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]

Financial Data and Key Metrics Changes - For Q4 2024, total revenue reached $318 million, a year-over-year increase of 6.9%, and adjusted EBITDA was $47 million, up 6.2% year-over-year [23] - For the full year, total revenue was $1.2 billion, reflecting a 5.2% increase, while adjusted EBITDA increased by 4.2% to $189 million [7][23] - As of December 31, the company had 26,346 terminals across 4,117 locations, representing year-over-year increases of 5% and 3.9%, respectively [23] Business Line Data and Key Metrics Changes - In Illinois, revenue per location was $868 per day, a 3.5% increase year-over-year, while Montana saw $614 per day, up 4.6% year-over-year [23] - Nebraska reported $253 per day, a 5.9% increase year-over-year, while Nevada experienced a decrease of 6.7% to $786 per day [23] Market Data and Key Metrics Changes - Illinois, the largest market, posted market-wide GGR growth of 4% year-over-year, outperforming Illinois casinos which were down 3% year-over-year [8] - The company strategically closed 54 underperforming locations in 2024 to right-size operations in response to a 1% increase in state gaming tax [10] Company Strategy and Development Direction - The company is focused on organic growth in Illinois, Nebraska, and Georgia, while also pursuing M&A opportunities in the fragmented local gaming market [16][17] - The Fairmont acquisition includes a master sports betting license and aims to develop a locally focused casino, with phase one expected to open in Q2 2025 [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities within the local gaming market, emphasizing the importance of maintaining a healthy balance sheet and low leverage [30] - The company is optimistic about the potential rollout of ticket in, ticket out (TITO) technology in 2025, which is expected to enhance the gaming experience [13] Other Important Information - Capital expenditures for 2024 were $67 million, with forecasts of $75 million to $80 million for 2025 [25] - The board authorized replenishing the share repurchase program back to $200 million, indicating a commitment to returning capital to shareholders [26][27] Q&A Session Summary Question: Contributions from Louisiana and Fairmont to the model - Management indicated that Louisiana is expected to contribute $6 million of EBITDA for the full year 2025, with Fairmont projected to generate $25 million of EBITDA once fully operational [34] Question: Trends in Illinois and other markets - Management noted favorable weather conditions in January contributed to strong performance, while February saw less favorable conditions [38] Question: Pruning of Illinois units and future growth - Management clarified that pruning is an ongoing process and that growth will manifest as assets are redeployed into better-performing locations [44] Question: Expansion in e-pull tabs and legislative developments - Management acknowledged the potential of the e-pull tab market but emphasized the need for partnerships to participate effectively [49] Question: Growth opportunities in Louisiana - Management highlighted the fragmented nature of the Louisiana market, particularly in truck stops and bars, as a significant growth opportunity [61]