Slide 1: FY 2024 Results Presentation
FY 2024 Results Presentation 26 March 2025
Slide 2: Agenda
AGENDA Topic Presenters Introduction 2024 financial review Current trading and outlook Strategic performance Summary Per Widerström Sean Wilkins Q&A Chief Executive Officer Chief Financial Officer 2
Slide 3: Value Creation Plan
VALUE CREATION PLAN Focus on driving execution to ensure operational excellence and deliver value creation 1 2 3 Drive profitable and sustainable Improve profitability and efficiency Deleverage through disciplined revenue growth through operating leverage capital allocation ● 5-9% revenue growth ● I
Slide 4: Summary
SUMMARY FY2024 results slightly ahead of post-close trading update with strong second half of the year Significant transformation of the business showing results, confident in value creation plan ❑ Transformed the business and returned it to growth ❑ Inflection in revenue, FY +3%, marking the first
Slide 5: Financial review
Financial review Sean Wilkins, CFO 5
Slide 6: 2024 Financial Summary
2024 FINANCIAL SUMMARY Online revenue back to growth with strong H2, offset by softer performance in Retail Adjusted EBITDA of £312m, +4% YoY, with improving momentum and profitability through H2 Revenue £m FY24 FY23 YoY • UK&I Online: back to growth with acceleration in H2 and gaming +9% for the ye
Slide 7: Higher Quality Revenue Mix
HIGHER QUALITY REVENUE MIX Well positioned for sustainable profitable growth with clear focus on core markets and significantly reduced risk and improved sustainability following major regulatory and compliance changes ● UK Online: some covid unwind together with increased focus on profitability, bu
Slide 8: H2 Financial Performance
H2 FINANCIAL PERFORMANCE Significant step-up in profitability in the second half in line with our expectations, with further cost savings identified ● Delivered against all our commitments as outlined at H1 ● Delivered 4% revenue growth for H2 vs H1 against a 1-5% target (H2 was 8% YoY vs 5-9% YoY t
Slide 9: Cost Savings
COST SAVINGS Significant cash cost savings already executed as we transform and right-size the business with more effective operating model. £15-25m further savings identified for FY25 and continued focus on efficiency £m Initiated 2024 2025 2026 Cost optimisation Actions taken by new management tea
Slide 10: Cash Flow
CASH FLOW Cash outflow in the period driven by exceptional costs as we execute the turnaround and exit US B2C. Transformed business will support materially higher cash generation and rapid deleveraging FY 2024 movement in net cash (excl. customer balances) (£m) £m Dec-23 Jun-24 Dec-24 Gross debt1 1,
Slide 11: Financial Focus Areas
FINANCIAL FOCUS AREAS Step-change in finance capabilities to provide greater support for commercial decision making to drive high returns ● Transformed finance team and ● Focus on core markets, including ● Continue to take cost out of the ways of working, hired top talent exiting US B2C business ● S
Slide 12: Current Trading and Outlook
CURRENT TRADING AND OUTLOOK Robust current trading with low single digit revenue growth and significantly improved profitability. No changes to FY25 expectations Q1 2025 Trading Update ● Revenue growth expected to be low single digit (LSD) year-on-year ● Additional safer gambling measures in UK Onli
Slide 13: Strategic performance
Strategic performance Per Widerström, CEO 13
Slide 14: Value Creation Plan
VALUE CREATION PLAN Focus on driving execution to ensure operational excellence and deliver value creation 1 2 3 What we will do How we will drive execution Where we will do this ● Drive profitable and sustainable ● Operational excellence driven by Core markets revenue growth data insights and intel
Slide 15: Delivering Profitable Growth
DELIVERING PROFITABLE GROWTH 1 Bold decisive actions taken to transform the business, driving profitable growth Drive sustainable revenue growth Improve profitability and efficiency Deleverage ● Radically transforming almost every ● Return to growth and improved area of the business profitability su
Slide 16: Operational Excellence
OPERATIONAL EXCELLENCE 2 Continuing to better harness our data while building the foundations for a significant AI and automation transformation 2024 Execution KPI drivers ● Hired world class AI and automation ● Refined customer segmentation and personalisation enables more team with each individual
Slide 17: A Winning Culture
A WINNING CULTURE 2 Continued focus on employee engagement through the large-scale transformation, with a new operating model implemented and employee engagement rising through the second half 2024 Execution KPI drivers ● Rebranded the Group as evoke ● Significant improvements in eNPS across H2 with
Slide 18: Leading Brands and Products
LEADING BRANDS AND PRODUCTS 2 Developing and delivering first-class and consistent customer value propositions 2024 Execution ● Significant work developing the William Hill customer value proposition, which launched properly in Q1 2025 ● Improved customer segmentation ● Began rollout of new retail g
Slide 19: Clear Market Focus
CLEAR MARKET FOCUS 3 Core markets focus enables sustainable profitable growth and supports 5-9% revenue growth target ONLINE UK Retail UK Italy Spain Romania Denmark Lead brand FY24 Revenue £506m £666m £178m £100m £51m £48m FY24 YoY growth cc1 -5% +6% +22% +11% +87% +24% Market Position2 #3 #3 #4 #4
Slide 20: Summary
SUMMARY ❑ Initial signs of success evident in H2 after significant turnaround and transformation ❑ Great fundamental strengths with leading brands in attractive markets ❑ Clear strategy with laser focus on execution and value creation ❑ Revenue returned to growth with continuing momentum into FY25 ❑
Slide 21: Q&A Presenters
Q&A Presenters 21
Slide 22: Appendix
Appendix 22
Slide 23: Strategic Framework Overview
STRATEGIC FRAMEWORK OVERVIEW Our strategic framework provides a clear vision of what success looks like and the strategy to get there Our vision Make life more interesting Defining success Improve colleague Achieve medium-term Our goals Increase player days Promote positive play satisfaction financi
Slide 24: 2025 Technical Guidance
2025 TECHNICAL GUIDANCE Group FY25 Cashflow ● 5-9% revenue growth ● Capex of c.£100-110m, including investment in strategic initiatives and ● Adjusted EBITDA margin of at least 20% retail refresh programme ● One-offs: ● Cost to achieve savings and exceptional items c.£30-35m ● Italian gaming licence
Slide 25: Debt Structure
DEBT STRUCTURE Stable long-term debt profile with strong liquidity headroom While leverage is temporarily elevated, we see a clear path to rapid leverage reduction to <3.5x in 2027 £m Dec-23 Jun-24 Dec-24 Borrowings 1,661.1 1,683.9 1,737.7 Loan transaction fees 96.6 69.3 61.6 Derivatives 40.3 39.7 4
Slide 26: FY2024 Financial Results – Reported
FY2024 FINANCIAL RESULTS – REPORTED £m FY24 FY23 Revenue 1,754.5 1,710.9 • Revenue and Adjusted EBITDA as discussed earlier Gross profit 1,150.6 1,132.1 • Exceptional items discussed overleaf Adjusted EBITDA 312.5 299.5 • Depreciation and amortisation includes £108.6m of amortisation of acquired int
Slide 27: Exceptional Items and Adjustments
EXCEPTIONAL ITEMS AND ADJUSTMENTS £m FY24 FY23 Key FY24 items: Regulatory provisions and associated costs - 3.4 • £47.2m of integration and transformation costs, mainly Integration and transformation costs 47.2 49.3 professional advisors and staff redundancy payments Corporate transaction related co
Slide 28: Segmental Performance
SEGMENTAL PERFORMANCE UK&I Online Retail International Group Unaudit ed FY FY % FY FY % FY FY % FY FY % £m 2024 2023 Change 2024 2023 Change 2024 2023 Change 2024 2023 Change Average mont hly act ives (000s) 1,183 1,210 -2% 544 518 +5% 1,727 1,728 -0% Sportsbook stakes 2,297.1 2,594.6 -11% 1,547.0 1
Slide 29: Quarterly Performance – Group
QUARTERLY PERFORMANCE – GROUP Unaudit ed - Group 2023 2024 £m Q1 Q2 Q3 Q4 H1 H2 FY Q1 Q2 Q3 Q4 H1 H2 FY Average mont hly act ives (000s) 1,731 1,788 1,648 1,746 1,760 1,697 1,728 1,835 1,815 1,653 1,600 1,825 1,627 1,727 Sportsbook stakes 1,427.2 1,388.1 1,249.2 1,309.1 2,815.3 2,558.3 5,373.6 1,351
Slide 30: Quarterly Performance – UK&I Online
QUARTERLY PERFORMANCE – UK&I ONLINE Unaudit ed - UK&I Online 2023 2024 £m Q1 Q2 Q3 Q4 H1 H2 FY Q1 Q2 Q3 Q4 H1 H2 FY Average mont hly act ives (000s) 1,172 1,275 1,186 1,206 1,223 1,196 1,210 1,274 1,281 1,135 1,037 1,277 1,086 1,210 Sportsbook stakes 694.8 690.1 607.0 602.7 1,384.9 1,209.7 2,594.6 6
Slide 31: Quarterly Performance – UK Retail
QUARTERLY PERFORMANCE – UK RETAIL Unaudit ed - UK Ret ail 2023 2024 £m Q1 Q2 Q3 Q4 H1 H2 FY Q1 Q2 Q3 Q4 H1 H2 FY Sportsbook stakes 411.1 434.9 394.0 389.3 846.0 783.3 1,629.3 393.5 402.5 374.4 376.6 796.0 751.0 1,547.0 Sport sbook net revenue margin 19.8% 18.8% 17.9% 18.9% 19.3% 18.4% 18.9% 19.3% 18
Slide 32: Quarterly Performance – International
QUARTERLY PERFORMANCE – INTERNATIONAL Unaudit ed - Int ernat ional 2023 2024 £m Q1 Q2 Q3 Q4 H1 H2 FY Q1 Q2 Q3 Q4 H1 H2 FY Average mont hly act ives (000s) 559 513 461 540 536 501 519 561 534 519 563 548 541 544 Sportsbook stakes 321.3 263.2 248.2 317.0 584.4 565.3 1,149.7 327.3 285.0 243.1 269.5 612
Slide 33: Disclaimer
DISCLAIMER Forward looking statements ● This presentation may contain certain forward-looking statements, beliefs or opinions, with respect to the financial condition, results of operations and business of the Company. These statements, which contain the words “anticipate”, “believe”, “intend”, “est