Flutter Entertainment (FLUT) 12 Aug 222022 Q2 Earnings call transcript

Good morning, and welcome to the Flutter Entertainment half year results update call. Peter Jackson, CEO, who is joined by Jonathan Hill, CFO. [Operator Instructions]

And now I will hand over to Peter.

Thank you very much. you Jonathan thank this I and call. morning, for and joining for Good had watch our chance morning, you the a Hope all growth. for to and well set extra group is performance which out our color year on half how positioned helps this presentation

and we questions, We first the X% like revenue half the year. I'd Before positive XX%. to key momentum few up in a go our growth been I've performance to had with points. really just of highlight AMP pleased with of

performance was delivering U.S. outstanding, Our exceed and all a continues expectations QX. to profit in

driven the XX we've QX, into customer of #X share phenomenal customers. achieved And was acquiring This where XX been leaning over in by also execution fact states. sports betting we're the in QX new in with acquisition it market million of X.X out was XX% despite

our share-based in to full have out of cost U.S. laid in clear sight year, XXXX, profitability we presentation, for the payments. line the of we As including a

You'll we now as outcome FOX live process the have any detail. seen arbitration process, in Unfortunately, a is further this that can't of with provide October. the we expect

value. remain as regarding market However, in our we confident fair position previously very stated,

has proactive online we set Ireland, perspective well U.K. are the our with Group QX a EBITDA and welcome of the the and In in and performances strong And the to the in future. up excited and from team markets. revenue we're business our In safer in invest line are on measures Sisal last group, the consolidate the we Australia, for U.S., expectations in HX improved outside week. performance and Flutter with were in in confident the that into taking international gambling sequentially QX,

second Across half year expectations. in group, the the line with our of started whole the

diversification and well opportunities the on growth scale to ahead. in extremely us capitalize position advantages Our

over now And hand with handle you [Operator Instructions] to to I'll Phoebe that, questions.

[Operator Instructions]

from first our Mitchell. question is coming And

Yes.

step of is in to your customer the share a Peter, just something your and to on and just EBITDA this is of pick terms introduction terms -- the altogether given of thing, performance I and up do one QX something up appreciate QX in there, in X you've actually positive presentation. covered U.S. the lot different. on in of Firstly, remarks generating you acquisition

But competitive you the your in period. customer how comment to acquisition a on with in been to environment can you more in has the well I'm up your Slide it quarter. approach evolved the to more economics the benign documented change in NGR. on Clearly, bit the of ratio customer correctly step generally market reading no chart share If second to major secure XX, seem GGR and

customer So it's your question in the customer economics acquisition around approach to number one, and U.S.

XX% the that and you could of I external second wonder performance for of over positions some half the improved well it improved provide if and heading it bonus minus terms minus just then And referenced online, I the and U.K. QX. in secondly, as read think from I've correctly, sequential it in sequentially. improvement If QX how into context year. you Ireland XX% I you think

of Thanks, acquisition. to other customer penetration major looking ratio approach our disciplined much the focused advantages see strong we We've the Parlay our get always to the about very our and value. customers we of acquisition cost very our continue Michael. is product. because our benefits And of I on lifetime point we've maintained from around value performance lifetime in the make think our to U.S., Look, been that to at

in market And because carried work lifetime disciplined back that so values were acquisition on And see pulling costs. our people could the maintained. we being in leaning we've look, we with the remained other were whilst QX, from

we've mentioned, as business we I just so X.X customers. took million as much than And just could. acquired we more as And

And ended we terms We've in than good the half. that business customer up got so very going the much in we as now more are numbers a bring I how we're bigger first is customers been as actually with of the pleased on the exited had spending we've think anticipated. know to money value that. it bit in But a has We past.

the add? driving Jonathan, see. anything is well strong very So that what's have very that regard. that's business you to you positioned And in if the revenues

and as that's the existing pertains think here big where building and it base XXXX, the is all want versus the I to base and to do customers new as we're slide the critical enter showing is What there's embedded we point embedded -- customers. possible.

sort And we customers don't you, X. X-year cost the acquisition make to in with aggregate money customers. the obviously obviously off year of economics the our in explained We

So that we of some you moving can move revenues in aren't driven but EBITDA has can the high-performance guidance understand up, therefore, of investment sort by that the incremental year. because actually why, been

even XXXX. greater us gives into us getting forward an positive XXXX, hopefully in as cast that to gives which confidence forward we -- that EBITDA looking position into base going obviously, bigger to But

around to perspective. important Michael, have to well. few things But as add I'm terms that UKI And we've the this improvements right there's of you're question Yes, from a recognize And to on. second the performance. something it's a your regarding I seen in sequential going will sure think Jonathan

lockdowns, you more at reverted. were look has year last know and pre-COVID, when our we than at customers with the engaged First in they comparative that our period that products all, were of

And so X factor. that's

early those. and a changes Secondly, to a sort from of move of number and perspective we safer gambling annualize did starting make we're

know to point want posting business. to the talk started sort And don't across thirdly, I of if we've of specifically about sort I those? Jeremy, I you of improvements a number product think

got point in up And in -- we've although looking is to pro we we're due the good basis until a debt GC think step business. the other momentum the some really well. performance as relative in I think data the saw to and QX forma our -- on a at we

seen build on track coming have hopefully in able you'll the getting The driving listen presentation, being terms back we Bet of the in through, in that's both which product our to performance, Sky to, the clearly improvements -- product engagement levels when see -- some also start at the of is EPL the of the side and on then high product that last at improvements gaming season of obviously on we've end the and the the Paddy. seen

question informs positive that around as not HX, many in impact really certainly haven't gaming UK&I is really, going clearly into at we in the but on any we yet. and also year-on-year into point seen we've the people from as June seeing seeing it of sort in the comment So that gives real made go growth cost-of-living that exercising this confidence us the industries, and also back

at discernible key And gaming across our other on stage, keeping things we on anything brands, a And is the seeing pretty eagle is pure data. like obviously but going of our in which a when performance, Tombola not gaming business. the weekly very we what's we're activity look at obviously are eye levels. And gaming indicator pretty certainly, this a

next from question coming Canton. is Our Clara

be that a on I to wanted some and sort you solely peers to your U.S., if to this of a really also dynamic non-launch dynamics, of of ask is sort wondering a have of periods? question back. related think is competitive I'm going step taken on maybe that realizing the sort

new heading you and evolution states date of being is online, of your extreme of costs success the the cohort do of is about Game talk or states there second not the only into question the the Same NCAA I wondered comes back to chance innovation next but that and product product. maybe then on season could sort the if little year. Parlay also? bit NFL Or adoption, you believe product queue could that end when a less with on And also a of launch next sort up the

know is Adjusting what don't I to Clark, good or say good morning where it you if time to evening. are.

very much for the call. you So joining thank

the the them very have hard to it's bit. what's competitors are a motivating competitive U.S. talk and what our we don't doing about to is Regarding because visibility dynamics,

as our hard we the QX, returns return seeing that on saw can sort moment. opportunities. think we're paybacks -- of lean some very in whatever perspective, continue and seeing of at focused abundant business in why as that's I from to we're we And because acquiring we the much we're

and at our coming It's presentation, in a was lot some statements you remembering, acquisition of the the earlier states. worth if our look from of

focused NFL something is recent from perspective. launches. acquisition customer is degree that's a not of a is seasonality, around around just this state push U.S. So There in the a big obviously,

that impact industry. well. acting as clearly, launch think that I me does discipline, But our is also for a competitors we're And good appear think it which thing I seeing with to has more state the an a

that think, we're we're starting always have closer disciplined. We And to position to people I coming been the see, very taking.

to have not effectively don't we advantages to being DFS have monetize that have as cross-sell terms they base higher may because pay and having of are into. to Competitors customers our acquisition in the costs able

product have a mean, your second sportsbook App we Store. number question, perspective, From do I the I think in look, app evolution the one

benefits our of the support has Slide to. U.S. and global provide cushion FanDuel helping team. of organization group benefit the a the and of have shows that the access lot to X We develop And ideas presentation

more the the in-house popular course. innovation have of XX% than lot We Parlays, the to our than our Same going only play And launched XX% more there at a to We've around moment. there's the around just handles in price due Parlay are XX% search. -- of Pop QX. The in It's go customers Parlays, of product product.

So across point making lots there's we're that percentage the differences of X product.

the the which X in is here like when we developing launched call I And in later products. evolving Australia, still years product, -- actually actually, places Parlay Revolution, look are what Multi XXXX. and where And we they we're back the

that of team confident come remain innovation from from the to FanDuel Now lots the the innovation benefit us that I'm will across with to colleagues in able the the world. very expertise and America and their situation sees same

your going to Just first question. back

extent the of be a still think a very will the is we season. NFL season such customer be start we expect a certainly of to competitive that that season. highly there back And year planning betting point it for and to while to expect start pulled I people the acquisition the sports may an competitive in U.S. QX, have our start in NFL

going to be it got will And single again, to earn we to the and win. win think every we're year. clear. be very right We've have to I Again,

So we the and on season strong winning again. in at be and by I'm start because blazing out shouldn't focused a sure any will guns QX we've way come got performance, NFL really to with again be very of complacent everybody

need team. context the against as great where we pretty the the focused stay November at to We've for the look, this there's well. point in plan got in it's NFL. And a start on So that of elections

from noise media perspective. of So be and we a going that know lot there's to a advertising

is Jonathan and the lot It competitive, So going there people absolutely to messages and there's a attractive with be of most right. is out offers.

question Ed next Young. Our from coming is

transparency disclosure significantly extent of P&L you've first profitable. Thanks you're on I on My a for estimated level indication New and It's to that Slide really helpfully very appreciated. in some of the doing the presentation. the breakdown give an XX, on question U.S. Jersey. to breakdown mature appreciate are and is the in given try states

to I a competitive But terms there state going still XX% get you've of then the flagged, aiming further over is -- leverage. be come then there, higher of already promotions more wondered also operating just will to marketing profit operating but time. costs, it's a I X in and Cost might down quite some is gross think other bit presuming a buckets margin sales and

is when of guess or is are think about should X is a how that I average? too to much years guide to other profitability states kind it? FanDuel's steer say profitable implicit those And saying just branded that this really asking overall and read we period? into is, what So it's Or that I'm in of healthily

My the the is your yesterday peers had U.K. customers one on on second chart question a and recreational around comment of that.

tier X, you're showing wonder mean what You so X could if covered. possible and to X, I think by put like-for-like can help which extent XX, it quantify just about you Slide you tier again that actually is what a useful on we it's tier comparison.

representative U.S. on just deal put and you as -- tax the with the tell you you whether me quickly now I have we -- looks that details tier come let of Look, the then base with U.K., of don't tier about this the take in won't of But income to tier tier we very U.K. can customers. a the we slices We X, on that U.K. provide or is X what whatever. the income sort of wealth, like,

set want business point know we've New for talk that to up breakdown sustainable the So the around Jersey? forward. Jonathan, very to be you we moving don't EBITDA Ed's think well to whether I

over way on in on the done we how we a of the the What is to time. on and OpEx. not into try through of and to sense say, judge on science think this sort we X, view Ed, you Clearly, we're it basis this. trying fact sort that we're trying a that let read that should state. give they've do from not profitable makes of year we the how work you out will have EBITDA further in trying on is allocated too much -- rocket we're steer trajectory to sort just EBITDA people to a do here, -- What a it's when We've profitable forward to are confidence we've states of started guys evolve that on is the do

And particularly P&L the to see end think New Jersey the on of going at we alter marketing and can the Slide you But quite XX, actually, I that penetration. when out this growing. some still states put curve certainly steeply. penetration time at day, of quickly you is we from look right, still data work And And the up the do on which can line. over expect you're that in you it's state

driving But top on always how top of X you've graph XX. promo driving the line year got see that growth up issue you the by So on penetration in middle is growth, can P&L still end you significant and marketing do and the from curve in this spend. investing much line Slide

too and So yes, I it. don't try read much into

sort -- to we're giving I see and can more think doing next further at We're any point. bit the going to P&L But touch years. for the point the Capital this just at people this track not Markets on maybe of we're few over we're in we're November, evolves trying obviously, Day opportunities a help more to that just stage. we that and at with on extrapolate

Our Rowland next James question is from Clark. coming

questions, HX A 'XX. of the revenue is the U.S. last growing of as have got the you cost sort on at couple the a side, indicating on Slide base different please. of of way operating sort question XX, asking I Xx with operating slightly have left-hand leverage just that chart the you've in since

EUR bit how evolve on And over Would you mind that we the U.S., X months, of next should on just and giving see us next you a the X help little into year? how again, then you've XX secondly, you delivered versus FanDuel Bet, Fox of EBITDA help past in with a Could out an million the businesses? in us for just have the bit looks profit QX. that

been of worth I to into James, making Canada. think I all our U.S. profit the that. we've includes made Jonathan the hit let but I the Fanduel investments costs, mean, us I'll that details give business on we QX, in the it's not mean also only noting, launch

you the than for presentation. on actually one number Fanduel of the the see Jonathan? gross the front So greater is

James, I of think, see, fact we mean to referred the revenues loss the EBITDA in XX% was, that the of Fox release, interim you'll I in and Bet half. X% the

flat you work can it's can half of which pretty that So $XX-odd out it's because take in million QX business. a you

closer number up positive Bet. strong said, to in up FanDuel but from Peter -- to that of those, some then a So the we to we've the feel QX. the so in sports is did that, results, got And we've even lean-in. We position got, obviously, and as get and very in XXx step FanDuel gross without and therefore, benefit a Canada, probably you investment XX can Fox within

XX. on we in don't would entered we been the we've a actually even graph of you relative we strongly other you XXXX have point pulled stepped growth because terms more growth on on OpEx back a as quite revenue slight of guiding would hiatus a this had XXXX. short very at in OpEx up to Look, looked term And COVID our because I then like have in Slide if story, which different had seen ago, year sort

Then 'XX. we of into that annualization get the

So this had would normalize year if year 'XX, I had 'XX HX -- quite looking say OpEx. from is on you a HX growth in difficult. XX% at revenue half a HX we XX% I over a year ago think What to revenue is growth, we and in about

So it's not quite it's but the X:X not million miles a away. ratio,

we've think and U.S., areas assumption sort of this built we medium business bad -- the a have ratio. of a a the in which framework. X about rather just will to term, directional -- But a in scaled the than the a forward business Tier within lot we've to not of think over specific going it's is -- lot framework where muscle built about the the scaling but the it's not reasonable bad teams necessarily It's

is question from next Our Grewal. coming Kiranjot

from couple a Just questions of me.

in less. a we think strong you U.S., U.S. been the opportunistic in The while QX, acquiring I still others lot during balance spending biggest globally, a customers, about are being you've have talking and sheet. the biggest

you to even could be maybe acquiring opportunistic customers. not further spend mean I more on going

the Just U.S. of markets, is customers the the say, more then one goes retain sticky question. competitive? in that in those customer And as customers is won sense by of marketing that's the trying How U.S. So U.K.? the get you'll in to maybe mature secondly the spend QX. versus in up around How much a

did to first half we of around spend actually a Look, lot planned the questions, had in QX. typically we more the terms in than X broad originally

always sure so and the we we -- more opportunities ended to we have lot in spent pushed the team, tried a hard. saw with so could do. we we And the together way not subsequent I'm U.S. that a in up of that lot

further not have some that there I'm have returns we very that pushing the been but it would opportunities, have sure been wanted, delivered we may hard. but

that been business. You're can putting right, investment into the the have we we all

So we we we went ahead constrained were fact, that a seen. number were that, to and feel of And there haven't money. don't about states of And planned understand that. launch that in the irrespective

X bets In to last we did terms in diametrically thing going the was everybody with season of whatever just same when We and I else. $X,XXX point, money exactly situation the free in discipline. run-up year to the NFL maintain helicopter consistent and opposite mean, crazy pretty add

the We to build maintain we when kept real served we on same this business what clarity us to it's and both right the and way. we It had clarity And in, of also focused on lean the a in discipline and we opportunity doing. what are in level were clear, discipline way well situations, we and really think doing. disciplined

people think took we bring we And our in, great NBA to a and it we effectively. QX opportunities fantastic, us around some we to in in is bring particularly product opportunity customers, some really and gives great did that think

to revenue a performance of talked we're cohort look of -- on our because kind an of the seeing remember, X of where probably the customers. at In some terms identify growth performance I'd if the quite of we year customers. XX, clean of customers, time we XX% show stickiness this where X we to can sort But of basis hard cohort our about best a COVID. the It's on you Slide refer of in performance on last year

on now if had We've of growth. can seen us and that look you seen now same customer Slide at customers to then see seen that in revenue we've is obviously. we the X, with from the -- XX, an the acceleration on and that This we compared at year the we're X, cohort year On somewhat that look them. revenues -- accelerate

XX% CAGR performance. And so a now there's

on shown our businesses you we've the we in too, and of that over sports about if stuff other that And past, we some I that way Sky see the revenue presented which the in that years, U.S. of in a the or Bet the -- know can see see whether are know customers, continuing team that's other think has that some bet customers we a you year-on-year, those call the can grow from where attritional just number year-on-year even basis. -- see of actually businesses to number us you trend And our of the in if market.

-- back U.S., they But overall, look charge you for Sportsbet, the cohort for Bet Sky create cohort these are the at when for as the charts well.

Pollard. coming is Our from next question Monique

Just a if from of can. questions I couple me,

is Obviously, quarter, was second percent on online the performance. now you XX.X% the XX% better The in was UK&I as first the it XX% commission than XQ. in data, XX% revenue in said, and gambling half, the U.K. and growth the which first think much the down I down

seems potential some it into if market. you're clear of you relatively So share gains to that wondering I products whether launched second like [indiscernible] that think share less half recently. the the think only was new just taking in build product prefer about your I'm the given

versus So it more XH should of have an XH. impact

second just immature in then just given getting much EBITDA the of question, margin, just on sounds Jersey And to New helpful very the profitability some that in terms insights states. the U.S., it of

wanted being generally, Just relatively lower see betting space betting gaming whether sports EBITDA understand consistent space. only us you sports our or versus to and in higher, margins

you, we're the performance market taking in share. Thank UKI in QX to business compared online and highlight to I the think you're performance, where of favorable Look, the our of terms right Monique.

I factors think that there's a there. few

the firstly, I business. seeing recreational of focused more we're benefits think, our

about portfolio When Paddy our Tombola, market. brands well very you the positions Power in Sky Bet, the us think to U.K. compared

forefront people it of we we've think proactive measures time of I taken appears I have very trying gambling. to with think the ago. at other And the are to always safer been secondly, around us. catch number beginning market up lead And some a

encouraging saw the of paper appreciate Gambling that some we in these support finality provide questions. But some to the of always Commission would did that responsible. and I And terms in past, more as if in stated the I I going their white to operators think be

is few And delivering continuing of to I'd a continued areas third we've to operators. think see a There the in bar, all, the developing I where think raising impact, are our of They that invest number products. And think highlight we'd you're set thing a have products. that beginning first been I behind. are thought I good we bit we effects on and

when business are to of the up our look of year-on-year, is at think, see that in work I actually, the teams doing. gaming the validation And June I performance great

in CPA-LTV Look, of that the still at other it of still you a day, an Monique, be your product, terms multiproduct, inconsistent that we're product. a the in the question, it, should makes end between matter triple doesn't about we basis, think still sense, whether through If overall delivering investing single if economic something basis. -- the should profit overall work yes, because states not on different we

stage multiple mean that Jersey. probably product, being actually, from may the products don't we're slight across impact investment the will in it strategy. EBITDA divergence. massive into seeing profitability we in between other basis see can be I over New the I similar a we be a and are There there divergences single small look on a moving when And see states, we them but

just this further terms evolution. at terms It's in -- the of point in of behind their they're

got this who states. when this allocation into states all EBITDA fall So do the we we've basis of exactly across other profitable

Okay. Perfect.

you states, new could some maybe And just states. of in step their

Exactly, so. Very yes. much Yes, yes.

Joe question is next Our Stauff. coming from

in that's around exploding you're the I Jersey, Two New obviously, wanted the especially X questions, of Jersey quarter users, then U.S. really grow to second growth, and in. New the if versus first question. New to the new well a doing on York ask say, you in could, able large state kind Were and say, Pennsylvania? the big states. like And user dynamic, I It's Pennsylvania

kind terms framed again, out obviously. in benefit to be arbitration of group sitting maybe ever of the the forth kind U.S. as sort I'm additional the settled, if the And necessary about think the or costs second is question they add so you've the if group, the waiting of of of to within kind for of U.S. group, margin total and weren't Flutter and to we kind wondering the group

Joe. Yes,

XX. this of dynamic customer best terms mean So that, penetration look, states in of around see all I probably see rates. look sort is I our them, look And you this -- think sort of the on chance acquisition. can at if Slide at of you to the you can is

rates following -- none growth they're of now a reached are plateauing. that of point the states And have all where trajectory they're moving similar but a all right? very up, So sort the

on And which you very -- is of and in continuing line, is based see it the past. it's infer so a can can -- therefore dates as Jersey follow launch, the similar you it can New you longest trajectory and to followed because the

has New even York whilst done. that's And

continuing good and So volumes in states, than I growth think historical down and are more I to are think not we're the seeing rates rather there. business. rates very And acquisition the customer we from slowing acquire is more because say historical mature I growth that important. And

off. point investment the ever if New in earlier was making volumes And Jersey New and margins. in even we're terms that we EBITDA seeing margins slows Jersey. acquisition point we're down, of in think drop the I the course, will having seeing still Jonathan big get in obviously, conversation the EBITDA those of We're marketing seeing was And to we're a whilst Jersey

In terms think of I our your X/X of the the states. just -- second question, on half acquisitions Joe, were pre-XXXX in on

that So X.X first acquired million in second tells in the quarter, the X.X we you, quarter. million

pre-XXXX states. X/X those came from over of So

can still those there's these in you FanDuel in states Slide growth see out that's and XX on the on of see with each can borne stages. still those, penetration you huge And there Peter's going exactly up. lines the on point So early

for wanted for what say, That's because exciting mature, I a terms question, mature in you're these more using really don't it's for going being growing. So still getting understand like something us to but like part lot seeing they're Flutter. was Joe, growth think the and the new, FanDuel I even the And of what word for were states, of of across I historical I just at. benefits fantastic. was it's part second your to

we superior have group's when they very that that lot from look -- the comes And think about trading you we capabilities, a where If you around the you are monetizing get, the much can some which Slide that highlighted capabilities see that X, I on and see trading right? I mean think risk handle so benefits they're economics the significant. that we've and of done significant, in-house. of risk of more

we our helps and technology, The proposition in house something the we result. group developed means of fact team products been price incremental global margin at have superior FanDuel. the a which all -- that Parlay is Obviously, far are a have platform customer and the as that in-house betting keep the

We of casino in our as in will handle us accelerate to be product the something and that see business. that have into capability best And start we that's future. world And with the product the more bringing well. you'll increasingly PokerStars

So a of benefits. there's lot

And benefits to of is the all bring wouldn't the markets generosity, global are areas, connect -- underestimate all and in of people group being from insight our of across application consumers, able huge. how the to I effectively to who games, different got we've present experts the most just in the these

can got sure in the that efficiently markets link teams the people many make who've so markets really U.S. the across we've that in really in learnings also be elsewhere expertise quickly. and in brought the got group, the who transferred but fantastic different got we've practice And from up of best we've to and different markets sort

question next Richard from coming Our Stuber. is

Two.

for to GBP XXX U.S. loss million First in the the million -- XXX GBP your guidance

second the GBP you quarter. seems about full is half XXX made which GBP XX what to the did million of the especially million me, the that the GBP of conservative, in losses second of you second 'XX. To year half, still XXX implies to similar it's actually million think profit in I given pretty in

out Is the second there NFL? I your I'm function And personalized the ahead ramping investment you've in this in are is, be Is Or purely question in which the generosity think up particular acquisition you rolled something should discussed other U.S. of a in thinking customer like of costs your the Sportsbet. to aware some presentation, across things half, we second regions? And of? other the that this

answered Richard, mean question. first I you own your

Look, discipline really Yes. exciting. is NFL, more to positively, going usual to run-up QX through we both time -- states be expect with and live answer aggressively We've that QX. -- So which and one say going first we'll answer. be more the NFL, would the to for of we've -- we're I be got the our with got And level through the word live. states investing was

And we hope live. obviously have We Kansas believe coming in and QX.

that give state. us So will another

the that scaling up us sure that opportunities and the we're before the So investment just we see it's taking and business really in market. making

continue we've of Richard, significant around to generosity been this a our the of now. application number improve. And something in generality. strides Australia making right? a is journey, we question improve years in an It's I to personal that So performance terms your mean, of for of

this the market doing also of we have we're been we've taking from more think opportunities as the that to closely will And this over and be perspective. of It's end be benefit the the integrate from in we'll a lot generosity some a where to the one doing the the of got U.K. well. year about when areas stuff best practices back businesses of

able the to personalized capabilities we're us platform customers. we the into global market, across the apply some allow the In tools U.S., betting bring to to the so generosity and of when launched that

a to have our that platform call as that that internally allows We CPP, which is we cross-promotional personalize platform us generosity.

is we're doing. something So it

well. think improve we sports and local it's course, of to enhance it do can that different opportunities it. always as are cross-selling And something and about to taxes and reference with with things There also

is Joe question next Thomas. from Our coming

question you're is, -- U.K. in that mentioned please? I what of marketing first means, So optimizing my the spend just that could you exactly thinking wondered just please. the you presentation clarify wonder I in about all,

it, it. that you And at wondering into the in reducing on this tack that. I'm just guessing can you're times means the offer also rid to how feeds odds best that of U.K. how the I'm news guaranteed getting

the one. So That same it's part thing. be would question of

that sort been The is they're being mentioned had second a been some at why been changes thing making had is these well has that think management what that of Are as you planned? and And variety you've of be better. variety kind I'm there losses the done. wondering have a changes presses working management job of of Flutter. always it --

Paddy Stars takers going do it our but time the of that at we Betfair it's the care division maintain the of the rush Power merger time the integration, with U.K. we weren't the we take said of worth momentum Joe, wanted Sky business look, to to made historicals up Group -- and into will because is of Gaming. we remembering always & the And in together Betting business.

moment seeing the reflection just changes through frankly, a that. really are you're the coming that of at say I

there generosity. and the going were some -- best and losses be associated of with always job integration, marketing us that for now. to are some to there practices So seeing are opportunities we're going be There share around to

dynamics -- in the changes reflected are the U.K. We result gambling, values in made all lifetime some and take division. some of you're of that some the opposed to the to of to as changes some market so we've and need those seeing of the things being changes in seeing a we're the of as reflect a what

the to sure no, platform, around guarantee doing doing The generosity And And take are for review we're we're perspective. we the products. we're a we're work work from so look, look, doing people customers approach that. of around odds right applying to a generously -- tech function making, marketing changes we're optimization right, there's the to making all continue and it the good we best the

we reassess access standard in part and market. which the in And do way so the it's of we a what just

our where reinvest that There's just reducing is of -- is other your can to want suboptimal. find question then No, it's spend? find firstly, spend And we and on invest effective is we about building think do to point, to ways then growth. how was, some of our which to just much secondary about, if areas a we this optimize trying drive

So there's different sort there's steps there. -- X of different X

the the do may as identify therefore, So say, can and you reduce, we but reinvest is, first to opportunities so. step see we if yes,

question next is from Davies. Simon Our coming

me, please. from Two

Or Do to of the more you want exit? opportunity relatively market. you deal for into it's Sisal you early given this international stage invest takes broadly, the something that is lotteries that Firstly, group, a you see in possibly development? strategic digital might that and something the a as

the just opening would have in launch thoughts your are What terms start-up in over do that losses? thoughts be U.S. of months? of material terms question, next to of the you XX of returning how second likelihood up timing any California Massachusetts the in And the And and also on

Simon, followed your been lotteries as there, international the Sisal. the with who as on looking in haven't to forward just and have getting about of clearly, look, and more yes, the we've in they is well the which of those the for skin is the Morocco closed and operation -- it's in sort deal have I of it sort opportunities understanding of think business, that only questions, mean we terms we're team Turkey, an pursuing. exciting call

But with stand-alone to on up betting. -- way opportunity and but not markets may but it's to use also to sports both new as getting into a follow subsequently could exciting in, able betting sports basis, also we that an a be as have

the is to go second specific your question, think of Massachusetts going I when of details terms we In live. don't have yet

even and versus Massachusetts. view means base we've the overall expect wouldn't in said 'XX. might the But of around going loss We the think in to we got of retained specifically is new the to that launch. guide it's with the the size states mathematics a that XXXX I still we've XXXX. be on What going probably launches are that base

be We XXXX. EBITDA expect, to subject California, profitable in to

fight. another is world, be to add worth covered percentage big going more it's sports than Xth will betting population It one that we points the be might the largest by in economy X in to it's have America. Look, Yes. California. Clearly, but the a tough

we're I'll of and how you. on about me the Xth November, tell feeling Ask

from coming is Daniel question Next Politzer.

profitability. on congrats U.S. the And

that. seen to a clarify work. in you you've but It spent to sales and previously marketing than more you quarter sounded continue point on the flywheel Just on second planned like the

So you're to on as quarter, that guess, characterization? you go now Is I I into sales want previously to more had. a and marketing fair confirm than planning just you the third spend

us I'd is based agile remain decisions we Bowl what I invest. and we we post on in saw very what say before necessarily Super wouldn't was say into to that see before opportunity an QX us. making

have which -- similar to competitive We what probably expect plans still to the be we we expected. market pretty

the people expect back said in QX step powder in some again market. maybe in We and step to having

QX. I necessarily into extrapolate So what's wouldn't happened QX in

LTV. into go always adjust that we September. competitive CPA the competitive spend spend paybacks market, We as will And adjust the and we'll dynamics the metrics judge which our based we by, August our and through to our is on

previously probably expected we be. we be So it as as to to expect as competitive it

Dan, question? saw, back step think, you have I we I yes, As second you -- QX. of did a have in a bit think a

Yes. Yes.

as just a So quick follow-up.

improvement guess M&A? terms currently a of think they're and growing the via do interrelated. the that and how versus organic In think M&A, growing about you're guess, weigh target you If of iGaming and do growth at? teens, you product I How I versus have high you it, Do maybe iGaming kind something business? about inorganic you share doing

I to the improvements because substantial direct, half mean, our have can which pretty we customers XX%, there's think some know around potential. think make. testament share brand FanDuel think is and our impressive a we we is that I is I Look, Yes. the which of its that come strength Around

the Fanduel started have in We resources up business scaling we're U.S. the the applying to

[ we across in So to brought ] the lead started business. May. Asad He casino

Power to brought So an We -- it's people from over folks have now. PokerStars starting Paddy impact as Betfair from other and from other well.

business. elsewhere to about talk bringing of the basics over We're about in in got you the is we've place. Investor group now excited very focus going opportunities we of November. that casino the to strategy. some that expertise we'll The at the can have the new And key we [indiscernible] Day And in more have a our

Andrew from coming is question next Our Tam.

Andrew Tam from Redburn.

minute. a staying Just the U.S. with for

of away. It extent improve that's leverage. terms in start mean terms move forward from and operating to of that new sounds leverage that a X:X the a what in does state like operating Just ratio. bit of launches suppose, going as, I happen I to little fall

of that's part spend suppose ongoing. just time? leaning I spoke your as Or the about terms one. New do let's being the state about How that are think second states into customer reviews the you somebody down of key about that sales York. your launches to some in first think acquisition should And York comments just like that -- of earlier, record that just comments Should over we rules the that, sort say, improve investors terms that? is how some of in not versus, prioritizing New

we some costs question, with if -- take So the just scale. I off-leverage move

So to customer move will scale. ops costs

have those need regulatory states. we As we the to date launch, associated new a with do folks of and each compliance

Some customers. volume of are of or related, either volume volume just things states

base, So is we'll the dependent. and of variable which have activity element cost an naturally

sensible framework think it's comfortable is reasonable way way a about. of within get to it. find the clearly to about to I a a time, of over minute, be it's looking it. that this that improve but just And historic about framework at we which thumb think rule we'll if But a people Look, we're to make ratio current sort to at And a can think it. think -- with to as

At in around as New the And fact that acquisition time, deprioritizing in we're around question same customer York. leaning second in of terms the QX. your

that think York I is tax customers, been very levels application important free business to thoughtful we've of York. about about generosity things the the and carry New rest the same like that that bets of New of point that, the

thoughtful very the And bases like about New York. generosity application we're so of

very just pick the we lifetime additional to -- see up continue [indiscernible], we point business. saw to we generally, and to More robust values, opportunities

our money. As QX of and with more Jonathan said, we spend very chose agile sort we're spend to and buffer marketing in

or focus Got the mean compare your it. spend -- spend. I of marketing been just And terms about how spending that should customer retention. how on to on acquisition does then in think we has

because conscious customers. of it's Day time. -- that can But think at and we slightly I -- our yes retaining more in are cover a it topic the slightly we about Investor I'm bigger to in So look, investing talk November

the It's something tools we're and the about earlier and to the from the across just utilize group. and generosity call, talking sort spend of of some great on we referenced we have generosity the on personalized the ability

to talk we'll look, November. in you So more about that

from the Ivor coming queue question from last Jones. is Our

a Sisal Or and of integrate you Can Longer coming is the I the brands? step group things ask business? a growth it X term, as part becomes Italy? nice about there change is other

quickly is expected And that well, get retailers August. Or because is you the get July performing we and your expectations into more expected is, is to as the outperforming it level? Sisal recovered than to narrow even question

Look, The pleased with performance the we're very last of Sisal. closed week. only business

is penetration step think was of grow. COVID. we There So moving low change continue a online expect about it very how in to terms do forward, in and to in that Italy, online we penetration with

those retail lot -- have of like synergies transaction. in There lockdown are have we comparison are we are to this it off customers the last a the is the this online with of year. we're as staying with with What able seen half back year first the big product, to customers that expecting deliver back but a use bounce in

our well. which we'll We deposits, and going risk obviously be cost of trading cross-selling business, And in which the our base will will network about some is poker utilize I also for utilize as into will the but think, save Sisal points help to to of the Poker Sisal, to able product. be retail be able improve sort important. capability think

approvals of wasn't that. about it. gaming element, big business now the we've the get about we've get it's and brought lined the together, to excited excited the up ourselves to then But all -- we're we're to hopefully and with that able -- the integration very content the done, it's taken time been getting pretty on is third because And

look, of much, all very you everybody. your Appreciate Okay. thank time.

Sorry, Got great questions, some we've nearly you. hour. so thank entire the used

Thanks all very much.

conclude does that Everyone, call for conference today. your

You it. so of rest you or joining. much And may now for disconnect. Thank the