Flutter Entertainment plc

Good afternoon, ladies and gentlemen, and thank you for standing by. My name is Kelvin, and I will be your conference operator today. At this time, I would like to welcome everyone to the Flutter Entertainment's second quarter 2025 update call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. Thank you. I would now like to turn the call over to Paul Timms, Group Director of Investor Relations. Please go ahead.

Hi, everyone, and welcome to Flutter's Q2 update call. With me today are Flutter CEO Peter Jackson and CFO Rob Koldrake. After this short intro, Peter will open with a summary of our operational progress, and then Rob will go through the Q2 financials and updated guidance for 2025. We will then open the lines for Q&A. Some of the information we are providing today, including our 2025 guidance, constitutes forward-looking statements that involve risks, uncertainties and other factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors are detailed in our earnings press release and our SEC filings. In addition, all forward-looking statements are based on current expectations and we undertake no obligation to update any forward-looking statements except as required by law. Also, in our remarks or responses to questions, we will discuss non-GAAP financial measures. Reconciliations are included in the results materials we have released today, available in the Investors section of our website. And I will now hand you over to Peter.

Thank you, Paul. I'm delighted to report a strong set of results for the quarter. Across the group, our operational performance was excellent, and we're making meaningful progress against our strategic priorities. This, in turn, is driving our strong financial performance. During Q2, we saw around 16 million average monthly players engaging with our products, driving revenues 16% ahead year-over-year and adjusted EBITDA 25% ahead. While increased non-cash charges resulted in net income reducing by 88% year-over-year, cash from operating activities was $36 million higher. Before I provide an update on our US and international businesses, I would like to update you on the excellent progress we're making against our strategic priorities, starting with our transition to the US. Following our move to a US primary listing in May last year, Flutter has become a well-established business within US capital markets. This is demonstrated by our inclusion in both the Crisp and Russell indices during Q2 and the increased levels of liquidity we now see for Flutter stock. We also believe we remain very well-placed for admission to other major U.S. indices in time. Secondly, we continue to demonstrate our credentials as an AND business, deploying capital at high returns organically through M&A and returning cash to shareholders. This is again evidenced in July with the extension of our U.S. market access partnership with Boyd. This deal increased our ownership of Fangio to 100% at an attractive valuation and also secured U.S. state market access at much more favorable terms. This is also a great example of the longer-term cost levers we have available, which help underpin our confidence in the delivery of our long-term adjusted EBITDA margin targets. Thirdly, on the U.S. regulatory front, I believe our sector is making meaningful progress in encouraging lawmakers to adopt a balanced tax strategy which promotes market growth and investment. we believe our substantial U.S. scale positions us well to mitigate tax changes. This is both from a direct mitigation perspective, as well as benefiting from the market share gains we typically observe market leaders experience over time when regulatory changes are introduced. We were, of course, disappointed to see the state of Illinois introduce a wager fee on July the 1st, which unfairly impacts our recreational lower handle customers and significantly increases operating costs in the state. As previously announced, starting September 1, we'll introduce a 50 cents fee on each bet placed in Illinois to help mitigate this impact. We are confident, as evidenced by the majority approach to date, that Illinois is an outlier and that lawmakers generally will recognize the importance of adopting a balanced approach. Fourthly, the events contract landscape continues to develop at pace. We have two decades' experience of operating the world's largest betting exchange, the Betfair Exchange, which shares similar characteristics with events contracts, and this will help inform our views. We are closely monitoring regulatory developments and are assessing the opportunities and potential participation strategies this may present for Fangio. In our international markets, we were able to complete the SNAI and NSX transactions during the quarter, creating a leadership position in Italy and establishing a scale position in Brazil. In Italy, SNAI integration plans are well underway, and our good progress means we have increasing confidence in our synergy targets. We finished the quarter with over 30% share of the online market, and our attention is now on bringing SNAI customers onto the SEA's market-leading online platform in the first half of 2026. And finally, in the newly regulated Brazilian market, we retain a strong conviction that the market opportunity will be very significant and that those operators with scale and the best product will win the largest share of the market. Leveraging the Flutter edge and local management expertise, our strategy is to elevate our bazillion proposition. We've targeted quick wins in product and marketing, which we expect will deliver significant improvements to the customer proposition on both Sportsbook and iGaming over the next 12 months. which we believe will place us well for future success. I'll now take you through progress in our US and international businesses during the quarter. In the US, we maintained our clear position as the number one online operator in both Sportsbook and iGaming. We had a great quarter, with revenue growth of 17%, benefiting from the highest gross revenue margin month on record in June for Sportsbook and excellent iGaming momentum. Our phenomenal iGaming performance with revenue 42% ahead and amps up 32% is clear evidence of the benefits of our very strong product roadmap. We launched our Fangio Rewards Club to all iGaming customers in April and added the second installment of our very successful exclusive Huff & Puff series. Leveraging the Flutter edge via the proprietary platform we migrated to last year, We also added a record volume of new titles to the platform. In Sportsbook, continued product improvements drove growth in player frequency. Our team handled 7% higher year over year. AMPs were 4% lower as we lapped our very successful North Carolina launch in the prior year when we delivered significant population penetration during the opening months. Activity on the NBA playoffs was encouraging. With four separate seven-game series, including the finals, helping to drive better engagement than expected. On Sportsbook product, we continue to deliver innovative and engaging features to our customers. Harnessing our next generation pricing capability, we added Same Game Parlay Plus and Profit Boost functionality to our Your Way feature during the NBA playoffs. We've been really pleased with engagement and are looking forward to offering a broader product proposition in the upcoming NFL season. Fangio's same-game parlay experience continues to be by far the standout proposition in the market and underpinned a further expansion in our structural gross revenue margin to 13.6% during the quarter. Building on the success of our Parlay Your Bracket offering for March Madness, we added similar features for NHL and WNBA during Q2, and we also expanded same-game parlay live to tennis for the first time to deliver a record Wimbledon for Fangio. On MLB, our Batter Up feature, which allows customers to parlay outcomes for the next three batters up, was rolled out for all live games and has been resonating well. These product enhancements supported strong live betting volumes in the period, with live betting making up over half our handle in Q2, and Same Game Parlay Live, our fastest growing component. A seamless live proposition was key to this growth. as we leverage our global live betting expertise through the Flutter Edge. This includes winning at the core fundamentals, such as optimized in-game settlement, and ultimately delivering an overall player experience that minimizes friction and maximizes ease of use. Our international performance continues to be positive, benefiting from both our scale and diversification. We delivered year-over-year revenue growth of 15% in the quarter, with the benefits of the SNI and NSX acquisitions. We saw good product delivery in the quarter, driven by our focus on the flutter edge, and have recently launched MyCombo to see sales sportsbook in Italy ahead of the new soccer season. This same game parlay proposition is a market first and represents a step change in product differentiation made possible by our global scale and deep industry expertise. In July, we also launched Flutter's first bingo network, following the successful partnership between CSAO and Tombola, which brings the latter's innovative product and deep liquidity pool to CSAO's Italian online bingo customers. We are also executing our cost efficiency program, as we successfully migrated 9 million Sky Betting and Gaming customers onto our shared UCI platform. This will give customers access to new, exciting features, which will include a version of our super sub product in time, the upcoming European football season. Reactions to the new Skybet customer proposition has been positive and early performance on our gaming has been very strong. The PokerStars transformation is another significant pillar of the program. We delivered our largest milestone to date in Italy in July with a migration of PokerStars Italian customers onto the shared SEA platform. In conclusion, looking ahead to the remainder of the year, our strong performance in the first half of 2025 underlines the strength of Plata's fundamentals. I feel confident as we head into the second half of 2025. Our performance in Q2 positions us well to deliver on our strategic objectives and execute strongly throughout the content-rich calendars for NFL, NBA, and European soccer during the remainder of the year. I would now hand you over to Rob to take you through the financials.