other 9M '17 AWP AWP contractual structure largely pass through vis a vis revenue changes Year on year increase mostly attributable to Intralot s contribution (9 months in 2017 vs 3 months in 2016) as well as to the increased number of company owned machines. VLT Please refer to revenue evolution commented onthe previous page In addition, negative impact worth of 0.5M due to a mix effect with a higher proportion of bet from platforms with higher unit costs. Betting & Online Please refer to revenue evolution commented on the previous page Retail & Street Operations Please refer to revenue evolution commented on the previous page 12

13 NFP Evolution ( Million) December 31, September 30, December 31, September 30, Cash at banks Financial assets Bonds - Bonds (195.7) (196.2) (195.5) (195.7) Interest on Bonds (6.2) (2.0) (5.0) (1.5) - - Bank loans - (7.1) (6.9) (1.5) Other borrowings (7.0) (14.8) (14.6) (9.1) Total debt (208.9) (220.0) (222.0) (207.8) Net financial debt (148.1) (165.8) (158.8) (156.5) (17.7)

14 Change in Net Debt ( Million) Key reconciling factors: + 3.9M Reduced yoy impact of PREU increase on client receivable growth; + 6.6M Positive impact of Intralot acquisition on Betting taxes related collection and payments (3.0) 8.4 (0.3) (0.2) (20.4) EBITDA Change in WC Capex Growth Capex Maintenance Acquisitions & Disposal Dividends and purchase of own shares Bond expenses Other 14