Financial Data and Key Metrics Changes - The company reported a revenue growth of 20% and adjusted EBITDA growth of 17% to 297 million [9][10] - Diluted earnings per share increased by 290%, while adjusted earnings per share rose by 56% [9] - Free cash flow improved to 95 million in the prior year [9] - The leverage ratio decreased to 2.6x from 3.1x at the end of December 2023, nearing the medium-term target range of 2x to 2.5x [10] Business Line Data and Key Metrics Changes - In the U.S., revenue grew by 39% and adjusted EBITDA increased by 51%, with sportsbook revenue up 41% and iGaming revenue up 47% [10][11] - Outside the U.S., revenue increased by 10%, with UK&I and international segments driving growth [11] - The UK&I segment saw revenue and adjusted EBITDA rise by 18%, benefiting from favorable sports results during the European Football Championships [11] Market Data and Key Metrics Changes - In the U.S., FanDuel captured nearly 40% market share in sports betting and iGaming, with AMPs and new players increasing by over 30% [5][6] - In North Carolina, the company achieved a 59% market share with a 20% growth in new players from pre-2022 states [6] - Sisal in Italy accounted for nearly 20% stakes on euros, contributing to a record market share performance [7] Company Strategy and Development Direction - The company aims to strengthen its leadership position in the U.S. while maintaining momentum in diversified international markets [8] - Continued investment in customer acquisition is prioritized, with a focus on maintaining a payback period of less than two years [16] - The company is enhancing its product capabilities, particularly in live betting and same game parlays, to maintain competitive advantages [43][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance in Q2 as an indicator of future growth, despite potential headwinds from tax changes in Illinois [16][20] - The company anticipates a small EBITDA loss in Q3 but expects significant earnings in Q4, with an overall positive outlook for 2024 [12][13] - Management emphasized the importance of a balanced tax approach to maximize market growth and customer experience [20][55] Other Important Information - The company completed the migration of FanDuel Casino onto proprietary technology, unlocking benefits such as access to in-house content and promotional capabilities [6] - The updated guidance for 2024 includes a midpoint revenue guidance of 8 billion ex-U.S., reflecting strong momentum [12][13] Q&A Session Summary Question: U.S. performance and guidance - Management highlighted strong Q2 performance driven by positive sports results and customer acquisition efforts, with a focus on maintaining a payback period of less than two years [15][16] Question: Impact of Illinois tax changes - Management discussed strategies to mitigate the $40 million net headwind from Illinois, emphasizing the importance of a balanced tax approach [15][20] Question: Customer acquisition costs - Management noted a slight decrease in customer acquisition costs year-over-year, maintaining a consistent posture in acquiring business while meeting return criteria [22][23] Question: Competitive dynamics in poker - Management expressed confidence in maintaining a strong position in the poker market, leveraging local brands and ongoing transformation initiatives for PokerStars [31][32] Question: Australia market trends - Management reported resilient performance in Australia, particularly in sports engagement, despite regulatory challenges [34] Question: M&A strategy - Management indicated a willingness to pursue M&A opportunities if they align with strategic goals, while maintaining a focus on deleveraging [38][39] Question: Product development for NFL season - Management highlighted ongoing investments in live betting and product enhancements to support the upcoming NFL season [64]
Flutter Entertainment(FLUT) - 2024 Q2 - Earnings Call Transcript