Q1 2025 Entain PLC Trading Statement Call Transcript

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

Question: Ed Young - Morgan Stanley - Analyst : Good morning. I've got three questions, please. The first is to Stella. First of all, congratulations on the role. Could you please give some thoughts, what areas, if any, you think require a change in approach or emphasis now you've got the permanent job, or, and I don't want to get into the training analogies going again, but do you think your job is to sort of maintain continuity and stability on the current direction? The second is on Brazil. Clearly delivered very good growth in the quarter, despite what you've signaled as a difficult transitional January for the market as a whole as it opened. Could you give some color on the shape of performance across the quarter or perhaps the exit rate out of the opening of the football season? And then finally on the BetMGM call, Adam spoke to a tech platform level upgrade that should improve app speed quite dramatically, which has been a persistent area of critical feedback around the US product. Can you give a bit more color on that, its timing, and how that could benefit potentially the wider business as well? Thanks.

Question: Ed Young - Morgan Stanley - Analyst : Perfect, thank you.

Question: Estelle Winograd - JPMorgan Chase & Co. - Analyst : Hi, good morning, everyone, and congratulations as well on the new role. The first one is in Australia. Could you elaborate a bit more on what you see happening in the market, which in theory should have bottomed out is the underlying market growing year on year exports results? That's the first question. The second one on UK retail. What is driving the volume weakness after the rollout of the new cabinet? I mean, gaming NGR was down 4% and sports was relatively soft as well, I guess, just up 3% despite the positive sports results. And the last one, just a quick one on the UK. Could you give us the underlying NGR growth adjusted for the favorable sports results to have a better idea on the underlying trends both for online and retail? Thank you.

Question: Estelle Winograd - JPMorgan Chase & Co. - Analyst : Great, thank you very much.

Question: Monique Pollard - Citigroup - Analyst : Morning. Thank you very much for taking my questions, and congratulations again, Stella on the roll. I have three questions as well if I can. The first one was just about the guidance. Obviously, the guidance has been kept unchanged with and that's it, online NGR growth, mid-single digit constant currency. When I look at your 12 results, it seems to me they would have been, I don't know, let's say about 8%, even one the better results. So are there areas that you expect to materially slow as we go through the year or is there upside potential to that guidance? That's the first question. The second question, Rob, to your point, you've outperformed the market or you're pretty confident you've outperformed the market in the UK online in the first quarter. Do you think you now on a roll where you can continue to outperform the market and take market share UK online as we go through the rest of 2025? And then the final question is just on the Netherlands. Obviously that market has been impacted by new regulation. Just wondered if you could give us how much revenues have declined there in the first quarter? Thank you.

Question: Monique Pollard - Citigroup - Analyst : Okay. Thank you very much.

Question: Adrain de Saint Hilaire - Bank of America - Analyst : Yeah, good morning, everyone, and also extending my congratulations to Stella for the role. So I've got two questions if that's okay. Sports margins have been a tailwind now for many quarters. Are you able to back a bit what is driven by the outcome of actual results and what is driven by changing mix or better pricing and what you would consider to be a normal level of sports margin expansion? And then secondly, right now stands at about [10] next year, about [1] in 2025, which is generally a bit below peers. I know you obviously can't control the price, but what do you think is in your control for the resets?

Question: Pravin Gondhale - Barclays - Analyst : Hi, morning. Thanks for taking my questions, and then Stella, many congratulations on the appointment. Firstly, if I may ask, on UK, you obviously flagged that you continue to win chair and then the volume growth has been really strong in Q1. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 29, 2025 / 8:00AM, ENT.L - Q1 2025 Entain PLC Trading Statement Call Can you help us split that between the market share gains from the level paying field and then, the product improvement, that you have implemented in the last 12 months or so? And then secondly, do we have any update on the tract proceedings? Sorry if you have already sort of commented on that and I might have missed that, but an update would be helpful. And then finally, are you seeing any softness in consumer spending in any of your markets?

Question: Pravin Gondhale - Barclays - Analyst : Thanks and Stella, that's really helpful. Thank you.

Question: Ben Shelley - UBS - Analyst : Morning team and congratulations Stella. Thanks for taking my questions. One, just on guidance, following one, do you think there's a bit of a blend shift in your expectations from the respective online and retail segments? Perhaps more contribution coming from online. And then two, on the portfolio, I know you have no explicit plans here, but could you give us some updated thoughts on maybe Georgia and Italy? And then three on product, can you talk about Angstrom integration? Is this still very much a US piece? And can you talk about when and how it might be leveraged to the exc. US business and what product upside that might drive?

Question: Ben Shelley - UBS - Analyst : Great.

Question: Andrew Tam - - Analyst : Morning, Stella and Rob, congratulations once again to Stella. A quick one just building upon Ed's question about Brazil. Can you talk about the competitive environment there, that's strong growth and obviously strong margins. Can you talk about how, what, what's going on in terms of upfront acquisition and retention costs there? How should we be thinking about that performance there at the contribution profit line?

Question: Andrew Tam - - Analyst : Just another one just about the UK government consultation about restructuring the gaming duties and what impact that might have on your business and the current UK organic recovery there as well, please?