James Clark

James Rowland Clark questioned the underlying trends in the Australian market and sought an explanation for the upward revision of the group's interest charge guidance.

Answer

CFO Rob Coldrake explained that Australia's performance was resilient, with strong customer engagement in marquee sports events helping to offset expected declines in the racing market. He attributed the higher interest charge guidance to a delay in cash efficiency projects until 2025 and a correction of previously optimistic interest rate and cash assumptions for the second half of the year.

James Rowland Clark asked for factors providing confidence that Australian market trends have bottomed and whether the increase in the guided interest charge is a timing issue or a permanent change.

Answer

CFO Rob Coldrake explained that Australia's performance is resilient, with strong customer acquisition in marquee sports events offsetting expected racing market declines. Regarding the interest charge, he stated it is partly a timing issue, with a cash efficiency project delayed to 2025, and partly a revision of previously optimistic forecasts for interest rates and cash balances.

James Clark asked for clarification on what moving the operational headquarters to New York means in terms of cost and structure. He also questioned the reason for the slowdown in year-over-year U.S. AMP growth from 34% in Q4 to 15% in Q1.

Answer

CEO Peter Jackson clarified that the New York operational HQ move involves more board and executive presence there but will not have a significant cost impact. CFO Paul Edgecliffe-Johnson explained the AMP growth slowdown was due to the tough comparison against the full-quarter impact of the Ohio launch in Q1 of the prior year, while Q1 2024 only included a partial period for North Carolina.

James Clark from Barclays asked for clarification on the practical implications of moving the operational headquarters to New York and questioned the reason for the sequential slowdown in the year-over-year growth rate of U.S. Average Monthly Players (AMPs).

Answer

CEO Peter Jackson explained that moving the operational HQ to New York involves holding board meetings and having more executive presence there but will not have a significant cost impact. CFO Paul Edgecliffe-Johnson attributed the AMP growth rate slowdown to the tough comparison against the full first quarter of the Ohio launch in the prior year, while the current quarter only included a few weeks of the North Carolina launch.