Flutter Entertainment H2 2024 Earnings Call Transcript

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Provided by Quartr
March 4, 2025
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Operator

Good afternoon, and welcome to Flutter's Q4 and Fiscal Year twenty twenty four Earnings Call hosted by CEO, Peter Jackson and CFO, Rob Koldrick. Please note this conference call is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. I will now hand you over to Paul Tims, Florida Director of Investor Relations to begin today's call.

Paul Tymms
Paul Tymms
Group Director - IR & FPA at Flutter Entertainment

Hi, everyone, and welcome to Flutter's Q4 results call. With me today are Flutter's CEO, Peter Jackson and CFO, Rob Coltridge. After this short intro, Peter will open with a summary of our operational progress and then Rob will run through the Q4 financials and our new guidance for 2025. We will then open the lines for q and a. Some of the information we are providing today, including our 2025 guidance, constitutes forward looking statements that involve risk, uncertainties, and other factors that could cause actual outcomes or results to differ materially from those indicated in this statement.

Paul Tymms
Paul Tymms
Group Director - IR & FPA at Flutter Entertainment

These factors are detailed in our earnings press release and our SEC filings. In addition, all forward looking statements are based on current expectations, and we undertake no obligation to update any forward looking statement except as required by law. Also, in our remarks or responses to questions, we will discuss non GAAP financial measures. Reconciliations are included in the results materials we have released today available in the investors section of

Paul Tymms
Paul Tymms
Group Director - IR & FPA at Flutter Entertainment

our website. I will now hand you

Paul Tymms
Paul Tymms
Group Director - IR & FPA at Flutter Entertainment

over to Peter.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Thank you, Paul. I'm delighted to provide an update on what has been a fantastic year for Flutter. Our strategic positioning provides a compelling investment opportunity. This includes access to significant growth markets and a scaled and diversified portfolio of local hero brands who win in their local markets through accessing our unique differentiator, the Flutter Edge. In 2024, we capitalized on these opportunities as we strengthened our leadership position in The U.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

S. Market, while globally, our local brands solidified their number one positions and took share in key markets, including The UK and Italy. We also grew into new markets with a very successful FanDuel launches in North Carolina and Vermont, along with the addition of Maxspect in our international business. We've achieved this by leveraging the Flutter Edge to deliver the best product for players. Our pricing capabilities give our players access to the leading same game pilot product across multiple geographies, driving both engagements and continued expansion of our market leading structural growth revenue margin.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Our iGaming product proposition is going to strengthen the strength with the creation of Slutter Studios, which we believe will better harness our games development capabilities, which complements the addition of further Tier one supplier content. Altogether, this translated into excellent financial performance with revenue growth of 19% and adjusted EBITDA $482,000,000 or 26% higher in 2024. With leverage now within our medium term guidance range after declining by nearly a turn in 2024, we will truly see the benefits of being an AMS business in 2025. Firstly, we expect FanDuel's fantastic product pipeline will drive continued organic investment in planned acquisition to sustain our leadership position in The U. S.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Secondly, in the newly formed international division, we expect to add the SNI and NSX acquisitions in the first half, further enhancing the scale and diversification of the group in high growth markets. And thirdly, we'll get the full year benefit of the share repurchase program with up to $1,000,000,000 of repurchases expected across 2025. Turning now to our performance in Q4. In The U. S, we exited the year in a position of unparalleled strength with a sportsbook TGR market share of 43% and an iGaming TGR market share of 26%.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

This means we closed the year as a clear number one online sports book operator in The U. S, a position we have consistently maintained. And we have now also overtaken other multi brand competitors to become the number one iGaming operator. This market leadership position has been delivered and maintained through our laser focus on product innovation combined with a disciplined customer acquisition strategy. The strong performance in the quarter was somewhat masked by the well documented adverse sports results as we saw some of the most customer friendly NFL results on record.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

While these short term results led to a change in outlook for 2024, the transitory nature of these impacts, which are part of operating a sportsbook, has no bearing on long term position of the business as we have absolute confidence in our leading pricing and risk management capabilities and in the structural growth and net revenue margin targets, which we outlined at the Investor Day. I've been really pleased with the strength and trajectory of The U. S. Business. Existing player cohort growth remains encouraging and the opportunity to acquire new customers remains very compelling with payback periods of less than eighteen months and well below our two year threshold for investments.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Our focus on product innovation helped to drive our structural gross revenue margin to 14.5% in the quarter. Parlay penetration continues to increase with NFL up 500 basis points from a high base as our market leading same game parlay products continue to resonate very well with our customers. Our product pipeline is stronger than ever with a number of new sportsbook features launched in q four, leveraging our market leading pricing capabilities. These included increased betting markets across all major sports, a new live activity tracker for NFL, which has seen good early adoption rates, and greater ability for customers to tailor the generosity with more to come in June 2025. We also continue to trial our revolutionary new YourWay product with all states having access to this new, customizable way of vetting NFL in the quarter.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

And we are now in the process of rolling out YourWay to MBA markets. Although it's really early stages, the engagement we've seen from customers has been very pleasing. On iGaming, product innovation has also delivered us to our number one position. Launches included sports themed games, such as NBA Super Slam, who we expect will help drive sportsbook and exclusive titles by Samurai eight eighty eight Kenji. We know access to exclusive games appeal to our direct car gaming customers in particular as we laid out to our investor day.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

We improved our iGaming reward proposition with the introduction of a new jackpot functionality on our daily prize mechanic FanDuel Reward Machine, as well as trialing our new FanDuel Rewards Club loyalty program. Combined, these features help to deliver exceptionally strong handcraft, up 37%. Our fundamental drivers are taking good momentum into the new financial year. The NFL season ended with a great Super Bowl. As we look into 2025, I feel very confident about FanDuel's prospects.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

From a regulatory perspective, The U. S. Continues to be a dynamic market. On new state opportunities, we continue to push mass expansion for both sportsbook and iGaming. We also note the recent developments on prediction markets and opportunities that may arise for us there.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

We're also monitoring proposals for state gaming tax increases within the regulated sports betting markets. And we're working closely with advisers and regulators alongside our peers to ensure the impact such changes can have on the regulated markets are well understood. Irrespective of what means states may use to manage their budget deficits, as the largest operator in North America, we believe that we are in the best position within the sector to mitigate impacts should they arise. Outside of The U. S, we had a strong quarter with revenue growth of 14%, where access to our front edge capabilities is driving share gains across the portfolio.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

In UKI, we had another excellent year. We've now grown our market share by four percentage points

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

over the last two years.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Product delivery continues to be key to that success. In the quarter, Paddy Power's expanded Super Sub products drove increased pilot penetration and in turn, structural gross revenue margin improvements. An engaging English Premier League has also driven high levels of player demand. Our iGaming proposition continues to improve with expanded free to play content such as the Sky Vegas guaranteed price machine and a broader range of Tier one gaming content. In Italy, T Cell's Poker Players now have access to PokerStars shared liquidity pool, quickly resulting in record price calls and showing the direct benefits of access to the Flutter Edge.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Detailed compelling omni channel offering helped drive a 33% increase in its highly announced during Q4 with omni channel players generating over 1.5 times more online revenue compared to online only players. Given this large omni channel presence, we look forward to welcoming Snai into the group in the second quarter. Positive momentum continues across our key consolidating investment markets, demonstrating the benefits of our diversified portfolio and our capacity to invest for long term growth. This is demonstrated well in India, where we continue to invest through the impact of tax changes introduced in October 2023, which temporarily impacted growth rates. The underlying can now be seen with AMG growth 72% on a year over two year basis.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

In Australia, Player driven momentum in sports remains a positive tailwind against the known softer racing market with underlying trends playing out in line with our expectations during the quarter. Finally, and in summary, we believe that the group is very well positioned for 2025 and also to deliver our 2027 goals that we set out to our Investor Day. We have excellent momentum in our global businesses and we are delivering against our Play Well ambitions. FanDuel has made a strong start to the year and we expect to materially expand our fare base due to our market leading products. The reorganization of our ex US businesses into our new international division will enhance our strategic focus on winning in our local markets, while our cost transformation programs will ensure we maximize shareholder value.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

I will now hand over to Rob to take you through the financials and our guidance.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Thanks, Peter, and hello, everyone. It's great to be talking to you today about another strong quarter. The group delivered revenue and adjusted EBITDA growth 144% respectively despite the impact of the customer friendly sports results in The US. The group generated net income of $156,000,000 which is after the combined non cash expense of $346,000,000 for amortization of the acquired intangibles and the fair value movement on the Fox option. Earnings per share increased by $5.59 to 45¢ in q four benefiting from the recognition of the tax credit on historic US losses at and an impairment charge in the prior year comparative period.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Adjusted EPS, which now excludes certain fair value movements, primarily the impact of the revaluation of the Fox option increased 67% due to the tax credit. Turning now to the financial performance for each of the segments. In The US, revenue was 14% higher with adjusted EBITDA of $163,000,000 This included continued strong iGaming growth of 43% driven by the product improvements Peter outlined driving excellent player growth engagement during the quarter. Sports book revenue growth of 8% reflected the adverse impact of sports results as well as a moderation in handle growth to 12%. As anticipated, the sequential handle trend was lower than Q2 and Q3 due to various factors including the timing of state launches in the current and prior year, a greater number of NFL games in q four twenty twenty three, and the continued migration of our customers to higher revenue margin products, which are all are typically also lower handle wages.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

We estimate customer friendly sports results cost approximately $550,000,000 in revenue and $360,000,000 in adjusted EBITDA in q four. This is before factoring in one of cost mitigations and any recycling benefits. I will summarize our estimate of the net impact on 2024 when I walk through our 2025 guidance. From a cost perspective, we continue to deliver excellent operating leverage despite the impact of sports results on revenue, the incremental taxes year over year in Illinois and the opportunity to continue to invest in customer acquisition. Outside of The US, revenue grew 14% while adjusted EBITDA increased 6%.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

UKI had an excellent quarter with revenue growth of 20% driven by a strong performance in both Sportsbook and iGaming, which were 31% up and 16% up respectively. Sports book revenues aided by the positive year over year swing in sports results of three ninety basis points combined with a further 110 basis points expansion and our structural gross revenue margin as players engage with our expanded same game holiday offering. In international, constant currency revenue growth of 23% was driven by a 22% increase from existing consolidated and fast markets. And Maxspect also contributed eight percentage points to the year over year growth. This sale had an exceptional quarter in Italy highlighted by online revenue growth of 41% as we took share in the market and benefited from a favorable swing in sports results.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

India, Turkey, Georgia and Brazil all performed strongly in the quarter demonstrating the benefits of our diversified portfolio. In Australia, revenue was 8% lower reflecting softness in the racing market although AMP growth has been encouraging at 7%. Cash flow growth in the quarter was underpinned by the growth in our business with net cash from operating activities up 67% and free cash flow growth of 175%. Cash flow also benefited from the comps versus prior year, which included increased CapEx relating to the acquisition of our new U. S.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Office in LA and increased transaction costs associated with our US listing. Cash flow conversion over the year as a whole was excellent with free cash flow of $941,000,000 a 600,000,000.0 increase year over year despite the $428,000,000,000 headwind relating to assessment of derivatives in 2023 and 2024. The significant expansion in group adjusted EBITDA of $482,000,000 over the last year and FX movements drove a $635,000,000 reduction in our net debt over the equivalent period to bring leverage within our medium term target range at 2.2 times. This anticipated reduction unlocks the capacity to repurchase up to $1,000,000,000 in shares across 2025 in tandem with the acquisitions of Snide and NSX, totaling approximately $2,700,000,000 Moving now to the 2025 guidance we've published today, which includes trading up to the February. In The US, we expect existing state revenue and adjusted EBITDA midpoints of $7,720,000,000 and $1,400,000,000 respectively.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

This represents year over year growth of 33176% and growth at the midpoint of our Investor Day commentary after adjusting for sports results in the 2024 base. Normalizing 2024 for sports results, U.S.net revenue would have been around $6,300,000,000 and adjusted EBITDA approximately $800,000,000 This includes adjustments of one off costs we called out as mitigation in Q4 as well as our estimate of the benefit of recycling in the quarter. 2025 has started really well. Underlying trends are in line with our expectations with an acceleration in staking trends from Q4 levels as we lack a more like for like calendar period. Sports results for the year to date have been roughly neutral with a great Super Bowl result offsetting adverse sports results in January.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

I'll now take you through some comments on phasing for the existing state guidance. In the first half of twenty twenty five, it's worth remembering that the shape of 2024 was impacted by adverse sports results in Q1 and positive sports results in Q2 and therefore phasing year over year will look different. We therefore expect revenue in Q1 to be roughly 24% or 25% of total revenue for the year and Q1 adjusted EBITDA to be around 20% of 2025 adjusted EBITDA. Around 60% of our U. S.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Adjusted EBITDA is expected to arise in the second half of twenty twenty five with Q4 remaining our largest quarter of the year. New states and territory launches are expected to result in negative revenue of $40,000,000 and adjusted EBITDA cost of $90,000,000 reflective of a Q4 launch in Missouri and some pre launch investment cost in Alberta ahead of an anticipated Q1 twenty twenty six launch. Moving on to Group ex U. S. Guidance, we expect revenue and adjusted EBITDA midpoint of $8,250,000,000 and $1,850,000,000 respectively

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

excluding M and A. On a nominal basis, this is

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

in line with 2024 that equates to growth of 610% for revenue and adjusted EBITDA respectively after adjusting for foreign currency movements and the growth sports results benefit in 2024 and is in line with our expectations. Foreign currency exchange rates have moved against the dollar over the last few months to create a 3% year over year headwind at revenue and adjusted EBITDA of approximately $220,000,000 to $50,000,000 respectively. Quality phasing should be broadly in line with 2024 after allowing for the euros in Q2 and Q3 along with very favorable sports results in Q2. Revenue growth is reflective of continued momentum in international and an encouraging outlook in Australia. As anticipated, growth in UKI is moderating from the high levels reported during 2024 as we come against positive sports results, the European soccer championships in 2024, absorbing the impacts of the government white paper finally being implemented and as we migrate SkyBet onto our global platform.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Overall, ex U. S. Guidance also reflects the initial benefits of our cost efficiency program and we remain on track to deliver over $300,000,000 in annualized cost savings by 2027. '20 '20 '5 is an important year for these programs and we are very pleased with our progress to date. We expect to migrate Skydeck customers to a single UKI platform across the summer and complete the program by the end of the year.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

The Zao players now have access to PokerStars poker liquidity pool and we expect Italian players to be accessing a combined platform later this year. From q one twenty twenty five, we will combine UKI, international, and Australia into one new combined international segment. This means the group ex U. S. Adjusted EBITDA midpoint guidance is split between $2,080,000,000 for the new international segment and $230,000,000 of unallocated corporate overhead.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Finally, we have also guided on some additional income statement and cash flow items that you can find in today's release. With that, Peter and I are happy to take your questions and I'll hand you back to Regina to manage the call.

Operator

Our first question will come from the line of Ed Yong with Morgan Stanley. Please go ahead.

Ed Young
Ed Young
Analyst at Morgan Stanley

Thank you. My first question is on U. S. Guidance. You've been in a lot deeper there, so thank you.

Ed Young
Ed Young
Analyst at Morgan Stanley

I wonder if you could pick up on the $90,000,000 of investment losses in new states. Can you just talk through the timing movement on Missouri and Alberta? And if there are any other underlying changes within the guide? And perhaps more broadly, could you comment on the customer acquisition environment? And then the second question is on prediction markets.

Ed Young
Ed Young
Analyst at Morgan Stanley

Peter, you mentioned it very briefly there. Just listening to your main peer described there's more of an opportunity than anything else. Is that how you see it?

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Okay. Shall I pick up on

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

the first question, Ed, with regards to the new state? So as mentioned, we're expecting to launch Missouri in Q4, such around November and we're expecting Alberta not to be till Q1 twenty twenty six. As we've said previously, 1% of the population we think roughly equates to around $35,000,000 in contribution costs in terms of the state of state launch in the first six months. So that ends up being around $80,000,000 for Missouri as most of those investment costs are typically incurred upfront as we said before. And then in Alberta, we expect around $10,000,000 for for a kind of pre live investment towards the end of this year.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

So that that gets you to the $90,000,000

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

I think you asked about customer acquisition more broadly. We've been very pleased with the way in which we've been able to continue to lead into the market. We, I referenced earlier the extent to which we're continuing to see good opportunities to acquire customers that we exited '24 with a bigger business than we anticipated. And I don't see any reason that we can't continue to push on and build as big a business as we can. With regards to your second question, Ed, you know, we are monitoring the situation with these, sports futures contracts closely.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

You know, the regulation is very fluid. You know, I think we'll we'll understand that the CFTC is due to hold a roundtable on sports related event contracts the next month or so, and we get, especially, a sincerity thereafter. It it could be an interesting opportunity, but I think it's worth recognizing that the products themselves lack the richness of a true sportsbook offering. You know, I think about the Uruguay products and the fact that we were doing around the Super Bowl for that. It's a, you know, it's a very compelling, very broad set of products, and we need to remember that the prediction products are very vanilla in comparison.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Thank you.

Operator

Our next question comes from the line of Clark Lambin with BTIG. Please go ahead.

Clark Lampen
Managing Director at BTIG

Thanks very much. Good evening, Peter. I wanted to follow-up on customer acquisition trends. Just very quickly, did you see any major delta in acquisition trends between, say, iGamingFirst customers and Core Sportsbook? And as it relates to iGaming product and in sort of '25 and beyond, you talked about the launch of a rewards program and integration of new jackpot features into the product.

Clark Lampen
Managing Director at BTIG

I don't know if it's too early to comment, but I'm curious if you could give us on the product and rewards program, maybe a feel for what the expected benefits might be from those integrations over time.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Well, this afternoon, Clark. It's certainly not afternoon where I am. But, look, from a customer acquisition perspective, I would make a point earlier about how pleased we are with the trends. We're seeing very strong growth in iGaming. You can see that in the AMP numbers year over year when you look at the fourth quarter and that's what's behind it, very strong revenue performance we saw in the quarter.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

It is a function of the fantastic things we're doing from a product perspective. The reward machine jackpots, which were live in October, I think have been very important. Yeah. The FanDuel Casino Rewards Club, which is a, you know, flagship loyalty program. We did a beta launch in December to a subset of our of our customers.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

There's a lot going on. There's, you know, a bunch of things that we've been doing over the course of this year, which I'm sure you've seen access, you know, seen seen you know, what we're giving customers access to some exclusive content, which I know the team are very excited about as well. So I'm I'm delighted all that, you know, we're doing both to drive the direct casino, acquisition, but also to continue to support the the cost selling into the sportsbook as well. Thank you. If I may, I have

Clark Lampen
Managing Director at BTIG

a very brief follow-up just on Italian lottery. Peter, you've previously expressed some interest in bidding for a second lottery contract. I'm curious if that's still an opportunity that's been focused or has that materialized maybe the way that you might have expected?

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

I think you're referencing, I mean, in Italy, there is an opportunity to bid for the lottery contract. It's a very different type of product to the Super Enel Lotto that we already run-in Italy. We've been very pleased by the way in which we've been able to, you know, run the Super Enel Lotto product. I think Seaceli has done a brilliant job in terms of activating that driving cross selling set, you know, the online channel and driving benefits in that. There is an opportunity to bid for the lotto.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

We are pulling our thoughts together on that. We've got a couple of weeks to decide what we're gonna do. But luckily, I think the extent to which we can make a good financial return on it, you know, you'd expect us to lead into it. It is different to the sort of lottery products that we see in The US. There are more opportunities, to drive for it.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Rob, you've got a bit more strength. I don't know whether you want to just reference it.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Yeah. So I mean, the the Superlots of products that we've got at the moment as well has been, you know, performed fantastically well for the c cell business. You know, it's got a huge customer base. When when you look at the Lotto products, it it's quite different to Super and Lotto. There's more of a regional bias to it.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Super and Lotto tends to be a national game for us. But you look at the lots of it that 21,000,000 Italian people playing every week which is over 40% of the population you know that that says a lot. So we think that's a huge opportunity there if

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

you know if the numbers make sense. It's something we're looking quite close to. Thank you.

Operator

Our next question comes from the line of Brandt Montour with Barclays. Please go ahead.

Brandt Montour
Director, Equity Research Analyst at Barclays Corporate & Investment Bank

Hello, everybody. Thanks for taking my question. So your way is rolled out to a big portion of the system. I know it's been a very light touch with what you've put out there so far versus what you have aspirations to put out there eventually throughout through that product. What has the early learnings been with what you've put out?

Brandt Montour
Director, Equity Research Analyst at Barclays Corporate & Investment Bank

Give us an update on that product, please.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

I can talk a little bit about some of what we saw, in the Super Bowl where the product was, you know, was available. We didn't, you know, particularly market this aggressively. We saw around, you know, one in twenty customers, use the product at the Super Bowl. I think about 90% of the bets that people placed were bets that they couldn't have done without utilizing, the customization that's available within the the YourWay products. So you know that we're we're seeing and I think it's I think around 25% of, of the customers have placed PolyVets with more than 10 legs.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

So, you know, we're seeing really strong engagement with it. People are really enjoying the extent to which they can customize and find, find bets that, you know, they couldn't have done otherwise. We're we're excited to see what we can do with this product as we continue to evolve it. You need to remember, you know, we're we're solving two very complex things with Visualway. One is just sort of enormous expansion of of of markets that become available for the customers and finding ways and merchandising and simplifying that back to customers so we can give them what they want to bet on quickly.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

And it's actually managing all the risk associated with that. And I think the team has done a great job in tracking that. But we've just been very thoughtful and careful in terms of how we roll this out to the customer base.

Brandt Montour
Director, Equity Research Analyst at Barclays Corporate & Investment Bank

Thanks for that, Peter. And just a follow-up on hold. You gave structural hold calculation for the fourth quarter of 14.5%. Maybe you could talk about how you're thinking about hold for 25% given that fourth quarter number that you hit isn't far away from the 15% that you guys had sort of put out as a target for 27% recognizing there's some seasonality to it?

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Yes. Thanks, Brent. Listen, we're not guiding specifically on hold for 2025. But what I would say is we laid out some targets structurally at the Capital Markets Day back in September. We're making really good progress towards that.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

You can see that in the published data in 2024. We feel like we've got to a very good start in Q1 this year and we're very much tracking in progress with those longer term targets that we set out. So we're feeling quite sanguine about where the margins are at the moment.

Brandt Montour
Director, Equity Research Analyst at Barclays Corporate & Investment Bank

Okay, great. Thanks everyone.

Operator

Our next question comes from the line of Bernie MacKernan with Needham. Please go ahead.

Bernie Mcternan
Senior Research Analyst at Needham & Company

Great. Thanks for taking the question. Wanted to ask on tax rates. Just dealing with Illinois in the second half of twenty twenty four, what did you actually see on a gross impact and net impact? And was there any change in the competitive environment in the state because the higher tax

Bernie Mcternan
Senior Research Analyst at Needham & Company

rates?

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Yes. So let me pick

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

that one up, Bernie. So as we previously mentioned with another week, we said that was going to be circa $50,000,000 impact in 2024 and that would be 40 after mitigation. You know, it's it's broadly, you know, ended up resulting in a set of results for us that's in line with that. We previously said for 2025, we're expecting to be able to mitigate sort of 50% growth impact. Yes, that's still where we're thinking.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

So broad, it's played out as we're expecting.

Bernie Mcternan
Senior Research Analyst at Needham & Company

Understood. Then maybe just on the other side of regulation, thinking about potential iGaming legalization, we just love any updated thoughts here in terms of potential momentum in states.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

The beginning of the year is always the time when we get a better read on what's going to happen over the course of the year. We don't want to change anything at this stage. But, you know, we we're excited that we'll be launching in, Missouri in the fourth quarter. You remember the investor day, we talked about the fact that we're anticipating a couple of percentage points of sports betting in each of the, the two or three years and one new iGaming state. I think we remain confident that can happen.

Bernie Mcternan
Senior Research Analyst at Needham & Company

Great. Thank you both.

Operator

Our next question comes from the line of Jordan Bender with Citizens. Please go ahead.

Jordan Bender
Senior Equity Research Analyst at Citizens Capital Markets and Advisory

Good afternoon, everyone. We're getting questions around handle growth slowing in The U. S. And then continuing into January. I believe Parley handle growth comps are incredibly tough in the 4Q and the start of the year.

Jordan Bender
Senior Equity Research Analyst at Citizens Capital Markets and Advisory

Anything else you could point us to, to help us bridge from what we're kind of seeing today to your implied handle growth for the full year? And then the second question unrelated, I'm seeing if you can expand on the broader strategy across South And Latin America. The region is pretty untapped by any Flutter brand. So is the strategy there to kind of build your presence and brand in Brazil before potentially laying the groundwork to kind of further expand throughout the region? Thank you.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Hi, Jordan. Why don't I just quickly deal with that Latin American question. We're excited to be working with NSX and we hope to get a deal closed next quarter. We've got a terrific team and the opportunity to be able to bring the Flutter Edge to bear there with our products, expertise, technology and other scale benefits, I think will be very exciting. As and when we find other opportunities across Latin America or Tatum, you need to remember we're an Amazon business, so we're investing very heavily in organic customer acquisition, rate paybacks, you know, sort of eighteen months whether that's in iGaming or sports here in The US and other markets around the world, India, etcetera.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

We're also gonna continue to do M and A, and and we've got this billion dollars of share repurchase this year. So, you know, M and A will continue to be an important part of our strategy, but, you know, we have to make sure that the it's the right opportunities for us in terms of delivering the right financial returns, and us being able to bring the benefits from the Futter Edge team.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Yeah. Picking up on your handle question, John. So, you know, Q4 handle trends were broadly as as we'd anticipated, so, December up in q four. We're expecting q four to be lower than the previous quarters partly due to the impact of state launches and and some phasing around NFL games. But you look at q four specifically, it had one less NFL round and it also lapped Kentucky, which moderated kind of the sequential growth.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

As I mentioned in my remarks, we also talked about, some recycling benefit, but that's not enough to to kind of offset the above. 2025 started really well as we we stated that Q1's improved year on year as we lap this kind of like for like calendar period. So, yeah, we're we're quite pleased. I think the last point I'd like to mention is we don't really kind of obsess about handle, you know, can be inflated by promotions and, you know, partly penetration, which we're obviously keen to keep moving the dial on tends to be a bit of a headwind to handle at times as well, but we're we're pleased with what we're shrinking.

Jordan Bender
Senior Equity Research Analyst at Citizens Capital Markets and Advisory

I appreciate the commentary. Thank you.

Operator

Our next question comes from the line of Paul Reddy with Davy. Please go ahead.

Paul Ruddy
Gaming & leisure analyst at Davy

Hi, good evening guys. Just two questions for me. Just firstly on the Italy acquisition in Snow. Just could you give any little bit more detail maybe on the timing of that coming in? And just the second part of it, looks like that business may have lost some share in the second half of twenty twenty four.

Paul Ruddy
Gaming & leisure analyst at Davy

Just how quickly do you think when you absorb that business you can kind of start to turn that around and get growth back? And then just as a quick follow on from that, just if you can give any broad guidance on the expected contribution from the two acquisitions in twenty twenty five and a half year basis?

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Yes. Thanks, Paul. So I can pick up on that. So we're still on track for Q2 with the snide completion. As you denoted in the Italian market share data, you know, with our c cell brand, we've been doing very well.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

So we've been taking the share. So, you know, we're we're keen to get the snide deal completed and give them access to our products, capabilities, and on the flatter edge, and also get on with delivering some of these synergies, which will we're confident we'll be able to start realizing those quickly. With regards to the numbers around the acquisitions, you know, as previously stated in Brazil, we think that NSX, you know, they'll be up to $100,000,000 of EBITDA losses this year. Also hoping for completion of NSX at some point in Q2 and yet Snyder has previously guided as well. But yet feeling very good about both acquisitions, keen to get into the building and both and start making a difference.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Okay. Great. And if I

Paul Ruddy
Gaming & leisure analyst at Davy

could just ask a segment just to unpick the handle growth question for The U. S. A little bit more. Is it right to think about a kind of a lower handle growth environment now as we go through 2025 as people you know as you look to more of those recreational high margin products that are maybe lower bet size and higher margin and maybe up some upside on hold percentages and lower handle growth? Or how should we think that through?

Paul Ruddy
Gaming & leisure analyst at Davy

Is there kind of any broad guardrails you think about to handle growth?

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

I think I've come back to the point that I just mentioned, Paul, which is we don't obsess about handle. We're quite happy with where handle is trending. But you can artificially inflate that with promotions and other things. And, actually, if you look at that, you know, underlying momentum that we've got within the business in in revenue, which is, you know, the key KPI that we look at, it's very strong. We're very pleased with it.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

So I said, you know, in Q4 there's a reason that sequentially why the trend was slightly lower, but because we've kicked off this year, we're really happy with where the business is trending.

Paul Ruddy
Gaming & leisure analyst at Davy

That's great. Thanks, guys.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Thanks, Paul.

Operator

Our next question will come from the line of Dan Politzer with Wells Fargo. Please go ahead.

Daniel Politzer
Daniel Politzer
Director, Equity Research Analyst at Wells Fargo

Hi, Peter and Rob. Thanks for taking my questions. First, I know you guys gave a lot of great detail in The U. S. If I look at your kind of normalized revenue and EBITDA for '23 and for '24 and '25, it looks like flow through is in the low 40s.

Daniel Politzer
Daniel Politzer
Director, Equity Research Analyst at Wells Fargo

Is there any way to kind of give us a little bit additional color whether it relates to gross margins and being able to get some additional upside there relative to prior year or even leveraging kind of some of the fixed OpEx buckets? Any additional detail would be helpful. Thanks.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Dan, is that there any question you had or

Daniel Politzer
Daniel Politzer
Director, Equity Research Analyst at Wells Fargo

No. My follow-up is just another one on the Italian lottery. Any puts and takes as you think about that concession, whether joining the existing concessionaire versus maybe competing against that incumbent in the bidding process? Just how you're kind of thinking about that high level would be great?

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

We're not going to talk about our bidding strategy. It's commercially sensitive. We will be very, rest assured we'll be very disciplined and we'll a sense that we go ahead, we will, you know, put on a, you know, a a as good a show as we can. Do you want

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Yeah. So it sounds like you dropped through question. I mean, there's there's a number of dynamics playing in business. We we previously talked about that, you know, you've got the existing states which are maturing and with the maturity of those states, you might see some lower handle, but you can see higher net revenue as the the pilot penetration increases. Yeah.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

One thing that's important to say is actually we are delivering operating leverage across all lines and you can see that in P and L in Q4 and we expect that trend to continue into 2025. So we're clearly making progress on cost of sales and marketing towards those targets that we set out in 2027. I think the last point is, you know, I said we don't obsess about handle. We don't obsess about drop through even. Sometimes it isn't the best metric to look at.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

We prefer to focus on revenue and EBITDA on those targets that we laid out at the Capital Markets Day.

Daniel Politzer
Daniel Politzer
Director, Equity Research Analyst at Wells Fargo

Got

Daniel Politzer
Daniel Politzer
Director, Equity Research Analyst at Wells Fargo

it. Thank you so much.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Thanks, Ben.

Operator

Our next question comes from the line of Jed Kelly with Oppenheimer. Please go ahead.

Jed Kelly
Managing Director - Equity Research at Oppenheimer & Co. Inc.

Hey, great. Thanks for taking my question. Just circling back on hand because we've been getting a lot of questions on it. Just where we when we look at it, where your iGaming growth is really strong, we are seeing some handle deceleration. So is that some of your better higher value players choosing to play gaming over sports betting?

Jed Kelly
Managing Director - Equity Research at Oppenheimer & Co. Inc.

Or is there anything else out there? And then just on the YourWay parlay, just to roll that broader just to get a broader rollout, Are you more concentrating more on the merchandising? Or is it more still on the risk management? Thank you.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Hi, Doug. Yes, I think the, I can talk a little bit about the YourWay products and I I look. I mean, I I think I think I can make a comment on iGaming and and I'm sure Rob will will have some, follow-up there. But yeah. The on the on the YourWay product, we've got to get the merchandising right from a customer perspective.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

So the, you know, the user experience of having a vastly increased array of of product could become overwhelming and we have to make sure it isn't. So we've got it with the team are doing a really nice job on, some of the user experience that we've made available. But it's, you know, it's no good taking, you know, bets on a you know, an array of new products if you actually haven't got the pricing risk management, right at the same time. And so you've got to solve all of these problems simultaneously. It's very complex.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

I think the team are doing a brilliant job and we're really excited to see where we can take this product. It's worth remembering that I remember being in Australia when we launched the, yeah, the multi revolution as it was done in 2016 and here we are nine years later facilitating and developing the product. I'm sure your way is something which is gonna, will be similar. Well, by the way, you wanna talk about the iGaming. Yeah.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

I mean, in terms

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

of the first question, Jeff, we're we're not seeing that. So in terms of trends we're going to take away from sports. But I think as Peter outlined earlier, you know, we've had some fantastic, you know, product developments in iGaming, which are really kind of driving the performance of iGaming forwards. We're we're really pleased with that. We're also continuing to see, you know, excellent paybacks in both sportsbook and iGaming, you know, arguably even better in iGaming.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

You know, the question for us is how much we keep, you know, really kind of investing behind that. We've, you know, got Asap who's our, casino director of Fanjoys. He's constantly asking me to to invest more. So it's a good challenge to have. But, yeah, we're really pleased with the performance of both.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

So there's definitely not a drag on sportsbook from my opinion.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Thank you.

Operator

Our next question will come from the line of Barry Jonas with Truett Securities. Please go ahead.

Barry Jonas
Barry Jonas
Managing Director at Truist Securities

Hey guys, thanks for taking my questions. Given the Illinois mitigation efforts you've seen to date and you expect this year, can you kind of offer any general guidelines around the mitigation targets we could see as more states talk about increases? Is 50% sort of a good baseline target? Should it come to that? Thanks.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

I think, yeah, it's a good starting point. I mean, we need to remember that as the largest operator in the market by a long way, I think we're in the best place to mitigate this. But I think as a simple rule of thumb, it's sort of our starting point.

Barry Jonas
Barry Jonas
Managing Director at Truist Securities

Great. That's really helpful. And then just a general follow-up. Do you think there was anything structurally different about the NFL this past year that led to abnormal holds? And I guess, did you learn anything from the season that you could take with you in the future?

Barry Jonas
Barry Jonas
Managing Director at Truist Securities

Thanks.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

More favorites, one, than would normally have happened. I think that's it.

Barry Jonas
Barry Jonas
Managing Director at Truist Securities

All right. Thanks so much, guys. Appreciate it.

Operator

In the interest of time, we ask that callers limit themselves to one question. Our next question will come from the line of Jeff Stanchill with Stifel. Please go ahead.

Jeffrey Stantial
Managing Director - Gaming & Leisure at Stifel Institutional

Hey, great. Good afternoon, everyone. Thanks for taking our question. Peter, can you just talk a bit on the trajectory of promotional reinvestment in The U. S.

Jeffrey Stantial
Managing Director - Gaming & Leisure at Stifel Institutional

Heading into 2025? Do you expect reinvestment as a percentage of handle to drift higher as you allocate or share back a portion of your structural hold rate expansion back with players? And if

Jeffrey Stantial
Managing Director - Gaming & Leisure at Stifel Institutional

that is the case, can you just add

Jeffrey Stantial
Managing Director - Gaming & Leisure at Stifel Institutional

some color on how you think about derivative market share impact as your reinvestment strategy starts to bifurcate from peers who do seem to be managing promos either flat or lower in 2025? Thanks.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

The thing that we do, which is true for acquisition as well as deployment of generalities, we look through a very we're very disciplined in terms of how we allocate and spend it. So you know, we wanna see a, you know, a good return. You know, we talk about the two year paybacks from a marketing acquisition perspective and, you know, we're eighteen months. It is true for deployment of generosity as well. Making sure it gets to the right customer and drives the right outcome is how we're really focused in the business.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

And that's what, that's how the team is set up to think about deployment. That's a very big, financing for us.

Daniel Politzer
Daniel Politzer
Director, Equity Research Analyst at Wells Fargo

Great. Thank you.

Operator

Our next question comes from the line of Joseph Stauff with Susquehanna. Please go ahead.

Joseph Stauff
Institutional Investment Analyst at Susquehanna

Hi. Thanks, Peter, Rob. Just wondering how you think about the impact of your way both on structural hold in U. S. As well as your ability to kind of accelerate, say, handle growth.

Joseph Stauff
Institutional Investment Analyst at Susquehanna

Just curious about do you see that as more accretive to your structural hold or what?

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

I I think that the types of benefits we're driving from UIA are likely to be, as you say, a lot higher holds. Yeah. I think we should get better engagement, increased customer frequency. I mean, we won't get all of them. We're excited to see what happens with it.

Operator

Our next question comes from the line of Robert Fishman with MoffettNathanson. Please go ahead.

Robert Fishman
Senior Research Analyst at Moffettnathanson LLC

Thank you. Good afternoon. I'm curious if you guys are seeing any signs of consumer weakness in your older vintage U. S. States, for either sports betting or iGaming?

Robert Fishman
Senior Research Analyst at Moffettnathanson LLC

And then any lessons that you can take from the international markets that you can apply to FanDuel if, in fact, we do see any sort of macro U. S. Headwinds in the coming quarters? Thanks.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Bob, I look in terms of macro impact, traditionally, our experiences as a business is actually very defensive. So when we think about the impact of the financial crisis or other macro impacts, the business has actually been very defensive in the face of those. And so we're not seeing any bearing on our historical cohorts here in The US, but I wouldn't expect to.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Yeah. And the same applies for international. So, yeah, from my experience in international, the businesses tend to be very resilient in times of economic downturn. So we're not seeing any signals at all at the moment despite the various volatilities in The U. S.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Economy.

Operator

Our next question comes from the line of Chad Beynon with Macquarie. Please go ahead.

Chad Beynon
Chad Beynon
Managing Director, Analyst at Macquarie Group

Hi, good afternoon. Thanks for taking my question. Wanted to ask one on The U. S. Business.

Chad Beynon
Chad Beynon
Managing Director, Analyst at Macquarie Group

I know there's some broadcast partnership deals that could be coming to an end and these are always fluid and particularly on American Football, you guys have participated when it made sense. So wondering if you could elaborate a little bit in terms of how you view media rights, partnerships, if anything has really changed as the economics of these contracts

Chad Beynon
Chad Beynon
Managing Director, Analyst at Macquarie Group

is pretty dynamic? Thanks.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

I think the team has done a brilliant job over the years of negotiating good contracts. I mean, I think we have always been very disciplined in how you know, we we tackle these. And we've been able to use our global experience to help us identify, you know, which ones are gonna be most attractive. I think the there is a lot of change happening at the moment. You know, we're all aware of the fragmentation of rights and the increase in in streaming.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

So, you know, we're thoughtful about how we continue to ensure that our customers can access, the sports they want to watch. But, you know, at the time, I'm pleased with the portfolio we have. Our scale helps us in terms of investing to acquire the right types of rights and we've got a bigger customer base, we can standardize those things across which is important.

Operator

Our next question comes from the line of John DeCree with CBRE. Please go ahead.

John Decree
John Decree
Director - Equity Research at CBRE Group

Hi, thank you. One question on Brazil. I'm not sure if I missed it earlier, but I know it's only been a couple of months since the regulated market launch. But curious if you could walk us through kind of your investment strategy, kind of in a launch. And is that happening already?

John Decree
John Decree
Director - Equity Research at CBRE Group

Or would we expect more investment when the NSX acquisition closes later this year? Thank you.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

John, it's worth remembering that Brazil is not like the launch of a U. S. State. You know, there was a there was a very extensive, you know, market in operation before regulation arrived. You know, there was a lot of advertising, you know, principles of payment opportunities.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

It was it was a very functioning market. And so, you know, it's not gonna be like the launch of, you know, Missouri will be in q four whether it's a, you know, big push from us an acquisition perspective. What have you made going on there? You've got experience of Brazil from the international?

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Yeah. We've got lots of experience of Brazil from from that firm. So we but, you know, the headline is we're still working to the hundred billion dollars, in terms of EBITDA losses, for this year. And we might see some slight phase and differences on that depending on when the the deal will complete. And, you know, the the Brazilian football season doesn't actually start until the end of this month, so we need to see what what happens then.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

Yeah. There is going to be in this first, you know, twelve, twenty two months in terms of competition for either assets. Yeah. There were up to, you know, 200, you know, different companies that applied for a license. We think the market will start to shake out quite quickly.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

But I think, you know, given our track record, given our capabilities, given our products, we're very confident of our ability to succeed in the Brazilian market. We're very excited to get started with NSX.

Operator

Our next question comes from the line of Ben Shelly with UBS. Please go ahead.

Ben Shelley
Ben Shelley
Director at UBS Group

Hi. If we take your normalized revenues and EBITDA for The U. S. In 2024, they were meaningfully in excess excess of your original guidance in March. Can you just talk us through what you're forecasting underappreciated last year?

Ben Shelley
Ben Shelley
Director at UBS Group

And to that effect, where do you see potential upside to guidance in The U. S. In 2025?

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

I'm happy to give you a bit of a flavor, Ben. And I was thinking Rob will definitely want to follow-up. We ended the year with a much bigger business than we anticipated, in terms of the number of customers we had on the platform, but particularly the progress we made in in iGaming. And those things really helped, to support, the the numbers that you referenced. I think it's also fair to say, that we may get suitable progress from the supply, spectrum which help support the substructure whole.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

All the things that we talked about actually, at the at the investor day. But Robert, I don't I don't need more to

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

I think that's the key point, Pete. I mean, ultimately, we're very pleased with the progress that we're making towards those long term targets. We've got off to a good start. I think, you know, there will be different phases within this as when we see opportunities to, you know, continue investing and continue growing the business. The kind of paybacks that we're experiencing, we will continue to do so.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

But, you know, it's a good start and we're we're on track to, get towards what we outlined for 2027 at the Investor Day.

Daniel Politzer
Daniel Politzer
Director, Equity Research Analyst at Wells Fargo

Thank you, team.

Operator

Our next question comes from the line of Adrian de Saint Hilaire with Bank of America. Please go ahead.

Adrien de Saint Hilaire
Adrien de Saint Hilaire
Director at Bank of America

Yes. Hi, good evening. I'm just curious if you could decompose a bit for us the growth, the 22.5% U. S. Growth on the line you expect between iGaming and online sports betting?

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

We're not going to provide that material. It's in aggregate for The U. S. Position or quite damaging sports and games.

Adrien de Saint Hilaire
Adrien de Saint Hilaire
Director at Bank of America

Okay, cool. Thank you.

Operator

Thanks. Our final question will come from the line of Ryan Sigdahl with Craig Hallum Capital Group. Please go ahead.

Ryan Sigdahl
Partner & Senior Research Analyst at Craig-Hallum Capital Group LLC

Hey, thanks for sticking in guys. Just a bigger picture question to end. Looking at sports betting, the last couple of years have really been focused on parlays, enhancing the offerings there, which has been talked a lot about. But curious what the focus on the sports betting product roadmap would be for 2025 and even if you want to go beyond that? Thanks.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

You might think we've only been talking about parlays in 2024. But as I said earlier, the revolution really started in 2016. The Italian team are very excited about the introduction of the the parlay products to that market. Historically, it's been difficult to deliver from a, a regulatory perspective, but we're making progress. You know, there's there's some great things that The UK Team are doing.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

And, of course, we've got the Uruguay stuff, here in in The US. There's there's a lot of, there's a lot of product, coming, to to BAFSA for customers. I think the teams there have, you know, a brilliant job, in terms of, keeping our customers engaged and and excited. And it's just true for what we do in in iGaming as well. You know, from a you have to remember customers are really interested in engaging what's happening from a player perspective.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Yeah. And what we can do with all the new markets and things that apply for us is exciting. Plus there's a whole heap of things around generosity which we're evolving as well. And I referenced some of the, things we're doing from an iGaming perspective earlier. You know, there's a lot of exciting things to come.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Yeah. Yeah. I think maybe

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

a couple other things to add. You know, we're really excited about the developments in in live products. So, yeah, it's been a bunch of stuff this year in terms of NFL, you know, in house game trackers, post product improvements. And as Peter said, you know, people are really following the player narrative as well. So, you know, we've developed, you know, player experiences where people can go and look at the last five game stats of the players and and some really interesting stuff that the the US team are doing, which is really driving, the sportsbook forward.

Rob Coldrake
Rob Coldrake
Chief Financial Officer at Flutter Entertainment

So they're quite excited about what's to come in 2025.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Okay. Well, look, I think we've come to the, the end of the questions. Thank you very much, everyone. I'm sorry we have to rush through the last half dozen or so of you. You didn't get a chance to ask the second question.

Peter Jackson
Peter Jackson
CEO at Flutter Entertainment

Myself and our team around to help you. But thank you all for your time. We very much appreciate it.

Operator

That will conclude today's call. We thank you all for joining. You may now disconnect.

Executives
    • Paul Tymms
      Paul Tymms
      Group Director - IR & FPA
    • Peter Jackson
      Peter Jackson
      CEO
    • Rob Coldrake
      Rob Coldrake
      Chief Financial Officer
Analysts
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Earnings Conference Call
Flutter Entertainment H2 2024
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