The Rank Group plc Capital Markets Day 24 May 2017

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The Rank Group plc Capital Markets Day 24 May 2017
The Rank Group plc
Capital Markets Day
24 May 2017
The Rank Group plc Capital Markets Day 24 May 2017
Agenda
    • Welcome
       ₋ Henry Birch
    • Mecca retail
       ₋ Alan Morgan
    • Grosvenor retail
        ₋ Martin Pugh
    • Digital
        ₋ Bede Gaming, Michael Brady & Dan Smyth
        ₋ Rank, Adam Joseph & Darren Moffett
    • Close

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The Rank Group plc Capital Markets Day 24 May 2017
Mecca
Alan Morgan
The Rank Group plc Capital Markets Day 24 May 2017
Alan Morgan
    • Hospitality & Leisure background

    • Pubs, Hotels, Restaurants, Retail, David Lloyd Leisure

    • Part of the Exec team that demerged Spirit Pub Company from Punch Taverns, listed it, created and rolled
      out 3 new brands and then sold it to Greene King

    • Joined Rank in September 2016

    • Views on Retail Bingo market based on eyes from a different perspective – Big upside to be had but must be
      experiential and social based reasons to visit to attract different customer base

    • We can do what most other leisure operators do but they can’t do what we do – USP...

4
The Rank Group plc Capital Markets Day 24 May 2017
UK Bingo Market
    • The UK bingo industry consists of 358 bingo venues         Operator        Venues
                                                                 Gala Bingo        131
    • 20% of total machines can be B3/B4 machines                Mecca              85
                                                                 Majestic           16
    • Bingo licences are permitted in any part of the UK         Carlton Clubs      13
                                                                 Club 3000          12
    • Mecca is the second largest operator (by venue) of bingo   Castle             11
      clubs
                                                                 Beacon               8
                                                                 Others             82
                                                                 Total             358

5
The Rank Group plc Capital Markets Day 24 May 2017
Mecca Retail – The context
    • Overall customer numbers in growth over the last 18 months

    • Admissions from traditional core customers are in decline (although ahead of the market)

    • Cash flow from core customers is robust - take per head growing well, cost control is strong, low capex cost

    • Limited innovation across the industry in the past, but we are positive about driving new types of customers

    • Early evidence from our trials on both existing product changes and new innovation is exciting

6
The Rank Group plc Capital Markets Day 24 May 2017
Mecca Retail – The Plan
    • Stage 1 - Implement robust cost control and disciplines to improve profitability now and ensure increased revenue
      converts heavily to the bottom line                                                                     ongoing

    • Stage 2 - Take the quick revenue opportunities through improved service & better upselling             ongoing

    • Stage 3 - Get more from the customers we’ve got through product change & innovation to improve spend per visit &
      frequency                                                                                          ongoing

    • Stage 4 - Attracting a new audience with the assets we have today through different events & targeted marketing
                                                                                                            early success
    • Stage 5 - Drive really exciting and long term growth with new concepts (conversion and new sites)     close to launch

    - Multi purpose proposition for some of our clubs

    - Luda

7
The Rank Group plc Capital Markets Day 24 May 2017
Cost control results so far
                               2013/14      2014/15      2015/16     Q1 16/17     Q2 16/17     Q3 16/17
     Salaries & wages £m           44.6         43.9         45.0         12.0         11.6          11.1
     % revenue                    20.6%        20.3%        20.4%        22.1%        21.9%          20.3%

     Operating hours              3,805        3,697        3,690          917          896           850
     Weekly Av’000                   73           71           71           71           69            65

     Promotional costs £m          19.6         21.9         19.5          4.8          5.7           3.4
     % revenue                     9.0%        10.1%         8.9%         8.8%        10.8%           6.3%

    • Operating hours reduction driven through club benchmarking & £ revenue per labour hour focus

    • Promotional spend has much stricter control groups to measure effectiveness and focus on better balance
      between profitable and non profitable admissions (this does have an impact on admissions number)

8
The Rank Group plc Capital Markets Day 24 May 2017
Product innovation for SPV growth
     SPV                       2013/14      2014/15      2015/16     Q1 16/17     Q2 16/17     Q3 16/17
     Bingo                        £2.80        £2.61        £2.76        £3.10        £3.20        £3.37
     % Var                                     (6.9)%         6.0%        12.1%        15.8%        22.1%
     Interval games               £7.54        £7.74        £7.77        £7.75        £8.00        £8.00
     %Var                                        2.6%         0.4%       (0.2)%         3.0%         2.9%
     Slots                        £5.78        £6.06        £6.31        £6.47        £6.68        £6.57
     % Var                                       4.7%         4.2%         2.5%         5.8%         4.0%
     F&B                          £1.91        £2.07        £2.19        £2.18        £2.29        £2.37
     %Var                                        8.4%         5.5%       (0.2)%         4.6%         8.5%
     Total                       £18.36       £18.90       £19.58       £20.07       £20.88       £21.12
     % Var                                       3.0%         3.6%         2.5%         6.6%         7.9%

    • New bingo calendar & new games to drive incremental play. Improved National Game and benefit from
      increased Max units
    • New style games with more interaction for customers that drive rate of play
    • Additional titles, VIP programme improved and increased events / tournaments (opening hours being reviewed)
    • Menu re-engineered to drive penetration into premium dishes, service at table & impulse purchase
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The Rank Group plc Capital Markets Day 24 May 2017
Product innovation for admissions growth
     • Theme nights rather than discounting to drive frequency of existing customers

     • New events & games created to attract different audiences
         Examples:
         ₋ Students nights (Mayhem Bingo / Batty Bingo)
         ₋ Young professionals (Bonkers Bingo)
         ₋ Alternative night out (Big Bingo Bash)

10
11
New concepts

13
14
Bingo
     •   High footfall location in a city centre or the High Street
     •   Compact footprint, typically 2.5k - 5k sqft
     •   Slots lounge with the latest technology and games
     •   Time and price flexibility – a “pay as you go” bingo model rather than traditional time bound sessions
     •   Coffee shop style F&B with pizzas and other hot food
     •   Appealing to a new audience
     •   Modern, open, inviting environment

15
Product
     Bingo
     •   Primary purpose of venue
     •   Full programme of games throughout trading day with a combination of
          – Bingo Variant (fixed odds) games. Multiple titles available on Max and paper ticket printed on demand.
              Games played on video wall every 6 minutes, or on demand on EBT every 2 minutes
          – Key Cashlinks with Mecca estate and wider industry played on Max only
     •   Primarily delivered via new Captec 8” tablets with bingo and slots content

     Slots
     •   100% digital offer from 4 main suppliers
     •   26 cabinets in Walsall (15 Cat B3; 11 Cat C)
     •   2 x freeplay cabinets to encourage customers to trial
     •   Single TiTo journey via VideoBet platform
     •   5 x retro arcade cabinets to drive additional footfall and interest in venue
16
Product
     F&B
     •   Seen as vital component to break down barriers, drive footfall, dwell time and TPH. Key differentiator vs
         High Street gaming offer
     •   Food offer by day part;
          – Breakfast – pastries, porridge, granola, bacon rolls
          – Lunch – sandwiches, panini’s, pasta bowls
          – Evening – pizza’s, chicken wings & strips, hot dogs, nacho’s
          – Cakes, tray bakes, muffins, impulse purchases available all day
     •   Drinks offer
          – Limited alcohol range – beer, wine, cider, mainline spirits.
          – Lavazza coffee delivered by bean to cup machine
          – Soft drinks range

17
Luda - Walsall

18
•   Initial capex of £800k per unit which is expected to reduce through learnings to £500k

     •   Return on investment in 3-4 years

     •   Rollout pace dependent on success and property

19
Mecca next generation
     What is it:
     • A multi-use leisure venue that at its core combines, a flexible venue for bingo and events, competitive F&B
       with a broad gaming experience and the latest technology, all day, every day

     Who is it for:
     • Gender neutral
     • 25-45 years core audience, 45+ & sub 25 secondary audience
     • Adult only in the gaming areas but with the ability for bar area to allow families during the day
     • Demographic: C1/C2/D
     • Groups and individuals dependent on needs

     Food Bar & Sports Bar        Games & Arcade Room                Slots Room                Events & Bingo Room

20
Summary
     • Making good progress against the plan in all areas

     • Patting our heads and rubbing our tummies... (Attract new and keep old)

     • Cost control now very strong

     • Product innovation is delivering

     • Venue innovation happening

     • Exciting times ahead

21
Q&A

22
Grosvenor Casinos
Martin Pugh
Martin Pugh
     • Leisure and lottery background

     • Previously managing director for Virgin Active and Camelot

     • Joined Rank in January 2015

     • Previously managing director of Mecca until September 2016

24
UK Casino Market

     • The UK retail casino industry consists of 146 operating
                                                                      Operator                    Operating      Total
       licences with 27 in London and 119 in the Provinces                                         Licences   Licences
     • In total, there are 182 1968 Act licences and 16 2005 Act      Grosvenor Casinos                65         77
                                                                      Genting                          40         56
       licences
                                                                      Caesars Entertainment Ltd        9          11
     • Six casinos are operating under the 2005 Act (Grosvenor        A&S Leisure                      5          6
                                                                      Double Diamond                   5          7
       operates a small category casino in Luton) and it’s expected   Aspers/Aspinalls                 5          9
       that a further 2-4 will open, leaving six licences dormant     Club 365                         2          3
                                                                      Clockfair                        2          2
     • 2005 Act licences are entitled to a larger number of slot      Guoco                            1          1
       machines, whereas the 1968 Act casinos slot machine            Others                           12         26
       entitlement is capped at 20                                    Total                           146        198

     • Each licence is within a permitted area and can not be
       transferred
     • Grosvenor Casinos is the largest operator (by venue) of
       casinos

25
UK Casino Market
     • The casino market attracts over 20m visits a year with
       14m in the Provincial casinos and 6m in London                                                                           Annual Visits from UK Casino Estate
                                                                                                                                             Total Annual Visits                                                Average Weekly Visits
     • Gaming handle totals £7.4bn and the sector generates
                                                                                      22,000                                                                                                                                                                                                     3,000
       gaming revenues (excluding spends on slots) of £1.0bn                                                                                                                       1                    2

                                                                                                                                                                                                                                                                                                         Average Weekly Visits
                                                                                      20,000                                                                                                                                                                                                     2,500
       with an average spend per head of £48

                                                                Total Annual Visits
                                                                                      18,000
                                                                                                                                                                                                                                                                                                 2,000

     • London is segmented into the ‘Upper segment’ which                             16,000
                                                                                                                                                                                                                                                                                                 1,500
                                                                                      14,000
       contains six casinos aimed at the high end of the                                                                                                                                                                                                                                         1,000
                                                                                      12,000
       market with the other 21 casinos attracting a broader                          10,000                                                                                                                                                                                                     500
       customer base                                                                   8,000                                                                                                                                                                                                     0

                                                                                                  1997/98
                                                                                                            1998/99
                                                                                                                      1999/00
                                                                                                                                2000/01
                                                                                                                                          2001/02
                                                                                                                                                    2002/03
                                                                                                                                                              2003/04
                                                                                                                                                                        2004/05
                                                                                                                                                                                  2005/06
                                                                                                                                                                                            2006/07
                                                                                                                                                                                                      2007/08
                                                                                                                                                                                                                 2008/09
                                                                                                                                                                                                                           2009/10
                                                                                                                                                                                                                                     2010/11
                                                                                                                                                                                                                                               2011/12
                                                                                                                                                                                                                                                         2012/13
                                                                                                                                                                                                                                                                   2013/14
                                                                                                                                                                                                                                                                             2014/15
                                                                                                                                                                                                                                                                                       2015/16
     • London accounts for c65% of the total gaming revenues
       with London Upper, accounting for 36% of the total
       London revenues                                                                         Notes:
                                                                                               1. Deregulation: abolished 24hr rule, advertising now permissible, machines
     • Historical growth has come from new openings and de-                                        increased to 20 from 10 and added note acceptors, S21 machines added in
                                                                                                   addition to B1 machines
       regulation through abolition of membership rules,                                       2. Smoking ban and removal of S21 machines

       advertising and slot machine entitlement

26
Introduction to Grosvenor
     • Grosvenor operates 67 licences out of 56 venues – 45 in Provinces, 9 in
       London and 2 in Belgium
     • 19 casinos were acquired from Gala in May 2013
     • Market share of over 37% based on number of visits
     • Average casino size of 21k sqft
     • 726 tables and 1,280 slot machines
     • Average revenue of £7.3m per club and £1.2m profit per club
     • 1.6m active customers as at 30 June 2016
                                                Market Share of Visits
                                38.0%

                                37.0%

                                36.0%

                                35.0%
                                        16 Q1        16 Q2        16 Q3   16 Q4
                                                      Calender quarters

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The Grosvenor Customer
     •   27% Female/73% Male
                                                                                            Current Income Mix
     •   Average age of member is 40
     •   Average frequency of visit 5.2 per year; up 11% YOY                    Card Room
                                                                                  Games
                                                                                                Food & Drink
                                                                                                    8%
     •   65% of income comes from casino games with machine                         4%
         revenues at 23%
     •   Trend is for growth in machine revenues with a 5ppt increase in   Gaming
         the share of total income over the last 5 years. This has been    Machines
                                                                             23%
         driven by improvements in service, experience and product
     •   Spend per visit is £40 in Provinces and £98 in London                                                   Casino
                                                                                                                 Games
     •   Stronger bias towards casino games in London with 78% of                                                 65%
         revenues vs. 57% in the Provinces
     •   Roulette remains the most popular game with 77% of play
         followed by Blackjack. This has been consistent over the last 5
         years

28
2016/17 In Context
     A year of significant change:
     •   Enhanced Due Diligence – continuing challenge, but progress being made
     •   People and cost base restructuring – Project One and Refocus:
          • Project One: Standardisation of employment contract T&Cs
          • Project Refocus: £6m of savings through management delayering and other operational cost savings
     •   Technology investment – Neon and Single Account and Wallet
          • Neon Cash desk system implemented July 2016
          • Machines, Table and loyalty system being rolled out from June 2017
          • Benefits include:
              • Provides a basis for omni-channel gaming solution
              • Increased Anti Money Laundering and Responsible Gambling compliance through increased
                  knowledge of customers
              • Improved loyalty functionality
              • Improved monitoring and optimisation of machine and table performance

29
Our Approach
     •   Major focus on step-changing London performance (45% profits in 9 casinos)

     •   Introduce a new, more leisure-based offering in major provincial centres

     •   Refurbishments at Leeds and Nottingham are the first of this type with a roadmap of future schemes

     •   Maintain transactional approach and tight cost control in other provincial casinos

     •   Continued product and service development driving new customers and spend per visit

     •   Drive multi-channel play

30
Provincial Venue Development
     Leeds:
     •   Scheme to modernise and create a leading gaming
         experience at a cost of £2.7m
     •   Offers 20 tables with 40 slots and 38 electronic gaming
         positions
     •   Trading in line with expectations and competes with the
         2005 Act licence casino that opened in January

31
Provincial Venue Development
     Nottingham:
     •   Transformational refurbishment at a cost of £3.0m with a
         zonal approach that integrates leisure and gaming
     •   Supports full open door offering customers a seamless
         experience across all areas
     •   Nottingham has started well with significant increases
         across all KPIs

32
London Opportunity
     •   27 operating casinos within three licenced boroughs
         (Westminster, Camden and Kensington & Chelsea)
     •   Newham hosts London's only 2005 Act casino at
         Stratford
     •   Grosvenor operates 9 casinos with 2 in Camden, 2 in K&C
         and 5 in Westminster. Also hold a spare licence in K&C
     •   Grosvenor London generates approximately 40% of
         revenues and 45% of EBITDA
     •   Our ambition to drive collective strength of Grosvenor’s
         London casinos through:
          ₋ Market positioning
          ₋ People
          ₋ Marketing
          ₋ VIP
          ₋ Refurbishments and relocations
          ₋ Service
          ₋ F&B
33
London Opportunity
     •   Modernisation programme underway at Piccadilly and Golden Horseshoe venues
     •   Combined capital cost of £3.2m
     •   Piccadilly focused on exceptional gaming experience, capitalising on its close proximity to Chinatown
     •   Scheme at the Golden Horseshoe sees a modernisation of the casino offering a relaxed experience to the
         multi-ethnic area whilst creating a dedicated VIP offer

34
Summary

     •   2016/17 a year of change, but business now well-positioned for top and bottom line growth

     •   Improving underlying trends throughout the year

     •   Leaner cost base and technology enhancements set strong platform for next phase

     •   Provincial refurbishments outperforming targets and attracting new, younger customers

     •   Significant opportunity to grow our London business

     •   Multi-channel likely to have a positive impact on core retail business

     •   Clear path to growth in 2018/19 and beyond

35
Q&A

36
AN INTRODUCTION TO BEDE

         Michael          Dan
         Brady            Smyth

         CEO              Managing
                          Director
WHO WE ARE

  UK BASED            LICENSED           EXPERIENCED      ONE TEAM         1ST CHOICE
 Private Ltd Co.     AGCC & UKGC           15+ Years     Over 180 Strong    25 Brands
Founders & Team    Licenses & Platform   Rich Pedigree    Three Offices    Rank Partner
                        in Spain
BEDE’S VISION
THE FUTURE OF BEDE
BEDE SOFTWARE
PRODUCTS
A COMPLETE ONLINE GAME SOLUTION

 PLATFORM                          GAMING VERTICALS                    WHITE LABEL

                                                                                 SITE

   Everything you’ll need to run   Game content and unified bonusing   Turnkey and managed service
          your business                from a single integration                 solution
PLATFORM AS THE ENABLER OF
DIFFERENTIATION AND INNOVATION
PLATFORM AS THE
   ENABLER OF
DIFFERENTIATION
 AND INNOVATION

                       Highly Scalable Transactional Wallet
                  Industry leading flexible wallet and player account
                              accessible from any device
PLATFORM AS THE
   ENABLER OF
DIFFERENTIATION
 AND INNOVATION

                                  Open Platform
                  Extensive APIs allowing Operators full access to
                  integrated any third party or create their own IP

                       Highly Scalable Transactional Wallet
                  Industry leading flexible wallet and player account
                              accessible from any device
OPEN PLATFORM

● Extensive APIs

● SDK - multiple access points

● Enabling operator

● Best of breed services

● Supplier agnostic
EXAMPLE: SINGLE ACCOUNT

● Bede Omni-Wallet understands Retail
   ○ Single wallet for all channels
   ○ Trace source of funds
   ○ Playable at 10,000s gaming terminals
● Loyalty integration
   ○ Single A/C - Earn across retail and
     digital
   ○ Redeem for cash/bonus/shop
● Bede Bonus
   ○ Cross channel promotions are
     possible by awarding digital bonus via
     API
PLATFORM AS THE
   ENABLER OF
DIFFERENTIATION
 AND INNOVATION                    Bede Products
                     Industry leading out of the box tools unifying
                       gaming experience across all providers

                                  Open Platform
                  Extensive APIs allowing Operators full access to
                  integrated any third party or create their own IP

                       Highly Scalable Transactional Wallet
                  Industry leading flexible wallet and player account
                              accessible from any device
FIRST CLASS TOOLS
TAILOR AND TARGET YOUR OFFER TO MEET CUSTOMER NEEDS

                                                          PLAYER
            CAMPAIGN                  BONUS
                                                        MANAGEMENT

       CAMPAIGN MGR               BONUS TOOL            PLAYER
               —                        —             MANAGEMENT
    Target & execute tailored   Complete bonus tool           —
     comms based on real            Free spins        360 view of player
     time customer events         Sports free bets         activity
                                                      Permission based
                                                        Omni Ready
REPORTING & BUSINESS INTELLIGENCE

                            BUSINESS
   LIVE DATA                                               DATA APIs
                          INTELLIGENCE
● Real time               ● BI / Visualisation tool   ● Low latency data -
● Snapshots on business   ● Access to Data cubes        automated marketing
● 25+ simple widgets      ● Segmentation              ● Hi latency data - Finance
                                                        reporting
DEEP INTEGRATIONS - ENHANCED OFFERING

● Cross-sell bonusing   ● Granular, real time data   ● Free Spins integration to
● Targeted front-end    ● Targeting via Camp. Mgr      Bede Bonus Tool
                        ● Unique bonuses

OTHERS
   :
EXAMPLE: RANK - CHELTENHAM
HIGHLIGHTS THE ADDITIONAL VALUE THE BEDE PLATFORM CAN OFFER

● Integrated Kambi’s bonus tool which
  can be used Bede Campaign Mgr
● Rank have automatically triggered:
   ○ Sports bonuses & messaging
   ○ Segmented offering - e.g. if X
     then offer Y, if Z then offer A.
   ○ Chain bonuses - i.e. one bonus
     triggers another.
EXAMPLE: EVOLUTION DATA FEED
TAKING ADDITIONAL LIVE DATA FEED TO ADD NEW BONUSING & TARGETING

● Integrated Evolution’s Data Feed API.
● Used to create Roulette Triggers - e.g.
    ○ Winning outcome
    ○ Hot / Lucky numbers
    ○ Favourite dealer
● Automated, real time outcomes:
    ○ Bespoke bonuses
    ○ Behavioural segments
    ○ Highly targeted communications
EXAMPLE: IGT FREE SPINS
INTEGRATING 3RD PARTY SERVICES & EXTENDING, TO SINGLE BACK OFFICE

● Aim to make BedeBOSS the single back
  office for an operator.

● Integrated IGT free spins.

● Now doing Net Ent, MGS and SG.

● Also extending our Games Integration API
  to enable us to offer free spins on all third
  party content - a market first!
BEST OF BREED
GAMING SOLUTION                   Differentiation
                          Create a user experience without
   ENABLING                      platform limitation
DIFFERENTIATION                    Bede Products
 AND INNOVATION      Industry leading out of the box tools unifying
                       gaming experience across all providers
   FOR RANK
                                  Open Platform
                  Extensive APIs allowing Operators full access to
                  integrated any third party or create their own IP

                       Highly Scalable Transactional Wallet
                  Industry leading flexible wallet and player account
                              accessible from any device
Thank you
Digital
Adam Joseph &
Darren Moffett
Depth of Digital Expertise
      Who Are We?
     Activity delivered
       Gibraltar – P&L Leadership, Product Management, Operations, Digital
        Marketing
       Maidenhead – Multi-Channel, SAW, Analytics, Optimisation, (Personalisation),
        Data Science, CRM, Payments
       Sheffield – Inbound & Outbound Contact, VIP, Fraud Operations                              Adam Joseph
       Shared Services – HR, Finance, Legal & Compliance

                                    Rory Howard        Jonathan Pettemerides           Ed Wilson      Debbie Cooper
           Darren Moffett

59
Digital Review
     Activity delivered                                  Priorities
      Platform migration – February 2016
      Microgaming Poker migration – February 2016
      Kambi Sports – June 2016
      NetEnt, NYX, Realistic, Eyecon – completing the
       suite
      New Live Dealer Studio – July 2016
      Mecca Bonus Wallet Change – August 2016
      Marketing technology overhaul
      New Customer Solutions Hub
      New Structure

60
Sheffield – Customer Solutions Hub
     Activity delivered
      August 2016 – Victoria closed – Sheffield opened
      Now 24/7
      Chat & Social in addition to Phone & Email
      Recently expanded for VIP & Fraud
      Salesforce CX technology
      Outbound driven approx. £6m deposits
      Customer Satisfaction & First Contact Resolution
       measures ahead of benchmarks and positive
       trend

61
Transforming Marketing Technology
     Activity delivered
      Cloud hosted platform
      Rebuilt Digital Data Ecosystem
      Propensity modelling & micro-clustering driving
       customer interactions
      Migrating to Adobe Campaign to deliver
       automation & enable scale
      Optimisation efforts driven approx. £2.5m
       additional deposits this year

                                                         Transactional, Behavioural &   CRM, CX &           Optimisation,
                                                                Modeled Data            Direct Sales   Personalisation & Media

62
Multi-Channel
     The Opportunity                                     Key activities completed
      Approx. 2.8m venue members                         Playtech IGS installed to Grosvenor venues
      Grosvenor, min. 50% active online                  Bede wallet changes
      Customer demand                                    Rank Enterprise Services (Middleware)
      Value of a multi-channel engaged customer          Fraud Engine Development – Safecharge & Feedzai
      Sport an important driver of venue visits          Grosvenor venues teams affiliate pilot

                      The Opportunity

      Mecca                                  Grosvenor

63
Single Account & Wallet                                            Digital

     The Opportunity                                         Key activities completed
      Solution Overview
       Complexity simplified by
        modern tech of selected 3rd
        parties and RES
                                       Rank Enterprise Services (RES)             •   Authentication; Single Customer View;
                                                                                      Customer Service; CRM; Fraud;
                                                                                      Payments; Analytics
       RES links the core operating
        platforms

       Core problems solved –
        multi-channel registration;
        fund & play; withdraw;
        fraud prevention;
        responsible gambling;                                       Venues Touchpoints
        marketing & promotion

64
KPI performance
      Grosvenor                                                                                                Quarterly Active Spilt

      • Sustained GGR growth                                                80,000                                                                               80,000

          ₋ Driven by 46% YoY increase in actives                           70,000                                                                               70,000

      • Strong Sportsbook launch
                                                                            60,000                                                                               60,000

               ₋ Over 27k customers have placed a real
                                                                            50,000                                                                               50,000
                 money bet
                                                                            40,000                                                                               40,000

     Activity delivered            Grosvenor GGR
                                                                            30,000                                                                               30,000
     £12,000,000
     £11,000,000                                                            20,000                                                                               20,000
     £10,000,000
      £9,000,000                                                            10,000                                                                               10,000
      £8,000,000
      £7,000,000                                                                0                                                                                0
                                                                                     Q3-16             Q4-16          Q1-17             Q2-17            Q3-17
      £6,000,000
      £5,000,000
                   Q1-16   Q2-16    Q3-16   Q4-16   Q1-17   Q2-17   Q3-17

                                                                                         Live Casino      Casino     Poker     Sportsbook       Unique Actives

65
KPI performance
     Mecca                                                    Product split (actives)

     • ARPU growth driven by platform capabilities
         ₋ Site opt-in                                                         41%
         ₋ Additional bonus types                                                       Slots & Games   Bingo
                                                             59%
     • Strong Slots & Games performance
          ₋ 16% YoY growth in GGR
          ₋ 30% YoY growth in ARPU
                             Mecca ARPU
                                                              Product split (GGR)
     £150

     £140
                                                             34%
     £130
                                                                                              Slots & Games
     £120
                                                                                              Bingo
     £110
                                                                              66%
     £100
            Q3-16    Q4-16       Q1-17    Q2-17      Q3-17

66
Slots integrations
     • Bhotesh Maheshwari, Head of Casino – 10 years industry experience (Inspired and Betfair)
         ₋ Much improved quality and quantity in game delivery

                         NetEnt                           NYX

         ₋ Mecca customer marketing on Slots has been overhauled, this has driven significant ARPU growth

         ₋ Exclusive titles launched on both Mecca and Grosvenor, as well as a bespoke and exclusive game launched
           impressively

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Bingo
     • James Boord, Head of Bingo – 6 years industry experience (Gala and Sky)
         ₋ Investment in core product with new and innovative games exclusive to Mecca

                         Linka-balls                   Cashline Fortunes              Emoji Reactors

         ₋ Successful cross sell game launches via popular Bingo themes Emoji and Burst

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Investment in Live Casino
 • Richard Walker, Head of Live Casino – 20 years industry experience, land based (Grosvenor, LCI and Gala) and
   supplier side (Evolution)
     ₋ New studio in Malta

       ₋ New native app on iOS and Android

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Launching Sportsbook
     • Steve Munns, Head of Sport – 15 years industry experience (888 and Stan James)
         ₋ Rapid integration – 10 weeks from start of project to launch pre Euro 2016
         ₋ Engaged with 27k customers and proving a key product for acquisition and retention
         ₋ Win margin solid at 6.5% since launch

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Scaling Poker
     • Tom Hudson, Operations Manager – 7 years industry experience (Betfred)
     • Alex Martin, Commercial Manager – 8 years industry experience (PKR and Bluff)
         ₋ Now live with a full product offering – Mobile, Instant Play and Mac

         ₋ Convergence plans for key retail tournaments

         ₋ Investment in marketing and promotional plans

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Operational excellence
     • Anthony Conroy, Head of Operations – 10 years industry experience (Coral and Boyles)
          ₋ New bonusing platform:

               ₋ Instant rewards – Deposit bonuses, cashbacks, sportsbook, unique vouchers

               ₋ Specific bonusing – individual game > all games

         ₋ Campaign Management:

              ₋ Tight integration between bonus platform and site

              ₋ Campaign team delivering detailed, targeted promotions                       Winterland Tales:
                                                                                           Advent style campaign
              ₋ Internal notification node                                              6,063 Opt-ins (30% of base)
                                                                                        Multi-product, Multi-channel

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Digital Strategy
                                                 1) Leveraging our
                                                venues & customer
                                                       base

                                                                              2) Launching new
                    5) People excellence
                                                    Our Digital                    brands
                                                    Strategy is
                                                    based on 5
                                                    initiatives

                                4) Competitive &                     3) Marketing &
                                  differentiated                      Operational
                               content & products                       excellence

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Digital Strategy
     Leveraging our venues & customer base            Launching new brands
      Venue teams as affiliates                       First new brand
      Live broadcast from venue                       Luda
      Exclusive multi-channel slots
      Single Account & Wallet

          Novomatic – Reel King Potty & River Queen

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Digital Strategy
     Marketing & Operational excellence             Competitive, differentiated product
      Profitably expand our marketing activities    Live broadcast from venue
      Realise benefits from recent investments      New Slots, including bespoke & exclusive
      Bonus & wallet developments                   Mecca & Live Casino Apps
      New Episerver CMS                             Leverage our live UK Poker Events
      Adobe Campaign
                                                    People
                                                    • New structure & hires in place
                                                    • Maidenhead move, Victoria closure
                                                    • STARS values embedded

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Q&A

76
Thank you

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