Flutter Entertainment (FLUT) 2 Mar 232022 Q4 Earnings call transcript

Company Profile

Participants

Peter Jackson	Chief Executive Officer
Jonathan Hill	Chief Financial Officer
Ed Young	Morgan Stanley
Paul Ruddy	Davy
Ryan Sigdahl	Craig-Hallum
David Brohan	Goodbody
Clark Lampen	BTIG
Joseph McNamara	Citi
Louise Wiseur	UBS
Joe Stauff	Susquehanna
Jordan Bender	JMP Securities
Kiranjot Grewal	Bank of America
Daniel Politzer	Wells Fargo
Richard Stuber	Numis
Andrew Tam	Redburn

Call transcript

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Peter Jackson

Good morning, and thank you for joining Jonathan and I for this call. Hopefully, you've all had a chance to watch our presentation this morning, which provides an overview of why the business is well positioned for future growth and details of our 2022 performance.

Before we go to questions, I'd just like to touch on a couple of items.

As announced in mid-February, we've commenced a consultation with our shareholders in relation to an additional US listing. We outlined in the announcement the numerous long-term strategic as well as capital markets benefits this could yield.

is change proceed or where we emphasize it additional the to paid. not would we're point should with we listing, taxes One headquartered domiciled many supportive from weeks. coming we'll has feedback our been Early be over shareholders meeting more the of shareholders and of At consultation. the results shareholder process, our end announce we'll for is And there extra can very until that say. we little point

Turning to our XXXX performance. We delivered another strong year.

each Ohio launches going from yet, greater our full been compounding EBITDA with and of best strength advantages recent for The and strength is new to business providing opening. US – have conviction Our our even the Maryland state and XXXX. are ever year greater positive

the business and of the efficiency product US, the into throughout a momentum and Ireland resulted QX. strong carries year Outside in [ph], UK XXXX. improvements the delivered good initiatives

of remain Our QX. intensity competitive division earnings profile the as markets is growth Australian business. the saw frequency XXXX, delivering consolidate the US invest HX transform in we now with make and benefit we'll and volumes strong division. profitability high combined player unwind increased a The up is growth of our point. when International, The COVID XX% and in And inflection at the

over I'd to that hand for like with to questions. And Judith it

Operator

coming of go ahead. The from Ed first Morgan question is Young Stanley. Please

Ed Young

morning. questions US, on if the it's Good Both okay.

and cadence will the business. be thinking okay. in QX the revenue that's EBITDA. expect a of baseline up of this The sets should if to first if is the years following you other we Is the years, look if considerations you same there's gave are previous similar QX of year the at presentation I to revenue previous wondered US for of a do or there some the cadence extra seasonality then I detail step for about? around and year's sort in it reasonable could look the the any seasonality A, with

you're state doing is to talking Slide one openings. improvement you're given state on to below and paybacks. more second paybacks, XX your what appears launches On XX-month way be the then And the in

investment spoke So additional deeper I guess payback historically. that's back as quicker, you

XX back You're at the months flat below CMD.

a does ongoing? share into that around iGaming that paybacks? think increases year how your And is change about we or the thought this play for So process can Thanks.

Peter Jackson

Ed. Thanks, the pick Jonathan will Okay. up first question.

Jonathan Hill

into it is the I the there the obviously, that And there obviously a which we follows sporting bigger sure. point is thing come Yes The other seasonality EBITDA, new around NFL year mean in into marketing from QX as in sports only pretty promo as shape driven is betting. same by much people spend say the calendar. to the it's is season. coming obviously and reactivation in obviously, sales big acquisition the EBITDA

certainly is follow much relatively it OpEx But based base the the flat. very on revenue cost seasonal effectively So that calendar. because should is

Peter Jackson

next the the participate to of been launched, football, reason clearly, And lot up. a see we in at step in spend we'd of haven't able where if an state a us, and think the I is, season to impact. great launches have way -- always it's the add the football of will in start to of of year, The parts is add state in customers. they acquiring seasons time money an only period there's the of inevitable when has of different build football specific thing, a I'd course

look we're in pleased -- we were slide terms general, terms that specifically I stuff. of the costs. trajectory But launches new payback, on the some of of think of the very state and in talking In with look our about sort acquisition

improvement XXXX. on In fact, think there XXXX, an in I were

which frames. pleased terms the if acquisition the time it a at look in structural continuing within our can and way continue our drive is go We're of up the business capital means in dynamics of target to well costs, cost reduce looking on improve If very and margins way you performing. LTV is actually base, look margins, and the business we the we to our and that with We're those sort structural it the paybacks. paybacks at run

Ed Young

Thank you.

one Just technical follow-up.

You mentioned release color give number the or the NOLs. in Have NOLs you in given that? have it, could the I Thank. you for statement somewhere, material any US missed on

Jonathan Hill

obviously We've years. few over had losses Ed. the last No, operating

estimates at and the add EBITDA the on can to of look around something that You sort depreciation.

significant tax, have will which obviously, brought-forward over amount two, the to losses, we years. impact So are of there next three pay the

Ed Young

you. Thank Okay.

Operator

go Davy. is from Please ahead. Paul one Ruddy next The of

Paul Ruddy

good Peter Jonathan. Hi, and morning,

if I two questions, close. Just

the maybe First or UK, on Ireland, between seeing are one we is, seeing just diverging you're performances, Australia.

is looks share expectations? through So the competitive there. backdrop and strong performance taking XXXX, QX. potentially just rate a you about UK and little share you more the challenging to of be maybe to like both may in Ireland think Australia, bit market and how talk Could you growth be and appear kind in

second appears this the the some developments just And be morning. up one, in in even to placing on popping India, is regulatory screen Brazil,

White your take in consumer and on and developments, of for the cetera. Any the how maybe benefits India trend negative that particular performance rate regulatory you kind for [ph] competitive recent then maybe revenues, also of et side in positive just Just may context question the on speculation just on Paper. position in the UK the

Peter Jackson

very way a in. to Paul, try and get it's questions good two

and with got you best there. as can. well, try we deal seven think them I in we'll But

the in and Paul around of performance UK question look of So Australia. the your terms

Let a specifics. give then high-level follow some me thoughts with more on and it, you Jonathan, might few up

at I the was down. think, [ph] market QX Ireland the when our up UK and XX% I performance in look if

And performing. year. back. and we performed. has with the pleased, feel, product a the with the improvements I business and lot how over we've the course think I'm Cup got put We've I like very with the mojo were World that of that really the of energy, I enhancements into delivered we think is the way business pleased, And our

this lots of into carrying got year. So we're momentum, we've

In somewhat in UK Australia, market. them the of think Australian terms important time come to it's of of remember the we're the for And market the seeing behind to dynamics course, it's in COVID. out taken that I that is

so undoubtedly the And they've first the biggest years. in And was benefiting QX main a for Australia. we're we period summer number COVID summer without of the had – as in which is of COVID we're beneficiary the brand

days. with we customers our therefore, disproportionate so our average And on a saw did terms impact -- see in player of engagement

was happen look and market money But intensity we're as trying on the very main in in changes lot a step-up was there launch tax, big of most bulk happened competitive players in QX, which to the advance that in fact we've a thing the before. spending of and odds the up seen in attractive the in a consumption

think So the in with very a I into quarter, hard and which we AMPs deliberately And it. were you we growth very spend of lot really the pleased in generosity can saw leaned we money. see

bit on I'll In to the and – provide the turn turn terms developments. then of regulatory to and more Jonathan a follow-up I'll those, let you

Jonathan Hill

these. I there's think a make of I'd points, on couple of each

talks I at who both XX deck gaming is and at about slide think then sporting our which looked it, which slide a there's the performance. in looks haven't for performance those the great

fourth in AMPs really that, in up up fact quarter. for revenue I XX%, the are forma pro revenue me results XX% our overarching the strong Gaming XX%. was QX. think Sports up

safer I what's the XX lapped during that's good a we gaming, where year year think part gives gambling you as the early think dime progression when happened picture of of some I the the really at on and look the in slide of measures.

Sadly, is would. the quarter XXX And we which luck had strong Then the We where into did of again, bps we into very performance product year, were. the in go negative last we really didn't. as from actually in can said, you in, negative had going that's see with luck that we roughly but half. hope performance same QX happy the to four, We and and continued year. launched we we on prior Sports second the improvements growth And about QX on in side, we XXXX. as unwind

in number in sort that benefit an results component uplift a from luck or getting not of we're sports component. So the

So really there. we are where happy with

intensity had some and that fight to margin sure base decided to we year and we to the we both make to we Peter back Australia, customer that the looking order on were our saw. increased And I keep competitive against positioned and would And ended where invest with not are we happy anything back on different. very properly done in we of the have

Peter Jackson

probably I what And say of would is market India fastest-growing us pleased about of we're terms seeing XX%. up the there. actually performance for with the sort we're our regulatory really in Look developments,

in I actually. think, our biggest it's market international nearly second

that trajectory and exciting. some changes a the for on, believe regulatory position in us. story very, So views as us we look and is it's a And in of indeed business becomes a made There we investment there the basis, think will more which state-by-state I India. accepted while on very on Rummy are number states going federal great our

today widen I'm Brazil, – what's the what on see had chance in that. comment a can't to the haven't afraid, I I what’s coming so on

strides how not talk been million We're of We've With respect a these to We've $XXX number unfortunately be and keen meetings forward I sort on talking for the time. many really and to published. revenues taken slack white did really of paper, a lost can of the gets And business. it thing. count about it for published slightly because the I've we've very on pick the the be about, at white of we helpful long encourage massive sector. made it doing paper changes. focused to think would We've made right extent other which operators the us, UK up join the can

Paul Ruddy

you. Thank Great.

Operator

go Ryan one Sigdahl next Craig-Hallum. Please The from of is ahead.

Ryan Sigdahl

the Appreciate Good morning guys. taking for time questions.

and want the a follow-up. on one higher level to US, one I then at talk Just

that point So But business will. EBITDA meaningful in to to those the profits structural thesis term some you beyond that. agree the billions some our many challenges about do to need versus can investments this that scaling of earn can the EBITDA positive at to have do with term? in near year, and get you hoping profits guys We potentially operators is making how achieve longer now think positive build

Peter Jackson

have pick first? you want your or up to you me follow-up on did And a Ryan, do

Ryan Sigdahl

curious follow-up, starts. the Maryland, very just on Ohio, Just strong how

if similar? playbook curious your they changed strategies Just how or marketing launch as they're have

Peter Jackson

the I is And one. be about make to you they're think point we're business the across US the not the profitable think on this a people I on focus that be whilst EBITDA important very very careful that. will line just that Look, confident need getting to Yes. year,

the you see we've that business how, acquired that cohort then 'XX, see into you require what think like a and the year, transformational starts XX US a profile on the slide that we're this imagination doesn't at of year as about significant in talking a when you'll this in business look sort lot presentation about reason chart, the very of it add analysis, If look the business. to to being change of and our you to

we're possibly can, we've we And focusing we're look, always LTV as much excited [ph] whilst of we and the on approach doing. acquiring And rights as that's CAP about of very have dynamics, taken something business it. an ever

us year-to-date lean in business more customer heavily year. seen very You've into acquisition quarter did than acquiring year, the last first we this

And the we is advantages market. thing have in compounding that the I we're the think important

hold there the The in was best things Bowl So develop and that higher have it. we're of our improve we're in is continuing or continuing market, competitors against do. and Super product to we the fantastic that and offering to handle the levels the like penetration parlay see

advantage have than customer we from acquisition that perspective. a we anybody else in So revenues, know a we efficient and structural more are

Jon, know yes, you are you And trajectory rolling we which think, EBITDA-positive think to actually if want in business the add you delivers, it's that when when I don't be very looking to is exciting. XXXX. for cohorts, at start going But I that, anything. those start I

Jonathan Hill

outcome our year. getting add some a made, slight competitors year. resultant profitability targeted said slide I'd this profitability this We've to a in targeting it is of Yes. to was the to XX. are which of point never nuance QX of We getting

is this target. a So an not deal end-all

happen But cohorts. Peter's the We of absolutely is because think to point right. it expect I

the profile, to, to cash big actually benefits because on fundamental. gets need of of the -- business earnings and the for the XXXX profile, the People XXXX XXXX and the deleveraging for XXXX. us transformation And of the is focus potential here what that's on story the flow means that where this group

Peter Jackson

way We Ohio, regard that with with -- Maryland, these were Look, rules in have the as of such as launch the anyone, of, of Ryan, pleased team FanDuel the sort pretty short can really to be regulatory well perspective. look, and to point the performed to get will you the and in how where as customers we've which from know population a Ohio states to was a order of in got, remarkable. a adult market X% complex XX%

leveraging in clearly of, the DFS base were state. sort We our, hard

DFS team think, one the a, I I improve launch playbook probably of results refine penetration and they XX% Ohio pleased us. record I'm really sort But, of, base we new with is got the in think see the our already, state nearly look, each which that for delivered. and enhance that with and we some

Ryan Sigdahl

Thanks Good Jonathan. Peter, guys. Congrats on luck, the performance.

Peter Jackson

Ryan. Thanks,

Operator

one next David Brohan from Goodbody. Please, is go of The ahead.

David Brohan

Good morning, guys.

encouraging firstly iGaming to for the the US. questions on think, very there. me, see both on gains And, I two Just share the side,

improvements. had now the some Bet you then, this on in -- also, of the there I mentioned you termination sits potential versus Thank do just in wondering past wondering any Just update product your give August where can FOX the in year. needed peers? that know And product you is FOX think you.

Peter Jackson

Look, online David. casino the operator. we are biggest world's iGaming Hi, the on side,

look those which we're UK just that market and the now a the quoted is very the competitive these clear at run businesses figures We and our in our Jonathan successful. are you strength presentation. If to business had in of -- fiercely

I are it And the of critic. hardest enough. not think, And the was good States, we we look we at our look in products when quality knew

the we're some made lot to that to have bring it, a to We market. but improvements there's more going

share seen so from we've standing gains still product But the very that far. perspective. pleased not with we're we're So a

to going make the market. to enhance So which expect to we're continue we in have improvements, we the offering

is Bowl actually, for Bet, the And were that, us. FOX FOX worth we promoting a is was the rather promoted. to year. FOX FanDuel respect important one With bit Bet, Super mean, partner of things they I I the look, acknowledging mean, -- this that's than transmitting

to tail So and think, in FOX money I are make think long these subscale as struggling operators, probably I very operators, the is. difficult Bet of

what time. appropriate we'll So the at with do we business review the

David Brohan

Thanks, Okay. guys.

Operator

is The next Please, from one go Clark of Lampen BTIG. ahead.

Clark Lampen

morning, Thanks. two follow-ups. Good guys. Hey. I've got

of bet World is penetration two-thirds there the offering World you just Cup set. rates I looks first what peak the like with think about could or on you comparable usage UK around Peter usage stat product share Cup. a maybe in the use a US. for talked NFL activity Parlay products of level it's during whether Is curious customers the The build sort to

And year the Thanks those you then were for comments talked season? either I the I'm Australia thoughts trading to begin accrue throughout share acquisition looks what could but if performance, competitive pretty some early how of like player you clear about guess cohort a curious could lot. offset the or as -- around strong around year that headwinds really

Peter Jackson

you. around up share Thanks, with Okay. the I your I'll think question early. couple of Clark of appreciate Parlay getting and in you I Look mean, I product, things terms

I game based the sort Bowl first actives on take the the Parlay of mean Bowl. think Super Super of three-fourth around of it's I same our I all in if

high shared of as builder it's there. is the that dissimilar Conor levels So UK. shared to what around And on have Capital Day, penetration look bet important not Markets for the the in-house really pricing pretty we

all keep the associated get So is that around, And it. the sort XX% parlays with handle of a to in-house. priced means benefits economic of we of of, the

we customers got it. and means one of the obviously the to most importantly capture it of We're economics that more price the associated And continuing it. so with And we and But our it. believe we've love of all in evolve products improve best market. it that

them really that. on sort So engagement of with good seeing we're

I focus look us it's Australia thing to AMP of at on our the we terms of one KPIs in think our the reasons important figure. important of And one for use business. as is In it

And -- normal period. pleased life live so Australia continuing a as of very to engagement in first were in that summer grow sort we people time able to the the in are particularly for we're

end lockdown. think of So out COVID that about many the in were just are coming working states if only you of Australia restrictions way XXXX back

in of time overseas for year were business So QX people look – holidays that all this those in AMPs were things planned really as were first sort XX%. up the pleased Australia and we

seen definitely of a, moderation a sort of, have We engagement.

we days towards trending average are pre-COVID. we're UK levels And phenomenon and So the player the down saw down other that's back markets. a in the seeing

into And the these market. tax I got of consumption think changes look coming we have point

you're margins reacting we people generosity around bunch try making small will If probably unprofitable. changing profit into it and that. it time a push Last and deal with and think and you're and of -- a saw probably operator you to a being I overruns smaller

We have those is our keep cope important changes us with to with metric tax the the customers. engagement for scale driving and to

Jonathan Hill

critical of into a point have that's that the they've we've the point changes of the just the we of consumption and that. also they years competitive the that one the Peter is tax in behave as tax taken probably point tax was point Australia executed. and the introduction think the really an changes team way actually strategy a in didn't in think well that consumption I of to this And for last followed in because the QX approach and executed run significant I we successful of few in fashion ago they've in of terms business consumption employed was aggressive felt said incremental run-up we intensity. It's the because the

Clark Lampen

Thank you very much.

Peter Jackson

Thanks Clark.

Operator

The Citi. McNamara go next one Please ahead. Joseph from of is

Joseph McNamara

taking my Thanks for there. Hi, question.

this sorry, generous the color odds explain just thinking you margins. is you the the and about outsized QX in same this if win And going for odds, and can impact for impact you so one correct prior rationale? to on new guess years profitability US. had an XX, extremely the the Bowl. Super didn't year Am wanted and customers, on I ask obviously on I XX/XX pursue forward? First offered I In any QX

And And Geo we within any ambition as Thank very the should is second XXXX brands you. to product numbers expect one Tipster for Flutter portfolio? the launches other strong on normalize? there. What and to retail comps as bring Sisal, such

Jonathan Hill

Maybe first the take one. Joseph. Thanks I can

half really to kick also in this playoff correct actually employ We XX fantastic as the of the we punters. and to it time didn't that did through it You're year. offer But around at moving one imagination the ran a period that campaign XX caught the ground well.

think whole really that a we lot stages activity in So FanDuel we the playoff over saw benefit two-thirds on And period. year-on-year. we actually up

for So on rather we being time a are that with that long the way than actually and went quite really done. pleased a campaign just one

we I the economics. into just we've for we and seen think that were have good short the the And And, driving and year, thing right really coming one value. the in we we ones therefore, long-term the offers market actually of last effectively in of put overall done. think is half punters year the reevaluated second what saw markets being those the that We medium value this business. that is the offer

happy our strong And stats the market our Super pretty US. see we're share the through of offer Bowl with terms the engagement. and So you certainly in very in of are can up ended year start we this where on the

Peter Jackson

Yeah.

just on I'll that. build think, I

at we more rather customers and volumes of as higher we the this the think year. of -- in think already in base. we acquiring day the much we've requiring said much the Super acquired last we've benefit period up than value better than of are said the QX leading Jonathan engaged the did Actually Joseph I when customers on of Bowl year that of as average look customers to as time a got the we So

think has -- we're the right undoubtedly So change that been strategy in the we one.

of of we're Edge, benefiting symbiotic the different Sisal. the have Look, With parts the regard a work doing to group with well. we the is about contributing and as the Flutter relationship talk with all we lot which

are those at Sisal the rather we look But things in definitely well. things perspective things from taking as making if group and or are into like and think that Geo of sooner sure product also we other that interrogating that use Tipster and sense. parts we the makes a likewise I we're

very now when we're from So our do of using accelerated the elsewhere was trading already because they're available capability we a in fashion Italy cash out the and regulatory made capabilities able and in perspective have risk group. to in

their by reaching long the customer XXXX. were very business, the acquisition way online core terms to regards retail more with to there's Sisal the definitely we numbers Fantastic of exited how sensible With We performance, and business, in enormous SuperEnalotto still pleased believe go. levels jackpot very but we penetration a million. of of €XXX some in Italian momentum helped online

of operate a team customers their happens gaming, in normal in week, and from And for we elements. what capability think into as a got excellent checking Sisal terms people the lottery using app more a tickets think But also need cross-selling vehicle to on million see some an a of benefiting Sisal international year this lottery in have I as we we're having and there that the jackpots. the I

So course, as excited of in that the the Morocco, we're really have Tunisia we in Turkey and we opportunities business well. see about

performance they're gives it's for International real on it's a what part with us. very been division. great that turnaround We're we and the So really pleased know in think in of a trajectory. the conviction we And us look, the acquisition positive

Jonathan Hill

underlying the we online are part in performance offerings the strength the saw adding was in only. of but were online think those omnichannel very But Italian actually, carefully performance I was of the we continue which period, the of their to team strength that came market the the that shows when grow the of product back, versus also through to online. of at just the And this terms that, the who pleasing I retail -- think most thing looking that actually

with So we are really retail returning. pleased business online with the the performed way

million in obviously the for year. made We billion thing other paid EBITDA £XXX is, around The highlighted obviously Sisal of say presentation. The it. just £X.X this we I'd

got these we've acquisition deep did we little positions. some international to dive where seen business it's Italy and of presentation We're seen in and really the And bit this Italian happy you'll of markets the going hopefully that have strength to Sisal. X.X international Peter both fantastic to sort So forward the a with a times. strengthen of strength look for on and and in

Joseph McNamara

Thanks and really color. appreciated Thanks a lot.

Jonathan Hill

you. Thank

Operator

The UBS. Louise is ahead. Wiseur next of one Please from go

Louise Wiseur

Hi. you is my It’s states any and from you from mature if state, I could was indication you taking Pennsylvania. Louise the New the Have expect UBS. for any Thanks on questions. these more long-term where closer give wondering profitability of margin there of like are in kind US? to on margin Jersey, got the EBITDA

if the question the change, you second seen between consumer. differences the case there change the in the in impact Has any were regions? not seeing from I the been I any backdrop. QX? any whether different or then is any you and still wonder past think consumer And in just behavior you've that's that is said there on consumer Thanks. the

Jonathan Hill

with In Jersey. thing the margins, the the Look, deck XX. did important terms numbers the is going EBITDA XX the sort break the interims in not X I down a it the most I New was to on trajectory state-by-state Chart a in think we're on of We EBITDA give basis. around comment of the Chart aligning think

the get see leverage line operating percentage flywheel as top can improvement effect. that the and You the in driving business from we overall EBITDA

massively I the is as of XX, to from and all very, it's very stuff. and through, come clear, not questions get national Slide going this think of of secondly, but trajectory on these sort of contributions cohorts comment sorts allocation these don't into marketing then state-by-state basis you we're then helpful. And

at EBITDA tell Day. looking Markets states Capital of Equity about high But levels and Slide forward, that you this in in of we gives can as of sensible getting talked going that the confidence you the us from each contribution see trajectory to business on in the the of can increasing I XX, is levels

Peter Jackson

the consumer your we're Sisal, question our about behavior, we're And discernible with business. other brands to the seeing any UK any no The regards impact. across Tombola no markets of or in impact seeing or [indiscernible]

Louise Wiseur

you. Thank

Operator

from is go next The one ahead. Joe Susquehanna. Please with Stauff

Joe Stauff

wanted Good morning, Jon. morning, Peter. I Australian growth. user Good ask to about

read You adult What's way the had that in of penetration in is that? product, terms Is populations as trying to right new your about that is in out that or XX%. the customers the the think of of of kind for online growth you AMP penetration Is gaming? context customers increased the where in Australia do that say market? nearly say -- that of

Peter Jackson

anything there was Joe, that. wanted to you ask Look, Yes. else

Joe Stauff

Yes. reopening And the more most kind And say in of with growth online trade here world within wanted retail is to Sisal. the I about of ask then and more and Italy? normalized the in Italy elsewhere from

Peter Jackson

great that they of job we the of market they if terms business two focused YouTube of activating Sportsbet. look on in brilliant a Look understanding some or the lockdown at COVID Okay. of Day mass Capital did, the focused fitment Markets bringing to say which all, recreationally very in Australia to products. to a the the of have at look some And life first brand with creative do we points, the a that sort of of we It's during at have aspects you you on of Australia. of even better as Australia, look, a want have the channel a code very, and do in they the

year cohort fun for having historical think is Australia. is from come every to customers you in business. reactivation lot growth you for a and available on pump us is late driving people of degree I because Australians look do But those they AMP new if And something know certainly recreation. a to of comes which of sport what's how the been actually important a and at

I mainstream continue features on got that's And why and and in poker niche that's betters, been brand to that has which AMPs. coming innovative We're by the product new And our more in recreational for the fantastic near we've grow think products that market our betters. in future. we recreational supported bringing

that. on space what's So the

Sisal, can growth you of significant that from drive in the has as participate Chart able things, to online the is look really presence, back launch that retail you it's a ticket are brands the advertising the in the XX growing if terms that the very and very at like and growing. occurring In see is that strong who space. presentation, we're brand And penetration of it. referenced. off the the million customers significant look and With the in capturing It's digital of restrictions, checking against compete share strongly say difficult to we're market, for – pure-play the online us I

we're with in trajectory the really pleased we're seeing So that Sisal.

Jonathan Hill

expertise the in application of the the into the Geo we our getting on Flutter for knowledge the out earlier, were business fantastic of asked opportunities of business, but there's Tipster both and Edge terms us to help And in quickly a We've ramped in with out Sisal lot that XXXX. got market. now. got growth live We've very late in of obviously drive and earlier expertise cash the across which live group really question came

So, very online excited Sisal. even to faster about growth the drive help than opportunities that there

Joe Stauff

Make you. sense. Thank

Peter Jackson

Thanks, Joe

Operator

Please Bender from is Jordan of JMP one go ahead. next Securities. The

Jordan Bender

loss out look kind on can might to for you touch US of more the you you. markets loss. FanDuel look size those Thank XXXX? Great. the during penetration talk the year Bet in betting like? you sports is the investments about loss what US, that the tune which Thanks. and non-FanDuel was in Can my a $XX million comments growth about follow-up other the your breaking kind made mature of then talk business of to Maybe how about from FOX FanDuel curves the in decent your And rates in of outside the

Peter Jackson

market penetration rates, mean, that of Yeah, states share look, terms data. I publish of the you'll seen all have in

state-by-state a in of very on performance we've perform only basis the been states which If we've in And the course, very launched. we're early continuing good We're we there. in performance So, states well launched even to very that, our in days. we're to continuing see states performing time. some at well just look which

we XX% staking up growing at in launched and in still we're So revenues XX%. states pre-XXXX, that in

not strong performance recently is in just US being launched driven we're the So the seeing states. by

to really that we're further continuing benefits our wallet driving acquisition improvements performance. generosity see compounding, able reinvest and the flywheel We're So are and products more marketing I We're efficient having we the in driving have to volumes better in product think that getting customer better is – revenue powering. right? seeing share

and FOX – of as Bet, XX% yeah, in need about of you to loss, remember FOX and $XX PokerStars terms that the the loss said, that that longer is Bet plus that million talking was got liquidity between we the FOX Bet across would half of X% revenues The if shared we've go invest question much – we and in In no multiple is states. obviously, we're terms that of how fact away, is to want two-third PokerStars operational. to expect

that that Now try growth try how we to and and want build drive and much do liquidity.

pool. behind grow liquidity So we how do decide we'll CAC-to-LTVs much the invest markets those time, aggressively much pool equation in reinvest again, liquidity have or to at how and depend PokerStars not of on build an we that do it versus how will that

Jordan Bender

appreciate questions. Great. the

Peter Jackson

Thanks, Jordan.

Operator

of The Grewalof ahead. Bank next is America. one Please from go Kiranjot

Kiranjot Grewal

morning. Hey,

the looks as being of forward? see see move driving OpEx, more we'll EBITDA, that sense XX% go of could I get it you you like breakdowns, and on this is leveraged significant the as towards better you give What's cost color more it wanted just increase? up of probably that but And next positive a other on clearly bit Firstly marketing should year-on-year. a a over year was to we leveraging US,

AMP came that -- earlier. then building And is question sort question second the is the up of around around

a lot about recreational focusing customer. the spoken also You've on

some given population increase you. proportion suppose peers on of lot mean this it Is it betting in from overall? your cohort I focus to a think where competition? And winning Is bit I this from? are you targeting there's markets. also a I your customers of of mature Thank similar are the a more relates

Jonathan Hill

relatively able around states and regulations for we'll some ensure take -- got question. is sustainable that we up we variable. we've expand with Thanks. of get build the of out we're which business. the legal business rules are in the take state. And those cost and of lot that functions well, to as a all sort new on teams base each of level. got comply range cost I'll Clearly, a in We've the the scaling the There different cost some individual US drivers are to instance, as of to to compliance

we've like costs areas and of includes other got fixed and variable will areas We've where those. that finance get So, sort in areas got costs that that. like

So, California will year. actually about two-thirds we in There's go costs, the that costs within had drop have we've staff we there's up. that some is the forward. year-on-year big scale extra out of costs as the terms lobbying obviously increase as the so base in terms of in Those we cost

focused need But were we with looking towards where of take can COO as at we certain getting the effective it then some things also learnings the part we doing have role their be where base. customers new efficiency take into across the the more looking we are effectiveness We're my service functions. scaling cost costs we very feel be group we'll a they associated build to group can and clearly US cost to at in and and ways where the on and at if will operations as to way business of drive clearly across the right bases be and able making sure

So, yes.

Peter Jackson

AMPs, for terms I question in think straightforward really. it's your of us Kiranjot around Look pretty

the are got in We've recreational heavily have for been time. invest We think focused very a to we which well-suited and space products them. very on long very

with really BetBuilder products things terms those in bringing in. the new UK, the innovation of for able the It's in SkyBet way AMPs that Wheel we've helped use have this Paddy changes grow people fantastic to the for pleased in our really been at I'm Wonder of example, made sort for the gaming look some I we've for product with which like market. we're if products engaged exciting to of around because us If Power,

we I in XXXX, took when QX. And definitely share think about look

market. the see in AMPs seeing great up the gambling, products come stuff strategy our share done safer on strong of catching by that. think growing really some in to very had long I that to a relative take And growth topline. the us benefits people we've we with the into in ago we're with time of I to can performance expect other a translating XXXX to continue sort the You we and particular of are have

Kiranjot Grewal

you. Thank Perfect.

Operator

is one ahead. Please Daniel Fargo. of go Politzer next The Wells from

Daniel Politzer

Hey. morning everyone. Good

your So see in there. a of success the Maryland Ohio changes couple early just strategy to Are the to and of first, to you U.S, plus on of market, share to? what changes I you promotional that and ones or contribute kind One, guys there in kind up are competitive changes XX% long in quickly wanted environment? the

think significant also, year, the also, favorable margins I second one, bit then of years. benefit prior net little compares your a is change which was whole that in X.X% of I And structural half there call it, margin know your the it to second improved. in hold have revenue the but

kind Thanks. So the good half? I think in go-forward of of we kind outcomes guess, between the a about? on should range And how what's second was and basis sport breakdown favorable was a what about think improvement to the structural what

Peter Jackson

get the and about Think I'm at towards and very look has mean, along. terrific we shifting the with national better I high. sort I Daniel, job. proud to each better Day comes Maryland you about, when the We state I Mike that helps. Markets of that talked Capital stuff mean, what team spend team done. that the the at of launch the And and advertising are

well able advertising Ohio which offers strategy We're of friend penetration the the best and having capitalize our has of DFS referral getting on so different base, more to components our effectiveness. product. our helped our now all as very naturally in the efficient and really around as high-levels But we're

about saw the states. you really want we're do Jonathan, performance the pleased two So margin? with that those we in to talk

Jonathan Hill

and when look net mixture I the luck at year-on-year two you mean, the of things spend those promotional are Sure. out. Yeah.

So, was structural margin. most in actually uplift of year-on-year the improvements

We about we And the XX% Markets gross trajectory feel to that. number the talked Capital about good Day. towards win at that for a move we're Equity on

our expect levels So going and accuracy improved margins improved parlays. further pricing we forward in improvements of do gross as we get win

target put there. So we in we're out that sort confident of medium-term the

Daniel Politzer

Got it. Thanks.

Peter Jackson

Thanks, Daniel.

Operator

from The next Numis. Richard ahead. is one Please from Stuber go

Richard Stuber

Gambling Safer Australia, One for XX% I on the you terms please. Hi. me think tool. in questions Good on that, one Safer that presentation morning. and customers use of Two in said of Gambling

coming the the this Could to opposed out, of consensus. general and of outlier U.S. marketing what U.K. as follow-up in you the on U.S.? New the what an in of it of to nationwide starting in split customers you see York use comments side, are to opposition out and in advertising the of tool percentage U.S. terms the use And sort of sort more a

question And the second is on, Australia.

towards basis norm? this fall expect the levels, I or COVID XXX points competition in nearly margin Thank reversal. think previous margins saw of EBITDA do year you. that to you by the new return Would you because this is you the back think

Peter Jackson

safer million least Hi. really the educate -- with in £XX our We've strategy taken the Look, done U.K. play. of And £XXX at and part I look implemented you directly Play the referenced, support we've the think it's to U.K. across what business. at revenues as Well there's, out I'm measures pleased promote I we've two million of -- lots of proactive if that maybe directed markets invested

that customers done colleagues, of Well the U.K. we've Play schemes tools, annual of not right? for that got think So £XX stuff are targets think These the £XXX are team I the is an doing things limits The of limit we've included the slots. job the Safer always really Gambling in which all the I deposit and £XX, under in excellent important. for bonus some

terrific top. the to a team we're definitely job think that and race leading the doing sort of are I So the UK

get Well have its Americans target, that at part. play fact the set which is to be our XX% about division least for need our that to going you targets going be When as is the to to biggest America, think to is going clearly – group, at level. we're the those Play we And to to now

There's loads well. doing we're as there

them which with the been leagues, take and very advertising and there. code working the to developments but obviously, very it's to with have Because are ambassadors, with try terrific teams watching partners We've some Safer potential see. got some of advertising voices we're important out of very our done get we out problems we've the Gambling We conduct. heat America, the carefully around which carefully we will think develop work to actually media with

They're leveraging the industry customers are not and other some Safer common the us, not to UK in around of markets. just our help XX lead in Gambling, actually experiences the hearing principles development managed – from just our of we've

about to the ultimately there's significant talk to are a lot you want do So states But role. play going Jonathan Australia. a on. going very

Jonathan Hill

sure, Yes, Richard.

points In got margin. We'd terms percentage EBITDA of some HX, sort marketing XX% said we non-recurring obviously probably X million to expect that HX. around of We've X improve in you year-on-year. as around of

very obviously of has sold we of aggressive in are obviously an we make areas, generosity think and impact goods can that We got terms cost some well. other as on We've efficiencies.

that expect some we'd of that offset impact. to PLC So help

So we'd for year. this as XXs the expect high of guide be sort to a in of sort rough

Richard Stuber

That’s Thanks great. very much.

Peter Jackson

Richard. Thanks,

Operator

Redburn. of The next is one Tam Andrew from

Peter Jackson

Hi, Andrew.

Andrew Tam

there. Hi,

Sorry.

just in growth space. the there? terms that say dynamic the able and segment? online happening wanted of share in you just in differential between business the up online follow terms retail and to So to Sisal Are margin what's on of the of terms And anything

Peter Jackson

at Yes. higher when you retail we can Slide operates the look Andrew we XX% to at we margin see online, at in they a because from see retail, customers EBITDA particularly EBITDA migrated you if that opposed from see higher levels Look online them. of benefits some of if margin. it for have much we online the know XX, margin as And

these Our commission. and because retail business owned slightly and unusual stores is not operated also sometimes are sort

and fall in retail online. actually more growing sort actually from much to business positive not that the acquiring to EBITDA our for we're see different of through. we're migrating we're is penetration we customers it So of look But so significantly us slightly sort online online

Jonathan Hill

helps which the online don't obviously obviously with profitability And restrictions in Yes. marketing, of in Italy, very level business. the marketing the we much spend

Andrew Tam

And the it. XXXX. of in towards just Got Got terms second just it. one in depreciation guide higher a the

Can I some those of US tax some in be? that of size of terms offsets the you think to just just around losses. there's could offset what some clarify comments

Jonathan Hill

Sure.

your is forward work earlier the work at and look you think need obviously to and out profitability therefore, is NOLs, quite the carryforward few you'll the offset are is losses therefore, offset as because on taxable the – your tax years You'll significant. question then out the model what recognize need which what carrying is work and out what you what think last from losses, from the benefit over profit the to you our

to look leave get So to team IR I'll you maybe way is to probably the chat through have a the at best that that.

obviously, get But about of concession. lot a sure we've increase is is we making the Sisal around – of some forma, some Sisal sure the the pro got depreciation in. making And remember

So you around uplift do amortization that. get an depreciation from and there

through So with we that I'll work leave the you to team the but offsets. pretty about feel confident

Andrew Tam

it. Got

you. Okay, appreciate Thank it.

Peter Jackson

this to much that's the who's – Jonathan, to in, to everybody morning. Thanks, the results is me. Happy next of end sitting last this with I thanks very the time looks happy the particularly think you Andrew. questions so dialed he Thank is Look done to [ph]. those with all continuing who dialed But Flutter help work to edge you've and look everything deliver thank And can't forward Jonathan, appreciate of help in us. for you. see. really to you I the over you the to years have

Jonathan Hill

thanks. Indeed,

Peter Jackson

all. you, Thank

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