Financial Data and Key Metrics Changes - The company reported consolidated revenue growth for the sixteenth consecutive quarter, with a 2% increase to $774 million compared to the prior year, driven by gaming and iGaming businesses [20][21] - Net income was $82 million, resulting in diluted net income per share of $0.94, up from $0.88 in the prior year [21] - Consolidated EBITDA grew by 11% to $311 million, with a consolidated EBITDA margin of 40%, a 300 basis point increase year over year [21][30] - Adjusted NPATA increased by 11% year over year to $117 million, with adjusted NPATA per share rising 21% to $1.35 [21][22] Business Line Data and Key Metrics Changes - Gaming revenue reached $495 million, a 4% uplift, with EBITDA growing 9% to $254 million, reflecting a margin expansion of 200 basis points to 51% [22][23] - Gaming operations generated $173 million in revenue, a 5% increase year over year, with an average revenue per day of over $48 [23] - SciPlay revenue was $202 million, with Quick Hit Slots achieving record performance, contributing to a 3% EBITDA growth to $64 million [26][27] - iGaming revenue increased 4% year over year to $77 million, with EBITDA growing 8% to a record $27 million [29] Market Data and Key Metrics Changes - The North American installed base increased by approximately 500 units sequentially, totaling over 34,000 units, with 51% of the fleet classified as premium [6][23] - The company regained the number one position in Australia for ship share, supported by strong game franchises [7] - The U.S. and Canada markets saw GGR increases of 3011% year over year, indicating robust growth in iGaming [12] Company Strategy and Development Direction - The company is focused on operational excellence, a comprehensive product roadmap, and reinvesting in R&D for sustainable growth [4][5] - A strategic acquisition of Grover Gaming's charitable gaming asset is expected to enhance the company's role in the global games market [16][17] - The company aims to maintain a high return on investment while expanding its direct-to-consumer platform [11][55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the gaming industry's resilience despite potential macroeconomic challenges [5][34] - The company is committed to achieving its 2025 consolidated EBITDA target of $1.4 billion, despite tariff headwinds [34] - Management noted that GGR remains a critical metric, with strong performance observed across U.S. markets [84] Other Important Information - The company has implemented measures to mitigate tariff impacts, including diversifying the supply chain and pulling forward inventory [89][91] - The direct-to-consumer platform has seen significant growth, now accounting for over 13% of revenue [11][54] Q&A Session Summary Question: Impact of tariffs on business - Management indicated that tariffs are currently manageable, with strategies in place to mitigate costs and maintain revenue targets [40][41] Question: U.S. gaming operations yield - Management noted that weather-related factors impacted yields, but overall trading has returned to normal [48][49] Question: SciPlay business and DTC strategy - Management expressed excitement about a recent favorable ruling regarding alternative payment methods, which will enhance the DTC strategy [54][55] Question: International gaming business performance - Management acknowledged a decline in international installed base due to tough comparisons from the previous year but remains optimistic about future contributions [61][62] Question: Update on dual listing strategy - Management confirmed ongoing discussions regarding an Australian listing but indicated a cautious approach due to market uncertainties [70][72] Question: Pathways to achieving EBITDA guidance - Management reiterated the importance of maintaining momentum in gaming operations and optimizing costs to achieve the $1.4 billion EBITDA target [76][80]

Financial Data and Key Metrics Changes - For Q1 2025, total income from real estate increased by over $19 million compared to Q1 2024, driven by cash rent increases of over $26 million from acquisitions and escalations [14][16] - Operating expenses rose by $18 million, primarily due to a non-adjustment in the provision for credit losses based on a more pessimistic economic forecast [16] - The updated full-year 2025 guidance ranges from $3.84 to $3.87 per diluted share in OP units, with a reduction in the high end of guidance due to assumptions regarding the Pinnacle lease escalation [17][18] Business Line Data and Key Metrics Changes - The acquisition of Valley Chicago Land contributed an additional $5 million to cash income, while other acquisitions like Tropicana, Kansas City, and Shreveport also added significant amounts [14] - The recognition of escalators and percentage rent adjustments added approximately $6.7 million to cash income, although non-cash revenue adjustments led to a collective year-over-year decrease of about $7.6 million [16] Market Data and Key Metrics Changes - The Chicago project is progressing, with 272 of the required 331 caissons completed, and steel expected to arrive in July [12][12] - The performance in the Chicago area has shown positive trends, with recent openings impacting market share dynamics [46] Company Strategy and Development Direction - The company emphasizes a long-term management approach, focusing on maintaining a strong balance sheet and disciplined capital deployment [20][24] - The strategic approach includes building a pipeline of opportunities for growth extending into 2026 and beyond, with a focus on tenant partnerships [22][24] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about cash flows, describing them as steady and resilient despite macroeconomic uncertainties [20] - The company is closely monitoring the evolving gaming landscape, particularly in relation to iGaming and its potential impacts on brick-and-mortar operations [112][114] Other Important Information - The company is actively engaged in monitoring legislative developments in various states regarding gaming regulations, particularly concerning iGaming and sports betting [66][68] - The company has a robust pipeline of potential deals, with increased interest from counterparties amid market volatility [55][132] Q&A Session Summary Question: Expectations for the Chicago project and potential complications - Management acknowledged the complexity of the Chicago project and the possibility of delays but expressed confidence in the current progress [31][32] Question: Update on gaming trends in the Chicago area - Management noted consistent trends in the Chicago area, with recent openings affecting market share, and expressed optimism about the performance of their tenants [46] Question: Changes in funding guidance and timing - The reduction in funding guidance was attributed to project delays, with management emphasizing that it is primarily a timing issue [43][44] Question: Impact of tariffs on construction costs - Management indicated that many expensive components have already been ordered, minimizing the potential impact of tariffs on the project [85][87] Question: Interest in international markets - The company regularly evaluates international opportunities but is cautious about tax implications and exchange rate risks [161] Question: Evolution of the relationship with Bally's - Management noted increased exposure to Bally's but emphasized the strength of the underlying assets and the positive performance of properties in their portfolio [102][103]

Financial Data and Key Metrics Changes - For Q1 2025, total income from real estate increased by over $19 million compared to Q1 2024, driven by cash rent increases of over $26 million from acquisitions and escalations [14][16] - Operating expenses rose by $18 million, primarily due to a non-adjustment in the provision for credit losses based on a more pessimistic economic forecast [16] - The updated full-year 2025 guidance ranges from $3.84 to $3.87 per diluted share in OP units, with a reduction in the high end of guidance due to assumptions regarding the Pinnacle lease escalation [17][18] Business Line Data and Key Metrics Changes - The acquisition of Valley Chicago Land contributed an additional $5 million to cash income, while other acquisitions such as Tropicana, Kansas City, and Shreveport also added significant amounts [14] - The recognition of escalators and percentage rent adjustments added approximately $6.7 million to cash income, although non-cash revenue adjustments led to a collective year-over-year decrease of about $7.6 million [16] Market Data and Key Metrics Changes - The Chicago project is progressing, with 272 of the required 331 caissons completed, and steel expected to arrive in July [12][12] - Regional gaming trends remain positive, with recent performance in the Chicago area showing an increase, despite competition from new openings [46][49] Company Strategy and Development Direction - The company emphasizes a long-term management approach, focusing on maintaining a strong balance sheet and disciplined capital deployment [20][24] - The strategic approach includes building a pipeline of opportunities for growth extending into 2026 and beyond, with a focus on tenant partnerships [22][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the macroeconomic uncertainties but remains focused on long-term stability and growth [20][24] - The company is monitoring legislative developments in various states regarding gaming, with a cautious stance on iGaming due to potential impacts on brick-and-mortar operations [67][113] Other Important Information - The company plans to continue capitalizing interest and deferring rent during development periods for financial reporting purposes [17] - The rent coverage ratios remain strong, ranging from 1.73 to 2.51 times on master leases as of the end of the prior quarter [19] Q&A Session Summary Question: Expectations for the Chicago project and potential complications - Management indicated that while delays are always possible, the project is well underway and being closely monitored [31][32] Question: Update on gaming trends and regional performance - Management noted consistent trends in the Chicago area, with recent performance showing positive signs despite competition [46][49] Question: Changes in funding guidance and timing - The reduction in funding guidance was attributed to project delays, with management emphasizing that it is a timing issue rather than a fundamental change [42][43] Question: Impact of tariffs on construction costs - Management stated that many expensive components have already been ordered, and the impact of tariffs is still uncertain [85][87] Question: Interest in international markets - The company regularly evaluates international opportunities but is cautious about tax implications and exchange rate risks [161]

Financial Data and Key Metrics Changes - For Q1 2025, total income from real estate increased by over $19 million compared to Q1 2024, driven by cash rent increases of over $26 million from acquisitions and escalations [10][11] - Operating expenses rose by $18 million, primarily due to a non-cash adjustment in the provision for credit losses [11] - Full year 2025 guidance was updated to range from $3.84 to $3.87 per diluted share in OP units, with a reduction in the high end of guidance due to assumptions regarding the Pinnacle lease escalation [12] Business Line Data and Key Metrics Changes - Cash income increases were attributed to various acquisitions: Valley Chicago Land ($5 million), Tropicana funding ($1 million), Kansas City and Shreveport ($8 million), Tioga acquisition ($1.4 million), Rockford loan ($1.9 million), strategic acquisition ($2.3 million), and ION cash income ($0.5 million) [10] - The recognition of escalators and percentage rent adjustments added approximately $6.7 million to cash income [11] Market Data and Key Metrics Changes - The Chicago project is progressing, with 272 of the required 331 caissons installed, and steel expected to arrive in July [9][10] - The performance in the Chicagoland area has been positive, with recent trends showing an increase in performance despite competition from new entrants like Wind Creek [41] Company Strategy and Development Direction - The company emphasizes a long-term management approach, focusing on maintaining a strong balance sheet and disciplined capital deployment [15][16] - The strategic approach includes building a pipeline of opportunities for growth extending into 2026 and beyond, with a focus on tenant partnerships [16] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about cash flows, describing them as steady and resilient amid market uncertainties [14] - The company is closely monitoring the Chicago project and is committed to its success, despite potential future complications [21][22] Other Important Information - The company is actively monitoring legislative developments in various states regarding gaming, with a focus on iGaming and its potential impacts on brick-and-mortar operations [53][55] - The company is cautious about iGaming, viewing it as potentially dilutive to traditional revenue streams, but recognizes the importance of strong tenant relationships [92][93] Q&A Session Summary Question: Update on the Chicago development and expectations moving forward - Management acknowledged the complexity of the project and the possibility of future delays but expressed confidence in the current progress [21][22] Question: Recent conversations with Penn regarding funding - Ongoing dialogue exists, but no immediate expectations for fund withdrawals this calendar year [32] Question: Changes in guidance related to development funding - The reduction in guidance was attributed to timing and project delays [38] Question: Trends in regional gaming and performance expectations - Positive trends observed in the Chicagoland area, with operators focusing on brick-and-mortar assets [41] Question: Interest in international markets and potential risks - The company regularly evaluates international acquisitions, considering tax implications and exchange rate risks [129] Question: Impact of tariffs on construction costs - Many expensive components have already been ordered, minimizing the immediate impact of tariffs [68][71] Question: Commentary on foot traffic and consumer spending - No specific property-level data available, but overall trends appear positive based on tenant performance [134]

Financial Data and Key Metrics Changes - The company reported record Q4 revenues of $35.3 million, with adjusted EBITDA of $14.7 million and free cash flow of $13.2 million, marking a 9% year-over-year revenue increase driven by casino revenue growth across all regions [6][16] - Full year 2024 revenue increased 17% to a record $127.2 million, with adjusted EBITDA rising 33% year-over-year to $48.7 million [19][20] - Gross profit increased 21% year-over-year to $33.1 million, with gross margin rising from 84% to 94% [17] Business Line Data and Key Metrics Changes - iGaming revenue grew significantly across all operating regions, with strong organic growth and benefits from the Freebets.com acquisition [11] - The acquisition of OzJam and Opticods is expected to drive substantial growth in subscription revenue, projected to account for over 20% of total group revenue [10][21] Market Data and Key Metrics Changes - Revenue in the UK and Ireland grew by 25%, while other Europe saw a 104% increase, and the rest of the world experienced an 81% rise, offsetting a 9% decline in North American revenue [19] - The company anticipates a return to growth in North America for 2025, driven by improved iGaming pricing trends and new state launches [12][21] Company Strategy and Development Direction - The company aims for full year revenue growth of 35% and adjusted EBITDA growth of 40% in 2025, with a long-term goal of generating $100 million in annual adjusted EBITDA [8][21] - Strategic acquisitions are a key focus, with the company successfully integrating new businesses to enhance its market position and drive shareholder value [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges in the sports betting market and highlighted the resilience of the iGaming sector [12][58] - The company remains optimistic about the expansion of iGaming in the U.S. and expects significant top-line and cash flow growth as more states approve iGaming [12][21] Other Important Information - The company repurchased approximately 3 million shares at an average price of $9.06, representing nearly 9% of total outstanding shares [20] - The company expanded its credit facility from $100 million to $165 million, providing increased flexibility for strategic acquisitions [20][21] Q&A Session Summary Question: Insights on customer negotiations and market conditions - Management noted that the supply of traffic is a key driver, and they have successfully navigated challenges in the sports betting market by focusing on iGaming and strategic acquisitions [25][27] Question: Feedback on Optic Odds and market traction - Management indicated that they are optimistic about the international expansion of Optic Odds and its potential to solve critical risk management problems for operators [31][33] Question: Guidance nuances and regional growth - Management highlighted that North America is expected to be the fastest-growing region, driven by a change in traffic source mix and a focus on higher gross margins [39] Question: Capital allocation and stock repurchases - Management confirmed that they received consent to proceed with stock buybacks and will be tactical in their approach, focusing on mispriced stock opportunities [43][44] Question: Opportunities in sweepstakes and prediction markets - Management expressed cautious optimism about sweepstakes and highlighted the potential for prediction markets to grow the overall market [47][49] Question: Impact of higher taxes on the business - Management stated that increased taxes would affect the entire ecosystem but noted that their best clients are Tier two and Tier three operators, who are less impacted [51][52] Question: Organic growth rates and economic resilience - Management indicated that organic growth is expected to be in the low teens, with the industry historically showing resilience during economic downturns [60][58]

Financial Data and Key Metrics Changes - Total company revenue for the full year 2024 was $1,100 million, an increase of $229 million or 26% compared to 2023, driven by higher client spending and new ATP and NBA deals [25][27] - Adjusted EBITDA for the year was $222 million, up $56 million compared to the previous year, with adjusted EBITDA margins increasing by over 100 basis points to 20% [28][32] - In Q4, record revenues reached $307 million, a 22% increase year-on-year, with adjusted EBITDA of $61 million, up 53% year-on-year [30][34] Business Line Data and Key Metrics Changes - Betting technology and solutions revenue was $247 million, delivering 21% growth year-on-year, primarily driven by a 30% increase in betting and gaming content [28][29] - Managed trading services (MTS) turnover reached €35 billion, with a margin of 10.7%, an improvement from 9.8% in 2023 [19] - Sports content technology and services revenue was $60 million, increasing 23% year-on-year, led by a 22% growth in marketing and media services [29] Market Data and Key Metrics Changes - U.S. revenues increased by 58% year-on-year, now accounting for 24% of total revenue, up 500 basis points from the previous year [27] - The rest of the world saw a revenue increase of 19% [25] - MTS has expanded to over 250 sportsbook clients, encompassing more than 500 sportsbook brands [20] Company Strategy and Development Direction - The company is expanding its global content portfolio through the acquisition of IMG Arena, enhancing its footprint in key sports like tennis, soccer, and basketball [7][8] - The focus is on leveraging technology and AI to automate data collection and enhance product offerings, aiming for significant cash flow generation and margin expansion [24][38] - The company anticipates continued robust growth in 2025, with revenue expected to reach at least $1,273 million, representing a year-over-year growth of at least 15% [37][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving multi-year margin expansion and significant cash flow generation, citing a strong competitive position and growth profile [9][23] - The acquisition of IMG Arena is expected to be immediately accretive to business and margins, with a focus on maximizing the value of high-demand content [13][14] - Management highlighted the importance of operational synergies and the ability to leverage existing technology and client relationships to drive future growth [48][67] Other Important Information - The company generated free cash flow of $118 million in 2024, up from $50 million in 2023, with a conversion rate of 53% [34] - The balance sheet remains strong, with $348 million in cash and no debt outstanding [34] - The company has repurchased approximately $20 million worth of stock under its share repurchase program [35] Q&A Session Summary Question: Can you provide details on the IMG deal and its impact? - Management emphasized the strategic and commercial benefits of the IMG deal, highlighting its accretive nature to revenue, margin, and cash flow [41][45] - The acquisition includes both assets and liabilities, with a focus on operational synergies to reduce costs [48][49] Question: What is driving the success of MTS in Brazil? - A strong local team and effective marketing strategies are key drivers, with a focus on iGaming as a significant growth opportunity [50][54] Question: Can you elaborate on the impact of the Taiwan Lottery hardware sales on organic growth? - The impact was significant, with the MBS segment growth in Q4 expected to be in the high 20% range without the one-time fees from the Taiwan Lottery [58][60] Question: How does the acquisition of IMG affect revenue and EBITDA projections? - The acquisition is expected to enhance revenue growth significantly, with estimates suggesting a potential high 20% growth rate if IMG had been part of the portfolio from the start of the year [66][67] Question: What is the valuation approach for the IMG acquisition? - The company evaluates ROI for each rights acquisition, focusing on potential revenue generation and margin accretion [86][88]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 was $30.9 million, up 22% from the previous year [6] - Full year adjusted EBITDA was $100.1 million, compared to $99.3 million for 2023 [6][7] - The company received a letter from the SEC indicating that their inquiry is now closed with no further action [7] Business Line Data and Key Metrics Changes - The Interactive business saw revenue and EBITDA growth of 45% and 105% respectively in Q4, accounting for approximately 22% of overall company EBITDA [8][9] - The Digital business is expected to approach 60% of EBITDA by year-end, driven by growth in Interactive and modest acceleration in Virtual Sports [12] - The land-based gaming segment had EBITDA growth of 42% year-over-year in Q4, attributed to gaming hardware sales [25] Market Data and Key Metrics Changes - The company noted that in states with both iGaming and Sports Betting, iGaming outperforms Sports Betting by a ratio of 4 or 5 to 1 [9] - The company is optimistic about the potential growth in the Brazilian market, which is expected to become a significant market for them [53] Company Strategy and Development Direction - The company is focusing on enhancing product development in the Virtual Sports segment to replicate the success seen in Interactive [75] - There is a strategic review ongoing for the holiday parks business, with a cautious optimism about a favorable conclusion [37] - The company is actively looking for M&A opportunities that fit their criteria, although nothing is currently on the horizon [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their business structure, with over 85% of revenue being contractually recurring [13] - The company is optimistic about the future growth of the Virtual Sports business, especially with new innovations and market expansions [34][75] - Management indicated that the current economic environment is being navigated well, with a strong balance sheet and cash position [76] Other Important Information - The company plans to file their 10-K by the end of the week following the earnings call [7] - The company is experiencing a significant year-to-year increase in accounts receivable, impacting year-end cash [15] Q&A Session Summary Question: Challenges in Virtual Sports segment - Management acknowledged that the struggles are primarily driven by one customer but noted stabilization and modest growth in the rest of the business [32][34] Question: Updates on M&A strategy - The company is exploring the sale of holiday parks and remains optimistic about the outcome, while also looking for M&A opportunities that align with their strategy [36][39] Question: U.K. white paper impact - Management expects minimal impact from the upcoming stakes limits and is hopeful for the liberalization of B3 cabinets, which would benefit their sales [42][44] Question: Cash balance expectations - Management indicated that the cash balance is likely to be lower than previously guided due to delays in receivables and accelerated supplier payments [45][46] Question: Virtual Sports growth confidence - Management expressed confidence in the stabilization of Virtual Sports revenue and highlighted strong results from key customers in Brazil [50][53] Question: CapEx needs and cash flow - Management confirmed that CapEx needs are planned and budgeted, with no unexpected expenses anticipated [60][62] Question: Lottery business growth opportunities - Management is excited about the upcoming launch of a cloud-based lottery system and sees significant opportunities in the lottery segment [64][68]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 19% and adjusted EBITDA of $482 million, which is 26% higher than the previous year [7][22] - Net income for the quarter was $156 million, with earnings per share increasing by $5.59 to 45 cents [22] - Adjusted EPS, excluding certain fair value movements, increased by 67% due to a tax credit [22] Business Line Data and Key Metrics Changes - In the U.S., revenue increased by 14%, with adjusted EBITDA of $163 million, driven by a 43% growth in iGaming [23][25] - Sportsbook revenue growth was 8%, impacted by adverse sports results and a moderation in handle growth to 12% [23] - International revenue grew by 14%, with adjusted EBITDA increasing by 6% [25] Market Data and Key Metrics Changes - The U.S. sportsbook TGR market share reached 43%, while iGaming TGR market share was 26% [8][9] - In the UK and Italy, the company solidified its number one position, with UKI revenue growth of 20% driven by strong performance in both sportsbook and iGaming [26][17] - India showed a 72% growth on a year-over-two-year basis, while Australia experienced an 8% revenue decline due to a softer racing market [19][27] Company Strategy and Development Direction - The company aims to strengthen its leadership position in the U.S. market and expand into new markets, including the successful launches of FanDuel in North Carolina and Vermont [6][8] - The creation of Flutter Studios is expected to enhance game development capabilities and complement Tier one supplier content [7] - The company plans to repurchase up to $1 billion in shares across 2025, alongside acquisitions to enhance scale and diversification [8][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term business position despite short-term adverse sports results, emphasizing strong pricing and risk management capabilities [10][9] - The company is optimistic about the prospects for FanDuel and expects to materially expand its user base due to market-leading products [20] - Regulatory dynamics in the U.S. are being closely monitored, with management confident in mitigating potential impacts from state gaming tax increases [16][14] Other Important Information - The company is focused on product innovation, with a structural gross revenue margin of 14.5% in the quarter [11] - The introduction of new features and loyalty programs is expected to drive customer engagement and revenue growth [12][13] - The company is preparing for the integration of new acquisitions, including Snai and NSX, to enhance its market presence [19][76] Q&A Session Summary Question: U.S. Guidance and Investment Losses - Management discussed the expected launch of Missouri in Q4 and Alberta in Q1 2026, estimating $90 million in investment losses for new states [38][39] Question: Customer Acquisition Trends - Management noted strong growth in iGaming and emphasized the importance of product innovations in driving customer acquisition [45][46] Question: Italian Lottery Bid - Management confirmed interest in bidding for a second lottery contract in Italy, with ongoing evaluations of the opportunity [48][49] Question: Handle Growth and iGaming - Management clarified that there is no significant shift of players from sports betting to iGaming, attributing strong iGaming performance to product developments [96][97] Question: Tax Rates and Competitive Environment - Management provided insights on the impact of tax increases in Illinois, estimating a $50 million impact in 2024 [61][62] Question: Consumer Weakness Signs - Management indicated no signs of consumer weakness in existing U.S. states, with a focus on leveraging international market lessons [115]