Full Year 2024 Entain PLC Trading Statement Call Transcript

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

Question: Brandt Montour - Barclays - Analyst : Good morning, everybody. Thanks for taking my question. I want to drill down into the premium mass commentary and and the shift in strategy and always be more toward that higher value player, which was pretty clear. But I just want to understand a little bit better, when you think about premium mass, as you've coined it, is that how much of your current activity is that customer? I know you didn't call it VIP. Can you just describe that customer a little bit better? And how drastic of a shift is this strategy toward that customer in '25?

Question: Brandt Montour - Barclays - Analyst : Okay, great. That does help. And maybe if you could just add a layer into that discussion about what's unique to your offering i.e., with MGM rewards and Bonvoy. I don't know if that's been activated and integrated. Could you talk about sort of how impactful those two integrations have been and how much you think you need to leverage it to hit those promo reduction targets in your '25 guide?

Question: Adrien de Saint Hilaire - Bank of America - Analyst : Yes. Good afternoon or good morning to you. A couple of questions, please. So first of all, in that $2.4 billion $2.5 billion, I'll call it 17% growth versus '24, can you decompose a bit between sports betting and iGaming? And then the second question, There are a number of states which are currently discussing legalizing iGaming. I was just wondering if you could give us your thoughts around if you think any state is actually likely to legalize this year or go through potentially a balance? And yes, some of your expectations there? Thank you.

Question: Adrien de Saint Hilaire - Bank of America - Analyst : Thank you both.

Question: Daniel Politzer - Wells Fargo - Analyst : Hey, good morning, everyone. Thanks for taking my question. First, I guess I wanted to get a better sense of how you're thinking about sports versus iGaming. Certainly, your share shifted around a bit over the last few years and at this point, your sports product has improved a lot. So do you feel like it's pedal down, get that share back in sports, or is it really more of a kind of goal to be profitable and reduce those promotions as you head to 2025?

Question: Daniel Politzer - Wells Fargo - Analyst : Got it. That makes a lot of sense. I guess just to follow on that topic in terms of really focusing on sports. I mean, my math indicated something like structural hold in the low 9% range for 2024. Any incremental color or details on how you think about growing that over the next few years just given it seems like the parlay product is really start to gain some traction?

Question: Daniel Politzer - Wells Fargo - Analyst : Got it. Makes sense. Thank you so much.

Question: Ben Shelley - UBS - Analyst : Hi. Just like on iGaming. I would love to get your equivalent thoughts on the tax bills also emerging this year in the US. Thank you very much.

Question: Ben Shelley - UBS - Analyst : Thank you very much. And just by way of follow-up, do you feel like lawmakers are listening to those arguments? What kind of feedback are you getting?

Question: Ben Shelley - UBS - Analyst : Thanks very many guys. I really appreciate it.

Question: Barry Jonas - Truist Securities - Analyst : Hey, guys, wanted to get your thoughts on these new predictive betting markets. To what degree do you see this as a competitive threat to BetMGM? And at the same time, is it an area that you would explore? Thanks.

Question: Barry Jonas - Truist Securities - Analyst : Great and then just as a follow-up question. Totally, we had an unfavorable hold stretch in Q4. But I'm curious if you've seen specific players roll their winnings back through at a higher rate to either OSB or maybe even iGaming. Curious to what degree you think that's contributed to the strong January? Thanks.

Question: Barry Jonas - Truist Securities - Analyst : Really helpful. Thank you very much.

Question: Joe Stauff - Susquehanna - Analyst : Thanks, good morning, Adam and Gary. Is there any way to describe, say the opportunity or where you're at in terms of collaboration with MGM at this point in terms of both BetMGM and MGM Resorts? It certainly -- it seems, on this call and the outlook you're suggesting this is really how you can drive say a higher quality of premium mass in your OSB mix this year. Is there any way to describe that?

Question: Joe Stauff - Susquehanna - Analyst : Understood. And with my follow-up, you have a higher frequency of play. I think you had sort of measured 27% in the second half for a casino. What is that attributable to, obviously, it's a number of things that maybe the main drivers for that number in terms of frequency of play?

Question: Joe Stauff - Susquehanna - Analyst : Thanks a lot, Adam. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 04, 2025 / 2:00PM, ENT.L - Full Year 2024 Entain PLC Trading Statement Call

Question: Chad Beynon - Macquarie - Analyst : Hi, good morning. Thanks for taking my question, Adam, you've previously talked about a 30% long-term EBITDA margin. And I know there's a lot of variables that go into this with scale, flow through taxes, et cetera. But given the slight shift towards the premium mass model on OSB, at this point, does anything change in terms of where you can get that long-term margin to?

Question: Chad Beynon - Macquarie - Analyst : Thank you, Adam. And then lastly. Just in terms of live dealer, you talked about really good cross sell from your sports betting players over to iGaming, which should be positive for certain types of iCasino games. What do you think it's going to take for just customer, education or appreciation of live dealer to start to see live dealer percentage of overall casino revs move more towards what we see in other markets like the UK? Thank you.

Question: Chad Beynon - Macquarie - Analyst : Thank you very much.

Question: John DeCree - CBRE - Analyst : Hi, everyone. Thanks for taking my question. Adam, I wanted to circle back to one of the KPIs you mentioned earlier in the presentation about OSB players. Active and iGaming grew 11.5, I think points. And I think the 2024 was the period. Curious if you could give us a little bit more color on that, I guess from a customer acquisition perspective, what percent of new customers are coming in via iGaming first versus OSB? And how has that kind of changed this year versus prior years? So it seems like more players are playing iGaming. But we're curious where your kind of primary acquisition channels are.

Question: John DeCree - CBRE - Analyst : Thank you. That was all for me. I appreciate it. Thank you.