Flutter Entertainment plc

Thank you for standing by. My name is JL, and I will be your conference operator today. At this time, I would like to welcome everyone to the Flutter Entertainment fourth quarter 2025 earnings 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, simply press star one again. I would now like to turn the conference over to Paul Timms, group director of investor relations. You may begin.

Hi everyone and welcome to Flutter's Q4 update call. Joining me today are CEO Peter Jackson and CFO Rob Coldrake. After this short intro, Peter will open with a summary of our operational performance in the quarter and then Rob will update on our Q4 financials and new 2026 guidance. We will then open the lines for Q&A. Some of the information we are providing today 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 results materials and our SEC filings. All forward-looking statements are based on current expectations, and we undertake no obligation to update any forward-looking statement 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. and I will now hand you over to Peter.

Thank you, Paul. I'm pleased to share our strong fourth quarter results and reflect on our strategic progress in 2025. Flutter is the world's leading online sports betting and iGaming company, with unique advantages delivered through the Flutter edge and a proven track record of delivery. 2025 was another transformative year for the company, marked by our strategic execution, continued market leadership, and disciplined investment, delivering group revenue up 17% and adjusted EBITDA 21% higher. In the US, we maintained our clear leadership position in both online sports betting and iGaming. We also launched Fangio Predicts in Q4 to capitalize on the emerging prediction markets opportunity. In our international business, we strengthened our portfolio with strategic acquisitions in Brazil and Italy, extending our positions in high growth and exciting markets. We made significant progress on our transformation and efficiency programs, and we are well on track to deliver the anticipated revenue growth and cost efficiencies. Our swift, disciplined responses to regulatory changes in India, where sudden legislative change forced a cessation of real money gaming, and to higher UK gaming taxes, underscored our scale benefits and business agility. We entered 2026 in a strong position, and I've never had more conviction in our ability to capitalize on the long growth runway ahead. Turning to the fourth quarter. Our Q4 group performance was strong, with revenue up 25% and adjusted EBITDA up 27%. In the US, revenue growth was 33%, with adjusted EBITDA 90% higher lapping the significantly unfavorable sports results in the prior year. We delivered another superb iGaming quarter. Revenue grew 33%, driven by 18% AMPS growth and an increase in player frequency, as our successful content strategy and reward scheme resonated well with our customers. Fangio Sportsbook Q4 revenue growth was 35%. However, Q4 sportsbook trends across the market diverge from expectations. High gross revenue margins were offset by moderating handle performance. As a business, we always consider net revenue as our core revenue KPI. We therefore always consider revenue and handle trends together in conjunction with customer activity levels. This was particularly important this quarter as adverse recycling was a key driver of the lower handle growth. with persistently high gross revenue margins leading to lower levels of customer engagement. In addition, the second half of the NFL season saw less compelling content, with fewer popular teams and favorite players making it to the playoffs this season, adversely impacting customer engagement. These market trends were far more pronounced for FanDuel for two reasons. First, our significant structural revenue advantage resulted in a greater impact from adverse recycling as Fangio recorded persistently high NFL gross revenue margins throughout November and December. Overall, we finished the NFL season 100 bps ahead of our expected margin at 19%. Second, our standard generosity playbook proved less effective in Q4. as our investment phasing did not sufficiently align with the pattern of sports results during this period. As a result, we saw a higher churn within our customer base and a resultant loss of market share. We also don't believe prediction markets are having a meaningful impact on our business. As you'd expect, we've undertaken a comprehensive review and found no evidence of material cannibalization in our existing business. And this finding is reinforced by our Missouri launch, where customer acquisition trends exceeded expectations, reaching 5% of the population within the first 30 days, making Missouri one of our best state launches to date. Moderated market handle trends have continued into the start of 2026. We believe these trends reflect the halo impact of the factors evidenced in Q4, and we continue to monitor trends closely. And as set out in our shareholder letter, we have a clear U.S. strategy for 2026. Our market-leading, highly profitable U.S. position is driven by product superiority, enabled by our exceptional pricing capabilities combined with highly disciplined customer acquisition. This has allowed Fanjul to deliver an estimated 70% share of market EBITDA. However, recent trends have led us to take additional actions to strengthen these capabilities to reinforce our leadership position. We'll leverage our scale, proprietary technology, and data advantages to deliver experiences competitors cannot easily replicate, including more intuitive back-building, smarter personalization, and richer live engagement. In addition, we're enhancing how customers feel recognized and rewarded with more engaging reward experiences, including the launch of a new loyalty program extending a core part of our casino success into sport. I'm confident that the ongoing improvements to our sportsbook product and generosity strategy will harness our scale and structural advantages, driving a sequential improvement in our performance throughout 2026 and deliver market share gains. Let me now update you on prediction markets and how we're going after this opportunity. We believe that prediction markets will accelerate state regulation of online sports betting and iGaming. This, in our view, is the most valuable long-term opportunity in the U.S. In the meantime, the near- to medium-term growth potential on prediction markets for Fangio is significant. There is new TAM to go after. Prediction markets will enable us to acquire new sports and entertainment-first customers into the Fangio ecosystem ahead of potential regulation. We can deliver attractive returns by providing sports markets to the 40% of the US population who cannot currently access online regulated sportsbooks. We are exceptionally well positioned to harness this opportunity, and we launched our own offering, Vangel Predicts, in Q4. Early signals have been encouraging, with most activity focused on sports and with average volume per customer in line with expectations. We are also actively pursuing options to leverage our world-class proprietary pricing capabilities for market-making services, and we'll share further details in due course. Rob will update on our predictions market financial guidance. As outlined in our Q3s, we'll invest meaningfully with ambition to deliver a leading position in this space. The opportunity across prediction markets is certainly far bigger than any potential cannibalization for existing sports. Moving on to our international business. International revenue grew 19% in Q4, and adjusted EBITDA increased 6%. We are making excellent progress on our strategic transformations and integrations, building a strong platform for future revenue growth and delivering cost savings. In the UKI, the Skybet Sportsbook Migration has delivered the expected cost savings, and we are now accelerating customer-facing investments to restore momentum. In SEA, Flutter regained the Italian online market leadership position in Q4. And the results of the PokerStars migration in Italy have been very encouraging, with revenue growth of 13% and new customer volumes more than doubling in Q4. PokerStars migrations will continue at pace into 2026, following the successful precedent we have now created in Italy, driving further growth and delivering planned cost savings. The SNAI business integration is progressing well. Customer acquisition initiatives, including CSAIL's retail sign-up model and restructured generosity to boost cross-selling reactivations, drove all-time record iGaming amps and ensured SNAI finished the year in revenue growth. The planned platform migration in Q2 will further accelerate this growth by providing SNAI access to a vast expanded product suite, including CSAIL's leading products, such as MyCombo. In Brazil, improved casino and digital marketing capabilities drove a surge in customer acquisition, up 51% since the start of the year. We believe the Brazilian market presents a significant and compelling growth opportunity for Flutter, and that the 2026 FIFA World Cup represents a unique moment in a stock-obsessed market that's to take market share. As a result, we expect to invest more. And while extending our investment timeline shifts the phasing of profitability, We have strong conviction that disciplined near-term investments will build a larger, more profitable, and sustainable business over the long term. Looking ahead to 2026, I'm confident in our strategic positioning. We have compelling plans in place to strengthen our leadership, unlock future value, and deliver sustainable growth. I'll now hand you over to Rob to take you through the financials.