Ed Young

Ed Young questioned the effectiveness of the Generosity playbook, asking how the new strategy balances discipline with competitiveness, and what product investments are being made to counter improved competitor offerings and maintain leadership.

Answer

CEO Peter Jackson admitted that Generosity execution was suboptimal in Q4, particularly during sustained high-margin periods, and emphasized smarter deployment rather than increased spending. He highlighted the upcoming sportsbook loyalty program, inspired by casino success, to improve customer recognition. CFO Rob Coldrake added that the company is doubling down on product advantages, enhancing SGP offerings, personalization, and leveraging outcome-based pricing, citing the success of MyCombo in Italy.

Ed Young questioned how Flutter's new disciplined yet competitive generosity strategy aligns with past ineffective execution, and what product enhancements are planned to regain leadership amidst narrowing competitive gaps.

Answer

CEO Peter Jackson acknowledged inefficient generosity deployment in Q4 due to sustained high margins, committing to a smarter, more consistent approach, including a new sportsbook loyalty program in Q2. CFO Rob Coldrake clarified that product issues were a narrowing of advantage, not a failure, outlining plans for SGP enhancement, personalization, and leveraging outcome-based pricing.

Ed Young of Morgan Stanley asked about the drivers of U.S. marketing efficiency, which is already in the Investor Day range, and requested quantification of marketing spend reallocated to H2. He also inquired about Flutter's strategic position on prediction markets.

Answer

CEO Peter Jackson addressed prediction markets, noting Flutter's two decades of experience with the Betfair exchange provides a strong foundation for evaluating the opportunity. CFO Rob Coldrake explained that U.S. marketing leverage was driven by a maturing state profile and lapping the North Carolina launch, confirming £20-£25 million was phased into H2.