Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on the $90 million investment losses in new states like Missouri and Alberta, and discuss the customer acquisition environment? A: (CFO Rob Coldrake) We expect to launch in Missouri in Q4 and Alberta in Q1 2026. Missouri's launch will incur around $80 million in costs, with Alberta adding $10 million for pre-launch investments. (CEO Peter Jackson) We're pleased with our customer acquisition strategy, exiting 2024 with a larger business than anticipated, and we see continued opportunities for growth.
Q: Could you provide insights on the customer acquisition trends between iGaming and core sportsbook, and the expected benefits of new product integrations? A: (CEO Peter Jackson) We're seeing strong growth in iGaming, driven by product innovations like the reward machine jackpots and the Fanjo Casino Rewards Club. These initiatives are enhancing customer acquisition and cross-selling into the sportsbook.
Q: What are the early learnings from the "Your Way" product rollout, and how are you managing the structural hold rate? A: (CEO Peter Jackson) The "Your Way" product saw good engagement during the Super Bowl, with 1 in 20 customers using it. We're focusing on simplifying the user experience and managing associated risks. (CFO Rob Coldrake) We're not guiding specifically on hold for 2025, but we're making progress towards our long-term targets.
Q: How are you addressing the impact of higher tax rates in Illinois, and what is your outlook on potential iGaming legalization? A: (CFO Rob Coldrake) The impact in Illinois was in line with expectations, and we aim to mitigate 50% of the growth factor in 2025. (CEO Peter Jackson) We're optimistic about launching in new states and expect continued momentum in iGaming legalization.
Q: Can you discuss your strategy for expanding in South and Latin America, particularly in Brazil? A: (CEO Peter Jackson) We're excited about working with NSX and plan to leverage our products and technology in Latin America. The Brazilian market is competitive, but we are confident in our ability to succeed given our track record and capabilities.
Q: How do you view media rights partnerships in the US, especially with changes in broadcast deals? A: (CEO Peter Jackson) We've been disciplined in negotiating contracts and are adapting to changes in media rights and streaming. Our scale helps us invest in acquiring the right types of rights to ensure customer access to sports content.
Q: What is your investment strategy in Brazil following the regulated market launch? A: (CFO Rob Coldrake) Brazil's market was already functioning before regulation, so it's different from a US state launch. We're working towards $100 million in losses for this year, with competition for media assets expected to shake out quickly.
Q: What are the key drivers behind the US revenue growth exceeding original guidance, and where do you see potential upside in 2025? A: (CEO Peter Jackson) We ended 2024 with a larger business than anticipated, particularly in iGaming. Progress in parlay offerings and structural hold improvements contributed to exceeding guidance. We remain on track for our long-term targets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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