Financial Data and Key Metrics Changes - The company reported record quarterly revenues of $318 million, an increase of $39 million or 14% year-over-year, driven by higher product uptake from existing clients and new client spending [22][24][33] - Adjusted EBITDA for the quarter was $64 million, increasing 31% year-over-year, with an adjusted EBITDA margin expanding approximately 250 basis points to 20.1% [26][29] - The company generated a profit of $49 million compared to a loss of $1.5 million in the same period last year, aided by an unrealized foreign currency gain of $54 million [29] Business Line Data and Key Metrics Changes - Betting technology and solutions revenue grew 12% year-over-year to $259 million, driven by a 10% increase in betting and gaming content [23] - Managed Betting Services revenue increased by 21% year-over-year, reflecting strong momentum in Managed Trading Services with turnover growth of 23% year-to-date [12][24] - Sports content technology and services revenue rose 22% year-over-year to $59 million, with marketing and media services up 16% [24] Market Data and Key Metrics Changes - U.S. revenue grew 30% year-over-year, while revenue from the rest of the world increased by 9% [25][33] - The U.S. sports betting market has expanded significantly since legislation in 2018, growing from approximately $300 million in GGR to nearly $14 billion last year [11] Company Strategy and Development Direction - The company aims to capitalize on the rapid expansion of the global sports betting market, focusing on increasing product penetration and innovation [9][10] - Plans to expand into adjacent markets leveraging existing capabilities and expertise, while investing in technology and AI to enhance growth [10][19] - The company is committed to maintaining a disciplined approach to rights acquisitions, ensuring alignment with strategic goals [67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong operating momentum for the remainder of the year, raising full-year revenue guidance to at least $1.278 billion, representing year-over-year growth of at least 16% [33][34] - The company anticipates strong free cash flow growth for the full year, with a conversion rate above last year's level [31][34] Other Important Information - The company is in the process of acquiring IMG Arena's portfolio, which is expected to enhance its content offerings significantly [17][34] - The company has repurchased approximately $86 million of stock as part of its share repurchase program, reflecting confidence in its growth prospects [32] Q&A Session Summary Question: Insights on the Club World Cup's impact on betting - Management noted that the World Cup was beneficial for Managed Trading Services, with increased interest from media companies to drive traffic from betting [38] Question: Clarification on European leagues rights and IMG acquisition - Management confirmed that European leagues were not included in the IMG acquisition due to their loss-making nature and lack of audiovisual rights [42][67] Question: Impact of new NTS customers on Managed Betting Services - Management highlighted strong growth in Managed Trading Services, attributing it to the onboarding of 50 new clients in 2024 and a robust pipeline of 42 additional clients [45][90] Question: Organic growth rate in the ROW business - Management explained that the growth rate was affected by timing around media campaigns, with strong growth observed in the first half of the year [52] Question: U.S. market health and trends - Management indicated strong growth in the U.S. market, with expectations for continued positive trends in Q3 [102] Question: Client engagement and product uptake - Management reported that 40% of clients are using four or more products, indicating opportunities for upselling and deeper client relationships [107]

Financial Data and Key Metrics Changes - The company reported record quarterly revenues of $318 million, an increase of $39 million or 14% year-over-year, driven by higher product uptake from existing clients and new client spending [20][21] - Adjusted EBITDA for the quarter was $64 million, increasing 31% year-over-year, with an adjusted EBITDA margin expanding approximately 250 basis points to 20.1% [24][28] - The company generated a profit of $49 million compared to a loss of $1.5 million in the same period last year, aided by an unrealized foreign currency gain of $54 million [28] Business Line Data and Key Metrics Changes - Betting technology and solutions revenue grew 12% year-over-year to $259 million, driven by a 10% increase in betting and gaming content [21] - Managed Betting Services revenue increased by 21% year-on-year, reflecting strong momentum in Managed Trading Services [22] - Sports content technology and services revenue rose 22% year-on-year to $59 million, with significant contributions from marketing and media services [22] Market Data and Key Metrics Changes - U.S. revenue grew by 30%, while revenue from the rest of the world increased by 9% in the second quarter [23] - The U.S. sports betting market has expanded significantly since legislation in 2018, growing from approximately $300 million in GGR to nearly $14 billion last year [9] Company Strategy and Development Direction - The company aims to capitalize on the rapid expansion of the global sports betting market, focusing on increasing product penetration and innovation [7][8] - Plans to expand into adjacent markets leveraging existing capabilities and expertise are underway, with a focus on enhancing client relationships [8][18] - The company is committed to investing in innovation and technology, including AI capabilities, to drive growth efficiently [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong operating momentum for the remainder of the year and raised the full-year revenue outlook to at least $1.278 billion, representing year-over-year growth of at least 16% [31][33] - The company anticipates adjusted EBITDA of at least €284 million, reflecting growth of at least 28% versus 2024 [31][33] - Management highlighted the importance of maintaining discipline in rights acquisitions and emphasized the strong growth potential in the U.S. and international markets [66][68] Other Important Information - The company is in the process of acquiring IMG Arena's portfolio, which is expected to enhance its content offerings in key sports [14][33] - The company has repurchased approximately $86 million of stock as part of its share repurchase program, indicating confidence in its growth prospects [30] Q&A Session Summary Question: Insights on the Club World Cup's impact on betting - Management noted that the World Cup was beneficial for Managed Trading Services, with increased interest from media companies driving traffic from betting [36][37] Question: Clarification on European league rights and IMG acquisition - Management confirmed that European league rights were not included in the IMG acquisition due to their loss-making nature and lack of audiovisual inventory [38][40] Question: Impact of new NTS customers on Managed Betting Services - Management indicated that the onboarding of 50 new clients in 2024 has significantly contributed to the strong growth in Managed Trading Services [43][44] Question: Trends in the advertising business and organic growth rates - Management explained that fluctuations in advertising growth are due to timing around media campaigns, with expectations for continued momentum in the back half of the year [50][52] Question: U.S. gaming market health and trends - Management expressed caution in predicting Q3 trends but noted strong growth and adaptation in the U.S. market [95][96] Question: Future market opportunities and potential new markets - Management highlighted Brazil's growth potential and mentioned ongoing developments in Japan, India, and Thailand as key markets to watch [108][109]

Financial Data and Key Metrics Changes - Net sales declined by 4.1% and comparable sales decreased by 3.9% in the quarter, attributed to the closure of 24 stores [26][27] - Gross margin increased to 39.9%, up 37 basis points year-over-year, driven by category mix benefits and inventory management [30] - SG&A expenses decreased by 5.2% to $1.2 billion, leveraging approximately 32 basis points compared to last year [30] - The company reported a net loss of $15 million, with earnings per diluted share of negative $0.13, a 46% improvement from the previous year [31] Business Line Data and Key Metrics Changes - Jewelry sales increased by 10% in Q1, primarily driven by Kohl's card customers, following the reintroduction of jewelry into stores [15][16] - Women's apparel is being rebalanced to improve performance, focusing on essentials and proprietary brands [17][19] - Sephora's net sales were up 6% and comparable sales increased by 1% in Q1, contributing to a nearly $2 billion beauty business [18] - The impulse queue line rollout is expected to enhance sales, with plans to expand to nearly all stores by Q3 [18] Market Data and Key Metrics Changes - The digital business saw a sales decline of 7.7% in the quarter, underperforming compared to store sales, which declined by 2.6% [27][28] - The middle and low-income customers are under pressure, prioritizing value and trading down to lower-priced products [28] Company Strategy and Development Direction - The company is focused on three key areas: offering a curated assortment, reestablishing value and quality, and enhancing the omnichannel shopping experience [12][19][23] - Plans for 2025 include improving product assortment clarity and investing in proprietary brands to better serve customer needs [13][19] - The company aims to enhance promotions by including more brands in coupon eligibility, responding positively to customer feedback [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing transformation and the need to align the business with customer needs, particularly focusing on value [40][41] - The company is navigating a fluid environment with uncertainties, particularly affecting middle-income customers [43][44] - Despite challenges, management remains optimistic about achieving financial guidance for the year, with expectations of comparable sales down 4% to 6% [36] Other Important Information - The company completed a private offering of $360 million in senior secured notes, expected to close on May 30, to refinance upcoming debt maturities [34][35] - Inventory strategies are being implemented to manage tariff pressures, with expectations of inventory down high single digits by year-end [32][36] Q&A Session Summary Question: Any adjustments to strategic priorities and what will it take to return to comp growth? - Management does not foresee major changes to the strategy and emphasizes understanding customer needs to restore growth [39][40] Question: Insights on quarter-to-date trends and tariff impacts? - Management holds the full-year guidance due to uncertainties and notes consistent performance with some weather-related impacts [42][44][46] Question: Breakdown of gross margin increase and private label performance? - The increase in gross margin is attributed to a favorable category mix and improved inventory management, with proprietary brands expected to enhance margins [50][52] Question: Assessment of store footprint and potential closures? - The company has a healthy store base and will continue to evaluate store performance, with closures being part of regular hygiene [60][62] Question: Update on Sephora collaboration and operating environment? - Sephora is now present in all stores, and while comp growth has moderated, the company is pleased with market share gains in beauty [73][75] Question: E-commerce performance and profitability outlook? - Digital sales declined but are expected to improve as core customers return, with profitability being lower than stores due to shipping costs [80][84]