Prestige Consumer Healthcare Inc. Price & Performance (PBH)

The company has over 1,600 permanent employees across the globe and generated approximately JPY147 billion in annual sales in FY 2024. Under the terms of the scheme, PointsBet shareholders will receive cash consideration of $1.06 per PointsBet share. The scheme consideration represents a significant premium 27.7% to PointsBet's closing price yesterday on February 25 and of 23.9% to the one month VWAP. It also represents an implied EBITDA multiple of 25.2 to 32.1 based on PointsBet Spread's FY 2025 EBITDA guidance range. The scheme is not subject to any financing conditions. As at MiXI's most recently reported balance sheet date. Thirty one December twenty twenty four, MiXI had over Japanese yen one hundred billion dollars or AUD 1,000,000,000 of cash and deposits on its balance sheet. The PointsBet Board believes this transaction represents a compelling opportunity for PointsBet shareholders to realize immediate and certain cash value at a premium to the recent trading prices at a high implied FY 2025 EBITDA model. Shareholders will have the opportunity to vote on the scheme at the scheme meeting which is expected to be held in late May twenty twenty five. The PointsBet Board unanimously recommends that PointsBet shareholders vote in favor of the scheme in the absence of a superior proposal subject to an independent expert concluding and continuing to conclude that the scheme is in the best interest of PointsBet per shareholders A scheme booklet containing information relating to the scheme including detailed reasoning for the PointsBet Director's recommendation, the Independent Expert's Report, and details of the SCI meeting be prepared and provided to the Australian Securities and Investment Commission for review and subsequently sent to PointsBet shareholders in late April twenty twenty five.

Subject to shareholder approval being obtained and the other conditions waived in accordance with their terms, the scheme is expected to be implemented in mid June twenty twenty five. PointsBet shareholders do not need to take any action at this point in time. As further details will be set out in the scheme booklet, I ask that questions on this call are focused on the half year results. Turning to Slide six to now discuss the half year results. As mentioned in the Q2 FY twenty twenty five quarterly update, we improved our H1 EBITDA position by $10,000,000 compared to the PCP coming in at a loss of $3,300,000 These results have been delivered on the back of revenue growth and improvement in our gross profit efficiency. As we've stated consistently over recent quarters, our focus is not just on delivering revenue, but also ensuring it is earned efficiently from a gross profit perspective. H1 gross profit grew 11% versus the PCP to $65,000,000 The group had over 292,600,000.0 rolling twelve month cash actives at thirty one December twenty four, a new record. Our growth in the relative contribution of our mass market recreational segments both Australia and Canada has been strong and this is delivering a more diversified and more sustainable revenue base and also expanding gross profit margins.

The business is on track to deliver FY 'twenty five EBITDA in the range of $11,000,000 to $14,000,000 Turning to Slide eight to discuss the Australian trading business. Australia continued to deliver on our strategy to align growth in quality actives with sustainable growth in net win and gross profit, Total Australian cash actives reached 235,100 and was up 8% versus the PCP. Generosity efficiency that is generosity as a percentage of gross win, improved from 30% in the PCP to 24% helping drive the gross profit result. Gross profit of $55,800,000 was achieved an 11% increase compared to the PCP. This outpaced growth in net wind due to net wind being delivered more efficiently. We consider this 11% our growth rate for our Australian business and gross profit growth a metric we focus most on internally. All of the H1 FY '25 key financial metrics you can see on this table performed in line with ahead of consistent benchmarks established over the last twelve months. Finally, a record H1 statutory segment EBITDA of $10,700,000 was achieved. $8,400,000 or 376% increase on the PCP. Turning to Slide 10 to discuss the Canadian trading business. We delivered strong half yearly turnover growth versus the PCP across both sports and iGaming.

Which translated into H1 FY 2025 total net win growth of 14% versus the PCP. As mentioned previously in the Q2 FY twenty twenty five quarterly update, Canada was negatively affected by customer friendly results impacting both sports and casino. We estimate the cost of this negative variance as approximately three point nine million twelve month rolling cash active clients grew strongly to 57,400.0 up 49% on the PCP. On the iGaming side, we continue to see positive shifts in in the composition of our iGaming customer base and the overall mix of gameplay. With the mix shifting towards higher margin slot games. While the higher than expected customer payouts on games impacted our casino results in the quarter, the higher mix of slots activity that we are seeing in H2 and beyond. On the sports betting side, we saw a further increase of our in play turnover as a percentage of total turnover being 73% versus 66% in the PCP in as we continue to improve and leverage our Odds Factory capability. Finally, the Canada H1 statutory segment EBITDA of negative $12,200,000 was impacted by negative variance as previously resulting in a $400,000 decrease compared to the PCP. We'll now hand it to Elouie to review the H1 FY 2025 group financial performance.

Thank you, Sam. Turning to Slide 12 for the normalized Please note there is also a summary of our statutory group segment results and a reconciliation of the normalized results to the statutory on Slide 21. The group recorded revenue of $124,400,000 an increase of 6% versus the PTP. And an EBITDA loss of $3,300,000 which is a $10,000,000 improvement on TCP. Gross profit margin of 52.2% up 2.5 percentage points on the PCP. Driven by increased net wind efficiency in Australia, due to increasing sports contribution mix more than offsetting the impact of Victoria PointsBet consumption tax increases effective 01/2024. Marketing expense in Australia was $25,300,000 down 11% on the PCP and marketing expense in Canada was $12,700,000 or CAD 11,600,000.0 down 9% on the PCP.

Both jurisdictions benefit from improved marketing efficiency while growing global actives to 292,600. Product and technology expense has normalized to be higher than the PCP. Post the completion of the sale of The U. S. Business.

And demonstrates the significant ongoing investment we are making to deliver our top tier product in Australia and Canada. H1 administration and other expenses were down $1,700,000 or 33% on the PCP.

Due to cost savings achieved post sale of The U. S. Business. Turning to Slide 13. At thirty one December twenty twenty four, the company had $15,400,000 in corporate cash, and net assets of $4,800,000 Turning to Slide 14. We have talked about our group consolidated cash flow in detail. As part of our quarterly ForeSee reporting obligations October twenty twenty four, and January 2025. Net cash inflows from operating activities was $500,000 Net operating cash flows excluding MVMT and Play cash accounts was minus $2,800,000 $7,500,000 lower than the net operating outflows of $10,400,000 in the PCP.

Total cash receipts from customers was $13,135,100,000.0 dollars which included $124,200,000 from Sportsbook, and $10,900,000 from iGaming, Net investing inflows were outflows were $9,600,000 The company continues to invest in product and technology to power our top tier product in both Australia and Canada. Net financing outflows were $500,000 Net cash flows will be positive in H2 in line with our seasonally stronger H2 EBITDA performance and our continued momentum. The company remains well capitalized as we enter this phase of positive cash flow. I'll now hand it back to Sam. Thanks, Elle.

In conclusion, we finished H1 having improved our EBITDA position by $10,000,000 versus the PCP remain on track to deliver EBITDA of between $11,000,000 and $40,000,000 for full year 2025. Will now take questions.

We will now begin Our first question comes from Ty Ehrman with Jefferies.

Hi, Sam and I was thanks for taking my question. Just one from me this morning. In regards to your medium term targets that we've sort of spoken about before and obviously the cost strategy Could you please give any color on how you're tracking in regards to sort of the fixed cost percentages that you wanted to look at and the operating leverage sort of guidance that you've given how that's tracking?

Yes. I mean, we've given some long term plans. We can't call them guidance. But everything is tracking according to plan, Kai. I think we've shown from the results from last year to how we're trapping tracking through H1 regarding that cost discipline. A bit less in marketing, a bit more in product but we're largely able to grow those revenues and hold that cost base stable. I think the positive the positive occurrence that's probably occurred since the start of the financial year is is the gross profit efficiency in Australia. That's as we spoke at about before, that succeeded our expectations. So while while revenue a little bit below that gross profit efficiency is made up for Perfect. Thanks. And a follow-up, if I may, just in regards to your sort of trading so far in the second half. Obviously, it's a quieter period in Australia, but busy from a U. S. Sports perspective. How is trading been tracking this quarter?

Yes. What I would say is the noise the main noise for anyone that obviously listened to us at the quarterly as it related to Canada in the December quarter.

That noise has disappeared now, as expect. It was short term volatility.

Prior prior to that $3,900,000 variance, we have established net win margins for both sports and iGaming that have been consistent since we started in Canada. And we're back at those sorts of margins. So in terms of that volatility that's gone and same for the Australia business, very consistent business continues. There'll be we know that the December call in the PCP twenty December twenty twenty three was the noisy quarter for Australia. We've now traded out of that very consistent business continuing with the trends that we've spoken about.

Perfect. Thanks. I'll pass it on there.

There are no further questions at this time. I'll now hand Jack Mr. Swannell for any closing remarks.

Remarks.

No, that's great. Thanks very much. And no further comments from us. That does conclude our conference for today.

Thank you for participating. You may now disconnect.