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Flutter Entertainment PLC
You don't have any saved screeners yet
Good
morning,
everyone,
and
thank
you
for
joining
our
2021
Preliminary
Results
Presentation.
It's
great
to
be
with
you
in
person
after
nearly
two
years
of
Zoom
meetings.
As
you
can
see,
Jonathan's
with
me
this
morning
and
he'll
take
you
through
our
financial
performance
shortly.
Slide
3
shows
the
agenda
for
this
morning's
presentation.
I'm
going
to
start
with a
brief
overview
of
key
developments
in
2021.
Then
I'll
take
you
through
our
refreshed
group
strategy
and
our
new
positive
impact
plan,
which
is
designed
to
make
our
business
more
sustainable.
Jonathan
will
then
take
you
through the
financials
before
I
provide
an
operational
update.
Thereafter,
we'll
be
happy
to
take
any
questions
you
may
have.
Starting
on
slide
4,
look,
I've
been
pleased with
the
progress
we've
made
in
2021
from
both
an
operational
and
a
strategic
perspective.
We
continue
to
expand
our
recreational
customer
base
globally
in
a
sustainable
way. It
positions
us
well
for
the
long-term.
In
the
US,
FanDuel
continues
to
lead.
And
we
achieved
an
important
milestone
on
the
path
to
profitability
with
FanDuel's
sportsbook
and
gaming
business
turning
contribution
positive
during
the
year.
In the
UK
and
Ireland,
we
maintained
our
market
share
while
making
significant
strides
to
make
our
business
more
sustainable.
Jonathan and
I
will
share
more
details
on
the progress
we're
making
in
this
area
and
take
you
through
the
material
items
that
drove
our
Q4
performance
in
particular.
In
Australia,
Sportsbet
continued
to
win
share
of
the
online
market,
reaching
an
estimated
50%
in
2021.
And
in
International,
we've
stabilized
the
PokerStars
business.
Jonathan
will
provide
an
overview
of
the
key
moving
parts
within
the
division
over
the
last
two
years
and
I
will
then
share
how
this
equips
us
well
for
delivering
long-term
growth.
In
2018,
we
laid
out
a
four-pillar
strategy
for
the
group,
and
on
slide
5,
we have
summarized
the
progress
we've
achieved.
We
are
the
number
one
operator
in
the
UK,
Ireland,
Australia,
and
the
US,
while
also
now
having
a
series
of
podium
positions
across
international
markets.
We
are
a
diversified
global
player
from
both
a
geographic
and
product
perspective,
and
I'm
sure
I
don't
need
to
remind
you
all
how
important
diversification
has
been
over
the
last
two
years.
Perhaps
most
encouragingly,
our
growth
has
been
recreational
player-led.
Our
customer
base
now
stands
at
over
7.6
million
monthly
players,
having
grown
a
further
23%
in
2021.
And we
have
a
business
where
over
90%
of
revenues
come
from
regulated
markets
today,
a
number
that
we
expect
to
rise
to
95%
in
the
not-too-distant
future,
with
further
markets
regulating
and
as
our
US
business
expands.
The
addition
of
Sisal
will
also
add
additional
regulated
revenue.
Globally,
we
continue
to
see
significant
opportunities
to
grow
our
presence,
both
organically
and
through
acquisition,
and
our
refreshed
strategy
is
designed
to
take
advantage
of
those
opportunities.
On
slide
6,
we
summarize
our
refreshed
four-pillar
strategy.
Pillar
one
focuses
on
our
core
markets
where
we aim
to
extend
our
leadership
positions
by
delivering
great
products
to
our
recreational
player
base,
while
leveraging
our
economies
of
scale
to
drive
efficiencies.
In
the
US, we
will
continue
to
invest
to
win
as
the
market
expands.
Our
goal
is
simple:
to
maintain
our
lead
in
US
sports
betting
while
improving
our
share
of
the
online
gaming
market.
Pillar
three
is
focused
on
international
market
opportunities,
where
we will
combine
local
and
global
scale
to
expand
our
share
in
attractive
regulated
markets.
We
will
find
more
Adjarabets,
Junglees,
and
Sisals,
strong
local
brands
with
competitive
moats
around
their
businesses.
And
finally,
we'll
nurture
an
innovative
and
experimental
mindset
across
the
group
to
take
early
positions
in
future
spaces.
We're
already
developing
some
of
these
ideas
with
VR
or
virtual
reality
poker,
generating
$10 million
in
gross
revenue
during
2021.
This
group
strategy
will
be
enabled
by
scale,
speed,
product,
data,
and
our
Positive
Impact
Plan,
which
I'll
cover
in
more
detail
on
the
next
slide.
Yesterday,
we
launched
our
Positive
Impact
Plan,
a
sustainability
strategy
that
puts
three
key
sets
of
stakeholders
at
the
heart
of
everything
we
do;
our
customers,
colleagues,
and
communities.
The
slide
sets
out
the
global
principles
of the
plan
to
make
a
positive
change
across
these
three
stakeholder
groups.
Importantly, we have
now
set
clear
targets
in
each
of
these
areas
so
we can
hold
ourselves
to
account.
I'll
talk
more
about
our
customer
target
on
the
next
slide.
We
want
to
empower
colleagues
to
work
better
and
to
ensure
that
our teams
are
representative
of
where
we
work
and
live
through
a
comprehensive
diversity,
equity,
and
inclusion
strategy.
We
want
to
work
with
communities
to
do
more
and
aim
to
improve
the
lives
of
10 million
people
by
2030.
We'll
do
so
by
using
expertise
and experience
within
our
business
to
support
our
communities
with
a
focus
on
sport,
health,
and
well-being,
and
tech
for
good.
You'll
find
a
lot
more
information
on
our
Positive
Impact
Plan
when
our
Annual
Report
is
published
in
the
coming
weeks.
Our
Play
Well
safer
gambling
strategy
builds
on
years
of
progress
already
made
in
protecting
our
customers,
such
as
through
the
[ph]
CAT
(00:05:40) model
developed
originally
in PPB. For
a
group
with
over
7.6
million
monthly
customers,
we
know
there
is
no
one-size-fits-all
approach,
though
we
believe
there
are
universal
principles
that
we
can
and
should
apply
to all
we
can to
protect vulnerable
customers.
We
listen
to
our
customers,
industry
experts
and
critics
by
investing
in
research,
innovation
and
collaboration.
We
want
to
empower
players
to
play
positively
by
providing
them
with
platforms
and
products
that
have
protective
tools
in
place.
And
this
would include
having
better
conversations
with
our
players
to encourage
them
to
pause
and
reflect
on
their
play
and
make
positive
choices.
And
we
will
continue
to
support
players
who
need
intervention
by
providing
robust
internal
infrastructures,
external
partnerships
and
fund
new
initiatives.
To
ensure
these
principles
are
embedded
within our
organization,
divisional
safer
gambling
goals
will
be
linked
to
our
team's
remuneration
as
part
of
their
annual
bonus
metrics.
This
will
ensure
each
division
is
focused
on
initiatives
that
will
support
and
promote
local
safer
gambling
strategies
in
individual
markets
and
contexts.
We've
also
established
our
first
global
goal
to
have
75%
of
our
players
using
one
or
more
of
our
Play
Well
tools
by
2030.
We
believe
that
the
use
of
such
tools
empowers
customers
to
appraise
their
own
activity
while
promoting
positive
play.
I
feel
really
proud
of
this
new
strategy
and
look
forward
to
seeing
the
benefits
it will
bring
to
our
customers,
our
people
and
our
communities.
And
with
that,
I'll
hand
you
over to
Jonathan
to
take
you
through
our
financial
results.
Thanks,
Peter,
and
good
morning,
everybody.
Again,
it's
great
to
actually
see
people
in
3D.
So,
welcome
all.
Plenty
to
cover,
so
let's
get
started.
Okay. So,
so
starting
on slide
10, on
a
pro
forma
constant
currency
basis,
we
delivered
revenue
growth
of
17%
in
2021.
This
is
obviously
driven
by
the
increase
in
the
ongoing
recreational
player
base
with
AMPs
up,
as
Peter
said,
23%
year-on-year.
Our
sports
revenue
increased
by
27%,
thanks
to
the
continued
growth
in
the
US,
a
strong
performance
in
Australia
and
a
return
to
a
more
normal
sports
calendar
in
2021.
As
we'll
cover
later,
this
growth
was
despite
challenging
sports
margin
comparatives
from 2020.
Gaming
revenue
increased
by
4%
as
the
US
growth
helped
offset
the
uplift
seen
in
our
International
business
from
the
COVID-related
boost
in
poker
during
2020.
These
factors,
combined
with
the
larger
US
loss
and
the
initiatives
that
we
are
taking
to
make
the
business
more
sustainable,
resulted
in
a
group
EBITDA
of
£1
billion,
18%
lower
than
2020,
and
excluding
those
US
investment
losses,
down
by
10%.
The
group
continues
to
turn
profit
into
cash
at
a
very
high
rate
and we
ended
the
year
with
net
debt
of
£2.6
billion
and a
leverage
of
2.6
times,
or
2.1
times
excluding
those
US
investment
losses.
Turning
to
slide
11
on
the
statutory
income
statement,
clearly,
the
high
year-on-year
growth
reflected
the
benefit
of
a
full
12
months
contribution
from
The
Stars
Group
in
2021's
numbers
versus
eight
months
in
2020.
And
the
statutory
loss
after
tax
of
£412
million
included
over
£900
million
of
separately
disclosed
items,
which
were
primarily
noncash
items.
This
included
the
amortization
of
acquired
intangibles
of
£543
million,
mainly
from
the
TSG
merger.
It
also
includes
£163
million
for
the
final
settlement
of
the
historic
PokerStars
case
with
the
state
of
Kentucky.
Slide
12,
we
show
our
AMPs
by
division
since
H1
2019.
Player
volumes
are
a
key
indicator
of
the
underlying
health
of
our
business,
as
they
signal
how
effectively
we
are
delivering
against
our
customer
acquisition
and
retention
strategies.
In
2021,
we
grew
the
total
AMPs
by
23%
to
£7.6
million.
I'm
not going
to
go
through
every
number
in
detail,
but
a
few
things
really
stand
out
as
I
consider
what
we're
delivering
in
terms
of
player
growth.
When
compared
to
2019,
we
have
emerged
with
a
much
larger
player
base
than
we
had
pre-COVID,
mostly
driven
by
growth
in
recreational
players,
and
that's
very
encouraging.
In
the
UK&I,
player
numbers
were
25%
higher
year-on-year
in
2021
at
3.2
million.
Player
retention
in
Australia
remained
strong
with
two-year
compound
AMP
growth
of
28%.
And
in International,
AMPs
have
grown
by
10%
since
2019
with
that
growth
coming
from
more
sustainable
markets.
And
in
the
US,
we
had
nearly
2
million
AMPs
in
Q4,
making
it
now
our
second
largest
division
in
terms
of
player
numbers.
On
slide
13,
you
can
see
how
player
growth
translated
into
revenue
growth.
Last
year,
we
delivered
revenue
growth
of
17%,
with
the
majority
of
that
driven
by
the
US.
I'll
talk
about
the
UK
and
Ireland
in
more
detail
on
the
next
slide,
but
I
do
want to
touch
in
the
forms
of
the
other
divisions.
We
grew
revenues
in
Australia
by
20%
last
year,
undoubtedly
helped
by
COVID-related
restrictions.
And
that
growth
of
20%
was
driven
by
AMP
growth
of
27%.
We
have
enjoyed
favorable
sports
results
in
both
2020
and
2021
in
Australia,
but
there
was
no
material
difference
in
margin
year-on-year.
In
International,
as
we
previously
guided,
revenue
declined
due
to
the
uplift
in
poker
activity
in
the
prior
year,
along
with
the
effect
of
regulatory
changes
and
compliance
initiatives.
In
the
US,
our
revenue
more
than
doubled,
up
113%.
The
biggest
drivers
of
this
were
a
full-year
contribution
from
four
sportsbook
states
launched
in
2020
and
a
partial
year
benefit
from
our
four
new
states
launched
in
2021.
We
also
benefited
from
structural
growth
in
our
sportsbook
margin,
which
Peter
is
going
to
cover
later.
We
launched
in
three
new
gaming
states,
bringing
our
total
footprint
to
five,
and
our
US
gaming
business
is
already
half
the
size
of
our
entire
UK&I
gaming
business.
TVG
and
DFS
continue
to
contribute
with
combined
revenue
growth
of
11%
in
2021.
Okay,
on
slide
14,
I
want to
take
you
through
the
year-on-year
performance
of
our
online
business
in
UK&I.
To
keep
this
analysis
straightforward,
we
have
not
tried
to
normalize
the
impact
of
COVID, though
clearly
2020
was
an
unusual
year
with
online
benefiting
from
retail
closures.
Additionally,
we
have
not
tried
to
separate
out
the
estimated
recycling
impacts,
albeit
we
have
seen
less
recycling
in
2021
than
historically
has
been
the
case,
and
Peter
will
talk
a
little
bit more
about
that
later.
Starting
from
the
left,
firstly,
we
had
some
good
underlying
gaming
and
exchange
revenue
growth,
with
gaming
AMPs
up
22%
despite
lapping
some
challenging
COVID
comparatives.
This
is
before
we
account
for
the
impact
of
safer
gambling
measures.
Staking
grew
by
25%,
driving
£266
million
in
revenue
growth,
benefiting
from
the
return
of
a
more
normal
sports
calendar.
We
continued
to
benefit
from
improvements
in
structural
margin,
which added in
the
further
£46
million.
The
year-on-year
swing
in
sports
results
impacted
our
revenues
by
£232
million,
a
large
proportion
of
which
impacted
in
Q4.
We
rolled
out
various
new
safer
gambling
measures
during
the
year,
which
we
estimate
cost
us
approximately
£93
million
during
2021.
And
Peter
will
share
progress
that
we've
made
in
this
area
later.
Reported
revenue
growth
of
3%
translated
into
EBITDA
of £626
million,
flat
year-on-year,
with
some
higher
cost
of
sales
in
the
areas
of
streaming
costs
and
taxes.
Moving
on
to
slide
15,
given
the
significant
one-off
COVID
impacts
from
PokerStars
in
2020,
we
thought
it
might
be
helpful
to
provide
a
two-year
EBITDA
bridge
for
the
International
division.
Firstly,
we
have
to
adjust
for
foreign
exchange
movements,
which
can
be
material
in
our
International
division.
Being
the
translation
of
the
P&L
from
US
dollars
to
sterling,
firstly;
and
secondly,
exposure
to
local
currencies
which
players
exchange
to
play
in
US
dollars.
Over
two
years, the
EBITDA
impact
has
been
£61
million.
Next,
we
have
the
impact
of
initiatives
that
we
have
taken
to
improve
the
sustainability
of
the
division.
First,
you
will recall
that
we
made
the
decision
at
the
end
of
2019
to
switch
off
a
number
of
Betfair
Exchange
partners
whose
compliance
standards
were
not
aligned
to
ours.
The
net
cost
of
these
switch-offs
was
£8
million.
Secondly,
we
guided
to
a
£65
million investment
to
bring
the
compliance
processes
and
standards
of
TSG
up
to
Flutter's
standards
post-merger.
And
thirdly,
we
have
improved
the
quality
of
the
geographic,
regulated
and
product
mix
within
the
division.
And
as
a
result,
our
cost
of
sales
as
a
percentage
of
revenues
increased
by
around
8
percentage
points.
We've
had
the
negative
regulatory
developments
in
both
Germany
and
Netherlands,
which
have
cost
the
business
£85
million
since
2019,
with
a
further
£55
million
incremental
costs
to
come
in
2022.
Rebasing
2019
EBITDA
for
these
items
resulted
in
EBITDA
of
£304
million.
You
can
then
see
the
underlying
investment
made
in
the
business
and
the
growth
this has
driven
to-date.
Of
the
£333
million
of
investment,
£52
million
was
in
capabilities.
Some
of
this
was
in
building
required
resource,
for
example,
in
our
regulatory
and
compliance
teams;
and
some
was
invested
in
commercial
skills
and
capabilities
to
enable
us
to
effectively
spend
the
marketing
investment
and
invest
in
product
improvements.
Peter
will
touch
on
where
we
have
focused
this
investment.
We
have
– sorry,
just
go
back.
Thanks.
We
have
delivered
growth
of
£121
million,
of
which
we
estimate
2021
benefited
by
around
£38
million
from
COVID
impacts.
By
rebuilding
the
foundations
of
the
PokerStars
business
and
investing
in
our
casino
and
marketing
capabilities,
we
have
stabilized
our
poker
share,
driven
significant
growth
in
direct
casino,
and
delivered
good
underlying
growth
in
our
key
markets,
which
Peter
will
talk
about
shortly.
Slide
16
provides
an
EBITDA
and
an
EBITDA
margin
summary
for
2019, 2020,
and
2021.
Standing
back
from
these
results,
we
have
materially
rebalanced
the
group
over
this
period.
In
UK&I
Online,
the
recreational
growth
has
delivered
strong
customer
and
profit
growth
over
two
years,
at
a
time
when
retail
has
been
challenged.
Australia
has
delivered
phenomenal
profit
growth
from
increasing
AMPs,
synergies,
and
operating
leverage.
As
covered
in
the
previous
slide,
we
have
materially
reshaped
and
de-risked
the
International
division.
And
in
Corporate,
we
have
delivered
synergies
from
the
merger.
In
the
US,
while
losses
have
grown
over
the
last
two
years,
we
have
invested
to
build
the
embedded
value
of
the
business
and
now
have
a
clear
path
to
profitability
in
2023.
As
a
reminder,
our
revenues
from
2019
to
2021
grew
from
£400
million
to
£1.4
billion.
Overall,
we
feel
the
group
is
really
well-positioned
financially
going
forwards.
On
slide
17,
you
will
see
we
generated
adjusted
free
cash
flow
of
£625
million.
This
was
lower
than
the
prior
year
due
to
our
EBITDA
reduction,
higher
CapEx spend
and
a
reduced
working capital
benefit compared
to 2020.
Cash
generation
was
still
very
strong.
Comparing
operating
profit
to
pre-tax
adjusted
free
cash
flow,
we
converted
profits
into
cash
at
102%.
I'm
sure
you'll
be
glad
to
hear
that
I
won't
go
through
every
line
item
on
this
slide
and we'll
just
talk
about
some
of
the
more
material
ones.
We
paid
higher
corporate
tax
given
the
changing
geographic
mix
of
our
earnings.
Interest
paid
was
£37
million
lower
year-on-year,
thanks
to
lower
borrowing
costs.
We
paid
£234
million
to
fully
settle
the
historic
case
with
Kentucky,
including
associated
legal
fees. And
our
Employee
Benefit
Trust
acquired
£181
million
worth
of
shares
relating
to
FanDuel
incentive
schemes
put
in
place
at
the
time
of
the
original
acquisition.
M&A
activity
during
the
period
resulted
in
a
net
inflow
of
£73
million
from
the
sale
of
Oddschecker,
partially
offset
by
the
acquisitions
of
Junglee
Games and
Singular.
And
as
a
result,
we
finished
the
year
with
net
debt
of
£2.6
billion
and
a
leverage
of
2.6
times,
and
this
is
before
the
acquisitions
of
Tombola,
which
completed
in
January,
and
Sisal,
which
is
expected
to
complete
in
Q2
of
this
year.
So,
as
I
said,
the
leverage
at
the
end
of
2021
was
2.6
times,
or
2.1
times
excluding the
US
losses.
To
consider
the
impact
of
Tombola
and
Sisal
in
the
group's
debt
and
leverage
level,
we
have
modeled
the
year-end
2021
position
as
though
we
owned
both
assets
at
that
point.
On
this
basis,
our
leverage
ratio
would
have been
3.7
times,
or
3.1
times
excluding
US
losses.
Given
the
highly
cash
generative
nature
of
our
business
and
our
expectation
that
we'll
be
EBITDA
positive
in
the
US
in
2023,
we
are
comfortable
running
with
a
temporary
elevated
leverage
ratio.
As
you
will
see
on
the
slide,
since
these
announcements,
all
of
our
credit
ratings
have
a
stable
outlook.
And
we
remain
committed
to
our
medium-term
target
of
1
to
2
times
leverage.
And
the
board
will
review
the
group's
dividend
policy
once
leverage
is
within
the
targeted
range.
Slide
19
provides
a
trading
update
and
additionally
some
memo
items
for
those
wishing
to
update
trading
models.
Current
trading
for
the
seven
weeks
to
– the
first
seven
weeks
in
2022
have
been
in
line
with
our
expectations
and
2%
higher
year-on-year.
The
prior
year
included
some
very
positive
sports
results
in
the
UK&I.
Given
the
evolving
situation
in
Russia
and
Ukraine,
we
wanted
to
provide
a
summary
of
our
exposure
to
both
markets.
Since
completion
of
our
merger
with
TSG,
we
have
materially
reduced
our
exposure
to
the
Russian
online
market.
And
in
2021,
Russia
accounted
for
£41
million
in
contribution.
In
addition,
Ukraine
represented
contribution
of
£19
million.
We
are
monitoring
the
situation
closely
with
our
working
assumption
being
that
revenues
from
both
jurisdictions
will
fall
to
zero
in
the
not
too
distant
future.
As
we
consider
the
shape
of
2022
revenues
compared
to
2021,
we
benefited
from
favorable
sports
results
in
the
first
half
of
last
year,
with
gross
win
margins
120
basis
points
above
expected
levels,
whereas
they
were
in
line
overall
in
H2.
We,
therefore,
expect
that
the
phasing
of
our
growth
this
year
will
see
us
grow
more
in
the
second
half,
assuming
a
normal
run
of
sports
results.
And
with that, I'll hand back to Peter.
Thanks,
Jonathan.
I'll
now
provide
an update
on
key
developments
across
the
group,
starting
with
the
US
on
slide
21.
Back
in
August,
when
we
provided
a
deep
dive
in
our
US
business,
I
described
how
the
flywheel
effect
is
fueling
FanDuel's
growth.
And
over
the
last
12
months,
Amy
and
the
team
have
done
a
great
job
in
continuing
to
scale
our
US
business.
The
chart
on
the
right
demonstrates
how
quickly
the
business
is
growing.
Our
monthly
sportsbook
customers
grew
by
180%
in
2021,
with
our
gaming
customer
base
more
than
doubling
also.
Our
best-in-class
sports
betting
product
is
continuing
to
deliver
improvements
to
our
structural
win
margins.
We're
continuing
to
invest
heavily
in
product,
brand
and
generosity,
but
believe
the
efficiency
of
our
spend
stands
out
in
the
US
sector
today.
Critically,
our
revenue
growth
is
continuing
to
exceed our
operating
cost
growth,
bringing
ongoing
improvements
on
our
path
to
profitability.
We
believe
strongly
that
the
long
term-winners
in
this
sector
are
determined
by
the
quality
of
their
product.
On
slide
22,
the
migration
of
FanDuel
into
the
group's
betting
platform
was
completed
in
July
and
provided
significant
improvements
in
speed
and reliability
across
the
NFL
season.
Our
proprietary
Same
Game
Parlay
product,
which
is
seamlessly
integrated
into
the
user
experience,
continues
to
be
a
key
differentiator
for
us
and we'll
continue
to
expand
our
product
offering
in
this
area.
Over
76%
of
our
NFL
customers
placed
a
Same
Game
Parlay
bet
during
the
NFL
season. And
as
we
have
highlighted
before,
this
brings
big
benefits
to
us
in
the
form
of
structurally
higher
win
margins.
In
Q4
of
this
year,
we
generated
50%
more
gross
revenue
from
our
handle
than
the
average
of
the
rest
of
the
market.
We
also
continue
to
leverage
our
scale to
invest in
the
FanDuel
brand.
In
the
second
half,
we
signed multiyear
extensions
with
key
partners
such
as
the
NFL, the
NBA,
Pat
McAfee,
The
Ringer,
and
the
PGA.
Given
the attractive
customer
economics
we're
seeing,
our
US
business
spent
over
$1
billion
on
customer
promotions
and
marketing
in
2021.
This
allowed
us
to have
the
highest
TV
media
share
of
voice
in
the
market
throughout
the
second
half,
25%
higher than
our
nearest
competitor.
The
levels
of
required
investment
to
be
a
winner
in
this
market
are
high,
which
we
ultimately
feel
may
act
as
a
helpful
barrier
to
entry
in
the
industry.
On
slide
23,
you'll
see
the
results these
advantages
are
delivering.
We're
continuing
to
lead
with
a
40%
share
of
the
online
sports
betting
market
in
Q4.
I'll
share
the
overall
online
sports
and
gaming
market
was
31%
in
Q4
when
combined
with
our
20%
gaming
share.
Our
market
share
remains
remarkably
resilient
as
we've
added
gold
medals
in
new
2021
states
such
as
Arizona,
Michigan
and
Virginia
to
our ongoing
leads
in
earlier
states
such
as
New
Jersey
and
Pennsylvania.
When
states
launch,
our
early
share
can
be
depressed
by
both
our
own
investments
in
promotional
activity
and
the
early
giveaways
from
competitors.
But
once
markets
settle
down,
we're
encouraged
to
see
that
customers
are
migrating
to
where
the
product
is
best.
In
Q1
of
2022,
we've
invested
significantly doing
launches
in
New
York,
Louisiana,
and
in
another
generous
Super
Bowl
offer.
We
expect
these
investments
to
deliver
strong
market
shares
as
the
year
progresses.
Our
New
York
launch has
been
particularly
successful,
with
over 400,000
new
sportsbook
customers
acquired
to-date.
In
addition,
we're
already
seeing
signs
that
competitors
are
pulling
back
from
their
initial
customer
offers.
There's
an
important
point
to
note
in
terms
of
long-term
profitability
in
New
York
and
tax
take
for
the
state.
We
hope
policymakers
in
New
York recognize
that
while
the
state
benefited
from
an
initial
period
of
heavy
investment
amongst
operators,
such
investment
is
not
sustainable
beyond
a
few
weeks. Absent
different
treatments
of
bonusing
and/or
lower
tax
rate,
the
period
of
aggressive
initial
spending
is
almost
over.
On
the
right-hand
chart,
you'll
see
that
we're
delivering
our
leading
share
while
operating
more
efficiently
than
our
largest
online
competitors.
We
generated
47%
more
revenue
than
our
nearest
competitor
in
2021
and
we
achieved
this
whilst
accruing
$400
million
less
in
losses
on
a
comparable
reporting
basis.
One
key
factor
in
this
efficiency
is
that
on
a
like-for-like
basis,
we
estimate
that
in
2021
we
spent
$0.25
less
on
sales
and
marketing
for
each
dollar
of
revenue
generated
than
our
nearest
competitor.
On
slide
24, I
want
to
update
you
on
our
latest
thinking
around
state-by-state
profitability.
At
our
2019
US
Investor
Day,
we
estimated
that
our
New
Jersey
sportsbook
would
be
structurally
contribution
positive
within
18
to
30
months
of
launch.
I'm
pleased
to
report
that we're
now
seeing
an
acceleration
in
that
time
line
to
just
12
to
24
months.
What's
driving
this?
Firstly,
we
are
acquiring
customers
far
faster
when
a
state
launches
than
used
to
be
the
case.
Arizona
is
a
good
example
of
this,
has
a
population
that is
three-quarter
the
size
of
New
Jersey.
It
took
us
about
five
months
to
acquire
our
first
100,000
sportsbook
customers
in
New
Jersey.
In
Arizona,
it
took
us
less
than
a
month.
These
faster
sign-up
rates
better
reflect
the
awareness
of
the
sports
betting
generally,
but
also
the
changes
we've
made
to
our
own
state-launched
playbook
where
our
integrated
account
and
wallet
means
we
are
converting
DFS
customers
to
sports
betting
faster
than
before.
Once
acquired,
the
quality
of
our
products
are
driving
better
retention
rates
and
generating
the structurally
higher
sports
margins
I
spoke
about.
The
chart
shows
what
this
means
for
investment
and returns.
Because we
are
acquiring
more
customers
initially,
the
initial
investment
losses
are
deeper
in
the
first
months
post-launch.
But
we
end
up
with
a
much
bigger
base
of
customers
in
a
shorter
timeframe,
leading
to
a
higher
level
of
contribution
in
the
subsequent
months.
On
slide
25,
we
show
what
this
means
for
our path
to
profitability.
In
2021,
our
combined
sportsbook
and
gaming
businesses
generated
a
positive
contribution
of
$14
million.
As
you
can
see,
the
early
cohorts
of
customers
generated
a
positive
contribution
that
we
then
used
to
invest
in
the
next
wave
of
new
customers.
Just
38%
of
our
2021
total
customer
base
were
with
us
before
January
last
year,
yet
they
generated
enough
contribution
to
offset
the
material
net
investment
made
to
acquire
the
remaining
62%
of
our
customer
base.
Going
forward,
as
our
existing
customer
base
expands,
their
contribution
will
far
outstrip
our
ongoing
customer
acquisition
investment.
We
can
see this
being
played
out
at
an
individual
state
level
where
large
early
states
like
New
Jersey,
Pennsylvania,
Illinois
and
Indiana
were
already
contribution
positive
in
2021.
FanDuel's
cost
base,
excluding
marketing,
was
£458
million
in
2021,
which
is
a
significant
level
investment
for
those
choosing
to
compete
with
us.
Even
with
ongoing
investment
and
the
potential
for
ongoing
losses
in
FOX
Bet,
we
expect
that
by
2023
we'll
be
EBITDA
positive
in
the
US.
This
does
assume,
though,
that
the
timing
of
new
state
regulation
matches
our
expectations
and
that
a
big
state
like
California
doesn't
go
live
next
year.
And
should
California
go
live,
reaching
EBITDA
positive
would
likely
be
delayed,
but
that
would
be a
nice
problem
to
have.
Now,
let
me
talk
about
our
UK
and
Irish
businesses.
In
our
UK&I
division,
2021
was
something
of
a
tale
of
two
halves.
Jonathan
has
already
talked
you
through
how
our
performance
compared
with
2020,
but I'd
like
to
spend
a
couple
of minutes
sharing
some
insights
around
the
fourth
quarter
and
the
moving
parts
that influenced
the
outcome.
First,
we
saw
a
very
material
swing
in
sports
results
year-on-year.
The
swing
from
good
luck
to
bad
in
the
fourth
quarters
of
2020
and
2021
resulted
in
a
revenue
swing
of
almost
£150
million.
There's
nothing
structurally
going
on
with
margin.
It is
simply
down
to
results
and the
fact
that
we
generally
over-index
in
Betbuilder
products.
Secondly, you
can
see
how
the
cost
of
the
safer
gambling
changes
we
have
made
impacted
revenues
across
the
year,
with
costs
totaling
£93
million
by
the
end
of
Q4.
Setting
these
two
factors
aside,
though,
it's
fair
to
say
that
underlying
demand
in
Q4
was
below
our
expectations.
The
normal
relationship
between
staking
and
margin
was
weaker
in
Q4
when
compared
with
historic
norms, and
we
think
there are
a
couple
of
reasons
for
this.
Firstly,
we
think
that
the
COVID
unwind
has
led
to
reduced
levels
of
customer
engagement with
gambling
products
generally,
and
the Gambling
Commission
data
published
last
week
would
back
that
up.
It
showed
that
online
sports
betting
GGR
was
down
43%
in
the
UK
in
Q4.
Secondly,
we
feel that
some
of
our
products
lacked
a
sharpness
towards
the end
of
last
year,
and
we're
making
changes
to
address
that.
In
contrast,
our
gaming
business
outperformed the
market.
Flutter
brands
maintained
good
customer
volumes,
driven
by
leading
daily
price
mechanics
such
as
the
Sky
Vegas
Prize
Machine
and
Paddy's Wonder
Wheel. It's
[ph]
nice
although (00:31:37)
that
the
market
generally
experienced
the
fewest
number
of
Q4
online
casino
downloads
for
three
years.
And
rest
assured,
we
are
responding
to
what
we're
seeing
in
the
market
and we're
very
focused
on
improving
our
product
proposition,
and
we're also
examining
the
cost
base
of
the
business.
While
we
don't
know
what
specific
recommendations
will
be
made
in
the
white
paper,
we
know
that
customer
economics
in
the
UK
are
going
to
continue
to
evolve.
And
so
we're
doing
work
now
to
make
sure
our
structures
and
cost
base
optimize
the
future
shape
of
the
sector.
On
slide
27, now
let's
talk
about
the
progress
we've
made
in
improving
the
sustainability
of
our
business
in
the
UK
and
Ireland.
As
you
can
see
in
the
chart
on
the
left,
since
H2 2019, our AMP
growth
has
exceeded
our
revenue
growth,
with
reductions
in
revenue
from
higher
value
tiers
being
largely
offset
by
growth
in
lower
spending
cohorts.
While
this
effectively
means
that
we've
reduced
the
proportion
of
revenue
coming
from
our
top
value
tier
by
over
55%
since
2019,
we
have
grown
our
overall
AMP
base
by
27%
at
the
same
time.
ARPUs
across
all
our
customer
cohorts
have
reduced,
and
we
believe
we
have
increased
our
share
within
the
recreational
space
in
that
time.
Businesses
such
as
ours
will
always
have
a
concentration
of revenues
coming
from
higher
income
customers.
Having
examined
this,
we
see
that
our
revenue
concentration
coming
from
higher
value
tier
customers
aligns
closely
with
overall
wealth
distribution
in
the
UK.
Now,
just
6.7%
of
our
revenue
comes
from
the
highest
value
tier,
and
this
is
considerably
lower
for
both
our
recreational
brands
and
Tombola.
The
safer
gambling
framework
we
already
put
in
place
and
our
new
Play
Well
strategy
gives
us
confidence
in
the
protections
we
have
for
our
higher
spending
customers.
On
slide
28,
we
set
out
how
we
protect
our
customers
throughout
all
stages
of
their
journey
from
registration
to
continued
play.
I'm
not going
to
go
through
all
of
the
detail
here,
but
I
want
to
share
it
as
I
think
it's
really
important
that
people
understand
just
how
much
we're
doing
in
this
area
at
the
moment.
From
robust
checks
and
monitoring
for
our
newest
customers
to
always-on
protections, we
want
to
ensure
that
all
our
customers
are
equally
empowered
and
protected
where
needed.
I
recognize
that
the
changes
we are
making
are
having
a
financial
impact
on
our
business,
but
I
passionately
believe
that
what we're
doing
is
right
for
our
customers
and
right
for
our
business
in
the
long
run.
I
would
encourage
our
peers
to
be
proactive
in
this
area
too.
And
ultimately,
this
means
that
the
UK
sector
experiences
a
year
or
two
of
low
growth,
then
it'll
be
a
price
worth
paying
in
the
interest
of
all
stakeholders.
Turning
to
Australia
on
slide
29.
Back
in
September, Barni
and
the
team
brought
you
through
why
we're
winning
the
market
by
delivering
on
product,
marketing
and
value.
We
now
have
a
50%
share
of
the
Australian
online
market,
7
percentage
points
higher
than
in
2019.
But
we
aren't
resting
on
our
laurels.
In
the
second
half,
the
team
combined
the
best
of
our
product
in
Same
Game
Multis
with
our
leading
value
proposition
by
offering
personalized
bet
return
tokens
to
Same
Game
Multi
bettors.
By
combining
our
top
line
growth
with
the
operational
efficiency
scale
can
deliver
and
the
synergy
benefit
from
the
TSG
merger,
our
EBITDA
margin
has
expanded
by 10
percentage
points
in
just
two
years.
This
is
an
EBITDA
growth
compound
rate
of
64%
over
that
time.
Sportsbet
provides
the
perfect
template
of
what
we're
trying
to
achieve
in
other
international
markets
and
showcases
their
financial
benefits
and
market
leadership.
Now
moving
on
to
International.
We're
really
pleased to
see
those
key
areas
of investment
that
Jonathan
talked
you
through
are
starting
to
pay
off.
On
the left,
you
can
see
how
we
successfully
stabilized
our
market
share
in
poker
with
a
steady
decline
from
the beginning
of
2019 flattening
as
we
began
to
invest
in
the
poker
proposition
and
in
particular
since
Q4,
since
we
launched
our
new
reward
scheme
which
has
really
resonated
with
customers.
Stabilizing
this
player
base
is
crucial
to
our
casino
and
sports
cross-sell
business.
We've
also
improved
the
sustainability
of
our
business,
with
78%
of
revenues
now
coming
from
regulated
or
regulating
markets,
a
number
that
will
continue
to
rise.
We
are
very
pleased
with the
growth
we're
seeing
in our
casino
business through
both
cross-sell
and
direct
casino.
We
saw
an
all-time
record
from
casino-first
customers
during
Q4.
Having
improved
the
sustainability of
the
business,
we're
now
very
focused
on
the
opportunities
ahead
for
this
division.
On
slide
31,
we've
selected
a
number
of
markets
where
we
see
excellent
potential
for
further
growth.
These
markets
are
at
varying
degrees
of
regulation,
with
Italy
and
Georgia
regulated,
and
Canada
and
Brazil
regulating.
The
projected
TAM
of
these
markets
is
approximately
£26
billion
by
2026,
with
a
projected
online
compound
annual
growth
rate
of
10%
over
the
next
five
years.
The
real
growth
for
Flutter
in
these
markets
there
will
hopefully
come
from
growing
our
market
share.
Today
we
have
an
8%
online
market
share
in
these
markets,
which,
given
our
extensive
capabilities,
feels
low
to
me.
We
have
a
big
opportunity
to
grow
this
share. And
our
International
team
are
focused
on
replicating
the
success
we
have
in
other
markets
where
we
achieved
local
scale.
Finally,
slide
32
just
provides
an
updated
view
on what
the
shape
of
the
division
will look
like
once
we
complete
the
Sisal
acquisition.
In
addition,
the Sisal
will help
us
to
further
diversify
the
business
and
provide
us
with
access
to
the attractive
Italian
market
where
our
share
will
then
exceed
over
20%
and
also
bring
an
omni-channel
advantage that
we hope
will unlock
further
benefits
across
our
other
brands.
And
we
look
forward
to
welcoming
Francesco
and
his
team
to
the
division.
In
conclusion,
I'm
happy
with
the
progress
we've
made
across
the
group
in
2021.
We're
very
focused
on
the
future.
With
a
refreshed
strategy
[ph]
that's
put
sustainability
is
heart, (00:37:36)
I
believe
we
are
very
well
positioned
to
continue
to
grow
our
presence
globally.
We
must
be
relentless
in
making
sure
that
our
product
remains
industry-leading
and
that we
drive
efficiencies
within
the
group
as
we
do
so.
And with it
now,
we'll
now
open it
up
to
any
questions
you
may
have.
We'll
take
questions
from
the
room
first
and then,
if
we
have
time,
we'll
go
to
the
phone
lines.
For
those
of
you who are
on
the
phone,
please
press
star
one
if
you'd
like
to
ask
a
question.
As
I
said,
we'll
take
them
from
the
room
first.
And
can
I
ask,
as
usual,
that
you
limit yourselves
to
two
questions
and
not
too
many
subparts
in
the
first
instance,
so
we
can give
everybody
a
chance.
[ph]
Michael? (00:38:20)
Great.
Good
morning,
Peter. Good
morning,
Jonathan.
Thanks
for
taking
the
questions.
Two,
if
I
can.
The
first
on
the
US
and quite
a few
references
to
superior
cost
economics
through
the
presentation.
And
if I
picked
up
the
statistic
correctly,
I
think
you
said
your
spend
was
about
25%
lower
than
key
competitors.
I
just
wonder
what
that
efficiency
is
when
you
look
at
it
kind
of on a
customer
acquisition
and/or
customer
retention
basis. So,
just
interested
in
some
further
color
in
terms
of
where
you
think
you're
outperforming.
And
then secondly,
on
the
UK
market, if I can, and
again
an
interesting
detail
in
terms
of
the
concentration
of
your
revenue
base
in
terms
of
higher
value
customers.
When
you
think
about
that
7%
from
that
higher
value
cohort,
how
do
you
think
about
that
number
going
forward,
particularly
given
the
changes
we
could
get or
we
will
get,
should
I
say,
from
the
Gambling Act
in
the
coming
months? Thanks.
Thank
you,
[ph]
Michael (00:39:13).
Look,
taking
the
question
around
the
US,
I
think
there
are
two
very
important
factors
that
are
going
on
around
efficiency.
And
I
always
go
back
to
looking
at
the
sort
of
CAC
to
LTV dynamics
that
we're
seeing
in
the
market,
which
is,
for
us,
the
most
important
dynamic. And
I
think
from a
sort of
acquisition
cost
perspective,
we
undoubtedly
have
always
had
a
benefit
in
the
market
in
terms
of
our
ability
to
cross-sell
customers
from
DFS
into
sports.
And
that's
something
that
we've
made
sure
we
really
benefit
from.
But
the
team
have also
been
very
disciplined
when
it
comes
to
our
marketing
spend.
It's
very
easy
to
get
sucked
into
signing
deals
and
partnerships
and
you
can
spend
a
lot
of
money
very
needlessly.
And there
are
some
quotes
and
opportunities
that
we've
passed on,
which
proved
to
be
the
right
decision.
So
I
think
the
team
have
done
a
great
job
for
us
in
being
very
diligent
around
our
marketing
investment.
And
whilst
we
have –
we
do
spend
more
money
than
other
people,
we
think
we
also
spend
it
very
wisely when
we
do. And
when
we
look
and
track
our
acquisition
costs,
we
can
see
that
and
it gives
us
real
confidence
in
the
team's
performance.
I
think
at
the
back
side
of
that sort
of
equation,
looking
at
the
LTVs, we
obviously
have
a
structural
margin
advantage
because
of
the
Same
Game
Parlay, right?
And
we've
seen
very
substantial
use
of
that
product
amongst
our
customers,
which
gives
us
a
margin
advantage.
But,
ultimately,
the
fact
that
our
retention
levels
are
so
high
also
helps
with
the
lifetime
values.
And
the
reason
that
we're
getting
such
good
use
of
the
Parlay
product,
the
reason
we
get
such
good
retention
is because
we
have
the
best
product
in
the
market.
And
the
great
thing
about
the
US
is
you
can
look
at
this –
a
lot
of
market
data
comes
out
in
a
state-by-state
and,
often,
almost
as
a
weekly
basis.
And
New
York,
for
me,
is
a
great
example.
I
mean, you
can
look
at
– people
have got
big
market
shares
of
handle
because
they're
handing
out
free
dollars.
But
you now
look
at
where
the
market
shares
have
gone
when
people
are
actually
reverting
back
to
using
the
best
products.
And
FanDuel
is
kind of
born
in
that
market.
I
think
it's
worth
looking
back
at
the
last
six
months.
I
mean,
we've
had,
undoubtedly,
the
most
aggressive
start
to
NFL
that
we've
ever
had.
And
we'll
probably
[ph]
sell (00:41:29)
again
next
year,
by
the
way.
Well,
hopefully,
we
won't,
but
maybe
we
will.
And
we've
seen
some
people
coming
in
with
very,
very
aggressive
offers.
And
we
have
seen
our
economics
through
that
period
hold
up
and
we
maintained
discipline
at
times
when
people
were
buying
handle
share.
And
it
was
– there
were
some
crazy
offers
out
there.
But,
actually,
what
we've
seen
is
we've
seen
announcements
from
competitors
around
their
levels
of
spend
ongoing
and
pullbacks.
We
have
seen
our
returns
looking
fantastic
and
we're
leaning
in,
not
leaning
out
at
this
point
because
of
the
returns
that
we're
seeing
from
investment
at
this
point
and
have
seen
through
the
whole
of
the season
because
we've
maintained
our
discipline,
but
now
we're
seeing
some
really
attractive
investment
opportunities
in
terms
of CAC to LTVs
in
that
market
and
we
feel
very
positive
about
where
we
are
today.
Yeah.
I
think that's
an
important
point.
We're
seeing
competitors
pull
back.
We're
actually
leaning
in
because
we're
seeing
the
CAC to LTV
dynamics
are
improving
for
us.
In
terms
of
the
UK,
when
we
look
at
the
shape
of
the
market,
and
I've
talked
about it
a
little
bit
and
we
compare
that
with
wealth
distribution
or
income
tax
distribution
in
the
UK.
We
think
our
business
is
more
favorably
skewed,
right?
So
we
think
we're
in
a
very
good
starting
point.
We've
got
a
very –
we've
got
the
best
recreational
base
of
customers
and
brands
in
the
market.
And
so
we
think
that
– look,
there
are
going
to
be
changes
that
occur.
We
have
made
some
significant
investments
and
we
talked
about
it
in
terms
of
our
Positive
Impact
Plan.
Yes,
I've
shown
you
the
revenue
that
we've
taken
out
of
the
business
over
the
course
of
last
year. But
we
think
it's
the
right
thing
to
do
to
get
ahead
of
these
changes.
And
we
believe
that
the
Gambling
Act
will
introduce
a
sort of more
level
playing
field.
So
it
could
be
that
competitors
can
claim
the
delivery
market
great
but
I'm
not sure
how
sustainable
that
will
be
in
the
long
run.
We
think
we've got
the
right
shape
and
distribution
of
business
today.
And
we
think
we've
got
the
right
focus
on
the
recreational
base
for
whatever
the
changes
are
that the
Gambling
Act
review
introduces.
And
I'm
relatively
buoyed
by
the
fact
that
they
seem
to
be
taking
quite
an
evidence-led
approach
to
it.
And
we
think
we've
got
some
good
data
and
insights
to
share
with
them
with
the
things
that
we've
been
doing.
Thank
you.
Hi.
Morning.
Richard
Stuber
from
Numis.
A
couple of
questions,
actually.
Just
the
first
one,
just
following
on
for
the
last
question
about
the
highest
value
tier.
Could
you
say
how
you
define
that?
Is
that
how
much
the
spend
per
month
from
those
customers?
Because
clearly,
if
the
cap
goes,
say,
from
£500 maximum
deposit
to
£300,
that
can
make
a
huge
difference.
And
the
definition
of
that
7%
could
be
a
lot
higher.
So,
any
sort of
numbers
around
what
you
define
that?
And
then
the
second question
on
the
US.
Obviously,
incredibly
good
market
share.
But
do you
have
any
sense
of
how
the
black
market
is
going
on
in
the
US?
Whether
you're
taking
–
whether
you're
– a
lot
of
these
of
black
market
operators,
you're
taking
share
from
them
as
well?
So,
look,
in
terms
of
the
UK
market,
we
have
taken
a
lot
of
steps
to
address
what
we
think
is
some
of
the
challenges
in
the
sector,
whether
it's
looking
at customers
when
they
come
and
they
join
us,
the
monitoring
that
we
have
and
then
the
sort
of the
backstop
we
have
in
terms
of
looking
at
people's
expenditure.
And
we
now
started
just
to
distinguish
that
with
difference
of
age
categories
as
well.
So,
ultimately,
we
think
that
our
business
is
very
well
set
up
for
whatever
changes
that
come.
And
we've
heard
lots
of
noise
around
how
affordability
checks
can
be
introduced.
We
think
that
the
approach
that
we're
taking,
whether
there's
granular
set
of
different
approaches
in
different
segments
is
the
right
answer
rather
than
some
sort
of
simplified
figure
for
the
whole
market.
But
we'll
wait
and
see
whether
the
review
of
the
Gambling
Act
ends
up
in
a
similar
position.
But
I
think
if
I go
back
to
the
point
that
I
made
before,
you're
right,
you
can
sort of
define
the
high-value
tiers
in
all
sorts
of
different
ways.
But
ultimately,
if
we
look
at
things
like
the
income
tax
distribution
and
you'll
be
well
aware
that
the
top
1%
of
income
taxpayers
generate
30%
of
the
income
tax
base,
our
business
is
nowhere
near
skewed
like
that, right?
So,
yeah,
it
gives
us
real
reassurance
that
our
business
is
very
well
set
up
for
the
market
distribution
dynamics
that
we
see.
In
terms of
the
US, I'm
afraid
we
are –
we've
never
been
focused
on
sort of
market
share
targets,
right?
We
always
talk
about
the
fact
we've
been
focused
on
our sort of CAC
to LTV
dynamics.
As
Jonathan
mentioned
earlier,
we're
actually
seeing
them
really
favorably
at
the moment.
We're
delighted with
how
the
business
is
performing.
We're
pushing
really
hard
to
take
advantage
of
the fact
that we've
got
the
best
product
in
the
market.
We
just
had
a
fantastic
Super
Bowl.
We're
delighted
with
the
market
share
that
we've
taken.
We're
winning
in
so
many
key
states
and
the
business
has
got
terrific
momentum
in
it.
And
of
course,
we're
seeing
that
we
also have
operating
leverage
come
through
into
the
business.
So
we're
taking
advantage
and
pushing
as
hard
as
we
can.
I
have
no
doubt
we're
taking
business
from
some
of
the
black
market
operators,
but
they'll
still
be
doing
very
well
in
states
like
California,
Florida,
and
Texas,
which
have
yet
to
regulate.
Jonathan,
if
there's
anything to
add?
Morning.
Simon
Davies
from
Deutsche
Bank.
Two
from
me,
please.
You
talked
about
£93
million
of
safer
gambling
costs
last
year.
Can
you
give
us
a
feel
for
where
those
were
incurred
and,
in
particular,
what
the
cost
was
of
the
introduction
of
max
stakes
and
deposit
limits?
And
secondly,
can
you
give
some
guidance
in
terms
of
revenues
coming
from
Eastern
Europe?
And
are
you
seeing
any
impact
given
the
recent
invasion
of
Ukraine
on
some
of
the
neighboring
markets,
in
particular
Georgia?
Look...
I'll take
the first.
Yeah,
Jonathan will take the first one.
Yeah. So,
I
mean,
look, there's
a
whole
range
of
things
that
add
up
to
the
£93 million
and
obviously
we've
been
putting
in
lower
thresholds as
we
gone
through
the
year.
We've
undertaken
daily
deposit
limits
for
all
customers.
Actually,
the
[ph]
temp on (00:48:02)
staking
limit
on
slots
has
been
a
very,
very
small
proportion
of
that,
so
well
less
than
10%.
So,
that's
not
been
a
big
driver
of
it.
It's
been
the
general
multitude
of
actions
that
we've
undertaken
across
a
whole
range
of
areas.
So
I
wouldn't
put
it
on
certainly
to
that
[ph]
temp on (00:48:21) slot
limit
or so.
In
terms
of
the
impact
across sort of
the
broader
region
of
Eastern
Europe
first
in
terms
of
the
changes
we're seeing,
we
haven't
– we've
obviously seen
impacts
in
the
countries
which have
been
directly
impacted. And
of
course,
the
most
important
thing
from
our
perspective
is
from
our
colleagues
who
are
based
in
and
around
the
region.
We
have
a
large
number
of
contractors,
nearly
80
contractors or
subcontractors
based
in
Ukraine,
and
we're
doing
everything
we
can
to
support
them
and
their
families,
including
relocation
for
their
families,
if
that's
appropriate,
to
some of
the
country's
neighboring
where
we
may
have
locations. And
we
have
two
direct
employees
in
Russia.
As
it
relates
to
the
performance
of the
business
in
Georgia
and
Armenia,
we
haven't
seen
any
significant
impact
as
a
result
of
the
conflict.
Morning,
guys. David
Brohan, Goodbody's.
Just
two
questions
from
me.
So,
firstly,
as
part
of
the
sustainability
plans
that
you
announced
yesterday,
you
talked
about
the
50%
and
75%
targets
in
2026
and 2030.
Can
you give
any
color
in
terms
of
where
that
currently
sits?
And
then
just
also
on
retail,
so
in
terms
of
the
Irish
retail
business
versus
the
UK,
there's
quite
a
divergence
in
terms
of
the
recovery
versus
2019.
So,
how
should
we
kind
of be
thinking
about
Irish
retail
going
forward
versus
2019
levels?
Thanks.
Okay.
Yeah.
Look,
in
terms
of
the
Play
Well
metrics,
we're
currently
at
around
35%
against
that
metric.
There
are
different
– we're at different
stages
in
different
parts
of
the
globe.
And
I
think
if
I
look
at
a
market
like
the
US,
we're
taking
–
we're
trying
to take
a
relative
leadership
position
around
that.
So
we'll be
doing
some
safer
gambling
advertising
in
Q2.
We've
been
the
first
operator
to
sign
up
to
offer Gamban
software
to
customers.
There's
a
variety of
things
we're
doing.
We're
building
our
own
AI
models
for
the
US
market,
recognizing the
differences
in
the
US
market
compared
with
what
we're
seeing
overseas.
And as an
example,
we'll
be
tracking
to
400
metrics
across
our
consumers
in
the
UK
to
try
and identify
any
examples
of
people
who
are
exhibiting
behaviors
that
we're
uncomfortable
with.
So
there's a
lot
we're
going
to be
doing
in
the
US
in
recognizing
our
leadership
position
we
have
in
that
market
and
a
very
substantial
growth
in
the
business.
I
think
it's
also
important
that
we
show
leadership
in
that
area,
too.
Jonathan,
I
don't know
whether you
want
to
reference
where
we
are
on
Irish
retail.
Look, I
think
what
we're
seeing
behaviorally
in
Ireland
is
just
is
different
than
what we've
seen
in
the
UK.
I
think
the
UK
has
gone
sort
of
post-COVID
at
a
much
earlier
stage,
with
people
feeling
much
more
confident
about
going
into
retail
outlets, etcetera,
etcetera. And
obviously
we've
been
more
fully
open
for
a
longer
period
in
the
UK
than
we
have
had.
Look,
we'll
see
how
behaviors
change
over
the
next
three
to
six
months.
We're
still
confident
that
Irish
retail
is
a
very
key
place
in
the
market.
We
know
we
get
benefits
from
having
that
iconic
brand
on
the
high
street
and
that
will
continue.
But
we
have
no
doubt
that
the
Irish
retail
will
bounce
back
in
time.
It's
just
a
case
of
how
long
that's
going
to
take.
Thanks, guys.
Hi.
Hi.
This
is
Kiranjot
Grewal
from
Bank
of
America.
Just
two
questions
from
me.
Firstly,
on
stickiness,
your
product
seems
to
be
better
and
bigger
in
terms
of
range and
that
seems
to
be
driving
a
lot
of
the
demand.
But
is
there
a
risk
there
could
be
catch-up
from
competitors?
Or
is
there
some
kind
of
element
within
the
product
that
would
drive
loyalty?
And
then
the
second
one
is
on
US
IPO.
We
spoke
in
detail
about
it,
I
think,
six or
seven
months
ago.
And
there
were,
I
think,
three
reasons
you
outlined
why
you
wanted
to
do
it.
Given
where
the
share
prices
have
headed
or the
market
is headed in
the
last
six
months,
is
that
still
on
the
cards for,
say,
this
year
or
could
that
be
delayed?
Thank
you.
And
I
presume
your
reference
to
stickiness
of
product
is
in
the
US.
I
mean, because
I
could
talk
about
any
one
of
our
products, right?
Sorry, yes.
They're
great
in
all
the
markets
we
operate.
Look,
I
mean
there's
a
hundred
things
you
have
to
do. Yeah,
well,
many
more
actually
and
the
product
team
would
kick
me
for
saying
any
hundred.
There's
many
things
you
have to
do
to
get
the
product
right
for
customers.
The
speed
and
ease
of
use
is
a
really
important
aspect.
If
you
think
about
the
way
in
which
the
variety
of
markets
that
we
have
available
to
better
surface
the
markets
that
people
want
to
find
quickly
and
enable
them
to
get
on –
get
their
bets
on
in
a
way
that
works
them
really
efficiently
is
important.
Actually
the
Same
Game
Parlay
product
and
the
integration
of
that
and
the
ability
to
evolve
that,
as
we
have
done,
and
I
mentioned
what
we've
done
in
Australia
in
terms
of
building
tokenization
and
generosity
into
it
and
there's
other
ways
in
which
we
will,
those
things
are
really
important.
So
we're
not
standing
still.
We've
got
the
benefits
of
operating
a
global
platform.
So
the
platform
that
sits
behind
our
team
in
America
is
the
same
one
that
sits
behind
our
Paddy
Power
and
Betfair
businesses.
And
we
can
actually
share
and
take
ideas
and
concepts
from
one
business
to
another.
So,
we
have
a
very
big
development
team
to
support
our
American
business,
but
they
also
have
the
benefits
to be able
to
steal
ideas
and
products
and
services
that
they
see
from
other
divisions
as
well.
So
the
way
I
think
about
it
is they've
got
thousands
of
cheerleaders
who
are
– they're
helping
build
products
in
America,
and
we're
certainly
not
standing
still.
And
I
think
if
you
look
at
the
Super
Bowl
this
year,
there
were
no
issues
from
a
customer
service
perspective
or
stability
perspective.
A
lot
of
– I mean, there
have
been
challenges
in the
past,
but
the
massive
volumes
we're
putting
through
that
platform,
the
business
and the
platform,
all
stood
up
really
well. And
I
think
that
shouldn't
be
underestimated.
So
I
think
when
we
look
at
the
retention
levels
in
the
business,
it's
very
much
driven
by
the
quality
of
the
products.
And
there's
lots
of
aspects
to
that.
And
you
can
look
at
[indiscernible]
(00:54:45) for
example,
undertake
a
review
and
assess
the
quality
of
our
product
and
have
us
ranked
number
one.
And
our
customers
are
voting
with
their
feet.
They
may
take
other
people's
free
money,
but
they
come
and
continue
to
use
FanDuel.
But
at
the
end
of the
day,
we
have
to
be
paranoid
because everybody
else
is
going to
be
trying to
catch
up.
So
we've got
to
stay
ahead
and
keep
investing,
and
that's
why
you
can
see
our
cost
base
growing.
We're
putting
in
more
tech
folk
in
both
the
sports
betting
side.
We've
also
got
a
big
opportunity
on
the
gaming
side
that
we
haven't
monetized
properly
yet,
and
that's
why
we
put
another 100
heads
into
that
business.
We've
just
moved
one
of
our
most
experienced
casino
guys
across
the
US,
and
he'll
be
going
over
there
very
shortly
to
help
really
try
and
get
some
growth –
more
growth
into
that
side
of
the
business
and
really
make
sure
that our
product
does
everything
it
needs
to
do
on
the
gaming
side
as
well
as
the
sports
side.
Yeah. And look,
as
it
relates
to
the
IPO
of
a
small
stake
in
FanDuel,
the
reasons
that
we
talked
about
it in
the
past were
the
fact
that you
get
this
with
the
marketing
benefits
of
having
a
listed
vehicle
in
the
US.
And
we
know
that
DraftKings
get
a
lot
of
publicity off
the
back
of
their listing
with
their
customers
buying
So it's
something
that
we
would
like
to
get
the
benefits
of.
We
often
talk
about
the
levels
of
the
partnerships
that
we
have,
whether
that's
with
marketing
channels
or
personalities
or
different
media
businesses.
And
to
be
able
to pay
for
some
of
those
in
equity
as
well
as
cash
is
important,
although
I
suspect
that
some of
the
people
who took
equity
a
while
ago
are
wishing
they had
now
taken
cash.
Yeah.
And
then
finally,
there's
also
the ability
to be
able
to
remunerate
your
colleagues
with
local
equity,
which
is
important.
So those
factors
are
all
important
for
us.
It's
not
something
that
we
need
to
do.
And
clearly,
we're
monitoring
the
markets
at
the
moment
and
it's
something
which
the
board
will
keep
under
evaluation.
James?
Morning.
James
Wheatcroft
from
Jefferies.
Path
to profitability
has
been
a
sort of key
discussion
topic,
I
think,
with
the
market
over
the
last
few
months.
Historically,
you've
talked
about
having
a
25%
EBITDA
margin in
the
mature
US
states. I
was
wondering
whether
you
could
give
us
a
feel
for
how
maybe New
Jersey
is
developing
along
that
path
and
how
long
before
it
might
be
we
see
other
states
in
that
sort
of same
category,
please?
Jonathan?
It
obviously –
what
we've
outlined
this
morning
is
this
12
to
24
months
of
getting
into
that
profitable
state
on
a
state-by-state
basis.
We
obviously
only
have
a
short
period
of
history
for
the
states
that
came
after
New
Jersey. In
New
Jersey,
we are
very
comfortable
with
the
level of
contribution
percentage
that
we're
seeing
from
that
state,
and
a
gaming
state
and
a
sports
betting
state
where
we
have
a
very
strong
market
share
and
a
good
tax
rate.
And
we're
very
happy
with
where
we
are
in
the
state.
We
haven't
got
enough
track
record
to
start
talking
about
the
state-by-state
contribution
percentages
for
those
states
that
came
in
2019.
But
I
think,
over
time,
we
will
look
at
how
we
try
and
bring
to
life
in
more
for
you
guys
where
those
2019
states
and
hopefully
the
trajectory
of
those
2020
states
and
we
can
start
building
those
J-curves
for
you.
At
the
minute,
we're
a
little
bit
early
in
those
2019
states
to
really
start
seeing
where
they're
getting
to
in
terms
of
that contribution
percentage.
But
I
can
assure
you,
we
feel
very
confident
in
the
direction
of
travel
on
these
dates
and
even
more
so
after
the
last
six
months
we've
seen.
Thank
you.
Ed
Young
from
Morgan
Stanley.
My
first
question
was
on
the
UK.
The
regulatory
impacts
you
outlined
started
at
£7
million
in
Q1
with
£37
million by
Q4.
You're
expecting
incrementally
more
measures
to
be
introduced
because
that
would
suggest
a
run
rate
of
£150
million,
£160
million or
so,
and
obviously
£37
million in
Q4,
£7 million
Q1.
It seems
like
a £50
million
or £60
million
headwind
to
revenue
potentially,
if
it
stays
at
the
current
level or
maybe
higher
than
that,
if
it
goes
through.
So,
could
you
maybe
talk
about
what
we
expect
going
into
next
year?
The
short
question
there
is,
should
US
– should
UK
online
profitability
grow and
next
year
what
should
we
expect?
That's
really
where
I'm driving
at.
And
the
second
question
is
on
international.
You
gave
the
very
helpful
pitch
there.
I
think
the
H2
run
rate
was
just
– that's
run
rating
about
£240
million. I think
you
called
out,
Jonathan,
another
£55
million for
Germany
and
the
Netherlands.
You
obviously
mentioned
the Ukraine
and
Russia
as
well.
Is
there
any
sense, do
you
think,
that
there's
a
case
to be
made
to
pull
back
on
some
of
the
investment
you've
made
by
choice
there
to
stabilize
profitability,
or
do
you
see
that
as
essential
to
drive
the
revenue
to
get
back
to
growth?
Is
there
any
kind
of
cost
action
you're
considering
in that
division,
given
how
much
it's
come
down
in
EBITDA
terms
from
2019
and
2020 levels?
Thanks.
On
the
UK&I,
I
think
there's
three
moving
parts
to
consider
as
we
look
at
2021
into
2022.
There's,
first,
I
think
the
recreational
market
will
still remain
a
bit
of
the
market
that
will
be
a
better
part
of
the
market
to
be
in,
and
I
still
think
on
that
recreation
element, there'll
probably
still
be
growth.
But
the
overall
market,
as
we
said
in
Q3,
we
think
will
probably
be
flat.
So,
if
we
want
to
be
in
one
part
of
the
market,
I
think
we're
in
the
right
place.
I
think
what
we're
effectively
doing
is
bringing
into
our
business
what
we
expect
to
have
to
bring
into
the
business
anyway.
So,
in
my
view,
we're
just
building
sustainability
now
rather
than
building
it
a
little
bit later,
and
I
think
it's
the
right
thing
to
do
for
the
business.
As
we
see
the
customer
economics
evolve,
so
on
the
cost
side,
there's
two
things
that
will
affect
the
business
and
the
customer
on
the
cost
side.
One
is
just
the general
customer
economics.
If
we
see
lower
values,
therefore,
what does
that
mean
for
promotional
and marketing
spend
as
go
forwards
and
what
can
we
actually
afford
to
invest
in
that
CAC to
TV
equation
to
ensure
that
we're
driving
the
right
value.
And
the
second
thing
will
be
on
the
cost
base
and
the
integration.
The
UK&I
integration
was
always
more
–
the
Australia
and
the
corporate
stuff
was
very
short-term
because
in
Australia
we
were
obviously bringing
two
businesses
together
and
it
was
two
people
for
one
job
and
two
car
spaces
into
one.
So
it
was
very
quick
and
it
was
done
incredibly
effectively
by
the
team.
The
same
in
group,
it
was
cost
to
contract,
etcetera.
In
UK&I,
it
was
always
going
to
be
more
complex.
It's
about
major
changes
in
the
tech,
which,
as
you
know,
in
our
sector
don't
happen
overnight.
It's
complex. So
it's
a
multiyear
process.
And
there'll
be
some
structural
change
that'll
happen
in
that
business
over
time.
So you've
got three
sort
of
moving
parts
in
terms
of
the
market,
the
[ph]
SGE (01:01:58)
stuff
coming
in,
plus
the
cost base.
We
feel
that
we
should
see
profitability
going
forwards
in
that
business
from
the
mix
of
those
three
things
year-on-year
from
2021 into
2022 in
terms
of
the
UK&I
online
profitability.
And then
regarding
your
question
around
International and the
investment we
put
into
the
business,
I
mean,
I
think
you
need
to
look
at
it
in
different
buckets.
I
mean,
half
of
the
money
we
put
into
investment
was
stuff
that
we
absolutely
had
to
do.
And
I
would describe
it as
sort of rebuilding
the
foundations,
keeping
the
lights
on type
of stuff
for
the
business,
which
there's
no
choice
around.
In
terms
of
the
growth-orientated levels
of
investment,
around half
of
that went into
the
casino
business.
And
we're
seeing
a
really
good
performance
in
our
directly
acquired
casino
business
now.
The
revenue is
four
times
than
it
was
pre-merger
and
now
that
we've
built
the
capabilities,
we're
just
being
able
to
sort of
replicate
that
into
a
number
of
its
incremental
markets.
And
we're
really
pleased
with
how
that's
doing,
the
returns
it's
generating.
We
have
put
some
money
behind
the
PokerStars
brand.
It
is
important
for
us
in
markets
like
Brazil
and
Canada,
which
we
just
referenced
as
being
two
important
components,
when
you
look
at
how
big
that
TAM
could
get.
But
there's
also
places
we're
investing,
things
like
into
the
Betfair brand
in
LatAm,
Junglee.
So
it
is
important
to
remember that
when
we
talk
about
International, it
isn't
just
PokerStars, and
there's
some
really
important
businesses there
that
we're
investing and
getting
good
growth
from.
I
mean,
one
of
the
benefits
of
having
the
portfolio
is
we
– just
because
the
International
profitability
is
pulled
back,
if
we
still
see
great
paybacks
in
markets,
we
don't
have
to
say,
well,
we
can't
do
that because
we've
got
to
keep that
bit
of
the
business
growing
at
a
certain
rate
or
taking
profit
today
rather
than
growing
the
business.
We've
got
to
do
the
right
thing
across
the
portfolio.
And
to
Peter's
point, I
mean,
half
of
our
year-on-year
sales
and
marketing
uplift
in
International
is
actually
because
we've
got Junglee
in
for
the
full
– for
the
2021
year.
And
actually
the
paybacks
we're
seeing
in
that
market,
for
instance,
are
fantastic.
So
we're
going
to do
the
right
thing
for
the
medium
term
of
the
business
and
not
do
something
just
to
try
and
shore
up
short-term
profitability
because that
would
be
– that
would
not
be
driving
shareholder
value
in
this
case.
Are there any
more
questions?
Maybe
should we
go
to
the
– were
there
any
questions
coming
on
the
phone?
Don't
quite
know
how
we
managed
the
–
I've
forgotten
how
we
do
these
hybrid
events.
So
the
first question
is
coming
from
Joe
Stauff
from Susquehanna.
Please
go ahead.
Your
line
is
open
now.
Thank
you.
Good
morning,
everyone.
Peter,
I
was
wondering
if
you
can
give
us
maybe
an
updated
view
on
the
timing
you'd
expect
for
the
arbitration
process
with
FOX.
And
then,
I
wanted
to
ask
about
how
do
you
think
about
the
casino
strategy
in
the
US?
So do you have – are
you
thinking
of
consolidating
brands
or
going
with
one
particular
brand?
If
you
can
comment
on
that,
please.
Okay.
Look, Joe,
you'll
have noticed
from
our
release
this
morning
that
we
mentioned
that
there's
been
a
delay
to
the
timing
of
the
arbitration
FOX
because
we've
been
in
dialogue
with
them.
But
we
now
have
a
date
set
for
June,
and
that's
what
we'll
be
working
towards.
And
look, we're
very
comfortable
going
into
arbitration.
We
think we've
got
a
very
robust
position.
And
ultimately
that's
the
new
timeframe.
It
was
the
right
thing
to
do
to
have
a
dialogue
with
FOX,
push
back
the
original
dates.
Ultimately,
we'll
run
to
that
arbitration
timetable.
And
look,
I
mean,
you
all
know
this,
but
we
recognize
absolutely
the
value
of
the
FanDuel
asset
and
therefore
any
deal
that
might
be
done
with
FOX,
we'll
have
to
recognize
that.
And
if
we
can't
get
the
deal
is
right
for
our
shareholders,
we're
very
comfortable
going
to
arbitration.
Yeah,
absolutely
right.
And then,
look,
in
terms
of
what
we
do
in
the
US
from
a
casino
perspective,
we
know
that
there's
more
for
us
to
do.
But
fortunately, we
know
what
we
need
to do
because
we're
very
good
at
growing
direct
casino
businesses
really
all
around
the
world.
So,
as
Jonathan
mentioned
earlier,
we're
bringing
over
one
of
our
top
casino
managers
into
the
US to
help
support
our
business.
And
there's
a
heap
of
things
that
we've
got
planned
to
do
for
that
business
over
the
course
of
this
year.
I
don't
necessarily
tell
our
competitors
all
of
our
plans,
but
you
can
rest
assured
that
we're
very
good
at
growing
direct
casino
businesses
and we
intend
to
continue
to
do
that
in
the
US.
But,
of
course,
we
have
the
best
set of
customers
to
cross-sell
into,
which
is the
sportsbook
we
have
in
the
US
market
where
we're
the
leaders. And,
of
course, it's
also
worth
remembering
that
sportsbook
is
where
the
action
is
really
at at
the
moment
in
America,
it's
where
the
next
few
states
will
come
on
stream,
and
that's
our
strong
hand.
So
we'll
continue
to
make
sure
we
really
exploit
that.
But
there
is
more
work
to
do
in
casino.
We've
actually
held
our
market
share,
which
I
think
is
quite
remarkable.
When we
look
at
the sort of
the
quality
of
our
products,
there's
lots
we
know
we're
going
to
do
to
improve
it
and
we
will
do
so.
And the
next
question
is
coming
from
James
Rowland
Clark
from
Barclays.
Please
go
ahead.
Your
line
is
open
now.
Hi.
Good
morning,
everyone.
A
couple
of
questions,
please,
on
the
US
and
on
the
UK.
Just
on
the
US,
are
you
able
to
provide
a
revenue
target
and
EBITDA
loss
guidance for
2022? Just
wondering whether
you
can
hit
£1
billion
worth
of
revenue
this
year.
And then
on
the
UK,
I just had
to clear,
the
review
ends
up
producing legislation
that's
a little
bit
better
than
you've
planned
with
your
safer
gambling
measures.
Are
you
in
a
position
where
you
can
switch
the
business
back
on
to
higher
value
customers
or
reacquire
or
retain
these
customers?
Thank
you.
Shall
I
take
the
first
one?
Yes,
please.
Okay.
So
we
won't
be
providing
revenue
guidance
at
this
point
on
the
US.
And
it
will
definitely,
I
would
expect,
be
higher
than
the
£1.4
billion,
$1.9
billion
we
did
in
2021.
But
I'm
not
giving
a
number
for
that.
In
terms
of
EBITDA
and
the
loss,
I
think
we
are
not
giving
specific
guidance
at
this
point, but as a starting point, considering our losses in 2021
at
a
comparable sort
of
level for
2022 is
a
very good
starting
point.
We're
not
here
to
discuss a
significant
increase
in
EBITDA loss
at
all. Unlike
some
of
our
competitors, we
would
think
a
reasonable
starting
point
is
where
we
got
to
in
2021
with
a
clear route to where
we're going
in 2023,
which
I
think
we've flagged
pretty
clearly,
hopefully.
Thank you,
Jonathan.
Look,
in
terms
of
the
potentials
of
outcome
in
the UK
environment,
look,
we
think
it's
very
important
to build
a
business
that's sustainable.
I
think
what the
regulators are
certainly
going
to
do
is
introduce
a
level-playing
field. You
could
say
that
we have
moved
ahead of
the
regulators in
trying
to
do
the
right
thing
for
the
business.
And
if
that
is
the
case, I
think
it'll be
good
when
the
regulators can
introduce
a
level-playing
field.
People
who are
posting
big
growth numbers,
you've
got
to ask
how
they're doing
that
and
how sustainable
it
is.
I
think
we're
all
desperate
for
some clarity
and
we'll
get
that
with the
introduction
of
the
Gambling
Act
review,
and
we'll
make
sure
that
we
shape
our
business
appropriately once
we
know
how
the
UK
government
wants
to
introduce
that
legislation.
And the
next
question
is
coming
from Monique
Pollard from
Citi.
Please
go
ahead. Your
line
is
open.
Hi.
Good
morning,
everyone.
A
couple
of
questions
from
me,
if
I
can;
one
on
Australia,
one
on
the
US.
So, just
on
Australia,
obviously,
you've
seen
huge
scale
benefits
coming
through
with
marketing cost – sales and marketing cost just 9%
of
revenues
in
2021. I
just
wondered
if there
was potential for that
marketing
cost
as
a percent
of
revenue on an
absolute
basis
to continue
to
scale
into 2022
or
if
we
sort of maxed
at
that level
here.
And
then
secondly,
on
the
US,
obviously,
fantastic win
margin
of
[ph]
25% (01:11:00)
in
the
fourth
quarter.
I should
say
in
a
slightly
different
[indiscernible]
(01:11:05) Same
Game Parlay.
Obviously,
you
mentioned
76%
of
total
customers were using the Same Game Parlay
during
the
season.
But
I
just wondered
if
you
could
give
any
color
on
how that proportion of
[indiscernible]
(01:11:21) could
increase
to
reach
2022
[indiscernible]
(01:11:25) on
the
improvement
in the
win
margin
this
year
in
the
US.
Monique,
thanks
for
the
question.
A
couple
of
comments
on
Australia.
The
first
is
that
we
actually
saw
the
net
win
margin
above
where
we
would
have
expected
it
by
about
70
basis
points
and
roughly
the
same
year-on-year.
So,
therefore,
what
you're
sort
of
seeing
is
a
slightly
artificially
low,
marginally
lower
level
of
marketing
spend
than
we
probably
would
have thought.
I
think
the
second
and
more
important
thing
in
Australia
is,
as
we
put
more
and
more
of
the
value
that
we
give
to
customers
directly
to
them
through
bespoke
promotional
benefits
to
individuals
through
pricing
and
promotions
or
whatever
that
is
directly
on
a
customer-by-customer
basis,
that's
going
through
our
kind
of
promotion
line.
And
the
more
of
that
we
can
make
the
direct
to
the
individuals,
the
less
we
put
through
the
sales
and
marketing
line.
So,
actually,
what
you'll
see
is
as
we
get
more
and
more
adept
at
making
sure
we
can
be
rifle
shot
rather
than
scatter
gun,
we
will
put
more
value
to
the
individual
customer
and
you
will
see
sales
and
marketing
coming
down.
Where
that
ends
up,
we
need
to
see.
I
think
we're
at
a
very
efficient
point
at
this
stage
and
I
don't
necessarily
see
that
scaling
further.
And
we'll
have
to
just
make
sure
we've
got
the
right
balance
between
the
above
the
line
and
below
the
line
sort
of
offers,
because they
obviously
go
through
different
lines
which
makes
it
slightly
confusing,
to
make
sure
that
we've
got
enough
brand
visibility,
brand
presence,
being
seen
to
have
a
high
value
proposition
in
the
market,
as
well
as
individual
customers
getting
that
through
personalized
bespoke
generosity.
Yeah. And
look,
as
it
relates
to sort
of
win
margins
in
the
US,
I
think
one
thing
I'd
just
remind
you
of
is
the
sort
of
the
impact
of
some
of
our
promotional
activity
on
win
margins
across
the
course
of
the
year.
So,
things
like
our
very
successful
Super
Bowl
campaign
where
we
make
offers
like
56
to
1
available
to
customers
can
artificially
depress
win
margins
in
the
period,
but
ultimately
those
things
bounce
back.
And
I
think
the
performance
of
the
Same
Game
Parlay
product
for
football
is
important,
but
it's
also
really
important for
things
like
the
NBA
as
well.
So
we're
comfortable
with the
levels
of
margin
we
see
in
the
US.
And I
think
we
have
some also
structural
advantages.
I think we'll turn that to Jonathan.
And look, the
more
the
market
moves
into
the
fast
followers
and
then
into
a
more
recreational
base,
we
see
that
naturally,
as
we've
seen
in
other
markets,
driving
the
sort
of
the
multi-stroke
parlay
mix
higher
over
time.
So
we're
hoping
that
over
time
we
could
see
that
penetration
of
parlays
grow
further
as
the
mix
of
the
customer
base
changes.
And
therefore,
we're
hoping
that
we'll
end
up
with
increasing
structural
margins
over
time.
Okay.
I
don't think
there
are
any
more
questions
on
the
phone.
So,
thank
you
very
much,
everybody,
for
coming.
It's
nice
to
see
you
all
in
3D.
Thank
you
for
your
ongoing
support.
Thanks very much.