THIS IS ESPORTS - Modern Times Group
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THIS IS ESPORTS
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VIDEO
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VISION & MISSION
ESL’s vision is to make esports the
ESL VISION “ “
largest & most attractive global
sport across multiple games
“
ESL is esports
ESL MISSION
“
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WHAT WE SAID DURING THE LAST CAPITAL MARKETS DAY
HIGHLIGHTS
REACH / AUDIENCE Increase our global reach
GEO FOOTPRINT Expand our geographical footprint
LEAGUES / EVENTS Establish/develop new leagues and events across the globe
MEDIA RIGHTS Expand into new distribution platforms
PARTNERSHIPS Sign global exclusive sponsorship deals
GAME PUBLISHERS Deepen existing relations and establish new
B2C / DATA Extend our footprint in high margin B2C
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WE MADE SIGNIFICANT PROGRESS THIS YEAR
2017 ACHIEVEMENT SUMMARY
REACH / AUDIENCE GEO FOOTPRINT PRODUCT MEDIA RIGHTS
+33
(+19%)
172 205
2016 2017F
Growth of global reach by 19% Expanded into Australia, Brazil, O&O growing from 40% to 63% in Media rights started to scale - total
YoY reaching +205M uniques in deepened India footprint, SEA (Asus), 2017. Launched Trinity Series & media rights revenues growing by
2017. With 18% increase in Africa (Kwesé) in 2017 WESA into Paladins. more than 150% YoY
started streams reaching +547M
PARTNERSHIPS GAME PUBLISHERS B2C / DATA BRAND
Signed large global and exclusive Launched PUBG tournament at GC Group B2C revenues growing by more ESL continues to be the leading and
sponsorship deals with Intel and and Oakland. ESL will operate 3 Dota than 40%. We added Minecraft to our go-to brand in esports for publishers
Mercedes. Non-endemic revenues Majors during the 2017/18, making portfolio and expanded CS:GO with a and sponsors; e.g. IEM selected to first
growing from 17% to 28% of total ESL the biggest Major Partner for new stats initiative time ever for Olympics partnership
sponsorships for ESL Valve
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ESL STRATEGY 2020
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ESL PLAYS AN INDUSTRY LONG TERM GAME AS THE ECOSYSTEM BRAND
ESL ATTRACTS GAMERS CONNECTING THEM TO BRANDS VIA THE MOST COMPELLING CONTENT
GROWTH ENGINE 2020
ZERO TO HERO OPEN THE ESPORTS GLOBAL NEW
PRODUCT ECOSYSTEM CATEGORY GEOGRAPHICAL INNOVATIVE
SYSTEM CHAMPION BRAND PRESENCE FORMATS
Consolidate pyramid Nurture esports Invest in brand Accelerate geographical Attract mass market
from Amateur to ecosystem adding development to ignite expansion into eg. SEA, audiences with new
Pro and establish value to publishers, expansion into larger China, LATAM. entertainment, content
world ranking system distributors and audiences. Consolidate USA and distribution
across all relevant players across all presence. formats.
esports games. games and The audience is global.
all platforms.
GAME AMATEUR & ONLINE INDUSTRY
SPONSORSHIPS MEDIA RIGHTS
PUBLISHER COMMERCE ADVERTISEMENT SERVICES
TOP-LINE AND BOTTOM-LINE GROWTH ACROSS ALL SEGMENTS
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ZERO TO HERO PRODUCT SYSTEM
CONSOLIDATE PYRAMID FROM AMATEUR TO PRO AND ESTABLISH WORLD RAKING SYSTEM
ESL OWNED ESL CO-BRANDED
WORLD RANKING ALL PLATFORMS
• PC
LEGENDARY The Intel • PS4
THE WORLD‘S BEST Grand Slam • Xbox
PROFESSIONAL
• Mobile
• VR (coming up)
ALL GAMES
PRO • Counter-Strike: Global Offensive
• DotA 2
ESPORTS CHAMPIONS
• PUBG
• Quake
• Clash Royale
• League of Legends
• Dozens of other titles
AMATEUR
PROVE YOUR SKILL ALL LEVELS
Competitions ranging from “Sunday
League” to Intel Extreme Masters
Festivals
ALL GEOGRAPHIES
CASUAL Amateur and professional
GOOD LUCK HAVE FUN tournaments in Europe, North
America, South America, Africa, Asia
and Australia
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OPEN ECOSYSTEM CHAMPION
NURTURE ESPORTS ECOSYSTEM ADDING VALUE TO PUBLISHERS, DISTRIBUTORS AND PLAYERS
GAME
PUBLISHERS
TEAMS DISTRIBUTORS
FANS &
LEAGUES / MEGA AUDIENCE
EVENTS / CONTENT
PRODUCTION
BRANDS &
ADVERTISERS
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THE ESPORTS CATEGORY BRAND
CONTINUE BRAND DEVELOPMENT TO IGNITE EXPANSION INTO LARGER AUDIENCES
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GLOBAL PRESENCE FOR A GLOBAL AUDIENCE
ACCELERATE GEOGRAPHICAL EXPANSION INTO SEA, CHINA, LATAM AND CONSOLIDATE USA
ODENSE JÖNKÖPING
MALMÖ
HAMBURG
LEIPZIG
COLOGNE
DALLAS
TOURS KATOWICE
MONTREAL
NORTH AMERICA NEW
YORK
LAS VEGAS SHANGHAI
ATLANTA VALENCIA
DENVER AUSTIN
GENTING
SYDNEY
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NEW INNOVATIVE FORMATS
ATTRACT MASS MARKET WITH NEW CONTENT, ENTERTAINMENT AND DISTRIBUTION FORMATS
ESL organized first 2 PUBG
Four new original tournaments: Gamescom
programming esports Invitational and first
series with Hulu stadium event at IEM
Oakland
Innovation for Intel and IOC announced
esports audience that they're partnering to
viewership with bring esports for Winter
events streamed on Olympics 2018 with the
VR ESL product IEM.
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PARTNERSHIPS[MTG Restricted]
WE CREATE STORIES – RE-IMAGINE CONTENT MARKETING
ESL IS A ONE-STOP-SHOP FOR ESPORTS WITH THE RIGHT TARGET GROUP, INVENTORY AND SERVICES
RIGHT TARGET GROUP EXCEPTIONAL INVENTORY WIDE ESPORTS SERVICES
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Note. Numbers related to German market specific pitch[MTG Restricted]
FOLLOWING THE CHAMPIONS LEAGUE LOGIC – GLOBAL EXCLUSIVE PARTNERS
GROWING INTEREST AND THE UNMATCHED ESL GLOBAL PORTFOLIO LEAD TO SUCCESS
1 2
NON-ENDEMIC PARTNERS GROWING GLOBAL EXCLUSIVE PARTNERS
72%
2018
Expect to sign
several more
83% partnerships of
83% +1MUSD
28%
17% 17%
2015 2016 2017
Endemic Non-endemic
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MERCEDES-BENZ @ESL ONE HAMBURG
RE-IMAGINING CONTENT MARKETING
INTEGRATION AS PREMIUM PARTNER
MERCEDES-BENZ ANALYST TRUCK
MERCEDES-BENZ TEAM CARS & SHUTTLES
MOST VALUABLE PLAYER AWARDED BY MERCEDES-BENZ
GROW UP ROADSHOW WITH TEST DRIVING @ESL ONE
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MONETISATION MODEL[MTG Restricted]
OPPORTUNITIES FOR MONETIZATION GROW RAPIDLY
GAMING IS A GLOBAL MEGATREND WITH ESPORT AS ITS DIGITAL SPORT
+2.6BN +5%
GAMERS (1) P.A. TO 2020
>150M +15%
ESPORTS ENTHUSIASTS (2) P.A. 2016-20
3 USD ~2- 4x
SPEND PER FAN (3) IN 2020
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Source: Newzoo, Mary Meeker, ESA[MTG Restricted]
WE ARE NOW IN FULL SCALING MODE OF OUR BUSINESS
HIGH MARGIN MEDIA RIGHTS & SPONSORSHIPS ARE KEY DRIVERS
GROW THE FOUNDATION
Add more and scale existing Invest in brand to grow Deepest game
EVENTS AUDIENCE PUBLISHERS
to create more inventory and increase eyeballs relations globally
SCALE REVENUES
Slicing/dicing Shift towards non-endemic Scale revenues on
MEDIA RIGHTS SPONSORS B2C
and create new packages and signing global exclusives monetize, upsell & cross sell
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ESS AND O&O PRODUCT APPROACHES ARE COMPLEMENTARY
PRODUCT MODEL EXPLAINED
ESS O&O
ESPORTS SERVICES OWN & OPERATED
ESL OPERATES TOURNAMENTS AND EVENTS ON ESL OWNS AND OPERATES
BEHALF OF GAME PUBLISHER INDUSTRY PARTNERS TOURNAMENTS, PLATFORMS AND EVENTS
Full risk for initial
setup investments
Limited ESL Brand Guaranteed income Scalable margins -
ESL owns or co- and benefits
or no brand with low risk Fixed margin ESL controls
owns the brands from financial
ownership investment commercial rights
upside due to
scalability
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BUSINESS MIX IS CHANGING TOWARDS MEDIA RIGHTS & OWN IP
THE STRONGEST REVENUE AND BOTTOM LINE DRIVERS ARE SCALABLE
2016 2017
13% 10%
7% Advertisement
15%
ESL SALES PER 46%
35% Media revenues
REVENUE TYPE
Sponsorship
14%
B2C & other
18%
Publishers
20% 22%
B2C EXPANSION SPONSORSHIP MEDIA RIGHTS
Subscription services, tickets & Scaling non-endemic & Creating unique formats for global,
merch, new titles & adjacents global sponsors local linear & telco distribution
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WE CONTINUE INVESTING IN O&O
ESS (ESPORTS SERVICES) REMAINS IMPORTANT
SALES SPLIT
37%
60%
GROWING
O&O
BUSINESS
63%
40%
2014 2017
ESS O&O
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Note: Excluding revenues not directly related to esports leagues & events[MTG Restricted]
ESL ONE SUCCESS STORY
WITH STRONG LARGE PARTNERS WE START GROW THE MONETIZATION OF EVENTS
WE INVEST IN OUR EVENTS CREATING MORE INVENTORY TO MONETIZE
2016 2017 DRIVE REVENUES
(sponsorships, media rights,
advertisement, ticketing & merchandising)
Frankfurt Hamburg ATTRACT PREMIUM PARTNERS
(e.g. Mercedes)
19M 56M
views views
GROW AUDIENCES AND INVENTORY
7k 23M
uniques uniques
7k 10k BETTER EVENTS
visitors visitors
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AN EVENT IS USUALLY BREAK-EVEN IN YR3 AND SCALES THEREAFTER
HIGH MARGIN SPONSORSHIP AND MEDIA RIGHTS ARE KEY DRIVERS BEHIND SCALING O&O EVENTS
TYPICAL EVENT LYFE CYCLE EVENT PROFITABILITY DRIVERS
1 Event cost rises 10-20% p.a.
Break-even
year 3 Viewership grows the more
2
established the event is
3 Revenues out-pacing costs,
mainly driven by:
• Growing inventory
• Sponsorship and Media rights
• Higher willingness to invest from partners
• Ticketing and Merchandising
Year 1 Year 2 Year 3 Year 4 Year 5
4 Cost for Prize Money are not key driver
Revenue Cost
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2018 MEGA EVENTS: GROW FROM 10 TO 13
OVERVIEW OF LARGE EVENTS 2018
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
DOTA DOTA DOTA
MINOR MAJOR MAJOR
ESL ONE ESL ONE ESL ONE ESL ONE
ESL ONE ESL ONE ESL ONE
GENTING KATOWICE
IEM
IEM IEM IEM
KATOWICE
12 MATCH WEEKS NA 12 MATCH WEEKS EUROPE
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CONTENT AND DISTRIBUTION[MTG Restricted]
ESPORTS MEDIA RIGHTS FOLLOW TRADITIONAL SPORTS
WE ARE IN A GOOD POSITION TO GROW MEDIA RIGHTS REVENUES
UNDERLYING MARKET TREND A HOLISTIC APPROACH ACROSS PLATFORMS
Esports global Media rights market (MUSD)
+59%
960
336
235
157
94
52
2016 2017 2018 2019 2020 2020
(optimistic)
Source: Newzoo forecast
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THE AUDIENCES FOLLOWS GREAT CONTENT
ESL PRO LEAGUE SUCCESSFULLY MOVED FROM TWITCH TO YOUTUBE/FB AND GREW REACH
ESL PRO LEAGUE IS A SUCCESS STORY AND FANS ARE LOVING IT
Views (M)
+17%
65
55
Season 4 Season 5
6K event
SEASON 5 14M Hrs 510M
visitors
KPIS watched Social
Finals
imp.
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WE ALREADY HAVE A LARGE DIGITAL REACH OF ESL CONTENT
ESL LIVE FORMATS AND CONTENT PACKAGES PERFORM ON DIVERSE PLATFORMS AND TERRITORIES
+205M
UNIQUE VIEWERS
exp. in 2017
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Source: Newzoo analysis[MTG Restricted]
PUBLISHERS[MTG Restricted]
ESL GAME PUBLISHER COOPERATIONS CONTINUE TO GROW
THE SUCCESSFUL ESPORTS LAUNCH OF NEW GAME TITLE PUBG IS A PERFECT EXAMPLE
…AND WE’RE FIRST IN LINE FOR KEY EXISTING
WE INCREASE RELATIONSHIP WITH PUBLISHERS
ESPORTS TITLES AS WELL AS FOR UPCOMING
Example new
titles 2017 we
started to work
with
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70 Established key
esports titles we
40 have since long
worked with
2015 2016 2017
Example cycle: the exclusive launch by ESL at Gamescom
#Projects
enabled continued partnership at IEM Oakland (O&O)
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ESL/DREAMHACK SHOW THE LEADING GAME COVERAGE IN ESPORTS
COMPETITOR OVERVIEW
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SUMMARY[MTG Restricted]
TAKE AWAYS SUMMARY BEFORE Q&A
1 ESL IS THE WORLD’S LEADING ESPORTS COMPANY AND WE CONTINUE TO GROW
ESL IS THE GLOBAL CATEGORY BRAND AND PREFERRED CHOICE FOR VIEWERS,
2 PLAYERS, PARTNERS AND PUBLISHERS
WE HAVE A STRONG GROWTH IN THE USAGE OF OUR PRODUCTS AND OUR IP HAS
3 PROVEN THAT VIEWERS FOLLOW THE CONTENT
WE HAVE MADE SIGNIFICANT INVESTMENTS INTO EXPANDING O&O
4 AND WE WILL CONTINUE TO DO SO
5 WE SCALE OUR BUSINESS THROUGH SPONSORSHIP, MEDIA RIGHTS AND B2C
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Q&AYou can also read
