CAPITAL MARKET DAY Stockholm, March 12 2019 - Modern Times Group
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CAPITAL MARKET DAY Stockholm, March 12 2019
INTRODUCTION
ESPORTS HISTORY – ESL FROM VISION TO A GLOBAL MARKET
2000-2010
• 2000-2010 2011-2015 2016-2019+
IEM Global Challenge Los Angeles 2007 ESL One Cologne 2014 IEM Katowice 2019
Build Grow Scale & Monetize
FANS Tens of thousands Hundreds of thousands Tens of millions
REGIONS EU EU, NA, LATAM, APAC Global
EVENT SIZE Micro / small Large Global
13.03.2019 3
INTRODUCTION
ESL strategic framework
WHY
(PURPOSE)
TO CREATE A WORLD WHERE EVERYBODY CAN BE SOMEBODY
VISION TO MAKE ESPORTS THE LARGEST & MOST ATTRACTIVE SPORT IN THE WORLD
BUILD THE MOST AMAZING STAGES WHERE THE PLAYERS ARE CELEBRATED AS STARS OF THEIR GENERATION,
MISSION
CREATE LEGENDARY ESPORTS MOMENTS FOR OUR FANS AND CONNECT THEM TO OUR PARTNERS
HOW By building esports ecosystems from zero to hero and local to global
THE GLOBAL ESPORTS Company
WHAT
For Players For Fans For Partners
13.03.2019 4
INTRODUCTION
ESL TEAM OPERATES AROUND THE GLOBE – Studios and offices
ESL OFFICE AND STUDIO HQ GERMANY
ESL OFFICE AND STUDIO UK ESL OFFICE RUSSIA
ESL STUDIO BENELUX ESL OFFICE AND STUDIO POLAND
ESL OFFICE FRANCE
ESL OFFICE ESL OFFICE ITALY
ESL OFFICE NY, USA ESL OFFICE AND STUDIO SPAIN
AND STUDIO LA, USA
ESL OFFICE
AND STUDIO INDIA
ESL OFFICE ASIA
ESL OFFICE AND
ESL OFFICE
STUDIO INDONESIA
AND STUDIO BRAZIL
500+ EMPLOYEES
ESL OFFICE
WORLDWIDE AND STUDIO AUSTRALIA
13.03.2019 5
INTRODUCTION
ESL GROWTH FOCUSED ON OWNED AND OPERATED PROPERTIES
INCREASE BRAND PARTNERS ADD MEDIA PARTNERS
Revenue Growth
Grow premium content
Grow long-term value with
existing partners BRAND MEDIA Expand distribution channels and
PARTNERS PARTNERS platforms
Add non-endemic partners
Increase audience & reach
PublisherS FANS
EXPAND product verticals Grow REGIONAL PRODUCTS
Add game licenses TEAMS PLAYERS Grow existing and new properties
in Asia, China, LATAM
Extend game’s verticals
Co-Build ecosystems Audience Growth Add local championships and
FOCUS O&O events
13.03.2019 6
We build
esports
ecosystems
7
WE BUILD ESPORTS ECOSYSTEMS
ESL ENABLES growth IN new games verticals – the Game “Pyramid”
Initial ESpORTS ECOSYSTEMS STRUCTURE GAME PYRAMIDS 360° ESPORTS Properties (O&O)
DEFINE GAME ESPORTS STRATEGY
CUSTOMIZE COMPETITION FORMAT
OPERATE PRODUCTION
MANAGE CONTENT
Scale: Add more games Full product development Mature esports ecosystems
1 – 3 years
13.03.2019 8
WE BUILD ESPORTS ECOSYSTEMS
ESL PROPERTIES cover the full scope of esports
FROM ZERO TO HERO
1 MASTERS MEGA prizes Mass-Market
LARGE PROPERTIES
& STAGEs
+ online ESL BRANDED OR WHITELABEL
Watch & Play
All platforms
2 CHALLENGER LARGE PRIZES ENTHUSIAsts
& STAGEs All games
+ online
Watch & Play All levels
All geographies
3 OPEN TEASER PRIZES &
OPEN Online
Friends & Family
Watch , Play, Engage, Learn
Competition Style PRIZE LEVEL TARGET AUDIENCE
13.03.2019 9
& Venue SIZE
WE BUILD ESPORTS ECOSYSTEMS
EACH GAME PYRAMID FUELED WITH 20 YEARS OF EXPERIENCE
WE BUILD ESPORTS ECOSYSTEMS
TOURNAMENT STYLE LOCATION SIZE ACCESS
AGNOSTIC TO PUBLISHERS REGIONAL SCOPE PRIZES … SCALE : # of Games & Pyramid Scope
ESL BRANDED – O&O WHITELABEL – ESS
Masters
CHALLENGER
OPEN
Existing Full Scope Pyramids – Grow Scope with existing Partners
New Pyramids – Grow Scope
MaintaiN Test & Learn with New Publishers
13.03.2019 10
WE BUILD ESPORTS ECOSYSTEMS
ESL CONTINUES INVESTING IN OWNED AND OPERATED PROPERTIES
Relative revenue breakdown
38%
70% Growing O&O properties to
push brand, expand existing
core products, create new
pyramids and scale
62%
30%
ESS
2015’ACT 2018’ACT O&O
13.03.2019 11WE BUILD ESPORTS ECOSYSTEMS
O&O SHOWCASE – IEM KATOWICE CS:GO 2019
52M 1M 375K 20 12 34%
Video sessions Peak during the Gained followers Broadcasted Linear TV takers
during Champions Champions Stage ESL CSGO Twitch languages Market share
Stage
among 21-30
age group
+80% +20% 2.9M Largest live
vs. 2018 vs. 2018 Total followers TV esports
+137% +67% audience in
587K #13 Merchandising Ticketing revenue Denmark
revenue vs. 2018 vs. 2018
Peak on main Largest Twitch ever
Twitch channel channel (followers)
13.03.2019 12FANS, PLAYERS
AND
TEAMS
13FANS, PLAYERS AND TEAMS
ESL CREATES PLATFORMS FOR PLAYERS AND FANS
Watch
▪ Community-based approach: Play – Watch – Learn –
Engage
Play
Watch ▪ Game hubs: tailor-made for community for selected
core ESL games
ESL B2C GUIDING Game Platform
Approach PILLARS Hubs Hubs ▪ Deep-game related features: anticheat, matchmaking,
AI assistant
Learn
▪ Platform hubs: cluster non-core games by platform
Engage
▪ Further explore potential of new titles
13.03.2019 14FANS, PLAYERS AND TEAMS
ESL ATTRACTS THE WORLD’S TOP TEAMs
Astralis #1 Virtus Pro ** #1 G2 Esports ** *
100%
Natus Vincere ** #2 Team Liquid #2 PENTA * of world‘s top teams
participate at events run by
Faze Clan ** #3 PSG.LGD #3 Evil Geniuses *
Team Liquid #4 Team Secret #4 Team Empire *
Mousesports ** #5 Mineski #5 PET Nora-Rengo *
Fnatic **
MIBR
#6
#7
Vici Gaming
Newbee
#6
#7
Faze Clan **
Team Secret
*
*
13 Teams
are members of
Cloud 9 #8 VGJ.Thunder #8 Team Liquid *
Ninjas in
#9 OG TI8 winner Rogue *
Pyjamas **
* Based on # of top 3 appearances at
Intel Grand Slam 2018-2019 premier tournaments
CONTENDERS
SOURCES:
- CS:GO: HLTV top 10 teams of 2018 (https://www.hltv.org/news/25740/top-10-teams-of-2018)
- Dota 2: Dota Pro Circuit 2017-2018 Rankings (https://liquipedia.net/dota2/Dota_Pro_Circuit/2017-18/Rankings) 15
- Rainbow Six Siege: top 3 appearances at 2018-2019 Premier Tournaments (https://liquipedia.net/rainbowsix/Premier_Tournaments)FANS, PLAYERS, TEAMS
TEAM SHOWCASE: ENCE @ IEM KATOWICE 2019 – from ZERO to HERO
ENCE, the most unlikely of IEM KATOWICE 2019 FINALISTS
In the course of one
event, team ENCE
left its mark on the
history of CS:GO.
They played more
than 35 maps all
the way from the
regional qualifiers
to the grand finals.
▪ From European closed qualifiers… ▪ To Champions stage and Grand Finals
▪ From underdog… ▪ To victory against #2 and #3 teams in the world
▪ From small offsite venue… ▪ To IEM Katowice legendary stage
▪ From #17 CS:GO team in the world… ▪ To world Top 5
13.03.2019 16GAME
PUBLISHERS
17GAME PUBLISHERS
Esl PROVIDES GAME SOLUTIONS TO GROW ESPORTS
Global Footprint
Strategic vision Time to market Global network reach Scaleability
Content Brand Partners Teams Distribution networks
Product Management Operations Players’ understanding Lifecycle management
> 40
Games under
license
13.03.2019 18GAME PUBLISHERS
Publisher partnerships – latest achievements
Arena of Valor Pro League
ESL Katowice Royale Fortnite
European Masters League of Legends
Clash of Clans World Championship
PUBG Starchallenge & PGI EU & FIFA19 Major at Paris Games Week
Gamescom QuakeCon
Global Rainbow Six esports partner CS:GO Major Katowice
BlizzCon (3 stages), Hearthstone Global
Games, Starcraft Katowice
13.03.2019 19GAME PUBLISHERS
Publisher showcase: EPIC GAMES
ESL Katowice royale
▪ Most competitive Fortnite
tournament to date
▪ Dedicated 100 seats stage at
IEM Expo 2019
▪ $ 500.0000 Prize Pool
▪ 200 onsite participants in 4
days
▪ > 300K peak online audience
13.03.2019 20GAME PUBLISHERS
Publisher showcase: UBISOFT
developing A complete Rainbow 6’s
global ECOSYSTEM
▪ Rainbow Six: Siege became a top
esports title
▪ 35 million players
▪ Increased consumer engagement
▪ Viewing hours multiplied heavily
ESPORTS STRATEGY PRODUCT MANAGEMENT
GLOBAL PROJECT
GAME CONSULTATION
MANAGEMENT
LEAGUE & TOURNAMENT TV PRODUCTION &
OPERATIONS BROADCAST
13.03.2019 21BRAND
PARTNERSHIPS
22BRAND PARTNERSHIPS
ESL CONSUMER Profiles ARE HIGHLY ATTractive for brands
54% >70% >550k
are 21-35 years old* of esports Enthusiasts Live visitors
globally are male at ESL events in 2018
38% NPS 56 >240m
buy goods from a brand +11 pts increase vs. 2016 Online ESL Fans in 2018
showcased at ESL event
23
13.03.2019 23BRAND PARTNERSHIPS
REACHING THE LEVEL OF LARGER SPORTS
13.03.2019 24BRAND PARTNERSHIPS
REACHING THE LEVEL OF LARGER SPORTS
13.03.2019 25BRAND PARTNERSHIPS
BRAND SHOWCASE: DHL – GLOBAL DEAL WITH HOLISTIC ESPORT INTEGRATION
STADIUM ACTIVATION BRAND ACTIVATION IN-GAME ADVERTISEMENT CUSTOMER ENGAGEMENT
13.03.2019 2627
BRAND PARTNERSHIPS
BRAND SHOWCASE: INTEL, THE longest standing parTnership in esports
2000 2006 2016-2018 2019+
▪ Intel becomes ▪ Cooperation ▪ Intel becomes ▪ 3 years
one of the first between Intel ESL Global partnershipü
investors in and ESL turns Technical announced
esports global Partner (longest so far)
extending
▪ Intel starts ▪ Intel Extreme beyond IEM ▪ Intel and ESL
From IEM Season 1 finals at CeBIT 2007… 13+ supporting ESL Masters commits to
years early events in property is ▪ $1M Intel Grand long-term
Germany launched Slam is esports
launched partnership
>70 IEM
EVENTS
… to IEM Katowice CS:GO Major 2019 Same core values and principles, magnified investment and memorable events
13.03.2019 28MEDIA
PARTNERS
29MEDIA PARTNERS
MEDIA DISTRIBUTION IN ESPORTS IS EVOLVING AND GETTING MORE LOCAL
SELECTION OF
DISTRIBUTION PARTNERS
LOCAL VIDEO STREAMING GLOBAL VIDEO STREAMING
LIVE & VOD LIVE & VOD
NEW in CHINA – HuamoaTV, HuyaTV EXPLORED: Exclusivity Facebook
NEW in US – Mixer, PlutoTV CONTINUED: Twitch, YouTube
NEW in GERMANY - ProSieben TV ADDED: Caffeine TV
EXPLORED: Oculus VR
GLOBAL AND LOCAL LINEAR TV OTHERs
13.03.2019 30MEDIA PARTNERS
LINEAR MEDIA PARTNER SHOWCASE – PRO7 20.5 % Total Market Share
Market Share 14-29
Magazines Market Share 14-49
7% up to 20%
share in the
4% target
LIVE Group 14-29
Analysis
Well-known esports faces as casters
▪ Reach per week +150K Pro players as co-commentators
▪ Reach per year +5M
Make esports understandable for
13.03.2019 everyone 31MEDIA PARTNERS
IEM AND ESL ONE KATOWICE 2019 captured LINEAR MEDIA
TV2 DENMARK YLE FINLAND DMAX Italy
▪ 95K viewers during Grand Finals ▪ 240K viewers on YLE Areena (OTT) ▪ Highlight and Live Broadcast for
Fortnite
▪ 34% market share in target group ▪ 30K viewers as TV Highlight (rerun) ▪ 115K viewers
21-30 ▪ 2,3% market share in target group
15-34 (40% above average)
13.03.2019 32MEDIA PARTNERS
DIGITAL MEDIA PARTNER SHOWCASE – HUYA and HUOMAOTV
IEM KATOWICE CS:GO – 2018 vs. 2019 ▪ In January 2019, ESL
expanded digital media
+204% +233% distribution partnership in
34 14 China with Huya and
HuomaoTV
8 4
▪ ESL properties will include
ESL One, IEM and CS:GO Pro
League
11 26 4
Huya 0 10
Huya 0
HuomaoTV 11 HuomaoTV 4
▪ China accounted for c.18% of
2018 2019 2018 2019 the global esports revenue in
# of sessions (mm) # of unique viewers (mm) 2018*
13.03.2019 * Source: Newzoo 33KEY
MESSAGE
34KEY MESSAGE
ESL IS DEDICATED TO GROW THE ESPORTS INDUSTRY
FANS & AUDIENCE
€ | Merchandising € | Ticketing
€ | Prize money € | Media rights fees
PLAYERS AND TEAMS MEDIA PARTNERS
We build esports
ecosystems
€ | Publisher contribution € | Sponsor + advertisement fees
GAME BRAND
PUBLISHERS SPONSORS
13.03.2019 35KEY MESSAGE
ESL TODAY AND TOMORROW
1 Leading global esports company in a fast growing
ESL PRODUCTS MONETIZATION
market
Grow and build more full Catch up on monetization
grown properties and games’ backlog and market growth
pyramids
2 Building esports ecosystems by growing new
players, audience, governance and fairplay We
focus on
3
growth
Experienced team with proven track record
B2C Brand
4 Very broad portfolio of publishers, brand sponsors Expand consumer offering Open, inclusive, to become
from Play and engage with the brand of the largest sport
and media partners
learn and watch where everybody can be
somebody
13.03.2019 36Thank You
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