Q3 2024 Flutter Entertainment PLC Earnings Call
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Operator: Good afternoon and welcome to the Flutter Q3 Trading Update, hosted by CEO Peter Jackson and CFO Rob Duffield. Please note, this conference call is being recorded and for the duration of management's opening remarks, your lines will be on. However, you will have the opportunity to ask questions thereafter. This can be done by pressing star 1 on your telephone keypad to register your question. If you require assistance at any point, please press star zero and you will be connected to an operator.
Good afternoon, and welcome to the Flutter Q3 trading update hosted by CEO, Peter Jackson, and CFO, Rob Cordray.
Note. This conference call is being recorded and for the duration of managements opening remarks, your lines will be on listen only.
However, you will have the opportunity to ask questions. Thereafter, this can be done by pressing star one on your telephone keypad you registered with your question.
If you require assistance at any point, Please press star zero and you will be connected to an operator.
Paul Tymms: I will now hand you over to your host today, Paul Tymms, Flutter Director of Investor Relations to begin today's conference.
Speaker Change: I will now hand, you over to your host today, Paul Tim's Flutter director of Investor Relations to begin today's conference call.
Paul Tymms: Paul. Hi, everyone, and welcome to Flutter's Q3 results call. With me today are Flutter's CEO, Peter Jackson, and CFO, Rob Koldrake. After this short intro, Peter will open with a brief summary of our operational progress during the quarter, and then Rob will run through the Q3 financials and our updated 2024 guidance. We will then open the lines for Q&A.
Paul Tim: Hi, everyone and welcome to <unk> Q3 results call with me today, I will start to see a piece of Jackson and CSA rough country. After this short enjoy pizza will open with a brief summary of our operational progress during the quarter.
And then we'll run through the Q3 financials.
Paul Tim: <unk> 2020 full guidance, but without open the lines for Q&A.
Paul Tymms: Some of the information we are providing today, including our 2024 guidance, constitutes forward-looking statements that involve risks, uncertainties and other factors. could cause actual outcomes or results to differ materially from those indicated in these statements. These factors are detailed in our earnings press release and our SEC file. 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.
Paul Tim: Some of the information, we're providing today, including our 2020 full guidance constitutes forward looking statements that involve risks uncertainties and other factors.
Paul Tim: It could cause actual outcomes or results to differ materially from those indicated in these statements.
Paul Tim: These factors are detailed in our earnings press release, and our SEC filings.
Paul Tim: 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.
Paul Tymms: Also in our remarks or responses to questions we will discuss non-GAAP financial measures.
Paul Tim: 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 on the investors section of our website.
Paul Tymms: Reconciliations are included in the results materials we have released today available on the investors section of our website and I will now hand you over.
Speaker Change: I'll now hand, you over to Pete.
Peter Jackson: Thank you Paul, and I'm delighted to be taking you through our excellent Q3 performance today. Performance in Q3 was very strong for the group and once again ahead of market expectations. We delivered AMP and revenue growth of 16% and 27% respectively, and EBITDA was 74% higher. This was driven by continued execution against our strategic priorities.
Pete: Thank you, Paul and I'm delighted to be taking you through our excellent Q3 performance today.
Pete: Performance in Q3 was very strong take rate and once again ahead of market expectations.
Pete: We delivered revenue growth of 16% and 27%, respectively, and EBITDA was 74% Ty.
Pete: This is driven by continued execution against our strategic priorities.
Peter Jackson: And when I take a step back from this performance, it is clear that the business is very well positioned for future growth. The NFL season is off to a great start for FANJL, helping drive Handel 36% ahead in the quarter overall, with Handel growth of 23% in those states launched pre-2022 and 37% in those states launched in 2022 and 2023. Customer economics have also remained compelling, with payback periods of 18 months in the quarter. These customer economics continue to validate our investment strategy as we focus on building as big a business as we possibly can today while staying well within our 24-month payback target.
Pete: When I take a step back from this performance is clear that the business is very well positioned for future growth.
Pete: The NFL season is off to a great start with Angela helping drive handle 36% ahead in the courtyard at all with handle growth of 23% in those states launched pre 2022 and 37% in those states launched in 2022 and 2023.
Pete: Customer economics have also remain compelling with payback periods of 18 months in the quarter.
Pete: These customer economics continue to validate our investment strategy as we focus on building a bigger business as we possibly can today, while staying well within our 24 month payback targets.
Peter Jackson: This focus has been driving strong customer acquisition, up 10% compared with the prior year.
Pete: This focus has been driving strong customer acquisition at.
Pete: 10% compared to the prior year.
Peter Jackson: Many of you joined us at our recent Investor Day in New York, where we demonstrated how product innovation has been, and will continue to be, a key driver of our success at Fanjul and across the group. Recent product improvements rolled out for the new NFL season have been resonating well with our customers, including expansion of the Pulse to all NFL games and a further increase in live player prop markets. This focus on more immersive live experiences and capturing the player narrative helped to drive our sportsbook and base 31% higher year over year. In addition, the proportion of live bases handled coming from same-game parlays almost doubled in the first month of the NFL season, and our overall NFL parlay penetration was over 700 bases points higher.
Many of you joined US at our recent Investor Day in New York, While we demonstrated half product innovation has been and will continue to be a key driver of our success essential and of course the Greek.
Pete: Recent product improvements rolled out the new NFL season have been resonating well with our customers.
Pete: The expansion of the pulse, so NFL games and a further increase in life life planner crop markets.
Pete: This focus on more immersive live experiences and catching the plan narrative helped to drive our sports book Ambase, 31% in high year over year.
Pete: In addition, the proportion of lives coming from same game Parlays well my sampled in the first month of the NFL season, and now April NFL Parlay penetration was over 700 basis points higher.
Peter Jackson: These product improvements are driving both customer engagement and volumes and are contributing to continued structural revenue margin expansion year over year. This continues to give us confidence that we are well on track to deliver our long-term gross revenue margin target of 16% we shared to our investors today. In iGaming, product improvements also drove our amp base 43% higher and a step up in our customer frequency. We know that our customers' top preference is to see exclusive and well-loved gaming franchises, and we continue to execute on delivering these with the launch of the Pure Imagination gaming title in our Wonka iGaming series, quickly becoming our second most popular slot game for new customers, next only to World of Wonka, which was launched in Q1.
Pete: These product improvements are driving better customer engagement and volumes and are contributing to continued structural revenue margin expansion year over year.
Pete: This continues to give us confidence that we are well on track to deliver our long term gross revenue margin target of 16%, we shared on Investor day.
Pete: And only gaming product improvements also drive ambase, 43% higher on a step up in our customer frequency.
Pete: We know that our customers top preference is to stay exclusive and well loved gaming franchises, we continue to execute and delivering these with the launch of the peer imagination gaming title and a wonka I gaming series quickly, becoming our second most popular slot games and new customers.
Pete: Externally to world, The one cup, which launched in Q1.
Peter Jackson: We were delighted to see the Missouri sports betting referendum passed by voters last week. From a new launch perspective, we therefore currently expect to add Alberta in Canada during Q2 and Missouri during Q4 2025. Outside of the US, AMP growth of 13%, driven increase in revenues of 15%, and EBITDA growth of 24%, underpinned by our scale and diversification. We saw excellent momentum in iGaming, as well as strong sportsbook performances with the conclusion of the European Football Championships in July and the beginning of the new soccer season in Europe during the quarter. In the UK eye, our market-leading products continue to deliver strong growth across both Sportsbook and iGaming, resulting in continued market share gain.
Pete: We were delighted to see the Missouri sports betting referendum passed by voters last week.
From a new launch perspective, we therefore currently expect to add Alberta in Canada during Q2, and Missouri during Q4 2025.
Pete: Outside of the U S growth is 13% drove an increase in revenues of 15% and EBITDA growth of 24% underpinned by our scale and diversification.
Pete: We saw excellent momentum in our gaming as well as strong sports book performances with a conclusion that the European Football Championships in July and the beginning of the new soccer season in Europe during the quarter.
Pete: In the U K on a market leading products continued to deliver strong great cost by sports book and I gaming This LTE and continued market share gains.
Peter Jackson: On iGaming, we added the UK's number three ranked games provider to our content portfolio and our sportsbooks benefited from a 142% increase in same game parlay wages at the beginning of the new soccer season compared to the same period in 2022. Our same-game parlay capabilities also benefited CESAL in Italy, as the first operator to offer the product for the new Italian soccer season, with same-game parlays accounting for nearly a quarter of all sportsbook wages in the first six rounds. CECL also broadened its portfolio of iGaming titles during the third quarter, including exclusive titles we know players enjoy, which combined with our Sportsbook product improvements helped to deliver a 200 bps increase in CECL's Italian market share year-over-year and a 41% increase in online revenues.
Pete: Online gaming we added the U K is number three ranked games provide that's our content portfolio and our sports books benefited from a 142% increase in same game parlay wages at the beginning of the new soccer season compared to the same period in 2022.
Pete: Our same game parlay capabilities also benefited T cell in Italy as a first operated to offer the product for the new Italian soccer season, the same game poleis accounting for nearly a quarter of all sports book wages in the first six brands.
She's also broadened its portfolio of I gaming titles during the third quarter, including exclusive titles when they players enjoy base combined with our sports book products improvements helped to deliver a 200 bps increase in sea sounds Italian market share year over year, and a 41% increase in online revenues.
Peter Jackson: In Australia, while the anticipated racing market declines were evident in the quarter, with staking 8% lower, amps were 6% ahead and growing across both sports and racing, which we believe is encouraging for the future growth trajectory of the business.
Pete: And Australia, while the anticipated racing market declines are evidenced in the quarter was taking 8% lower amps was 6% ahead and growing across both sports and racing, which we believe is encouraging for the future growth trajectory of the business.
Peter Jackson: Overall, the group had a very strong quarter, and I feel even more confident in the path to medium-term growth that we laid out in our recent investor day and the future value creation opportunities for the group. You've heard me talk about us as an AND business, one with significant capital allocation optionality, and I'm really pleased to confirm that we will launch our share repurchase programme on November the 14th. We intend to repurchase up to $350 million of ordinary shares up to the end of Q1 2025 with a further announcement of the details in due course.
Pete: Overall, the group had a very strong quarter and I feel even more confidence in the path to medium term growth that we laid out at our recent investor day, and the future value creation opportunities for the group.
Pete: You've heard me talk about us as an and business almost significant capital allocation Optionality and I'm really pays to confirm they will launch our share repurchase program on November the 14th.
We intend to repurchase up to $350 million of ordinary shares up to the end of Q1 2025 with a further announcement to the details in due course.
Peter Jackson: This, coupled with our announcement to acquire NSX and SNAI in the quarter, our continued organic investment in our businesses to drive strong growth, clearly demonstrate our status as a business with many opportunities for capital deployment and the ability to do them all.
Pete: This coupled with our announcement to acquire NSX and snowy in the quarter, a continued organic investments in our businesses to drive strong growth clearly demonstrate our status as a business with many opportunities for capital deployment and the ability to do more.
Rob Duffield: And with that, I hand you over to Rob.
Pete: With that I'll hand, you over to Rob.
Rob Duffield: Thanks, Peter, and bye, everyone. As Peter already outlined, the group delivered a strong third quarter performance with revenue growth of 27%, adjusted EBITDA growing 74% to $450 million. reflecting the adjusted EBITDA inflection of our U.S. business.
Rob: Thanks, Peter and player for Us.
Speaker Change: This pace, we're already outlined the group delivered a strong third quarter performance with revenue growth of 27% adjusted EBITDA growing 74% to $450 million, reflecting the adjusted EBITDAR inflection of our U S business.
Rob Duffield: After non-cash expenses, including the amortisation of acquired intangibles of $128 million and a $121 million loss in the quarter on the fair value of the Fox option, the group generated a net loss of $114 million. Our third quarter diluted loss per share and adjusted earnings per share improved year over year, however, due to the strong financial performance of the group.
Speaker Change: After noncash expenses, including the amortization of acquired intangibles of $128 million at $121 million loss in the quarter on the fair value of the Fox option. The group generated a net loss of $114 billion.
Speaker Change: Our third quarter diluted loss per share and adjusted earnings per share improved year over year. However, due to the strong financial performance of the group.
Rob Duffield: Turning now to the financial performance for each of the segments. In the US, performance exceeded our expectations with revenue growth of 51% and adjusted EBIT DAR $113 million higher than last year at $58 million for the quarter. As you may recall, we noted at our Q2 earnings that we expected a small adjusted EBITDA loss from the quarter, with the outperformance here driven by a combination of underlying trading strength within the business, the impact of positive sports results and the benefit of one-off cost ideas. US revenue growth of 51% includes strong growth across both new and existing states, with revenue up 46% in those states which launched pre-2022.
Speaker Change: Turning now to the financial performance for each of the segments.
Speaker Change: In the U S performance exceeded our expectations with revenue growth of 51% and adjusted EBITDA $113 million higher than last year at $58 million for the quarter.
Speaker Change: As you May recall, we noted on our Q2 earnings that we expected a small adjusted EBITDA loss for the quarter with the outperformance here driven by a combination of underlying trading strength within the business the impact of positive sports results and the benefit of one off cost items.
Speaker Change: U S revenue growth of 51% includes strong growth across both new and existing states with revenue up 46% of those states, which launched pre 2022.
Rob Duffield: Sportsbook revenue growth of 62% was driven by handle growth of 36% and a 130 basis point increase in our net revenue margin to 8.2%. This increase was driven by further expansion of our structural revenue margin to 12.8%. Whilst we benefited from a positive sports results swing year over year, this was largely absorbed by increased investment in promotional spend as we returned some of the positive sports results to our customers. This is in addition to us continuing to invest in the compelling customer payback periods that Peter outlined. iGaming revenue was 46% higher as the product improvements we have been making continue to drive strong growth.
Sports Sports book revenue growth of 62% was driven by handle growth of 36% at 130 basis point increase in our net revenue margin to eight 2%.
Speaker Change: This increase was driven by fiber expansion of our structural revenue margin to 12, 8%.
Speaker Change: Whilst we benefited from a positive sports results swing year over year. This was largely absorbed by increased investment in promotional spend as we return some of the positive school's results to our customers.
Speaker Change: In additions was continuing to invest in a compelling customer payback periods that Peter outlined.
Speaker Change: Alright gaming revenue was 46% higher as the product improvements, we have been making continued to drive strong growth.
Rob Duffield: Our cost of sales for the third quarter of 58.9% as a percentage of revenue was ahead of our expectations, primarily driven by the impact of the positive sports results. In sales and marketing, we delivered strong operating leverage and some phasing benefit into Q4, which drove the cost as a percentage of revenue down by 760 basis points year-over-year. This all combined with the revenue performance above to deliver adjusted EBITDA of $58 million for the quarter.
Speaker Change: Our cost of sales for the third quarter were 58, 9% as a percentage of revenue was ahead of our expectations, primarily driven by the impact of the positive sports results.
Speaker Change: And sales and marketing, we delivered strong operating leverage and some phasing benefit into Q4, which strikes the cost as a percentage of revenue down by 760 basis points year over year.
Speaker Change: So combined with the revenue performance above that deliver adjusted EBITDA of $58 million for the quarter.
Rob Duffield: Outside of the US, revenue grew 15% with growth across all sectors. UKI maintained its strong momentum with the third quarter benefiting from in-year phasing of European Football Championship marketing to deliver strong leverage and EBITDA growth of 29%. Sports results were favourable in the quarter in the UKI, adding 40 basis points to our Sportsbook Net Revenue Margin. Australia also benefited from favourable sports results in the period, with 130 basis points of a positive impact in the quarter. This resulted in a year-over-year swing of 180 basis points and was the driver of the 12% revenue and 14% adjusted EBITDA growth year-over-year.
Speaker Change: Outside of the U S revenue grew 15% with growth across all segments U K all had maintained its strong momentum with the third quarter benefiting from in year phasing of European Football Championship marketing to deliver strong leverage and EBITA growth of 29%.
Speaker Change: Sports results were favorable in the quarter in the UK are adding.
Speaker Change: Having 40 basis points to a sports book net revenue margin.
Speaker Change: Australia also benefit benefited from favorable sports results in the period to 130 basis points of a positive impact in the quarter.
Speaker Change: This resulted in a year over year swing of 180 basis points and what's the drivers to 12% revenue and 14% adjusted EBITDA growth year over year.
Rob Duffield: Otherwise, staking trends were in line with our expectations in that market. In international, the addition of Max Bet and strong growth in our Consolidate and Invest markets drove revenue 17% higher on a constant currency basis. This translated to a 36% increase in adjusted EBITDA on a constant currency basis due to a one-off credit from an historic legal case, excluding which adjusted EBITDA growth would have been slightly ahead of revenue growth.
Speaker Change: Otherwise I can trends were in line with our expectations in that market.
Speaker Change: And internationally with the addition of Max that and strong growth in our consolidate and invest market straight revenue, 17% higher on a constant currency basis.
Speaker Change: This translated to a 36% increase in adjusted EBITDA on a constant currency basis.
Speaker Change: One off credit from an historic legal case, excluding which adjusted EBITDA growth would have been slightly ahead of revenue growth.
Rob Duffield: From a cash flow conversion perspective, the strong performance I've just taken you through was offset by the impact from the settlement of derivative instruments in place to manage foreign currency and variable interest rate risk. These created an adverse year-over-year cash outflow driven by a payment on settlement during the current quarter of $213 million, compared with a receipt of $89 million during Q3 2023. As a result, free cash flow was $112 million versus $434 million in the prior year. Our strong deleveraging profile saw our leverage ratio reduce to 2.4 times from 3.1 times at the end of December 2023, and it's now within our medium-term leverage target range of 2 to 2.5 times.
Speaker Change: From a cash flow conversion perspective, the strong performance I've just taken you through was offset by the impact from the settlement of derivative instruments in place to manage foreign currency, a variable interest rate risk.
Speaker Change: These grades even adverse year over year cash outflow driven by payment on settlement during the third quarter of 213 billion.
Speaker Change: Compared with the receipt of $89 million during Q3 2023.
Speaker Change: As a result free cash flow was $112 million versus $434 million in the prior year.
Speaker Change: Strong deleveraging profile, so our leverage ratio reduced to two four times from three one times at the end of December 2023, and it's now within our medium term leverage target range of two to two and a half times.
Rob Duffield: As Peter already flagged, we are pleased to begin our share repurchase plan in line with the authorisation provided by the Board. Moving on now to our updated guidance for 2024, where I'm very pleased to say that we are able to slightly increase our overall four-year expectations for the group. In the US, if it was not for the run of customer-friendly NFL sports results in Q4 today, we would have been increasing our guidance for the year also. Notwithstanding the impact of these results, the strong underlying performance in Q3 and read-through to Q4 means we are only reducing our US full-year revenue mid-point guidance by $50 million to $6.15 billion.
Speaker Change: As Peter already flagged, we're pleased to begin our share repurchase plan in line with the authorization provided by the board.
Speaker Change: Yeah.
Speaker Change: Moving on now to our updated guidance for 2024, where I'm very pleased to say that we are able to slightly increase already for our full year expectations for the group.
Speaker Change: In the U S. If it was not for the run of customer friendly NFL sports results in Q4 to date, we would've been increasing our guidance for the year also.
Speaker Change: Notwithstanding the impact of these results the strong underlying performance in Q3 and re trades Q4 means we're already reducing our U S full year revenue midpoint guidance by $50 million to $6, one $5 billion.
Rob Duffield: Adjusted EBITDA midpoint moves $30 million to $710 million, with our EBITDA range narrowed to $670 million to $750 million. This equates to year-over-year growth of 40% for revenue and 206% for adjusted EBITDA. In the Group X US we are upgrading our expectations and now expect increased revenue of $8.2 billion and increased adjusted EBITDA of $1.82 billion at the midpoints of our guidance. This equates to year-over-year growth of 11% for both. Given the positive sports results benefit we have seen in Australia, we also increase our adjusted EBITDA expectations for this segment to approximately $290 million for the year.
Speaker Change: Adjusted EBITDA midpoint basis, $30 million to $710 billion with our EBITDA range narrowed to $670 million to $750 million.
This equates to year over year growth of 40% for revenue and 206% for adjusted EBITDA.
Speaker Change: And the group ex U S. We are upgrading our expectations and now expect increased revenue of $8 $2 billion and increased adjusted EBITDA of $1 8 billion at the midpoint of our guidance this equates to year over year growth of 11% for both.
Speaker Change: Given the positive sports results benefit we are seeing in Australia. We also increase our adjusted EBITDA expectations for this segment to approximately $290 million for the year.
Rob Duffield: As always, our guidance is provided on the basis that sports results are in line with our expectations for the remainder of the year. Current foreign exchange rates, no new state openings for the remainder of the year, and in a consistent regulatory and tax environment.
Yes.
Speaker Change: As always our guidance is provided on the basis that sports results are in line with our expectations for the remainder of the year.
Speaker Change: Foreign exchange rates no new site openings for the remainder of the year, and then a consistent regulatory and tax environment.
Rob Duffield: This guidance demonstrates the strong momentum we have across the group and is really encouraging as I think about the medium-term guidance we laid out at the Investor Day. Finally, we continue to make good progress towards completion of our acquisitions of NSX and SNAE, which we expect to complete by the end of Q2. For consistency, it would make sense, therefore, to think about consolidation of earnings of those businesses from 1 July 2025.
Speaker Change: This guidance demonstrates the strong momentum we have across the group and it's really encouraging as I think about the medium term guidance, we laid out at the Investor day.
Speaker Change: Finally, we continue to make good progress towards completion of our acquisitions of NSX and snide, which we expect to complete by the end of Q2.
So consistency it would make sense. Therefore, so think about consolidation of earnings of those businesses from one July 2025.
Greg: With that, Peter and I are happy to take your questions, and I'll hand you back to Greg to manage the call.
Speaker Change: With that pizza and I are happy to take your questions and I'll hand, you back to Greg to manage Nicole.
Greg: Thanks, Rob. And at this time, I would like to remind everyone in order to ask a question, press star and the number one on your telephone keypad. Once again, star one.
Speaker Change: Thanks, Rob and at this time I would like to remind everyone in order to ask a question press star and the number one on your telephone keypad. Once again star one in the interest of time, we do ask that you. Please limit yourself to two questions.
Greg: In the interest of time, we do ask that you please limit yourself to two questions. And we'll pause just a moment to compile the Q&A.
Speaker Change: We will pause just a moment to compile the Q&A roster.
Ed Young: And it looks like our first question today comes from the line of Ed Young with Morgan Stanley.
Speaker Change: And it looks like our first question today comes from the line of Ed Young with Morgan Stanley. Please go ahead.
Ed Young: Ed, please go ahead. Thank you, good evening. Two questions, one on the US and one on the UK. On the US, it looks like promotions are up 540 bps in the quarter, which is obviously above your 400 basis long-term guide you gave at the Investor Day. Rob, you touched on there that some of that was giving back generosity around good, you know, favorable results for you. On that last point, is it the opposite, i.e. the offsetting benefit with less need for promos that's led to the relatively strong Q4 guide versus some of your peers? Or put another way, should we think of generosity as something that's good for the players, but also good for you in terms of smoothing out some of the volatility of results within the...
Ed Young: Thank you good evening.
Ed Young: Two questions one on the U S and one on the U K if that's okay.
On the U S. It looks like collections were up 540 bps in the quarter to talk to you about your 400 basis long term guide you gave at the Investor day will be touched on some of that was giving back general see around good stable results.
Our view.
Speaker Change: On that last point is it the opposite.
Speaker Change: The offsetting benefit with less need promo.
Speaker Change: The relatively strong Q4 guide versus some of your peers or put another way should we think of general Steve something that's good for the players but also good for you in terms of smoothing out some of the volatility of results within the business.
Ed Young: And then the second question's on the UK. Obviously, continued outperformance of the market there. How do you see the prospects for outperforming the market into 2025, given some of the regulatory factors might normalise? You've obviously called out operational side as well. So how much of the operational outperformance is a driver there and how much do you think it's regulation affecting it?
Speaker Change: And then the second question is on the U K, obviously continued outperformance of the market there.
How do you see the prospects for outperforming the market into 2025, given some of the regulatory factors might normalize you've obviously called out operational side as well so how much of the operational outperformance is the driver there and how much you can kits regulation affecting any of this.
Peter Jackson: Hi Ed, why don't I just give you a brief response to the UK question and a couple of thoughts about US genocide. I know Rob will want to follow up with a bit more detail. I think from a UK perspective, we're very pleased with the market share that we continue to take.
Speaker Change: Hi, Ed what Ensign does give you a.
Speaker Change: Great response to the U K pound question a couple of them.
Speaker Change: U S general side and they are now.
Speaker Change: You've got people want to come out with a bit more detail, but I think from a UK perspective, we're very pleased with the market share that we continue to take.
Peter Jackson: Clearly, as we get into 2025, we'll start to annualise some of the changes that we know our competitors have made and I think it will become more difficult to grow market share at the same rate, although we shouldn't underestimate how strong our product is in the market at the moment. I think that's something that we're really benefiting from as well as the changes that we've made to move early from a safer gambling perspective.
Speaker Change: Clearly as we get into 2025, we will start to annualize some of the changes. We now also have capacitors have made I think it will become more difficult to take away market share, let's say right, whether we shouldnt underestimate how strong our product is in the market at the moment.
Speaker Change: The thing that we're really benefiting from as well as the changes that we've made to move early from a.
Speaker Change: Our safer gambling effective.
Peter Jackson: In the US, I'd actually call out our pricing accuracy as something that's been incredibly important for us. We've got a very strong parlay mix which ought to actually make positive results better and negative results essentially worse because a lot of parlays can drive more volatility, but our pricing accuracy is absolutely crucial and I think that's what's really driving the material differential that you're seeing with our business and others.
Speaker Change: In the U S.
Speaker Change: I'd actually call out our pricing accuracy is something that's been incredibly important for us.
Speaker Change: We've got a very strong part IMAX, which all which actually.
Speaker Change: Yeah.
Speaker Change: Make it positive results better than negative result, essentially worse, because <unk> can be enjoyed most of volatility, but our pricing accuracy is absolutely crucial and I think that's what's really driving the material differential that youll, saying with our business.
Rob Duffield: Rob, I don't know if you want to comment on generosity and other points. Yes, so maybe a point on the UK first, Ed. I think, as Peter mentioned, we're really happy with the momentum there into next year. One thing that continues to perform extremely well in the UK is the gaming business. We're up 29% overall there, but all brands were very strong again across the piece, which was very helpful for the result. In terms of promotions and the generosity in Q3, yes, we did. It is consistent with our investment strategy year to date. Actually, we have been giving back more to customers as a result of the bookmaker-friendly results in Q3.
Speaker Change: Total general and other points, yes, so it maybe a point on the UK fast debt pay some etch, we're really happy with the momentum there into next year and one thing that continues to perform extremely well in the U K is the gaming business were up 29% overall that the old brands were very strong again across the pace.
Speaker Change: Which was very helpful for the results in terms of promotions and the generosity in Q3.
Speaker Change: Yes, we did.
Speaker Change: Consistent with our investment strategy year to date.
Speaker Change: And actually we have been giving back more to customers as a result of the customer.
Rob Duffield: We're not planning to change that strategy in Q4. We have had some slightly adverse results Q4 to date, but notwithstanding that, we're not expecting to change our generosity approach at this point in time.
Speaker Change: Bookmaker friendly results in Q3.
Speaker Change: Not planning to change that strategy.
Speaker Change: In Q4 that we have had some slightly adverse results Q4 to date.
Notwithstanding that were not expected to change our general.
Approach at this point in time.
Speaker Change: Okay.
Speaker Change: Thank you.
Ed Young: All right, thank you, Ed.
Speaker Change: Alright, Thank you Ed.
Jordan Bender: And our next question comes from the line of Jordan Bender with Citizens JMP. Jordan, please go ahead. Afternoon, everyone. I think most of us would agree the moves to layering the media funnels have worked pretty well in recent years, just thinking through TVG and FanDuel TV and just the share gains you've seen in that business.
Speaker Change: Our next question comes from the line of Jordan Bender with citizens JMP Jordan. Please go ahead.
Jordan Bender: Good afternoon, everyone. I think most would agree the moves to layer in the mediate finals of working pretty well in recent years, just taking through TPG and <unk> TV in just the share gains you've seen in that business.
Jordan Bender: With that line of thinking, I want to get your perspective on the RSN deals that were announced in the US and how you'll look to utilize those assets with your existing business today.
Jordan Bender: That line of thinking I wanted to get your perspective on the Rs and deals that were announced in the U S.
Jordan Bender: And how you'll look to utilize those.
Jordan Bender: Those assets with your existing business today on the second question here.
Jordan Bender: And the second question here, can we just get an update on what you're hearing on the ground in Brazil? It's a month and a half out here, and it doesn't seem like there's too much progress to get out by Jan 1, just what you're hearing there. Thank you.
Speaker Change: Can we just get an update on what Youre hearing on the ground in Brazil.
Jordan Bender: Month, and a half out here.
Jordan Bender: Does it seem like there is too much progress to get helped by Jan one.
Speaker Change: Youre hearing there thank you.
Peter Jackson: Afternoon, Jordan. You'll be aware from the conversations we had around the Investor Day in how extensive our media mix and footprint is in the US. I think it's a real benefit you see from our scale. Don't forget Mike talking about the benefit to refer a friend, for example. I think that's something which stands us in really good stead. We've been looking at this RSN deal for a while. We thought it was an interesting opportunity to get involved in. College sports is very important. It gives us access to some assets that we would not previously have been able to look at.
Speaker Change: Yeah afternoon.
Speaker Change: Jordan, you'll be aware from the conversations we had around the Investor day Ana her extensive off of media mix in footprint is.
Speaker Change: In the U S and I think that's a real benefit you see from a small scale.
Speaker Change: Don't forget Mike talking about the benefits of a friend.
Speaker Change: For example, and I think that's something which stands us in really good stead.
Speaker Change: Yes.
Speaker Change: Yeah look we've been looking at this <unk> deal for a while we thought as an interesting opportunity to get involved in college.
Speaker Change: College sports very important it gives us.
Speaker Change: Access to them.
Speaker Change: To sum.
Speaker Change: Assets that we would not previously been able to to look at and say you know we thought it was worth.
Peter Jackson: We thought it was worth looking at it, being around the hoop and seeing what we could do with it. I think early indications are very positive. I think the team has done a brilliant job from a standing start to deliver such good and strong integrations. We'll see how much it helps benefit the business.
Speaker Change: Looking at it being around that you can see what we could do with it and I think the early indications are very positive I think the team has done a brilliant job from a standing start to deliver such good and strong integrations.
Speaker Change: Well see how much it helps benefit the business, maybe Bob to talk about Brazil.
Rob Duffield: Rob, do you want to talk about Brazil? Yes. We are still anticipating preparing for a 1 January launch for Brazil, with it being Brazil. We don't have affirmative confirmation of that, but we're planning on that basis. There are various regulatory challenges at the moment. We're very confident about our approach in Brazil. We've grown there with our brands that we've got there already. We're very excited about the NSX acquisition. We feel that that gives us the ability to really push on in Brazil. Investing behind that brand in 2025, as we laid out in the investor day, is something that we're planning to do and really take advantage of what we think is a very exciting market with lots of opportunities.
Speaker Change: Yet we are still anticipating and preparing for a one January launch.
Speaker Change: Brazil.
Speaker Change: With it being Brazil, yes, we don't have affirmative confirmation of that but we're planning on that basis.
Speaker Change: There are various.
Speaker Change: Regulate through challenges at the moment there is we now actually.
Speaker Change: Actually we're very confident about our approach in Brazil, we are growing that with all the brands that we've got there already we're very excited about the NSX acquisition.
Speaker Change: We feel that that gives us the ability to to really kind of push out in Brazil, and investing behind that brand and in 2025 as we laid out at the Investor day, something that with with planning today.
Speaker Change: And really take advantage of what we think is a very exciting market with lots of opportunity.
Jordan Bender: Awesome. Thank you very much.
Speaker Change: Awesome. Thank you very much.
Jordan Bender: Thank you, Jordan.
Jordan Bender: Thank you Jordan.
Jed Kelly: And our next question comes from the line of Jed Kelly with Oppenheimer. Jed, please go ahead. Hey, great, great, great. Thanks for taking my question. Just just going back around the promotional reinvestment. If more of your users or players start to lean into your same game parlay product, just given a yield on that, do you that force you just to have to promote more because the holds are so high. And then I saw you're going to be involved in the Netflix Christmas NFL games. Was that implied in your guide or is that additional?
Speaker Change: And our next question comes from the line of Jed Kelly with Oppenheimer. Please go ahead.
Speaker Change: Okay, great great great. Thanks for taking my question just going back around the promotional reinvestment.
Speaker Change: If more of your users are players start to lean into your same game par late product just given the yield on that do you does that force you just have to promote more because the holds are so high and then I saw you are going to be involved in the Netflix Christmas NFL games was that in track implied in your guide or is that additional.
Jed Kelly: Thank Hi Jed, well look I mean we obviously we know we have known that we're going to be involved in the Christmas Day games you know so it is in the guide. We'll be delighted to be able to deliver our exciting you know product for you know Americans to get behind on Christmas Day. You know from a from a parlay perspective you're right it does drive a significant improvement in a hold of I think we should need to remember that you know we've seen a big step up in you know in poly adoption year over year.
Speaker Change: Thank you.
Speaker Change: Hi, Hi, Chad well look I mean, we will obviously, we know we have now and then we're going to be involved in the Christmas day games.
Speaker Change: So it is in the guide.
Speaker Change: Delighted to be able to deliver.
Speaker Change: Citing a product for Americans to to get behind on Christmas day.
Speaker Change: Hey.
Paul Tim: Paul a perspective.
Speaker Change: You're right. It does drive a significant improvement in the hold of I think we shouldnt need to remember that you know we've seen a big step up in impella adoption year over year customers really like that product. It is high margin.
Jed Kelly: Customers really like the product it is higher margin but you know the generosity proportions that we do offer to our customers are as a percentage so naturally as margins increase that you know we will be spending more.
Speaker Change: Generosity proportions that we do.
Speaker Change: Our customers are as a percentage say naturally as.
Speaker Change: As margins increase that we will be spending more.
Speaker Change: Thank you.
Speaker Change: Thanks Jed.
Bernie Mcternan: And our next question comes from the line of Bernie McTernan with Needham & Company. Bernie, please go ahead. Great. Thanks for taking the questions.
Speaker Change: And our next question comes from the line of Bernie Mcternan with Needham <unk> Company Bernie. Please go ahead.
Bernie Mcternan: Great. Thanks for taking the questions wanted to first just touch on the <unk> product and really dive in to what behavior, you're seeing from those players whether it's engagement retention partly mix.
Bernie Mcternan: I wanted to first just touch on the Your Way product and really dive into what behavior you're seeing from those players, whether it's, you know, engagement, retention, parlay mix. And then maybe what are the early learnings you're, you know, from Colorado, and I think the release mentioned another state that you're launched Early Learning is on the path forward to other launches. And then, sorry, that was a long first one.
Bernie Mcternan: And then maybe what are the early learnings are from Colorado and I think the release mentioned another state that you launched in.
Bernie Mcternan: Early learnings and the path for it to other launches.
Bernie Mcternan: And then.
Bernie Mcternan: And then second, maybe more simple, but were you surprised how narrowly Missouri passed by? I think it was one of the closer referendum votes we've seen in the U.S. for online.
Bernie Mcternan: Sorry that was long first one and then second.
Speaker Change: Maybe more simple, but were you surprised how narrowly Missouri passed by I think it was one the closer referendum.
Speaker Change: Votes, we've seen for us for online sports betting.
Peter Jackson: Hi Bernie. Look, it's easy to pick up the Missouri one. I mean, we only needed to win by a vote. So, you know, there's an argument that we wasted 6,999 votes. But, you know, joking aside, we were very pleased it was passed. You know, there was some reasonably strong opposition at one point to the amendment. So, you know, we were delighted to get it over the line.
Speaker Change: Yeah, Hi, Ben.
Speaker Change: It's easy to pick up the Missouri, one I mean, we only needed to win by if I say there is an argument that we waited 6999 votes.
Speaker Change: Yes.
Speaker Change: I mean joking aside we were very pleased it was passed.
Speaker Change: There was some reasonably strong opposition at one point to the.
Speaker Change: To the amendments so yeah, we were delighted to get it.
Peter Jackson: And I think it gives us conviction in our guide at the Investor Day to the fact that we see two percentage points of adult population in each of the next several years. So, I think that's very helpful.
Speaker Change: The line and I think that gives us conviction in our.
Speaker Change: Guide at the Investor day to the fact that we'd see two percentage points of an adult populations in each of the next several years.
Rob Duffield: Robert, are you going to talk about the Your Way product briefly? Yes, it's quite early stages in Colorado and West Virginia. And it's only available to select customers. So, it's not rolled out to the entire customer base. But certainly in terms of the initial reaction that we've got from customers and their engagement with the product, we've had some really positive feedback and reviews. And we therefore plan to roll out that early stage version more broadly to all states in time. So, yeah, I think the most important thing from a financial perspective is that, you know, we've solved the maths to actually, you know, price almost infinite markets here, which is the really exciting point as we move forward.
Speaker Change: That's very helpful, but I don't even talk about the way product briefly yes, it's quite early stages in Colorado in West, Virginia, and it's only available to select customers. So it's not rolled out to the entire custom.
Speaker Change: Customer base, but certainly in terms of the initial reaction that we got from customers from their engagement with the products that had some very positive feedback and reviews and we therefore plan to rollout the early stage version more broadly.
Speaker Change: States.
Speaker Change: Sean.
Speaker Change: Yes, I think the most important thing from a financial perspective as we've so the the Max to actually price almost infinite markets here, which is the really exciting point as we move forward.
Rob Duffield: I'm super excited about the products. I mean, there's a huge amount of work to get the user experience right. You know, when you think about having infinite SKUs, that could become very difficult. But I think we're getting some good learnings out of it. This has taken years for us to build, and we're delighted to see what it does in the years ahead.
Speaker Change: I'm Super excited about the products I mean, there's a huge amount of work to get the user experience right.
Speaker Change: When you think about having infinite skus that could become very difficult, but I think we're getting some good learning exacerbate. This has taken years to build them.
Speaker Change: Well, we will be delighted to see what it does in the years ahead.
Bernie Mcternan: Great. Thank you both.
Speaker Change: Great. Thank you both.
Bernie Mcternan: Thanks Bernie.
Paul Ruddy: And our next question comes from the line of Paul Ruddy with Davey. Paul, please go ahead. Hi, good evening, guys. Just back...
Speaker Change: And our next question comes from the line of Paul ready with Debbie Paul. Please go ahead.
Paul: Hi, Good evening, guys just back to the us.
Paul: Promotional intensity in the U S and just the decision to reinvest some of that additional hold in Q3 is.
Paul Ruddy: U.S., just the decision to reinvest some of that additional hold in Q3, is that reference to a pick-up in overall intensity in the market? Has it gotten more competitive or is it simply just back to the old, the cactus LTVs still remain very favorable?
Speaker Change: Is that reference to a pickup in overall intensity in the market.
Speaker Change: Has it gotten more competitive or is it simply just back to the old <unk>.
Speaker Change: LTV Ltvs still remain very favorable.
Paul Ruddy: And then secondly, just as a quick follow-up, just on Australia. Is it too early to say that market has infected back now and we might see a good rebuy?
Speaker Change: And then secondly, just as a quick follow up just on Australia, I think you've used the word occurred encouraging there.
Speaker Change: Is it too early to say that that market is has.
Speaker Change: It has inflected back then when we might see good rebuilds.
Peter Jackson: Hi Paul. On Australia, I think we've been pleased with the growth in amps we're seeing in the market. Obviously, we're through the Melbourne Cup. I think it was actually an Irish jockey that won the race, a 90 to 1 outsider. It was a pretty favorable result for the Australian punters. I think we're pleased with the way that we're seeing the amp growth. I think we've got some positive sports results in Q3. We've got to remember next year, we've got a load of taxes we're going to annualize. But I think it just goes back to the strength of the business and the benefits that Australia continues to provide into the rest of the group through the Flutter Edge in terms of helping us with things like generosity and product.
Paul: Hi, Paul.
Speaker Change: On Australia, I think we've been pleased with the growth in Ams is staying in the market, we will see where through the Melbourne Cup.
Speaker Change: It was actually an Irish.
Speaker Change: Jackie that won the race 90 to one side it was a pity.
Speaker Change: Favorable results are they for.
Speaker Change: The Australia and panties.
Speaker Change: I think we were.
Speaker Change: We're pleased with the way that.
Speaker Change: And we're seeing the guys I think we got some positive news sports results in Q3, and we've got to remember next year with a related taxes were going to annualize.
Speaker Change: But I think it just goes back to that.
Speaker Change: Strength of the business and the benefits of Australia continues to provide into the rest of the group through the flush of edge in terms of helping us with things like.
Rob Duffield: Rob, to the point of generosity, why don't you talk about the promotion intensity stuff?
Speaker Change: Generosity and products to.
Speaker Change: To the point to generally see why don't you talk about the commercial intensity.
Rob Duffield: Yeah. So thanks, Paul. I mean, in terms of generosity, generally, we had a good run in Q3. And actually, returning some of that positive luck to our customers will help NFL investment. And we're seeing great engagement around our NFL products. And they're really happy with the customer engagement we're seeing in NFL today.
Paul Tim: So thanks Paul.
Speaker Change: In terms of general generally we had a good run in Q3, it actually returning some of that positive to our customers will help NFL investment and we're seeing great engagement around our NFL products. So we're really happy with the customer engagement, we're seeing an NFL today.
Rob Duffield: Just generally, we do work within a set of economic parameters for our paybacks, as we've mentioned on a number of occasions. And we're tracking well within that at the moment, both in terms of marketing payback and generosity. So we're really pleased with the investment that we're laying down and the engagement that we're getting from our customers. And we don't see any need to significantly change that in the short term.
Speaker Change: Generally we do what we're going to set of economic parameters for a payback since we've mentioned.
Speaker Change: A number of occasions.
Speaker Change: We're tracking well within the bandwidth that both in terms of marketing payback and generosity sites.
Speaker Change: Really pleased with the investment that we're laying down and the engagement that we're getting from our customers and we don't see any need to.
Speaker Change: Significantly change that in the short term.
Speaker Change: Thanks very much.
Paul Ruddy: Thanks, Paul.
Speaker Change: Yeah.
Speaker Change: Thanks, Paul.
Brandt Montour: And our next question comes from the line of Brandt Montour with Barclays Brandt, please go ahead. Good afternoon, good evening, everybody. Thanks for taking my question. So, first question would be on the pre-2022 state revenue growth, 46%, 23% handle growth, really strong. How much of that is new customers acquired this year? And do you think, you know, the strength you've seen from new customer growth, is it all in part because of certain black market sites known to be being shut down this year?
Speaker Change: And our next question comes from the line of Brent <unk> with Barclays. Brent. Please go ahead.
Good afternoon, and good evening everybody. Thanks for taking my question. So first question would be on the pre 2022 state revenue growth of 46% and 23% handle growth really strong how much of that is new customers acquired this year and do you think.
Speaker Change: The strength <unk> seen from new customer growth.
Speaker Change: Is it all in part because of certain black market sites known to be being shut down. This year. The second question would be how has the Illinois competitive landscape changed at all in the last few months since the legislation and if you've changed anything at all how our customers respond to those changes. Thank you.
Brandt Montour: The second question would be, how has the Illinois competitive landscape changed at all in the last few months since the legislation? And if you've changed anything at all, how are customers responding to those changes?
Peter Jackson: Hi, Brandt. I'll start with an overview of what I think is happening from a competitive intensity perspective, which I think is important to the view about the pre-22 states. New customer acquisition in those states is actually up 6% year over year. I know you referenced the point about whether that's black market operators being closed out or not, but we've got by far the best pricing and products in the market, and I think that's what's standing us in really good stead. We have, if you think about the TAM that we shared at the Investor Day, we've still got a long way to go from a penetration perspective, even in some of the states which we've been operating in for a very long period of time.
Speaker Change: Hi, Brian.
Speaker Change: I'll start with <unk>.
Speaker Change: For the.
Speaker Change: Hi, Vivien.
Speaker Change: What are things happening from a sort.
Speaker Change: Competitive intensity perspective, which I think is.
Speaker Change: Important to the view about that <unk> 22 states.
Speaker Change: The new customer acquisition in those states was actually up 6% year over year and I know you referenced the point about whether that's yeah black market prices being closed down a lot, but you know we've got by far the best pricing and products in the market and I think that's what standing us in really good good stead.
Speaker Change: We have if you think about the Tam.
Speaker Change: We shared at the Investor Day, we still got a long way to go from a penetration perspective, even in some of those states, which had been operating in for a very long period of time so.
Peter Jackson: So I continue to see us have a long runway of growth for us in the future in those states from a customer acquisition perspective.
I continue to say as a loan from way of growth for us.
Speaker Change: The feature in those states from a customer acquisition.
Peter Jackson: But let's also remember, if you look at this of NFL, pilot penetration up 700% basis points year over year, and that helps improve margins as well. So you've got a combination of all of those things helping support the business.
Speaker Change: <unk> that's also remember.
Speaker Change: You look at the set of Nf L.
Speaker Change: Product penetration up 700% basis points.
Speaker Change: Yeah, Yeah, and that helps improve margins as well so you've got a combination of all of those things are helping support the business.
Peter Jackson: On your second question in terms of Illinois, we've not seen anything that leads us to a different conclusion from what we guided at Q2 in terms of the impact and, you know, what we're seeing currently is not deviating from those trends, so it's largely consistent with what we saw and commented on at Q2.
Speaker Change: On your second question in terms of Illinois, we've not seen anything that leads us to a different conclusion from what we guided at Q2 in terms of the impacts.
Speaker Change: What we're seeing currently is not deviating from those trends. So it's largely consistent with what we saw comments that on our Q2.
Brandt Montour: Thanks, everyone.
Speaker Change: Thanks, everyone.
Brandt Montour: Thanks, Brent.
Brent: Thanks Brent.
Ryan Sigdahl: And our next question comes from the line of Ryan Sigdahl with Craig Hallam. Ryan, please go ahead. Hey, good afternoon, guys. I want to start, Peter, you just mentioned FanDuel has the best pricing in the market for the customer. Highly competitive from that standpoint. Can you elaborate on where you're really seeing the success from pricing advantage in the more complex markets and bets driving that?
Speaker Change: And our next question comes from the line of Ryan <unk> with Craig Hallum Capital Group Ryan. Please go ahead.
Speaker Change: Hey, good afternoon guys.
Speaker Change: I want to start Peter you just mentioned <unk> has the best pricing in the market for the customer highly competitive from that standpoint can you elaborate on where you're really seeing the success from a pricing advantage and the more complex markets and pets are driving that.
Ryan Sigdahl: I'll say relatively strong Q4 thus far, given the game outcomes. And then secondly, on the Your Way Parlay, from a hold standpoint, should we think of this as your traditional Parlay hold above average percent? Or can this be better, given the uniqueness and personalization of it?
Speaker Change: I'll say, a relatively strong Q4, thus far given the game outcomes and then secondly on your way partly.
Speaker Change: From a hold standpoint should we think of this as your traditional parlay hold above average percent or can this be better given the uniqueness and personalization of it. Thanks.
Peter Jackson: Thanks. Hi Ryan. Look, I think the point around pricing, we've got to think about this as a pricing accuracy point. It's really, really important when we are taking these complex parlay bets that we're getting the pricing as accurate as possible. And that is what has supported us with very strong margins, even whilst we've had the best pricing available for our customers. It means that when we have customer-friendly results, we don't get hit as badly as people who've got loose pricing, which is not as accurate. And it means that when results are in our favor, it also helps us as well.
Speaker Change: Hi, Brian.
Speaker Change: I think they.
Speaker Change: The point around pricing and volatility we've got to think about this is this a pricing accuracy point.
Speaker Change: It's really really important something we are taking these complex parlay bets that we're getting the pricing as accurate as possible and.
Speaker Change: That is what has supported us with very strong margins, even while <unk> had the best pricing available for our customers. It means that when a customer friendly results. We don't get hurt as badly as people have got lease pricing, which is not as accurate.
Speaker Change: And it means.
Speaker Change: <unk> results I mean, I'll say, but also helps us as well.
Rob Duffield: At the end of the day though, it means that we've got the confidence to offer a broader range of products and markets to our customers, which means that they're more likely to take more parlay products. We get more data, which helps us to reinforce our pricing capabilities and pricing accuracy.
Speaker Change: At the end of the day that it means that we've got the confidence of a broader range of products and markets saw customers, which means that they're more likely to take more poly products, we get more data, which helps us to reinforce our pricing capabilities and pricing accuracy. So this.
Rob Duffield: So this goes back to the stuff that Dom and the team talked about at the investor day. And I think you're really seeing the benefits of it in real life in Q4 when you compare our performance against other players in the market. I think maybe just to add to what Peter was saying, I mean, the fact that obviously we lead the market in parlays, that compounds the margin benefit. So when thinking about your way, we're very excited about it in terms of, you know, the potential to offer more markets and, you know, compound that same-day parlay benefit even more.
Speaker Change: This goes back to the stuff that Tom and the team talks of asset.
Speaker Change: Investor Day.
And I think you're really seeing the benefits of it in real life in in Q4, when you compare our performance against other players.
Speaker Change: In the market.
Speaker Change: Well I think maybe just to add to what <unk> said I mean, the fact that obviously, we lead the market and Paul legs that compounds the margin benefit so on.
Speaker Change: When thinking about your way, we're very excited about it in terms of the potential to offer more market send a compound that St Pauli benefit even more as.
Rob Duffield: As we said, you know, earlier on, it's very early days in terms of this product. So, you know, we need to do this testing and see where we land. But, you know, we're very excited about it, as we mentioned.
Speaker Change: As we said earlier.
Speaker Change: It's very early days in terms of this product that we need to do this testing.
Speaker Change: See where we land but.
Speaker Change: We're very excited about as we mentioned.
Speaker Change: Okay.
Ryan Sigdahl: All right, thank you, Ryan.
Speaker Change: Alright, Thank you Ryan.
Dan Politzer: And our next question comes from the line of Dan Politzer with Wells Fargo. Dan, please go ahead. Hey, good afternoon, everyone, and thanks for taking my questions.
Speaker Change: And our next question comes from the line of Dan <unk> with Wells Fargo. Dan. Please go ahead.
Speaker Change: Hey, good afternoon, everyone and thanks for taking my questions first I wanted to touch on 2025 a bit.
Dan Politzer: First, I wanted to touch on 2025 a bit. Can you talk us through maybe some of the building blocks as we think about next year as it relates to the structural hold and the extent of the increases you've seen the past couple of years and how to think about that next year? And then, you know, along with that, you know, the other puts and takes, whether it's Missouri and sports versus iGaming growth.
Can you talk us through maybe some of the building blocks as we think about next year as it relates to structural hold and the extent of the increases you've seen the past couple of years and how to think about that next year.
Speaker Change: Then along with that the other puts and takes whether its misery and sports versus I gaming growth and then the second question, just Florida Theres been some news and some headlines regarding that state, possibly opening up along with hard rock, if theres any kind of common or insights you could share there that'd be great. Thanks.
Dan Politzer: And then the second question, just Florida, there's been some news and some headlines regarding that state possibly opening up along with Hard Rock. If there's any kind of comment or insights you could share there, that would be great. Thanks.
Dan Politzer: Dan, yeah, maybe I'll start with 2025. We're not providing 2025 guidance at this stage, and we'll share that at our Q4 earnings in March. You will recall, however, that we shared our medium-term views on the trajectory of what we expect at our investor day, including how we're thinking about 2025. I think just referring to that would be helpful in thinking about the growth for next year. I can touch on a couple of specific points, but we said at that time that we expect revenue growth, excluding 2025 state launches for the US, to be between 20% to 25% from our 2024 guidance.
Speaker Change: Yeah, maybe I'll start with.
Speaker Change: With 2025.
Speaker Change: We're not providing 2025 guidance.
Speaker Change: Stage of mobile share of our Q4 Panamax in March.
Speaker Change: You will recall whether that.
Chad: Chad I'll medium term views on the trajectory of what we expect to our Investor day.
Chad: Including how we're thinking about 2025 I think.
Chad: Just referring to that will be helpful. In thinking about the growth for nextera consumption, a couple of specific points, but we said at that time that we expect revenue growth.
Chad: Excluding 2025 state launches for the U S to be between 20% to 25% from our from our 2020 for guidance.
Dan Politzer: And from an EBITDA perspective, we expected margin expansion of 500 to 600 basis points. In terms of some specific points, yes, we're going to have two new states next year, as we mentioned, in terms of Alberta and Missouri. The way that we generally think about new states is roughly a $35 million cost for each 1% of the population. With those two new states, depending on timing, that's going to be accessing a further 3% of the population in the context of how we think about the overall U.S. population.
Chad: And from an EBITDA perspective, we expected margin expansion of 500 600 basis points.
Chad: In terms of some specific points, yes, we're going to have two new states next year as we mentioned in terms of our bass from Missouri. The way that we generally think about new states is roughly a 35 million dollar cost for each 1% of the population with those two new states depending on timing.
Chad: Can it be accessing a further 3% of the population in the context of how we think about the overall U S. Population. So those are probably the key points to be thinking about as we move into 2025.
Dan Politzer: So those are probably the key points to be thinking about as we move into 2025.
Peter Jackson: Dan, look, and in terms of your question about Florida, I mean, look, you're aware that we're not able to operate sports betting in Florida presently. The Seminoles and Hard Rock retain their monopoly in the market.
Speaker Change: Dan look and in terms of your question about.
Speaker Change: Florida.
Speaker Change: You're aware that we're not able to operate sports betting in further presently.
Speaker Change: The Seminoles in hard rock pertain a monopoly in the market.
Peter Jackson: As an associate member of the Indian Gaming Association, FANGL, of course, supports and partners with Indian tribes throughout the U.S., and we recognize the importance of the Supreme Court's decision for tribal sovereignty. We'll continue to find ways to work together with tribal partners in Florida and the U.S. more generally.
Speaker Change: As a as an associate member the Indian gaming sanitation Triangle course support some partners with Indian tribe surrounds the do you asked and we recognize the importance of the Supreme Court's decision for tribal sovereignty.
Speaker Change: Yes.
Speaker Change: We continue to find ways to work together with partners in Florida, and the U S. More generally there are potential path forward in Florida that will continue to explore but it'd be premature to identify what caused that might take at the moment.
Peter Jackson: There are potential paths forward in Florida that we'll continue to explore, but it'd be premature to identify what course that might take at the moment. Understood.
Dan Politzer: Thanks so much. Thanks, Dan.
Speaker Change: Understood. Thanks, so much.
Speaker Change: Thanks, Dan.
Robert Fishman: And our next question comes from the line of Robert Fishman with Moffett-Nathanson. Robert. Hi, good afternoon.
Speaker Change: And our next question comes from the line of Robert Fishman with Moffat Nathanson Robert Please go ahead.
Speaker Change: Hi, Good afternoon, Peter can you talk more about your confidence in seeing that shorter payback periods.
Robert Fishman: Peter, can you talk more about your confidence in seeing the shorter payback period that you've referenced, while balancing the additional investments to acquire the new users? And then either maybe Peter or Rob, any additional detail you can share on how FanDuel's new product features, aside from the Your Way Parlay, are benefiting the net revenue margins during the first half of the NFL season? Or maybe even more broadly, like how would you characterize the competitive position of FanDuel's product relative to the competition, given all your enhancements that you're making there? Thank you.
Speaker Change: Reference while balancing the additional investments to acquire the new users.
Speaker Change: Then either maybe Peter Rob.
Speaker Change: Any additional details you can share on how <unk> new product features.
Speaker Change: Aside from your way parlay are benefiting the net revenue margins during the first half of the NFL season, or maybe even more broadly like how would you characterize the competitive position of fabulous products relative to the competition given all your enhancements that you're making there. Thank you.
Peter Jackson: Hi Robert. In terms of my confidence in our paybacks at the moment, we've got a fantastic product. I think people recognize the benefits of our pricing. I think we're doing smart things with generosity. You saw a lot of that come together at the investor day. Customers have seen that with the start of the football season and of course with basketball as well. I think that's what's leading to a big step up in acquisition volumes year over year in the third quarter, which of course is always a more intense and bigger period for us. We're very pleased with performance.
Yes, Hi, Hi, Robert in terms of my confidence in ASO payback. So yeah at the moment I mean, the high I mean, we've got a fantastic product I think people recognize the benefits of our pricing I think we're doing smart things with general save you know me. So a lot of that come together at the Investor day and.
Speaker Change: Yes.
Speaker Change: <unk> seen that with the start of the football season and of course with that with basketball as well.
And that's what's leading to a big step up in acquisition volumes year over year in the third quarter, which of course is always more intense and big period for us we're very pleased with with performance.
Peter Jackson: There has been a reduction in the payback period. We've always tried to acquire as big a business as we can whilst we meet our payback criteria. Obviously, there's a bit of space in there at the moment, but we continue to push hard and acquire as much business as we can.
Speaker Change: Yeah, there has been a reduction in the payback period.
Speaker Change: Yeah look we've always yeah.
Speaker Change: Turning to acquire as big a business as you can while it's heavily.
Speaker Change: Top payback criteria. Obviously this is a bit of space in that in a moment, but you know, we're continuing to push hard and quite as much business as we can.
Peter Jackson: In terms of the product question, there's lots of developments that keep landing, and there's a number of things that we can touch on for Q3. First off, I'd say that we're delighted with the fact that our total live handle was up 700 bps in the first four weeks of the NFL, and also the NFL parlay penetration has been up 700 bps in the first four weeks as well. And we've put quite a lot of investment behind the live investment. So we've got a number of things such as in-house game trackers launched for NFL and college football.
Speaker Change: In terms of the product question.
Speaker Change: Lots of developments that keep landing and there's a number of things that we can touch on the four for Q3.
Speaker Change: First first off I'd say that with delighted with the fact that all.
Speaker Change: Taiwan life handle was up 700 bps in the first four weeks of the if the NFL. The NFL parlay penetration has been up 700 bps in the first four weeks as well.
Speaker Change: We've put quite a lot of investment behind the life investment side.
Speaker Change: A number of things such as in house.
Speaker Change: You can track us launch for NFL and college football with improved the customer spreads variance with new school boards across the big six sports as we see them.
Peter Jackson: We've improved the customer experience with new scoreboards across the big six sports as we see them. We're improving the player narrative constantly. We've enhanced the market in terms of player props and quick duration bets. So there's a bunch of stuff that we've done here, and we'll continue to invest behind it. This is where we really see some of the benefit of the Flutter Edge as well, because some of the things that we're bringing to bear in the US market are things that we've seen and developed in other markets, and we're now successfully reaping the benefits in the US.
We're improving the plan narrative constantly we've.
Speaker Change: We've enhanced the market in terms of player props and quick duration. So.
Speaker Change: There's a bunch of stuff that we've done here and we will continue to invest behind it.
Speaker Change: And yes. This is where we really see some of the benefit of the flux of Reg as well because some of the things that we're bringing to bear in the U S market.
Things that we've seen and developed an offer market. So we're now successfully reaching.
Speaker Change: Reaping the benefits in the U S wholesale.
Robert Fishman: Great, thank you both.
Speaker Change: Great. Thank you Beth.
Robert Fishman: Thank you Robert.
Clark Lampen: And our next question comes from the line of Clark Lampen with BTIG.
Speaker Change: And our next question comes from the line of Clark <unk> with BTG Clark. Please go ahead.
Clark Lampen: Clark, please go ahead. Thanks very much. I have two, please. I wanted to follow up on the your way beta testing comments.
Speaker Change: Thanks, very much I have two please.
Speaker Change: Wanted to follow up on your way beta testing comments I'm curious.
Clark Lampen: I'm curious, if we were to think about, I guess, the sort of duration of the 24-25 NFL and NBA seasons right now, would you be disappointed if the products aren't released or sort of brought nationally and out of beta over that timeframe?
Speaker Change: If we were to think about I guess, the sort of duration of the 'twenty four 'twenty five NFL and NBA seasons, right now would you be disappointed if the.
Speaker Change: The products arent released or sort of.
Speaker Change: Brought nationally and out of beta over that timeframe and then the second question I have is on Italy.
Rob Duffield: And then the second question I have is on Italy. Rob, you mentioned sort of July 1-25 is a good time for thinking about when that might start to hit the models. When you have SNI under the umbrella and fully consolidated, what are the most immediate opportunities that you guys have in front of you in terms of Flutter Edge improvements or sort of product cross-pollination and other specific targets that you might sort of think about or have in mind amidst regulation from a share cap? Sure standpoint. Thanks.
Speaker Change: Rob you mentioned sort of July 125 is a good time for or thinking about.
Speaker Change: When that might start to hit the model.
Speaker Change: When you have.
Speaker Change: Under the umbrella and fully consolidated what are the most immediate opportunities that you guys have in front of you in terms of flutter edge improvements are sort of product cross pollination and other specific targets that you might sort of think about com or have in mind.
Speaker Change: Regulation from a share capture standpoint, thank you.
Peter Jackson: Hey Clark, let me deal quickly with the Your Way point and then Rob can talk to you about I think, yeah, the synergies, sounds like you're asking on Italy. We've been pretty clear, I think, on the Your Way product. We're very excited about it. It's taken a huge amount of work to get it this far. As Rob was saying, it's the solving the maths. We're now very focused on making sure we deliver a fantastic user experience as we do with all of our product. So, you know, look, our intention is to roll out this beta more broadly to customers across the US, but we're not going to roll it out unless we get it right.
Claude: Hey, Claude let me deal quickly with a giveaway point, and then well consultancy event.
Claude: I think yes, the synergies it sounds like you're asking on.
Claude: Honestly.
Yeah.
Claude: We've been pretty clear I think on the yoga products. We're very excited about it has taken a huge amount of work to get it. This fall as Rob was saying to solving the maths.
Now that's very focused on making sure we deliver a fantastic user experience as we do with all of all of our product say, Hey look we our intention is to roll out this beta more poorly to customers across our across the U S. But we're not going to roll that out and as we get it right.
Peter Jackson: Also, it's difficult to get this, to land this correctly. We spent a lot of time building it and we'll get it out in customers' hands when we're ready. We're very excited about it. I think it's going to have a huge impact for the business in later years, but there's no point in rushing it a week here or there.
Claude: We will save it.
Claude: It's difficult to get this to languish currently we spent a lot of time building it.
Claude: And we will get it in customers' hands when we're when we're ready.
Claude: We're very excited about it I think it's going to have a.
Claude: Huge impact for the business in later years, but there's no point in rushing it a week here or there.
Rob Duffield: Yeah, so in terms of the SNAE acquisition, we're really excited about this one.
Yes, so in terms of the Snowy acquisition with really excited about this from say, we continue to really outperform our expectations in Italy, which is key.
Rob Duffield: So, you know, we continue to really outperform our expectations in Italy, which is a huge, developed, regulated gambling market and the largest in Europe. What we've seen with, you know, since CSAIL has come into the Flutter stable is the fact that being an omni-channel operator in Italy enables you to continue taking share because of the advertising restrictions there. And we see us kind of compounding that with SNAE coming on board as well.
Claude: Huge developed regulated gambling market the largest in Europe.
Claude: What we've seen with <unk>.
Claude: <unk> has come into the slots are stable is the fact that being an omnichannel operator in Italy enables you to continue taking share because of the advertising restrictions there.
Claude: And we see us kind of compounding that with with Snowy coming on board as well.
Rob Duffield: You know, there's a significant cost and revenue synergy plan behind the SNAE deal, you know, which I won't talk in detail about now, but we're very confident about both the revenue and cost synergies. And, you know, we've got a fantastic team already in place in Italy running CSAIL that gives us a very high degree of confidence over those synergies.
Claude: There's a significant cost and revenue synergy plan behind the snow ideal.
Claude: Which are wet soaking data about that but we're very confident about.
Claude: Both the revenue and cost synergies and you have got fantastic team already in place in Italy running C. So that gives us a very high degree of confidence over those synergies.
Rob Duffield: And I think the last point to mention with SNAI is that, you know, this is a really, you know, standout brand by itself. You know, SNAI is a brand in the Italian market that's synonymous with sports betting. So it's a very, you know, different and complementary brand to Seasales. We see them both, you know, operating alongside one another and really kind of, you know, enhancing our position in the market overall and taking that gold medal position.
Claude: And I think the last point to mention with snow is that this is a really.
Claude: Standout brand by itself, yes, sny as a brand and the Italian market, that's synonymous with sports betting.
Claude: Right.
Claude: And complementary brand to see cells, we see them.
Claude: Operating along alongside one another are really kind of.
Claude: Enhancing our position in the market over when taken that gold metal position.
Speaker Change: Thank you.
Speaker Change: Thanks Clarke.
Joe Stauff: And our next question comes from the line of Joe Stauff with Susquehanna. Joe, please go ahead. Thank you. Hello, Peter, Rob.
Speaker Change: And our next question comes from the line of Joe Stauff with Susquehanna Joe. Please go ahead.
Joe Stauff: Thank you.
Speaker Change: Hello, Peter Rob.
Joe Stauff: Two questions, please, on FanDuel. One, you know, just in terms of the amp mix in the quarter, I saw that you referred to 43 percent iCasino amp growth. Is that Casino First product? Or is that a mixture between maybe the two iCasino products, depending on how the user is sourced?
Speaker Change: Two questions. Please on sandal.
Speaker Change: One just in terms of the mix.
Speaker Change: Mix in the quarter.
Speaker Change: I saw that you referred to 43% casino amp growth is that.
Speaker Change: Casino first product or is that a mixture between maybe the two casino products, depending on how the user is source and then too.
Joe Stauff: And then two, I wondered if you could just kind of review your Ontario positioning. It's tough to tell what's really going on in that market other than from a macro perspective. I think you had just migrated the product over to the U.S. tech stack. And, you know, what is your share in that market? You know, third quarter and so forth.
Speaker Change: Im wondering if you could just kind of review your Ontario positioning.
Speaker Change: To tell what's really going on mark out other than from a macro perspective.
Speaker Change: Thank you Ed just migrated the product over to the U S Tech stack.
Speaker Change: What is your share in that market.
Speaker Change: The third quarter and so forth.
Peter Jackson: Hi, Joe. So I think on Ontario, I mean, we have just migrated the product over. You're absolutely right. I think we've been very pleased with how the Fangel product has resonated with the Canadian consumers. We're excited to see what we can do now. We've got an online tech stack. This wasn't a cold start market. Obviously, this is a little bit more complex to land in the market, but I think the product has resonated really well. I don't have the market share figures to hand, I'm afraid.
Speaker Change: Hi, Jay.
Speaker Change: So I think on the yeah.
Speaker Change: On Ontario, I mean, we have just migrated the product Youre absolutely right I think we've been very pleased with how the Fanjul products has resonated with the Canadian consumers.
Speaker Change: Scientists, who can do now we put it online tech stack this wasn't cold stock market and obviously you know this is.
Speaker Change: You know a little bit more complex to Atlanta, the market, but I think that product has resonated really well.
I don't have the market share figures.
Speaker Change: To Hans I'm afraid.
Speaker Change: Yes.
Rob Duffield: Do you want to talk about the casino stuff?
Speaker Change: Bob do you want to talk about the casino stuff.
Rob Duffield: Yeah, could you just repeat that, your first part of the question there for us? Yeah, sure Rob. I was just kind of referring to, you know, the third quarter amp growth, 28%. I thought I read something, correct me if I'm wrong, that the iCasino portion of that grew 43% in the third quarter. And I'm wondering, is that all the, you know, the casino first product, is sort of a, more of a, you know, say a clarity question.
Yes could you could you just repeat your first part of the question mattress.
Speaker Change: Yeah sure sure up I was just kind of referring to the third quarter Amp growth.
Speaker Change: 28%.
Speaker Change #100: I thought I read something correct me, if I'm wrong that.
Speaker Change #101: The casino portion of that grew 43% in the third quarter and I'm wondering is that all the.
Speaker Change #100: The casino first product.
Is is sort of a.
Speaker Change #100: More of a clarity question.
Rob Duffield: I can pick it up, Joe. The 43% is correct. I think we have been very pleased with the growth in both the direct casino customer segment as well as in Crossell. I think we'd always originally assumed we'd get strength in Crossell. I think as I've spoken over the last few results quarters, we've seen real performance in the direct casino space. We're very pleased in both segments. I think we've got some great product, as I mentioned in my opening remarks. I think the stuff we're doing with our daily jackpots and stuff is also really resonating with the customers as well.
Speaker Change #100: Yes.
Speaker Change #100: I can pick out.
Speaker Change #100: 43% is correct and I think we have been very pleased with the growth in both the direct casino customer segment as well as in cross sell.
Speaker Change #100: We'd always originally assumed we get strengthen and cross sell I think as I've spoken over the last few results quarters, we've seen real performance in the direct casino space, but we're very pleased in both segments and I think we've got some great product as I mentioned.
Speaker Change #100: In my in my remarks, I think the stuff, we're doing with <unk>.
Speaker Change #100: Daily Jackpots and stuff I think is also really resonating with the customers as well.
Speaker Change #102: Thank you.
Joe Stauff: Thanks, Joe.
John Decree: And our next question comes from the line of John DeCree with CBRE. John, please go ahead. Hi, Peter and Rob. Thanks for taking all of our questions.
Speaker Change #103: And our next question comes from the line of John Decree with CBRE. John. Please go ahead.
Speaker Change #104: Hi, Peter and Rob Thanks for taking all of our questions.
John Decree: Maybe just one on the UK to start. Obviously, the budget has come and gone, but leading into it, there was, you know, a bit of speculation about possible tax increases, and that didn't happen. But I think it would be great to get your kind of thoughts on anything in the budget that's relevant for you, and maybe a comment on the consultation that's expected about possibly consolidating the tax structure.
Speaker Change #105: Maybe just one on the U K to start see the budget has come and gone, but leading into it there was a.
Speaker Change #104: A bit of.
Speaker Change #104: Speculation about possible tax increases.
Speaker Change #104: And that didn't happen, but I think would be great to get your your kind of thoughts on anything in the budget that it's relevant for you and maybe a comment on the consultation.
Speaker Change #104: It is expected about possibly consolidating the tax structure.
Rob Duffield: Do you have another question, John, or... Sure. The second one was just going to be about the share repurchases. Now that you've started the $350 million tranche, could you remind us your approach to that? Is it kind of going to be a quarterly announcement, programmatic, a bit more opportunistic, and just kind of revisit how we should think about that?
Speaker Change #106: Do you have another question Joan.
Speaker Change #107: Sure. The second one was just going to be about the share repurchases now that you've started the $350 million tranche could you remind us.
Speaker Change #107: Your approach to that is it kind of going to be a quarterly announcement programmatic a bit more opportunistic and just kind of revisit how we should think about that.
Peter Jackson: John, on the UK, so the budget tax changes, I mean, I think it's worth, you know, reminding everyone, you know, given our significant scale, you know, we're better placed to absorb any tax changes relative to the market and other competitors. What the government, the new government in the UK have effectively done is said that they're going to carry on with the work that the preceding government were doing, which was to, you know, look at consolidating the various different tax rates in the UK. And they are consulting about that. So we'll continue to engage with them.
Speaker Change #107: Okay.
Speaker Change #108: John on the UK says the budget tax changes I mean, I think it's with.
Speaker Change #109: Given our significant scale in a way better place absorb any tax changes relative to to the market and are the competitors.
Speaker Change #109: Well the government the new government in the UK has effectively done is said that they're going to carry on with the work that the preceding government, we're doing which is to look at consolidating the various different tax rates in the U K are now consulting about that said we will continue to.
Peter Jackson: Now, I think there's, you know, there's also been a small sort of NI change in the UK, but that's sort of, you know, immaterial really for us from a group perspective.
Speaker Change #109: Engage with them I think there's there's also have been a small.
Speaker Change #109: Yes.
Speaker Change #109: And I changed in the U K, but that's a specific immaterial really for us from a group perspective.
Rob Duffield: I don't know whether you want to talk about the share repurchase, Steffan?
Speaker Change #110: And what do you want to talk about the share repurchase special Yeah. So you know, we're really excited to get going with this share repurchase and we'll commence that later this week.
Rob Duffield: Yeah. So, you know, we're really excited to get going with this share repurchase and we'll commence that later this week.
John Decree: From that point, you know, onwards, we'll introduce the next tranche of the buybacks of our Q4 results in March. We're partnering with Goldman Sachs on this, they're helping us out in terms of the mechanics and looking forward to getting excited going into events later this week. Great. Thanks, Rob. Thanks, Peter.
Speaker Change #110: From that point.
Speaker Change #110: Onwards will introduce the next structure of the buybacks are Q4.
Results in March.
Speaker Change #110: Okay.
We're partnering with Goldman Sachs on this to help us out in terms of the mechanics and looking forward to <unk>.
Speaker Change #110: Gigabit later this week.
Speaker Change #111: Great. Thanks, Rob Thanks, Peter.
Speaker Change #111: Thank you John.
Adrien de Saint Hilaire: And our next question comes from the line of Adrien de Saint Hilaire with Bank of America. Adrien, please go ahead. Hi Adrien.
Speaker Change #112: And our next question comes from the line of Adrian Saint Hilaire with Bank of America. Adrian. Please go ahead.
Speaker Change #113: Thank you good evening, everyone. So I've got a couple of questions. Please.
Speaker Change #113: The first one is that folks have been discussing a notes vocally the effect that they would enforce their option around fund duals. So just wondering how you see things panning out sort of around that and then sticking to the U K.
Speaker Change #113: Can you remind us if your numbers already include anything around the white paper implementation.
Speaker Change #114: Touched before on like 50 to 100 million pounds of impact.
Speaker Change #115: Is that already in the UK numbers or would that come in if ever the whitepaper was to be implemented. Thank you.
Speaker Change #115: Hi, Jay.
Peter Jackson: I think you need to ask Fox what they intend to do. Clearly, if they were to exercise it, they'd have to be licensed, which I understand is no mean feat, and then once they did that, they'd have to exercise the entire option, and then it would give them the ability to acquire the stake, which is illiquid, so they've got no exit mechanism. And of course, there's the price, which you're familiar with.
Speaker Change #117: I think you'd need to ask.
Fox: Fox, what they intend to do and clearly they need if they were to exercise that they'd have to be a license, which I understand is they mean fee and then.
Fox: Once they did that they'd have to exercise the entire option and then it would give them.
Fox: Ability to acquire the stake which is illiquid so they've got no exit.
Speaker Change #119: <unk> mechanism.
Speaker Change #119: So and of course, there's the price which you're.
Speaker Change #119: Familiar with.
Rob Duffield: So this is something that you'd have to ask Fox whether they intend to put their shareholder capital into that or not.
Speaker Change #119: This is something.
Speaker Change #119: But you'd have to you have to ask folks who they intend to put that shareholder.
Speaker Change #119: Capital into that or not.
Speaker Change #119:
Rob Duffield: Rob, do you want to talk about the white paper in the UK? So, you know, as we stand we're early in the second year of an anticipated multi-year consultation. We've not seen anything so far to indicate any change to our previously guided 25 to 50 million sterling EBITDA impact and a number of those elements are still subject to further consultation and piloting, so we'll have to see how it goes. I mean, what I would say is that, you know, we've got ahead of some of the previous regulation, which has stood us in very good stead and, you know, we believe these numbers are in consensus already.
Well do you want to think about it.
Speaker Change #119: In the UK.
Speaker Change #119: As we stand with early in the second year with an anticipated multiyear consultation we've not seen anything so far it's been decay.
Any change to our previously guided 25 to 50 million Sterling EBITDA impacts.
Speaker Change #119: And a number of those elements are still subject to type of concentration in pilots and so we'll have to see how it goes I mean, what I would say is that.
Speaker Change #119: We've got ahead of some of the previous regulation, which has stood us in very good stead.
Speaker Change #119: And we believe these numbers are in consensus already.
Speaker Change #119: Okay.
Speaker Change #120: Thank you.
Adrien de Saint Hilaire: Thanks, Adrien.
Robin: And our final question today comes from the line of...
Speaker Change #121: Thanks, Adrian and our final question today comes from the line of Robin Farley Robin. Please go ahead.
Robin: Robin, please go ahead. Great, thanks. Just a quick one circling back to your way, and maybe just to ask the question slightly differently, is when you gave your long-term hold guidance, was this factored into it, or would that be potential upside, or did that long-term hold guidance kind of assume that you would be developing different things as you approach that? Thanks.
Robin Farley: Great. Thanks, just a quick one circling back to your way and maybe just ask the question slightly differently.
Hey.
Speaker Change #123: When you gave your long term hold guidance.
Speaker Change #124: Factored into it or would that be potential upside or where did that long term whole guidance kind of assume that you would be developing different things as you approach.
Speaker Change #123: <unk>.
Robin: Hi Robin, clearly we were aware of the Your Way product when we gave our long-term hold guidance. We're out in beta with it at the moment. We're very excited about the product. I think it will provide a lot of excitement and engagement for U.S. consumers. We don't yet know how people are going to properly engage with it when we have it out there to them. But at this stage, it was factored into guidance. Clearly our hold rates are higher in the guidance than they are today and this is part of it. Increased parlay penetration will be driven by Your Way, more legs and all those types of things will have an impact.
Speaker Change #125: Hi, Robin.
Speaker Change #126: Clearly we were aware of the yoga products. When we gave our long term guidance, whereas in beta with it at the mine. We're very excited about the product. So I think it will.
Speaker Change #126: And it provides a lot of excitement and engagement for us.
Speaker Change #126: I can see them as.
Speaker Change #126: With that you're not happy with again is it properly engaged that they will may have it out there to them, but at this stage you know it is.
Speaker Change #126: It was factored into guidance clearly our whole rights.
Speaker Change #126: Our Hyatt in the guidance than they are today and this has been a part of it increased Paul that penetration be driven by <unk>.
Speaker Change #126: More lax and all those types of things will have a have an impact on that.
Robin: Okay, great, thank you.
Okay, great. Thank you.
Greg: Okay, well look, I think that's it now. So Greg, thank you very much and to everybody on the call, appreciate your time.
Speaker Change #127: Great, Okay, I think nuts.
Speaker Change #127: NASA, Greg. Thank you very much <unk>, so everybody on the call I. Appreciate your time. Thank you all for listening and look forward to catch up with the same.
Greg: Thank you all for listening and look forward to catching up with you soon.
Operator: Thank you and ladies and gentlemen, that does conclude today's call. Thank you all for joining and you may now disconnect. Have a great day, everyone.
Speaker Change #128: Thank you and ladies and gentlemen that does conclude today's call. Thank you all for joining and you may now disconnect have a great day everyone.
Speaker Change #128: Please wait the conference will begin shortly.
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