Mike Hickey

Mike Hickey asked if prediction markets could drive legalization in sticky U.S. states and if there are concerns about them competing with existing partners, also inquiring about the vitality of the integrity business given recent issues in sports.

Answer

Mark Locke (CEO) viewed prediction markets as a potential TAM expansion opportunity, emphasizing the growing need for official Genius data, marks, logos, and integrity solutions, while closely monitoring regulatory evolution. Regarding integrity, Mark Locke (CEO) reiterated the company's long-standing focus on official data as a 'one source of truth' for market transparency, as predicted.

Mike Hickey inquired if prediction markets could drive legalization in sticky U.S. states and if they pose a competitive threat to existing partners. He also asked about the vitality of Genius Sports' integrity business in light of recent issues like the NBA and UFC scandals.

Answer

Mark Locke (CEO) stated that anything expanding the total addressable market (TAM) is positive, and Genius Sports is well-placed with official data, marks, logos, and integrity solutions, while closely monitoring regulatory evolution. Regarding integrity, Mark Locke reiterated its foundational importance, emphasizing the need for official data and transparency, which Genius Sports has championed since its U.S. market entry.

Mike Hickey from The Benchmark Company LLC asked about the skill set sought in the new CFO, Brian Castellani, and how his background will benefit Genius. He also requested an update on in-game betting growth expectations for the upcoming NFL season and the potential for upside driven by BetVision.

Answer

Mark Locke (Co-Founder, CEO & Director) highlighted the new CFO's extensive media background at Warner, Disney, and ESPN, which aligns with the company's strategic focus and shift towards the US. Nicholas Taylor (CFO) addressed the in-game betting question, stating that while BetVision is at the vanguard of this product-led evolution, the current guidance remains relatively conservative, acknowledging that significant acceleration in adoption this season could present an upside to their forecast.

Mike Hickey questioned the apparent disconnect between the original strategic plan's target of $1 billion in adjusted EBITDA and Tarun Lal's compensation package tied to $675 million, asking if $675 million is the new target.

Answer

Tarun Lal (CEO) stated he was not aware of the timeline for the $1 billion target but confirmed that $675 million is the new, achievable EBITDA target for the team.

Mike Hickey questioned the apparent disconnect between the prior strategic plan's target of $1 billion in adjusted EBITDA and the new CEO's compensation package tied to $675 million, asking if $675 million is the new official target.

Answer

CEO Tarun Lal confirmed that $675 million is the new adjusted EBITDA target, expressing confidence that it is achievable within the committed timeline. He was not aware of the specific timeline for the previous $1 billion target.

Mike Hickey questioned the apparent disconnect between the original strategic plan's target of $1 billion in adjusted EBITDA and the CEO's compensation package tied to a near-term achievement of $675 million. He asked if $675 million is the new target.

Answer

Tarun Lal, CEO & Board Director, stated he was not aware of the timeline for the $1 billion target but confirmed confidence in hitting the $675 million target within the committed timeline. He explicitly stated that, from his and the team's perspective, $675 million is the new EBITDA target.

Mike Hickey from The Benchmark Company LLC questioned the expected pace of traffic decay from AI's impact on search and the company's ability to offset it. He also asked if there were cost optimization synergies to be realized across the growing portfolio.

Answer

Co-Founder and CEO Charles Gillespie stated that much of the effect from AI on search has already been seen and that the company is successfully ramping up traffic from other channels to compensate. Regarding costs, he asserted that now is not the time for optimization. Instead, the company is in "investment mode," hiring and allocating capital to build new capabilities and capture growth opportunities.

Mike Hickey of The Benchmark Company LLC commented on the impressive EBITDA margins and asked if a 30% margin is achievable long-term. He also requested a comparison of the company's success in Botswana versus its challenges in Nigeria, and whether Nigeria could become a growth driver by 2026.

Answer

CEO Neal Menashe stated that a 30% margin is possible with scale, but guided toward a 25-26% range as a more stable expectation. He attributed Botswana's success to having the right product and regulatory tailwinds, while acknowledging Nigeria is underperforming due to product issues. He expressed hope that with focused efforts, Nigeria could become a significant growth market for the company.

Mike Hickey from The Benchmark Company LLC inquired if the strong Q3 guidance was driven by spillover from Q2 or new business, the reasons for recent traction in programmatic advertising, and how NCM plans to improve revenue visibility in a scatter-heavy market.

Answer

CFO Ronnie Ng clarified that the Q3 strength is primarily from new business, not Q2 spillover. CEO Thomas Lesinski added that programmatic is gaining traction because it taps into a large portion of ad budgets, attracting a significant number of new-to-NCM advertisers. To improve visibility, Lesinski highlighted the creation of a dedicated new business sales team and increased industry engagement through events like Cannes Lions.

Mike Hickey asked for an update on the iGaming platform in Brazil and its scalability, and also sought a perspective on the overall health of the U.S. gaming market in Q2 and early Q3.

Answer

CEO Carsten Koerl detailed strong progress in Brazil, with integrations covering 50 of 70 licensed operators. He described Brazil as a test market for their "360-degree flywheel" connecting sports betting with iGaming. Regarding the U.S., he noted a continued strong adaptation and growth trend, and while careful about Q3 predictions, he suggested that early-season surprises could lead to stronger hold numbers for operators.

Mike Hickey asked about management's view on state-level regulatory pressures against sweepstakes and how the company gets comfortable investing amid this risk. He also questioned the potential impact of user acquisition spending on near-term EBITDA and whether the company's balance sheet is strong enough to manage the transition.

Answer

Andrew Pascal, Co-Founder, Chairman, & CEO, stated that the company manages regulatory risk by assessing it on a state-by-state basis and dynamically allocating capital. He explained that while UA spending for sweepstakes will impact near-term EBITDA during its growth phase, it is a necessary investment to capture market share, targeting a 4-6 month return horizon. He affirmed that the company's strong cash position and debt-free balance sheet provide ample capital to aggressively fund both the sweepstakes and Tetris growth initiatives.

Mike Hickey of The Benchmark Company asked for EA's perspective on the competitive landscape for Battlefield versus Call of Duty and whether a new casual soccer game poses a threat to EA SPORTS FC.

Answer

CEO Andrew Wilson expressed strong confidence in Battlefield's competitive positioning, stating it aligns with fan expectations. Regarding soccer competition, he welcomed it, saying it makes EA better, but feels very secure in FC's market position due to its extensive licenses, global reach, and development team strength.

Mike Hickey of The Benchmark Company LLC asked about confidence in growing the global box office (GBO) in 2026 given the strong film slate visibility, and questioned if the current installation momentum is sustainable or merely pulling forward demand.

Answer

CEO Richard Gelfond expressed "incredible confidence" in 2026 growth, citing a nearly full slate of blockbusters. On installations, he stated it is both: exhibitors are accelerating installs for the upcoming slate, while a record pace of new signings is simultaneously replenishing the backlog, ensuring continued momentum.

Mike Hickey asked for the performance outlook for Latin America over the next few years and how the company plans to maximize the value of its Movie Club loyalty program.

Answer

CEO Sean Gamble expressed a positive outlook for Latin America, noting its recovery is pacing ahead of the U.S. due to strong consumer moviegoing behavior. Regarding Movie Club, he described it as a critical tool that drives loyalty, increases moviegoing frequency and concession spend, and enhances guest satisfaction through value and personalization. He confirmed the program continues to grow at a healthy pace, now representing 25% of domestic box office.

Mike Hickey of The Benchmark Company questioned the revenue level required to achieve the company's target of positive adjusted EBITDA in Q4. He also sought more details on the market opportunity for the LANduel product and the user acquisition and LTV dynamics of cross-selling sportsbook offerings to the Lucky Dino casino player base.

Answer

CFO Dan Marks estimated that a quarterly revenue run-rate in the low-to-mid $30 million range would be needed to reach positive adjusted EBITDA in Q4. CEO Grant Johnson described LANduel as a skill-based betting product with strong interest from traditional casinos. Regarding cross-selling, Johnson and Marks highlighted the minimal acquisition cost and the potential for a cross-sold customer to be worth up to two times more in ARPU, citing the successful conversion of 40-45% of SportNation sportsbook players to casino.

Mike Hickey from Benchmark Company asked for an update on the total addressable market (TAM) for U.S. esports, the company's perspective on the opportunity, and the status of the LANduel platform.

Answer

CEO & Chairman Grant Johnson estimated the company's total addressable market across iGaming and esports to be approximately $170-$180 billion. He noted that partnerships with pro sports teams allow them to target the broader gamer demographic, not just esports fans. He also confirmed that the LANduel software is complete and awaiting final approval for an inaugural launch event in Atlantic City.