50
RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

RESULTS FOR THE SIX MONTHS ENDED

30 JUNE 2014

Page 2: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

AGENDA

Brian Mattingley | Introduction

Aviad Kobrine | Financial Review

Itai Frieberger | Operational Review

Brian Mattingley | Summary

Q&A

2

Page 3: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

SUMMARY OF RESULTS – H1 2014

Another set of record results

Revenue up 13% to $225m

Adjusted EBITDA1 up 27% to $49m

PBT (net of finance) $36.5m up 25%

Generated $47m cash an increase of 22% on H1 2013

Corporate Cash net of customer liabilities at half year $60m up 50% on H1 2013

Interim Dividend of 3.5c per share an increase of 17%

Current trading remains strong in line with revised expectations

3

1 As defined in the 2014 Half-yearly Report.

Page 4: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

GROWTH ACROSS ALL KEY PRODUCTS

UK Mobile revenue doubled – now 29% of UK revenue

Sport revenue increased by 102%

Poker continues to buck negative industry trends, growing 3%

Bingo restructure is delivering with 9% growth

Casino delivered 14% revenue growth

Maintained our market share in Spain and meaningful presence in Italy

B2B revenue increased by 40%

Successful launch in US

Current trading well ahead of previous year

4

Page 5: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

GROWTH DRIVERS IN H2

New In-House and 3rd party content in Casino

Increased content on Mobile

Further off-line marketing in Sport and geographical spread

Slots regulated in Spain

Launch of Spanish sportsbook

Mobile launched in Italy

US opportunities

5

Page 6: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

AVIAD KOBRINE, CFO | FINANCIAL REVIEW

6

Page 7: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

PROFIT AND LOSS ACCOUNT 1

1 Totals may not sum due to rounding. 2 Excluding depreciation of US$4.5 million (H1 13: US$4.1million) and amortisation of US$4.1 million (H1 13: US$2.7 million). 3 Excluding share benefit credit of US$0.5 million (H1 13: charges of US$2.5 million) 4 As defined in note 4 to the financial statement

$m H1 14 H1 13

Revenue 225.1 200.1 13%

Operating expenses2 71.5 61.3

Research and development expenses 19.3 15.2

Selling and marketing expenses 69.6 72.1

Administrative expenses3

15.7 12.8

Adjusted EBITDA3

49.0 38.6 27%

% of Revenues 21.8% 19.3%

Depreciation and Amortisation 8.6 6.8

Share benefit charges and other (0.5) 1.1

Share of Joint ventures loss 4.4 1.5

Profit Before Tax and Finance 36.5 29.2 25%

Finance (F/X and others) 2.5 (6.3)

Profit Before Tax 34.0 35.5

Taxation 3.6 3.4

Profit after tax 30.4 32.1

Adjusted EPS4

9.7 ¢ 9.9 ¢

7

Page 8: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

90

110

130

150

170

190

210

230

H1 09 H2 09 H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 H2 13 H1 14

118

129 130 132

154

177

186 189200 200

225

REVENUE

Revenue H1 09 – H1 14($m)

$m

8

H1 2014 - revenue up 13% to $225m (H1 13: $200m)

Another record period

Strong core products performance, in part driven by enhanced mobile offering

Page 9: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

GEOGRAPHICAL SEGMENTATION Revenue growth in UK 22%, Europe (ex. UK) 4%, Americas 28%, ROW down 17%

UK growth driven Casino, by mobile success and Bingo turnaround

Geographic segmentation, Total Revenue H1 13 and H1 14

H1 2013

H1 2014

$m

0

20

40

60

80

100

120

UK Europe

(ex UK)

Americas ROW

83 80

22 15

101

83

28

13

H1 13 H1 14

41%

40%

11%8%

UK Europe

(ex UK)

Americas ROW

45%

37%

13% 6%

UK Europe

(ex UK)

Americas ROW

9

Page 10: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

GEOGRAPHICAL GROWTH BY REGION/PRODUCT Strong growth in the UK, boosted by Mobile penetration

Revenue in both Casino and Poker increased across all regions

Casino & Poker B2C Revenue Growth in H1 14 vs. H1 13

0%

5%

10%

15%

20%

25%

30%

35%

40%

UK ROW Americas Europe

(ex UK)

37%

8% 8%2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

UK ROW Americas Europe

(ex UK)

7%

6%

3%1%

Casino Poker

10

Page 11: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

0

20

40

60

80

100

120

Casino Poker Bingo Emerging Offering

94

47

22 14

108

48

24

13

H1 13 H1 14

Revenue B2C H1 14 vs. H1 13 ($m)

REVENUE B2C BY PRODUCT Strong Casino performance lead revenue growth

Bingo turnaround

Casino up 14%, Poker up 3%, Bingo up 9%, Emerging Offering down 6%

$m

11

Page 12: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

90

110

130

150

170

190

H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 H2 13 H1 14

110 111

131

153

164 166

177 175

193

Revenue B2C H1 10 – H1 14 ($m)

REVENUE B2C H1 14 revenue up 9% to $193m (H1 13: $177m)

7% CAGR

Strong H1 despite June FIFA World Cup

$m

12

Page 13: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

Revenue Casino B2C H1 10 – H1 14 ($m)

REVENUE CASINO B2C H1 2014 revenue up 14% to $108m (H1 13: $94m)

Casino strong revenue growth continued to be driven by rich offering across platforms, effective

marketing and CRM, driving player value higher

$m

40

50

60

70

80

90

100

110

H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 H2 13 H1 14

59 58

69

79 83 82

94 96

108

13

Page 14: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

Revenue Poker B2C H1 10 – H1 14 ($m)

REVENUE POKER B2C H1 2014 revenue up 3% to $48m (H1 13: $47m)

Maintaining our No. 2 position in global poker rankings*

Delivering revenue growth in a mature market

$m

* Source Pokerscout.com July 2014

10

15

20

25

30

35

40

45

50

H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 H2 13 H1 14

20 19

24

37

41

46 47 4748

14

Page 15: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

Players’ Value *

PLAYERS’ VALUE Stable Poker value

Continued increase in Casino value

Demonstrates quality of revenue

%

15

* GGR base, for all players recruited in Q1 average first 3 month value

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%

140%

Q1 13 Base 888Poker Q114 players

Value

888Casino Q114 players

Value

100%

102%

134%

Page 16: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

CASH FROM OPERATIONS

Cash position H1 14 vs. H1 13

Cash from operations (% of adj. EBITDA) Corporate cash net of customers

$m

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

H1 13 H1 14

99% 95%

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

60.0

65.0

H1 13 H1 14

40.0

60.0

%

High conversion of cash continues, 95% of Adjusted EBITDA (H1 13: 99%)

Corporate cash net of customers deposits increased 50% to $60m (H1 13: $40m)

16

Page 17: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

MARKETING COST RATIO Marketing spend decreased in absolute and in ratio, will gravitate to historical levels over time

Rigid return on investment guidelines maintained, revenue driven by effective CRM

Marketing Costs H1 14 vs. H1 13

Marketing Costs Marketing Costs % of Revenue $m

30

35

40

45

50

55

60

65

70

75

H1 13 H1 14

72 70

0.0%

10.0%

20.0%

30.0%

40.0%

H1 13 H1 14

36.0%30.9%

17

Page 18: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

0%

20%

40%

60%

80%

H1 13 H1 14

30.7% 31.8%

7.6% 8.6%

36.0% 30.9%

6.4% 7.0% Admin. Expenses

S&M expenses

R&D

Operating expenses

COST STRUCTURE Cost* percentage of revenue at 78% (H1 13: 81%)

R&D increase

Operational gearing continues, despite US focus

Cost as a % of Total Revenue H1 14 vs. H1 13

* Excluding share benefit charges, depreciation, amortisation

80.7 % 78.2 %

18

Page 19: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

25% 21%

35

45

55

65

75

85

95

105

115

0%

5%

10%

15%

20%

25%

30%

35%

H1 13 H1 14

Rev $m

Customer Bonuses as % of Revenue

CUSTOMER INCENTIVES B2C CASINO H1 14 bonus ratio continues to demonstrate optimal CRM efforts, supporting revenue growth

% $m

19

Page 20: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

18% 18%

30

32

34

36

38

40

42

44

46

48

50

0%

5%

10%

15%

20%

25%

H1 13 H1 14

Rev $m

CUSTOMER INCENTIVES B2C POKER Bonus ratio is maintained in Poker while revenue growth continues

Underlined by optimal CRM work

Customer Bonuses as % of Revenue

% $m

20

Page 21: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

ADJUSTED EBITDA AND MARGIN Adjusted EBITDA up 27% to $49m (H1 13: $39m)

Adjusted EBITDA margin increased to 21.8% despite FIFA World Cup effect and

US build-up focus

Adjusted EBITDA H1 14 vs. H1 13

Adjusted EBITDA Adjusted EBITDA margin $m

20

25

30

35

40

45

50

H1 13 H1 14

39

49

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

19.0%

20.0%

21.0%

22.0%

H1 13 H1 14

19.3%

21.8%

21

Page 22: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

ADJUSTED EBITDA TREND Adjusted EBITDA Margin expansion despite US focus

H1 14 Adjusted EBITDA exceeds previous year strong comparable

Adjusted EBITDA H1 2014

$m

13

20

36

39

49

9.6%

13.0%

19.3% 19.3%

21.8%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

5

15

25

35

45

55

H110 H1 11 H1 12 H1 13 H1 14

Adj. EBITDA ratio

22

Page 23: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

BALANCE SHEET

* Rounded

$m 30-Jun-14 30-Jun-13

Non-current assets

Intangible assets 156.9 149.8

Property, plant and equipment 17.6 17.3

Deferred tax & Other financial assets 0.9 0.2

Investment in equity accounted joint ventures 3.2 0.4

178.6 167.7

Current assets

Cash and cash equivalents 118.7 89.3

Trade and other receivables 30.8 30.8

Short term investments 1.1 3.6

Total Assets 329.2 291.4

Equity

Share capital and share premium 4.4 4.0

Retained earnings and reserves 166.4 155.8

Total equity attributable to equity holders 170.8 159.8

Liabilities

Current liabilities

Trade and other payables 97.2 80.1

Customer deposits 58.7 49.3

Contingent consideration 0.2 0.6

Non-current liabilities

Cash settled liability 2.3 1.6

Total equity and liabilities 329.2 291.4

23

Page 24: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

CASH FLOW STATEMENT

* Rounded

$m six month Ended 30 June H1 14 H1 13

Cash flows from operating activities

Profit before income tax 34.0 35.5

Share benefit charges (0.5) 2.5

Depreciation & amortisation 8.6 6.8

Change in current assets and liabilities 5.9 (2.2)

Other non cash adjustments 3.6 (2.4)

Cash generated from operations 51.6 40.2

Income tax paid (4.9) (1.9)

Net cash generated from operating activities 46.7 38.3

Acquisitions (0.1) (0.6)

Purchase of property, plant and equipment (3.0) (3.0)

Internally generated intangible assets (4.1) (4.7)

Other investment activity 1.7 (0.1)

Net cash used in Investing Activities (5.5) (8.4)

Issue of shares 0.3 0.7

Dividends paid (38.6) (22.8)

Net increase in cash and cash equivalents 2.9 7.8

Cash and cash equivalents - beginning of period 115.8 81.5

Cash and cash equivalents - end of period 118.7 89.3

24

Page 25: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

ITAI FRIEBERGER, COO | OPERATIONAL REVIEW

25

Page 26: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

TO

TA

L

B2

C

PO

KE

R

SP

OR

T DEPOSIT

REVENUE

GROUP REVENUE

DEPOSITS

BIN

GO

C

AS

INO

$154M H1 2011

$186M H1 2012

$200M H1 2013

$225M H1 2014

ACTIVE PLAYERS

BETS

100% JUN 2013

112% OCT 2013

120% JAN 2014

125% MAY 2014

100% JUN 2013

165% DEC 2013

198% MAR 2014

228% JUN 2014

100% JUN 2013

116% NOV 2013

122% FEB 2014

100% JUN 2013

107% NOV 2013

117% DEC 2013

124% APR 2014

126% MAY 2014

100% JUN 2013

113% OCT 2013

118% JAN 2014

126% MAY 2014

DEPOSIT

100% JUN 2013

106% OCT 2013

116% MAR 2014

125% MAY 2014 26

Page 27: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

50%

70%

90%

110%

130%

150%

170%

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6

2010 2011 2012 2013 2014

Based on Jan 2010%

*Jan 2010 as base = 100%

**Daily average Deposits

DEPOSIT TREND

27

B2C DEPOSITS 2010 – 2014

Page 28: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

28

MOBILE

True “Mobile First” organization

Mobile is our state of mind

Embedded across all verticals and

business units

Up to 50% of certain metrics

Page 29: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

MOBILE DEPOSIT IN UK

*B2C Casino, Poker. Bingo, Sport

Mobile Deposit Share in UK

0%

5%

10%

15%

20%

25%

30%

35%

40%

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6

2012 2013 2014

29

Page 30: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

*B2C Casino, Poker. Bingo, Sport

Mobile Registrations / FTD’s Share in UK

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6

2012 2013 2014

Registrations FTDs

MOBILE CUSTOMER RECRUITMENT IN UK

30

Page 31: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

31

CASINO

Strong half year revenue growth

Automatic Promotions leveraging 888’s

superior technology and driving LTV

We are a casino-DNA company

and platform

Unique in the space: we’re not

just serving games

Page 32: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

32

CROSS PLATFORM CONTENT

Genie jackpot was hit TWICE in H1

$4 million paid - good acquisition and

retention streak

Casino is embedded into every vertical

(in Poker, Sport, Bingo) and business

process

Page 33: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

CASINO

33

IN HOUSE VS. THIRD PARTY GAMES PLAYED

60%

80%

100%

120%

140%

160%

180%

200%

220%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2011 2012 2013 2014

In House Third Party

Page 34: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

GLOBAL POKER

34

Bucking industry trends in a

challenging market

Continued relentless execution of

stated poker strategy, focusing on

recreational players

The 888 platform and technology are

showing their resilience

Page 35: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

POKER Maintaining number 2 position in the global poker rankings*

Poker liquidity impacted by June / July 2014 FIFA World Cup

Source: Pokerscout, Jul 2014

35

10%

30%

50%

70%

90%

110%

130%

150%

We

ekly

Liq

uid

ity I

nd

ex

Operator1 Operator2 888poker Operator3 Operator4 Operator5

POKER LIQUIDITY TREND CHANGE SINCE JUNE 2012

Page 36: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

36

SPORT

Page 37: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

50%

100%

150%

200%

250%

300%

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6

2012 2013 2014

SPORT

New Sport Platform

Average daily Bets

SPORT BETS

37

World Cup

Page 38: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

38

SPORT IN SPAIN

Page 39: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

BINGO

Delivered on our plans

POC ready

B2C turnaround completed

Key B2B accounts retained

Mobile driven growth

39

Page 40: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

BINGO

Turnaround continues

Regular seasonal behavior in activity, yet with growing volumes – better CRM

Overall Bingo platform volume

Bingo platform volume

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6

2012 2013 2014

Daily Bets ($)

40

Page 41: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

POINT OF CONSUMPTION

41

POC ready by end of September

888 regulation knowhow in action

Approaching it with momentum

Page 42: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

EU – REGULATED MARKETS

Steady market share in Spain

888Sport.es launched on August 15th

New mobile and slots anticipated to

drive growth

888.it single product, mobile launched

NetEnt games deployed

42

Page 43: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

43

888.es POKER GROSS GAMING REVENUE

0%

50%

100%

150%

200%

250%

300%

350%

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6

2011 2012 2013 2014

888 Spain Poker GGR Growth

Spain Tax regime

Launch of 888.es

Page 44: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

PASSED

CONSIDERED/

CONSIDERING

THE US MARKET

44

Page 45: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

THE US MARKET - OUR COMPETITIVE EDGE

INTERSTATE SHARED

LIQUIDITY

45

* Soon to be launched.

Page 46: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

UNTAPPED NJ MARKET

46

19%

3%

19%

4%

55%

Online poker intenders

Online poker players

Online casino intenders

Online casino players

Neither players or intenders

PLAYERS AND INTENDERS

Source: Harris Interactive poll, May 2014

Page 47: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

OPERATIONAL SUMMARY

47

Core business is growing

We continue to deliver

We remain focused on our business

goals

Industry expert professionals

Focused strategy continues to deliver

Page 48: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

BRIAN MATTINGLEY, CEO | SUMMARY

48

Page 49: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

SUMMARY

Excellent half year results driven by growth across core products

We have delivered on our plans

Solid core markets with real growth potential

Expanding European regulation

Growth prospects in US

Resilient and cash generative business, quality of earnings

Experienced management team

Confident with full year expectations

Board changes - continuity of management

Thank you to our retiring Chairman

49

Page 50: 30 JUNE 2014 - html.investis.com · GROWTH ACROSS ALL KEY PRODUCTS UK Mobile revenue doubled – now 29% of UK revenue Sport revenue increased by 102% Poker continues to buck negative

Q&A

50