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spk_0: good morning my name is rob and i will be or conference operator today at this time i'd like to welcome everyone to the bragg gaming group fourth quarter and full year two thousand and twenty one conference call all lines have been placed on mute to prevent any background noise after the speakers remarks there will be a question and answer session it you would like to ask a question during this time simply press star followed by the number one on your telephone keypad if you like to withdraw your question again press star one thank you you need spielberg chief strategy officer you may begin your conference
spk_1: good morning everyone and thank you for joining our brigade in fourth quarter and four year twenty twenty one rebounds am i'm joined today by my friend and colleague one and can or will be hoping to they call the on the second page you guys with either forward looking statements are like for you all to familiarize yourself with the forward looking them and the some segments on this presentation will constitute forward looking statements for the presentation with the legal leave behind us let me talk about what we'll talk about this morning i'll provide an overview of brought game and then we'll talk about an operation on a puget highlights will then turned to business performance product strategy is no will talk about and in a licensing a new markets and then our financial the guidance and will conclude with and outlook and conclusion and so we've got left out the broad overview on page five you'll see an overview of the bad business friday the fast growing vertically integrated go business to be that gaming and content technology group what do listed on the trauma stock exchange and nasdaq under the same tucker be ali g we offer a and key proprietary i get any platform on friend from our in how studios partner studios an aggregated content or operation on licence in europe north america and lifetime we have two hundred and eighty six employees pretty much around the world with officers and drawn on las vegas london would liana in slovenia malta and tsunami close they've been acquisition was an officer the reno and chennai india we're going really well leave currently share over one hundred and forty customers and growing very excited about the future of the company and to customers are coming on board would not let me turn to page six and talk about broads products and services broad offers platform technology content and services to online and only channel casino brands in regulated market globally our technology stock is composed of our player account management system which are the platforms all the channels casinos and sport book we also offer all about gaining server and content distribution and while recently with developed care engagement tools we named the views and yeah it's been going quite well data driven player engagement tools that are very favorable for operators we also offer gone ten games on proprietary studios which include our rican acquisition wall street or newly founded atomic slot lab of course you gaining and soon to be upon closing the spin games we offered schools against partner studios and of course aggregate again he caught and some supplies across the industry and we'll talk about the conte and strategy a his life we complement our technology in compton offering the services we offer manage an operational marketing services business intelligence software development it you think about the three thought it's of the business technology content of services taken together bragg offers from turkey solution everything that is required to on an online casino operation
spk_0: on the net page will talk about operational and strategic highlight it's been a very exciting fourth quarter of you can see on page eight strong growth driven by new market strategy an ongoing content a block on expansion the fourth quarter song financial performance you can see the queue for revenue rose fourteen percent
spk_1: pin point eight million euros q for twenty twenty one to japan eat it around shooting point four percent to one point five million euros and are gross profit margins agreed by seven days points to fifty one percent then adjusted ebitda margin increased by twenty three percent to nine point eight percent of the total ravage it also been a lot of exciting didn't i like we enter newly regulated markets in the netherlands and we have we been established of the major platform in compton supplier in this market we're game or licenses supply and launch content in the united kingdom which of the world's largest regulated again market we also transition to supply the new to regulated german market and a performance so far as in line with management upset that guy asian we expected as licenses will be given and enforcement will start taking place the german revenues will love will go in in line with the market expectations finally we have some tea highlights with a quarter i want to emphasize that our new pipeline of revenue for the fourth quarter increase five hundred percent compared to que three of twenty one we've done significant investment in technology and content partially to grow our north american expansion and focus on that and we've had continued success in the integration of while shriek and assumed to be been acquisition into the brad buttons would that alter into the highlights for the four year twenty one which have been a country formative years with a business operations and an a capital markets strategy in terms of financial performance
spk_0: a four year twenty one revenue rose twenty five point six percent to fifty eight point three million year old the adjusted ebitda in the same period gross thirty percent a seven point two million euro and the gross profit margins greet i baked wanted to forty eight point six percent with the a jacket eat at a margin increasing by thirty percent
spk_1: and to twelve point three percent on the total added between an exciting year the business highlight with year include uplifting to be drawn a stock exchange in january and then we do with that the business on the now back in august we've all done to acquisition the was you got with vision which was announced and completed in june and the spin opposition which was announced and married and will be completed suitable talk about acquisition in more detail shortly and due to acquisition and the strategy share accelerated are north american market entry in the year we've also entered five new regulated market with a combined total addressable market of nine point five billion dollars further strengthening our growth in the online my gaming space globally different average performance of the business in twenty one paved the way for really good start for twenty twenty two we've launched our first game from our proprietary studio atomic slot lab egyptian magic either to fly dedicated to that with the case study will talk about it and if you slide we also entered a new market the czech republic to the shakes regulated markets entry in the last month and of course i'm sure those of you follow the story we've obtained to new licenses in bahamas and a highly anticipated ontario market which is planning to open a before to operators net altar and to my friend and colleague one and can order to talk about the didn't performance of back
spk_2: and you really good morning everyone i'm planning to sign of eleven
spk_1: blood queue for twenty one revenue to form and an underlying revenue including neglect agenda market when the had of company the expectations q for to twenty one reporting revenue of fifty eight million euros
spk_2: huge amount of a twenty two percent above are reported guidance the main catalyst for the underlying performance would keeping five million euros from a stronger than expected start the launches of new customers many netherland driven by pam many charities and condoms give fourteen billion euros from a better than expected to just because he has including recurring join and regulated revenue and was beginning revenue he was kept in line with expect patients
spk_3: be strong underlying performance for the strong momentum going to pew want one twenty two and upgraded guidance for the food year
spk_2: now turning to slide twelve
spk_0: the mission earlier or entry into new markets in particular the netherlands which has been exceptionally strong coupled with new clients me and the ramping up with operated launched earlier in the year give us a significant event in the coming twenty twenty two financial year
spk_2: during the quarter the new twenty two one billion seventy was up by five hundred percent from two three keep you full new market launches existing customers revenue excluding germany has also seems from the growth be for by more than forty percent on the previous quarter and on the line between good revenue including like and during an increased by twenty two percent quota of the cooler
spk_1: he before my chart be presented at one twenty one bag that inflate being deported
spk_2: and you consume the right inside would begin in the queue for underlying reading a mix that you only need to twenty twenty two financial year posts implementing the head wounds from germany since been you regular to changes to place in july twenty twenty one
spk_4: and the conclusion to for performance further to foundation and a significant acceleration of both in twenty twenty and beyond
spk_0: and i'll bet you need
spk_1: thank you run and of you can see the of have been performing well and next i want to talk about the product strategy that underlined of in the first on page fourteen will talk about our compton strategy which is a rich or for your of casino games from in house and partner studios we really divide internally our content into three buckets the bucket is bad for tigers studios be the fully own studios which produce in how games and name but you know the wall street the or the spin and the newly founded atomic slot that we offer online lambastes and social game slot and table games and of course no royalties to pampered either content which means higher gross profit margin stop stay with the didn't the second bucket of content that we offer it arch to a third party content essentially it means third party studios will offer games via our remote game server for exclusive distribution by drugs and so we take the content from my partner studios we hosted we certified and then we shall it is diverse and local like follow your indicators to play or preferences in different markets some of the name you can see on page fourteen a good gamble blueberry blue lugo and others which are exclusively distributed to wash the third bucket of content the advocated for for your where we all for thousands of online game files from top studios and we continuously update or titles every month to get the best new games release as to a platform and so proprietary studio continent scoot and you offering have been driving and continue to drive our margin and bush revenues i want to take you to a study of the the we released recently brought newly founded atomic slot love atomic loud louder our brand new and how studio due to twenty one bright acquired while three and appointed was weak founder and ceo them solid at the group director of con did with the help of doug stalin and que three of twenty one atomic slot love of established which of a new game studio a mission to forge a new generation of online casino games each of atomic slot love games has at least to map variations one that a look to the north american face and one that a look to the european market atomic got not launch its first title egyptian magic and europe in january twenty twenty two and we expect to release at the north america later this year the performance of egyptian object have been phenomenal egyptian magic is an all time top five slot relief is for blogs exclusive content of folios which includes or two hundred and seventy games and proprietary studios in third party studios egyptian magic would also named lot of the week but online casino cocked and focus outlet slot be stuck on adding that point illustrate that the launch of atomic slot lab highlights a successful execution of our new provider part and strategy which helps us drive higher margin and bringing new customers to this proprietary content that is all the available through our blood flow next the want to talk about are getting pop on charges or player account and deployments enable stable long and blow for the drug business our player account management i get a glass one the chosen carefully buy online casino brand who typically look for a partner to power your pacino for five last year which made that we have long term contracts with our partners online casino taking bribes bear account management are more likely to be stable long term partners and of course we control most of their operations because we're fully integrated into their operation player account management is the backbone of our staff doctors service or gaming technology offering it's encouraging and enabling the deployment of other revenue generating products and services including the exclusive content from our in house and partner studios aggregated content platform feel for sports wagering feet from am in operational services and of course the newly built fuse player engagement to said which health promotion retention and acquisition of customers you regulated online casino markets present opportunities to when you can trust them or and talking about newly regulated market letting the best case study to illustrate that point is the new be regulated dutch market in the netherlands in early twenty twenty one be secure deals for several local casino and spore betting brands the supplier player account management in anticipation of the market opening in august of twenty twenty one following the fall development to comply with local regulations brand player account management is one of the first to be certified to the dutchman get on october first flight what he won the dutch regulated online gambling and a october twenty twenty one bit city which is one of our customers is on the first operator to see the light and we launched that very pathetically that our player account management at the market opening and it's been a very very successful launch since october twenty twenty one josh launched on blogs their account management system and i get a platform and blog also launched content which state operator pollen casino in total the operation and execution in the dutch market is just a illustrate a point of our our job operator friendly i'd any platform and the netherlands the abroad top market with very exciting opportunity the head for market that has over one billion dollars in total addressable market or flexible modern plot or technology put up and strong position to win market share in your the regulated jurisdiction and we're very excited about the recently announced ontario life and which we hope will present a significant opportunity for us in a similar fashion to the dutch market i think the next slide is a boring to talk about our continued growth which is complemented by substantial margin expansion we talked about the importance of content we talked about the importance of our player account management and let slide slide eighteen illustrates why the the point if you know did our profitability larger for twenty twenty you can see that are gross profit margin to forty three percent large affidavit a margin was eleven point nine percent as we were selling mostly third party content or party conference had a lot of loyalty attached to it so the cost of goods sold it more expensive and we have to pay out oddly transition to more platform and proprietary content you can see that and twenty twenty one are gross profit margin decreed by over five percent and are just to keep it off increases while as we look into the future you would like to focus more on our platform and would like to focus more provider content both carry much i'd most profit margins in terms of the profitability for the business or target profile for the business it was she fifty percent gross profit margin and in a job that he did a margin of twenty five percent and so blog operating leverage expected to increase given the limited growth an employee caught and other overhead now like to talk about emanate licensing and new market opportunities berg i'd like to provide an update on the spin gained closing our we recently announced that we expected spent close to you want twenty twenty two now given regulatory delays we expected to close you to of twenty twenty two the reason for it is because the regulators not have the obligation it concluded their investigation and it's now a matter of reviewing the investigative reports were awaiting pennsylvania gaming control board award on the bra license which will allow of the close the transaction we've been approved by the new jersey regulator with a transactional waiver and the michigan regulator the transactional waiver and so what we're waiting for the pennsylvania regulators to approve the lights and and want the licenses approved we will be able to cause have been transaction is born to mention that in the time to were waiting for the regulatory approval to close in transaction on paper we've been doing the integration between broad european remote gaming servers in spain remote gaining server and that's already been completed all of the bidding for and working on certification in the various markets of spin and already operational in and we anticipate a very smooth goal i date want the transaction quoted weeks looks got to causing que to of twenty twenty two and hopefully sometime in in may have twenty twenty two object regulatory approval and another i've updated on the screen clothing i just want to remind everyone which they needed to ban is on a recently announced acquisition of may have twenty one minute been established us he to be gaining suppliers well the up their own remote getting server and combat brigades and business it of course accelerate bragged entry into the united states it an established provider proprietary an exclusive third party casino content it was founded in twenty club by can't yum will remain with the business as the director for america spend acquisition fast forward or us roll out for blogs exclusive content and were expecting to roll out of rise exclusive content via spin acquisition in que three of twenty twenty two do other quick facts about spain it's license and five jurisdictions new jersey pennsylvania michigan connecticut and bc in canada over thirty five applied to regain over thirty customers and as you can see the biggest customers in the united states that mg and sandals and others were very excited about gap addition the working together closely as if we're already together as one company and once the acquisition gets the final approval from the reg you later we will continue to work together on rolling out brought us strategy there were talking about licensing and your market the next slide by age twenty one is an update on the licensing a new market broad continues to roll out it's content and technology a newly regulated markets europe north america and globally and que for twenty twenty one in october high impact launch on or player out management and content in the dutch market as we are you just got in november of twenty one brother it's uk license and we started rolling out or content in that market and overall six newly regulated markets and read between march twenty one and january twenty two which include the switch market the regulated german market the dutch market uk and the czech republic we've also had key developments in europe in the prophet of certifying our games for italy to two point three billion i games market we also have lightened spending in belgium which in smaller market and we have our game certified and were pending lodged in the portuguese market respect a north american progress as you've already to start we apply for licenses and did you add a new jersey pennsylvania michigan and connecticut we expect the total adjustable market growth of about four billion dollars by the time we get a life as which is very soon as i mentioned in february of this year we announced that we have of jane are but union gaming license or bahamian supplier gaming license and recently a couple days ago we announced the we were one of the first be to be companies to be granted or ontario gaining supplier license which is expected to be one of the larger by getting market in north america ontario will been you'll be regulated market on april fourth were very excited about the opportunity at was a given our presence in the canadian especially in the draw the market the talking about drop in the business and the life of thing and new market opportunities i want to turn your attention to fly twenty two with a road map of expanding market opportunity bribed adaptable market continues to expand rapidly and online gaming company progressively and landed gaining company look to migrate online if you think about where bride started and twenty one focus on a small region of about three billion dollar by q one of twenty twenty two were licensed and operational now in about thirteen the have billion dollars of am i would continue to apply for and be granted licenses and you to restriction included united states italy
spk_5: canada and other the market were expecting to grow total addressable market by the end of this year to about twenty one and a half billion dollars it prevent a significant growth opportunity in terms of revenue and new customers and all these newly regulated market as we prevent our content and i gaming platform and of course supporting services
spk_1: to newly regulated entity it is expected that are total adjustable market will grow about forty three billion dollar with north america growing at a higher pay for europe and will represent a very exciting market opportunity for up as we continue to grow our operations and europe north america and record the want without and the drop in our revenue and are expected total adjustable market alternate again to run and or to talk about the financials and the guidance looking forward and the full year thank you very much a big in my comments and flight wonderful
spk_3: and the fourth quarter revenue about like forty four percent year over year the fifty canadian in euros and up the twenty two percent from the previous quarter many attributed to a stronger than expected start the largest company in those markets will come and then services which was affecting the impact of the new german regulatory changes in judaism july says taunton one
spk_6: gospel could include by thirty percent to eight million euros with bother the cleaning as well by seven that's going to keep the one percent it's it's gonna to be little higher proportion of revenue to us on our platform and and services alongside without was to gain seventy which had no costs of goods associated compare to games and content which had said
spk_1: but because the line
spk_3: what about gospel said it will be explained in an excellent it definitely be done for the quarter was up by twenty three percent the one point five billion euros up by europe and two million from previous year representing margin of nine point eight percent he didn't improvement of zero point seven thousand points compared to the previous year operating loss with the bakery console million euros to one point nine million euros many the result a reduction of the phone and putting a consideration reduction sellers selling general and administrative expenses and with improvement or total gross profit for the period of about two million years and the bit of hundred perspective during to the for good thing like that of the by the united kingdom were launched a new customers with sound in it the project was a studio atomic so club and also consider to retain hundred percent of our customers in two thousand and eighteen and while a couple of the tension within solid our defense and up top them cousin would up but
spk_1: only two percent to sixty eight the said about total revenue the trend with to winning
spk_3: like twenty five gospel that extension like you can see from the revenue and gross profit margins like it was profit margins are you in the glove trajectory since cuter to twenty one and of caligula up in line with the red me go and move on in the product nick it's presented in a child in the bottom of the flight every indicating the past platform for quite a common product a carrying other particles which given of the trigger to scale up gross profit margin
spk_2: phantom menace services and could quota for gospel the larger than a result the strong performance of the new dutch couples finally by the drug is targeting cause profit margins and but went on for up to sixty percent of the to them living
spk_1: i make a slight one six revenue in jeopardy be done on the slide a bit of how we reconcile operating loss to a particular definitely going to end on one it definitely did i was seven point two million euros at the top four percent margin against and operating loss of six months i've been billion yellows the gap can be defy i with a fully noncash an exception items for to share that spain and it what's the new directors management an employee that she wanted to play transaction a coalition cause excessive spending that to take the shot was with games in games and and clawing at the thought copulation and in a strategy an exceptional goals which it's of ligo funny cause professional field on the nasdaq living and other non recurring regulator with and legal matters polygon like twenty seven of of the end of the cemetery five point one one back had a solid delancey and continue to deliver stone castle performance
spk_3: as bad as of the senate when it goes what sixty million euros compared to twenty six and your the end of december last year would not dare facilities network he kept there was another point six million compared to eighteen put a million years in the beginning of the year we continue to project from to cast of them operation as a reminder outbidding strategy required
spk_1: look up x technology that requirements on a casual perspective in a twelve month and a december twenty third we fellow eleventh one thousand a year as for the could have already we paid a point two million euros for the condition was the game and we continue chapters of to develop because it's part of the investment in out to comedy but a new not american indian european market extension
spk_2: twenty two two guidance given the building momentum a couple car and drive which has of establishing a foundation for underlying sustainable living and launch angle the raise our guide them for two thousand twenty two driven by performance in our us markets are going to been of customers worldwide and alex and investor in are you have games of
spk_1: i was vague and the only bad year we now expect twenty twenty two full years revenue your guidance from sixty eight to seventy two million years compared to fifty nine to sixty one million years previously and we also expect when you near adjusted ebitda of nine confide to tempt them five million euros compared to six to seven million euros premises who that know them back to you need to the outlook and conclusion and then will turn up the called back to the operator didn't even i can take your question of the unit take your own and twenty twenty one had been a transformer year for the broad business which laid a strong foundation for the future we're really very excited about the great work we've done and were even more excited about the future arthur want to thank each and every blog and forty and we all walked really hard to deliver better than expected result in twenty one which laid the foundation underground want with strong performance and twenty two a shock you for performance like to update all of our numbers are twenty twenty two bought into the rather get your property the guidance ah we are a box and scannable player account management supported by going provide your content or four yards which are part of me to start to increase our margin into the future as we get more licensing as you get more certification we're expanding our total just have a market mostly driven by offline to online transition a gift you know gaming we creeping are gross profit margins and are jeopardy that a margin with limited topics need and we present solid financial flexibility with a three balance sheet
spk_0: the fourth quarter performance of twenty one and all the hard work and a gone into twenty twenty watch i like the opportunity and excitement for the golfing twenty twenty two and without i'd like to thank the whole team again i'd like to thank on and and we can turn to your question at this time i'd like to remind everyone in order to ask a question press star than the number one on your telephone keypad and your first question comes a line of mercury from canaccord genuity your like is open a morning guys with some of the kidding opportunity given that it and on i don't mind right now to use maybe frame how we should be thinking about ontario in terms of upside pressure guidance and is it fair to assume that your the btc players you already use art and will like a huge in ontario
spk_1: that's what her magda morning i think yes the i would that be and such pamela operators bones from the or try to stay inside european sizes are exercise will become our customers in ontario court behind the she'd with had varied conversations are plenty of the operator they're expected it for akin to get their licenses in ontario and so excited about the opportunity that customers got we serve european market and of course the american market will come to ontario it didn't have the opportunity is a significant opportunity a hard a case study and in the touch market what regulate the that are good we've done exceptionally well in the dutch market because no one of the first platforms and the first be to be suppliers to be certified and were expecting to have you know
spk_0: good result in in the ontario market with respect to be offering a products and services
spk_2: after the guidance itself in our financial or current alone it the gonna discuss a what we have in in the numbers that are presented for twenty twenty two
spk_1: he thinks any i my money so i'm not necessarily a find edison the jurisdictions wanted actually living in a be that i can assure that i'm from from concerned because he said he would include it some revenue the comedian marcus he comes when you that we will get in life as we know we done
spk_2: how we'd been a roller when the year but definitely need from a purely law that what the potential it had about and i believe that going forward especially on the photograph real we will be able to beat this number family pentagon
spk_1: provide ball has a guide guidance about it the the next to one kid to put up plan rapidly that the big lala land you know who we approach hockey coach how to continue dollars with existing customers and prevention new customers
spk_0: but the overall automation the very long
spk_1: great and and and and maybe we can toggle in the judge martin ontario mugger are you insinuating about their kind of similar marketing can side made a wild population cetera it's yeah big dance or get that if you think about the dutch market and what analysts are estimating the dutch market the gator talking about about one billion euros and down and so based on some of the analyst estimates trump areas each other for here it's a very similar five dollar job to the arcade and so i think that the our similarities ashley the way that has been rolled out me dutch market for the ontario market talking about you know relatively ah yeah a pretty good gdp in terms of have the opportunity for the market and so we believe again going back to the point about the one of the first applied licensed to their the lot of upsetting the affair your market but as any new markets evolved out that kind of hard you had a symmetric what will happen or you say i'm the first contract before you go logic first of march and before you see the adoption of your pocket that your block long running shed and i echo the sentiment there is a lot of upside that are not vacant what numbers and as we roll out the content on april fourth and as we start a fire platform on board your customers with the platform we will see how that rules out and
spk_0: we're up the are guided accordingly
spk_7: perfect and then seen on cash flow in august sit on the that they're looking to nothing bright the cash but surely that if you're not burning cars from your peers not usually casual in i did
spk_2: bryant yeah yeah shaun
spk_1: yes
spk_2: the public's you look at our guide and that on some numbers were going to generate about ten million of adjusted either
spk_1: for the an ad for the district recast the operation perspective if you know matthew we are reinvesting the entire profits were making for mouth ration the into recruits more developers get into the north america much you can be of it's gonna diner in a quite excellarate celebrated pays we certify a platforms again you've mentioned and we creating games definite to just give us some understanding within a roll up thirty five games next year who twenty twenty two all developed in house not to mention of games you're going to be for the out once we games which when gonna go to other customers while so we really it's way twenty one ramped this operation it's when it's when it to we're going to reinvest heavily on as a bigger
spk_2: i'm so complete precast perspective and what you capital of thing
spk_0: from from from the tradition of spain gonna have an era when she kept but again we controlling the cash we're investing in business and we definitely board and management of looking for an opportunity to into our cash position purely extent of a girl and actually to capture on and captagon opportunities out there as with it
spk_8: recently with launching and signing a new content providers
spk_0: and that perfect thanks and congrats on the recording
spk_9: anti lot
spk_0: your next question comes from the line of neil go have from he would securities your line is open
spk_10: yeah good morning rats on a quarter thanks for taking my questions it it just i wanted to see perspective on the uk market you got your license their november
spk_1: sort of what you're seeing and from the first a few months he then there what your outlook is for for the sheer for that market thank you good morning
spk_0: yeah thought so the uk had been pretty much with our expectation and in line with the expectations we received our license in november last year as you mention we shine very of customers in twenty one and we haven't shoveled aptamer the will be out
spk_1: shining twenty two i think it's worth it to mention that the uk i get the market and gambling market is and is mature i'm probably the most mature market a very saturated strikes a lot of our proprietary content will lead our way into the market and that's exactly how it's playing out
spk_9: where lead our market into a proprietary contract extension content that is not available elsewhere and for so far been with within our expectation and we're hoping to be able to announce more and more customers uk as our can be more desirable by the operators
spk_11: the thanks appreciate that on your guidance for twenty twenty two on ill at how is the spin the closing has been acquisition factored into that as well as the some the the or the licensing some clean some similar states you've applied for your this is a spin transaction closing his his his sounds completely of your control and with the regular
spk_0: if that gets pushed out at all do you have their he did you know is is there any concern on how are you might be able to grow into that us market
spk_2: yeah i nailed money
spk_1: i'm actually we factor the that it was a will with dictates around the for the second quarter the antidote second quarter of from my perspective when we dissipated club skin from our perspective on the guidance we don't have any changed and and and and as we said in the presentation
spk_9: the integration already started the the the into company relationships are already on the they've we're setting find the games as a declining the integration so in that respect i was i would assume and we're expecting that
spk_0: kind of kindly is on the law based not on the higher a million said
spk_1: we had a throne and that's helpful thanks in no congratulated gonna get back now and snow your next question comes from a line of a deer coverage from a capital your line is often good morning i said a flag my questions here i wanted to touch a little bit on your in house developed content i think you may have made that he made a reference to how many games are in the market but i didn't catch that so she just wanted the kind of talk about how many games are in the market right now how those games are actually performing and do maybe potentially would you compare the target from the games you really here and now he twenty twenty two and that look can you give up and get have a yeah thought so we you not as we said we are shifting to some extent are are up efforts towards proprietary exclusive content because of the gross profit margin that because the ability to shell that contract better than third party gets caught exclusive to walk and so on operators are looking for content and eight looking for this specific content were the only one that are able to supply it came to the numbers i know that that there was the numbers that richard at present before and steam our estimates for the year we're looking at about ninety to one hundred look like you're getting developed and on our rgs some of them are third party exclusive content from partner studio we've announced blueberry which allows blue group and others and then we're looking at about thirty to thirty five titled the will be developed in house from the wild street from the atomic slot lab from or h o two x and from spain which will represent a great increased from twenty one and abby start rolling out this content will get into the rhythm adding more not proprietary content from our proprietary studios which will of course drive margin and ravages of future total and your appreciate that and then you just talked about you know your hundred percent retention rate which comes to your customer pipelines that's obviously very good to see but and from your current customers or six are obviously very good to feed but then what about the actual pike on how's that looking in terms of new customer wins or you finding the you're citing an acceleration in a letter from that in that perspective i think it's tied to the can gross i mean as you can imagine and as you can appreciate them more likely to have more certifications get in your jurisdiction it opens the door for to sign up new customers and so as we get the certification doesn't get the life with talking about the dutch market which was not a it was three licensing we now have an ability to sell in that market the imperial market the us market the bohemian market the portuguese italian as we roll art and a rule our strategy to all the market given the fact that week certification were able to offer and content and platform you restrictions i think the born to mention that in the european market a lot of our customers a multi multistate operators in so we have the integration of served him in that market as we roll out for as we obtain life the certifications market it's it's safe to assume the deep cut the most were grow without into disney jurisdiction one of the examples that it may be worth a dimension if we announced recently that we gotta live with a they ate and spain with our content and so you can imagine eight eight eight as one of the first be to see operator to obtain their own your life and i would imagine eight eight will be a good customer about in ontario and we find a definite them to serve them in the ontario market because they're already our customers in europe and saw three rollout
spk_0: into you market it presents an opportunity for off to serve our customer that we serve in other markets
spk_1: great appreciate all the all the color now that one your next question comes from a line of said delaware are you from carmax security your line is often yeah i go more knows i'm on his first on your on netherlands market an on how we doing there is the market share still around thirty percent mark or has a market share improve materially from last we talk about it and then on either any other markets that you're looking at that are similar to the netherlands market that you're looking to get a license and then he tore up the first question that at a dancer know yet the wheat we don't have the complete answer because of course that numbers continue to grow with terms of total addressable market forget to the dutch market and as the market rolled out as more and more operator get licenses analysts are updating their total adjustable marketed to be beside the my couch we do believe that we still representing about twenty pretty of the dutch market it's important to off the bench and that as more and more licenses are being rolled out to the because he operated in the dutch markets we are on board more customers we've had such a good at launch in the dutch market the weird now to some extent the go to platform and our content resonates really well with player than the market so of course a new operator get their license if they want to and they need to offer similar counted the their competitors who are now our customers they'll come to us with the content from of them will come to us the platform we got the bottom of the comp and certified across the gross
spk_0: margin and the expansion in the markets are just continue to increase and so we believe that the dutch market will continue to present a great opportunity for in terms of new market it very hard to estimate how the launch of a new market would look like because it really depends on adding new alluded to it regulation license
spk_1: running and of course the rollout of of the certification we do expect that some of the new markets that we get license in ontario and others will present a great opportunity for us because as we get the license as as you get the certification and as we do the integration we become to some extend the go to be to be supplier for content the go to be to be supplier a platform and so it presents an opportunity for ought to grow with the market as more and more be to see operator get their licenses
spk_12: okay great that's helpful and are just one thing on and you're prepared much are you guys highlighted on you get caught like your long term target for your gross margins on as around sixty percent and you guys currently stand around forty nine percent and i know you mentioned that you know gross margins are expected to go out and
spk_1: you go low proprietary content from their own studios in that sort of the only thing that's driving know those targets or something else her i play that would result in higher goes margin because on a the dynamics of are you will have operating average so that that intaglio chewable to me but just undergoes margin some clarity of the up
spk_2: the shaded
spk_1: and yet kinda morning so you have the three factors affecting and too much in the first continent you mention which is correct when she had to launch of young content you don't have their annual deficit but it's different obvious the second part you the managed services and i get me platform will literally utilised can and telling our pockets analogy to investing technology roll out in different countries with different customers the technology there and adaptation and that localization it's something which is cause when best to but that's that any source of revenue for look at our wedding in next last year with eighty nine percent of content and about eleven percent of manage says with and i getting plucked from the cordoba sixty eight to thirty two knitting to be signature the margin because it is called a revenue does not have any costs of goods are all debate said body and the lasting are working on top of that your commercial wicked body provided the mall we have we building on company building with the come into our a g and than and schelling it up and distributing any to you as in few two months time and in europe with trying to improve the margin so a and b and c together improve the margins and from fifty percent the get to sixty percent decrease revenue more you can i be on a
spk_13: in house victimology and game creation and manage relationship with got with supply of did you get to sixty percent added between twenty four or even earlier
spk_0: okay thought a great that's awful nice thank you
spk_14: like them
spk_0: your next question comes i have very sign from spartan capitol security is your line is open he ah good morning i wanna do a better understand the are the results you just recorded maybe begin to somebody or key performance indicators so revenue of for the quarter was fifty fifty point eight million euros and then it's like twenty four you talk about the number of customers the amount of wagering could you gotta talk about how those
spk_2: tom in or operate i'm assuming year revenue is solely based on the number of partners and the number of jurisdictions not be a now it's wagered on by on that note the on slide twenty four week you see a decline in the amount it's wagered so he could talk about those kp eyes and how they roll up
spk_1: to get to the reported rabbit
spk_2: yeah very good question thank you get the very good question on a think you the narrative of that so on one hand and you see on t to kubrick you for the the slight declining during with can be hundred percent attribute it to our divestment from the gym and market and as you know the the for the fourth of july don't twenty one the new new jersey new kinda relation as she took place in germany and as a result wagering were kept up to persistent boy they're not have better be copied the plug whatever so we can see the job even last what if we also not if i developed for it in addition he should have in revenue the just a few given to go the red he composition also schelling twelve men and services and i can be plucked from the full think it's notion that the often so the remedy get go that that necessary the clinton revenue goes up in the same line and an indecent that the regal that some of the german effect still affecting us that i believe them are we gonna go revenue on both our content and alford or the content the would see the numbers trading up backing
spk_0: yeah
spk_2: traditionally cycles are like the head when of the german regulation it's still affecting
spk_1: our customers inability ability to transact good but he can look at next year exposure to jimmy will be significantly know i would say that the numbers will start going up again and that would explain the job
spk_2: the second just to clarify there is no relationship a g me now it's wagered so opaque breeder a doubles on what are your customers platform your level he doesn't the lot you other next of the licenses i collect
spk_1: yeah we have a compulsion so so let me give an example take a ticket one only content compared to another content that wagering is very strong kp i can reflect how much teacher that's a customer be so the content to content but if you have changes in your reading and next that the minnesotan i get a couple of critics nicholas a your revenue grieving significantly yeah but on the telly the continent having especially when we have much like for the to the gym and market and now when we and some customers that they vesting from the market using some dropping wager at we expect the can the trend is actually going up again because it happened and two three and for didn't you for
spk_0: barry if if i may just add a couple more points out of as we discussed are our breakdown of of revenue the revenue makes is now going from you know third party contract to more proprietary content and to more platform wreckage and so therefore you see the wagering number decree but the proportion of the ravaged the we keep is higher because the proprietary content arrived or
spk_1: profitability of issue revenue
spk_0: more profitability on the same revenue and the same thing with the part one and so as we diverse from purely third party aggregate contact to exclusive content them the numbers that remained would ask the business and a proportional the rabbit you get higher does that make sense yeah that's very helpful thank you on it can i squeeze a more question please just you slide twenty eight
spk_15: you are you have your revenue builder obviously there's a negative light bar for the german regulatory trash
spk_1: know wanna on you take a look out gone forward or maybe we can start on understanding what role the german regulators were people gone bankrupt with online wagering they had to put a control on it and if we look at other jurisdictions is there anything similar on the docket in other markets your needs jersey for the yeah i'm gail for example ah young that know you get your netherlands that may have any yell and in impact on revenue by bipolar yeah to look at them what the a let me let me start with the big picture and then you know like a talk about the numbers per se but the big picture in germany at that the german the german country had tried to regular online gaming a thing for the past fifteen years maybe twenty years i'm better really there was no regulation and then germany it is divided into sixteen states that was launched aid on sh like hold him back held or or provided some sort of regulated gaining regime in the twenty twenty in july twenty twenty the regular i mean the sixteen state and the federal government in germany agreed to regulate gaining on the federal level and then you can see the effect of that regulation coming into full force and effect in july of twenty twenty one and so it's not about people going bankrupt it's not about maybe currently did not really sure to be than in the german market but you really have to do with the fact the german as a country wanted to regulate online gambling and they decided to do it on the federal level it is no different than other places like the dutch market which had unregulated gaining until the dutch government decided to a regulated on the federal level and so i'll be regulated online getting the free market before and it was or had to do with a lot of player protection to replace five seconds been one euro spin and limit other player protection tools to make sure that the the game he market will be beneficial to operator talk with it years and so
spk_0: that have been in canada full force and effect in july twenty twenty one to challenges that the german regulator have not really been established and the licenses have not been granted yet and so you have did they caught me in the german market between that the grade which i guess now turn black because it's regulate them that it's still affecting germany
spk_1: and then the white operator we as a regulated company of advocate the company has drawn establish a company with license with all around the world we can support the block operated anymore so we had to shut down all the operator that are not complying with the regulations and so we've kept all the white operator
spk_0: which are applying for life
spk_1: and are operating within the scheme of the new regulated i gaming market or betting market as well and so looking into the future that it are recurring german revenue the nonrecurring german revenue is the stop the we had to turn off because at some point the german government is like start issuing licenses and and force against operator are operating illegally do that kind of good color on it are ya what happened historically looking ahead are there any similar regulations on the docket being considered in any of your major jurisdictions on a what are like little be keen on the red bar on slide twenty young yamuna jackie year from now
spk_0: and from the regulation or something that we think about all the time
spk_16: in our view and based on analyst estimates on the way to we see the market and the way to see the world we operate in it's unlikely regulation is going with us not against our germany was a one off because of a or of the market but if you look all around the world whether it's the dutch market the ontario market various us state
spk_0: it's all going towards regulation brother the deregulation and so we expect that read german bar to become greenberg many jurisdictions that we that we enter injured
spk_17: very helpful thank you for take my questions
spk_18: nope regular t
spk_19: again if you like to ask a question press star one on your telephone keypad your next question comes from line of lisa thomson from zack's investment research your line is often
spk_1: kind of morning i live i live in london
spk_2: still just a on
spk_1: finish up on germany as far as your guidance counselor what are you thinking about in germany is it kind of fourth quarter times four quarters splurge are you have the you have some and thing in there for life and been granted
spk_20: coached at solely for actually what we did to be super conservative he could to be honest with you
spk_1: even the german don't know into that he that each of the licenses someone we took to the runway of queue for which was very low after we made a change of internally and me to got it luck were angry ransom kind of was very flat stifle go to have majority of the customer than generally we know how little bell lady for life and some guidance perspective i don't think it could be worse than death a definitely with the estimated some kind of at potential growth me the market and the much more educated as more license it will be issue that small black operators will be stopped so the this very sluggish growth so we we believe this the by
spk_0: i like the to poach that because we don't have clarity when life will be should
spk_19: the one with good to have got one but i don't like to add just the big picture on the german market look the german market it we talked about the same conversation we're having right now twenty twenty one we would have said that he was a headwind for the business he weather the storm and now german and english it's the went for us we've taken
spk_8: the most conservative approach or of the german revenue and wants to licenses are starting to get granted an important to starting to take place against the back operator
spk_1: when germany scaled up it's all gravy for us because we're taking a very conservative approach and we think that it's actually a driver revenues up one the german regulators are set up and starting and force great that's okay let's with you know that event one last question can you describe a little bit more specifically what you what happens on april fourth in canada for you do have an exhortation of x number of customers signed up and do you flip a switch and that outlook so bad for something new markets are always interesting market because you can have never know what happened than that and in our in our internal estimates week of course have many conversations with make would be operator in ontario some of them are current european customers that i've applied for licenses and i get the eight eight eight example which has already been granted some of them are the spin customer that will become broad customers drafting fan to bed and yeah maurice by all of these that are applied for leisinger the one thing out there you that it really depends on the regulator in terms of granting of the lightens with it all of these name that i've mentioned than others are granted license of between now march tenth and eight afford and we expect to roll out our content on day one it from the globe if some of them are in the next batch or a followed batch of licensing then they'll have to wait i will say that for me certification standpoint we've been working with year line as like huge or to certify lab to get our conference ready for the launch in ontario and so from that perspective we will have gained better certified and a fort bragg his life and the once we get our customers get there because the and kids were able to find them on to
spk_19: our platform and then announced a deal to ontario
spk_21: but again going back to the eighty eight example we just launched aged eight and pain we work with them in other jurisdictions in europe gave now that they just as be their life and so it's more likely than not that someone like eight eight eight will be a customer of hours in ontario because we're one of the only one of the first be to be suppliers to be certified and life
spk_0: in the ontario market that present a great opportunity for us i great thank you for that that on the question
spk_1: thank you for mother
spk_0: and are no further questions at this time
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