Full Year 2023 Endeavour Group Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ross Curran - Macquarie Research - Analyst : Congratulations on the results. Can I just get a feel for the step-up in debt coupled with the step-up in interest rates? Can you give us a feel for where you expect interest costs to be over FY '24?

Question: Ross Curran - Macquarie Research - Analyst : Okay. And then can we talk about price versus volume and mix in the retail business?

Question: Shaun Robert Cousins - UBS Investment Bank, Research Division - Analyst : Maybe just some clarification of some of the answers. So maybe just on net interest. Can you maybe -- if we look at your second half at 131, we annualize that, you get to 262 then you get $9 million because of the Victorian gaming and you've got higher interest rates. I'm just conscious that your net interest was higher than the market was going for. So can you -- I mean, why won't your net interest be 270 to 280 next year? Can you just maybe walk us through what are the components there, please?

Question: Shaun Robert Cousins - UBS Investment Bank, Research Division - Analyst : Okay. Maybe then if we think about the $200 million cost saving program for '24 to '26, what's the incremental costs in '24 -- cost savings in '24? Do we just split that equally? Or does it build, please?

Question: Shaun Robert Cousins - UBS Investment Bank, Research Division - Analyst : Okay. And maybe just finally, just on the Victorian amounts that you're paying in terms of you've signed a 10-year lease -- or, sorry, [probably] you had a 10-year agreement there. But arguably, things have changed in terms of -- as you go into [carded] gaming. Can you negotiate a lesser fee? Or are you comfortable with the value of the assets that you've got on balance sheet given what could be a different revenue trajectory that you could get out of Victoria? I'm just curious in that these changes have come just 1 year in to your 10-year agreement there. So I'm just curious around how you're thinking about the financial implications there? And is there any potential to change those financial terms, please?

Question: Thomas Kierath - Barrenjoey Markets Pty Limited, Research Division - Analyst : Just following on from Bryan's question there. If gaming is growing at a lower rate than food and bev, which I think it did in the half just gone, and margins down pretty significantly in the hotels business, if it grows at a lower rate going forward, does that mean that the overall hotel margin likely falls just given the different margin structures of those businesses? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 16, 2023 / 12:30AM, EDV.AX - Full Year 2023 Endeavour Group Ltd Earnings Call

Question: Thomas Kierath - Barrenjoey Markets Pty Limited, Research Division - Analyst : Cool. And then just on the retail business. I mean on the numbers I look at, it looks like you've lost share again in the last quarter. I know from the slides here you're saying that your aspiration is to win share. The numbers I'm looking at is the ABS numbers. I know they're not perfect, but they're up over 1% -- the net cash numbers are up over 1%. You're kind of flat. I guess, why aren't you winning share or holding share? And is it because you're pushing so much Pinnacle stuff? Is it pricing? Just be interested to understand what's going on there.