NeoGames S.A.

Thank you, Operator, and good morning, everyone. By now, everyone should have access to our fourth quarter and full year 2020 earnings release, which is available on the NeoGames website at neogames.com in the investor relations section. Before we begin the formal remarks, we remind everyone that the discussion today includes forward-looking statements. These forward-looking statements, which are usually identified by the use of words such as will, expect, anticipate, should, or other similar phrases, are not guarantees of future performance. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect, and therefore you should exercise caution when interpreting and relying on them. We refer everyone back to our recent SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition. We encourage investors to review our regulatory filings, including the Form 20F for the year ended at December 31st, 2020, when it is filed with the SEC. During today's call, we will discuss non-IFRS financial measures, which we believe can be useful in evaluating the company's financial performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with IFRS. A reconciliation of these measures to the most directly comparable IFRS measures is available in our earnings release on the neogames.com website. Hosting the call today, we have Moti Malul, Neogames Chief Executive Officer, and Raviv Adler, Chief Financial Officer of the company. They will provide some opening remarks, and then we will open the call to questions. With that, I'll turn the call over to Moti.

Thank you, Jacques, and good morning, everyone. Welcome to our first earnings call as a publicly traded company. We are proud of the business we have built over the last few years, establishing ourselves as the technology-driven innovator in the iLawry space. Over that time, we focused on profitable growth, And as we grew the top line every year, we carved out a leadership position in this bargaining sector. We view becoming a public company as the beginning of a new era for NeoGames, opening up new opportunities to drive the business forward and creating value for all of our stakeholders. To that end, I want to recognize and welcome our new shareholders. We sincerely appreciate the support and are grateful to have you join us on this journey. I also wanted to take a moment to acknowledge and thank our amazing team at NeoGains who are designing, building, marketing, and selling the innovative products that enable our customer partners to find growth and drive significant contribution to good causes in their jurisdictions. We're incredibly proud of the strong results that we delivered throughout this year and are pleased to share highlights from the fourth quarter. we continued to make progress on our vision to unleash our customers' full iLottery potential, empowering them with the best technology platforms, the most powerful game experiences, and a complete range of expertise, experienced services, and market-leading solutions. This morning, I will highlight some key points about our full year 2020 performance, talk about some early trends that we're seeing in 2021, and then provide our take on the longer-term growth opportunity and what we are doing to ensure we maintain our leadership position in iLottery to capture share. After which, I will turn the call over to Raviv, our CFO, to run through our financials. For the full year, revenue was $49.2 million, which is up 48.8% over last year. In addition, our share of NPI revenues for the year was $9.5 million compared to $1.9 million last year. Looking at the two components added together, they equate to $58.7 million for the full year 2020, representing growth of over 67.7% compared to last year. Equally as important, we continue to grow profitability and our adjusted EBITDA grew at a rate more than double the top line. For the full year 2020, we generated adjusted EBITDA of $28.7 million, up nearly 142% from the prior year. We ended the year strong as fourth quarter result came in better than expected. The better than expected fourth quarter was the result of four key tailwinds. several of which were largely one-time incremental benefits to our plan. First, results in Virginia were ahead of our customer and our expectations, as we saw a higher and faster conversion of existing DrawGame subscription players and other registered players into eInstant games sooner than we were expecting. This trend of the earlier-than-expected adoption is factored into our 2021 revenue guidance. Second, revenues in Alberta occurred a bit earlier than expected, as the solution came online sooner than anticipated, as our incredible teams were able to lift off the ground a go-live in just five months from contract sign. Third, with the resurgence of stay-at-home orders in most of our customer jurisdictions around the globe, we experienced increased activity from the mere fact people spent more time at home in the fourth quarter. Lastly, as many investors may be aware, the U.S. experienced a double jackpot run beginning in December and extending into January. On this point, it is worth quickly mentioning how the flow-through works with jackpot runs in iLottery. Throughout the U.S., all lotteries experienced growth in sales due to the double jackpots of Mega Millions and Powerball which started to pick up in December and even stronger into January. iLottery was no exception, as we saw meaningful volume growth across all US customers. We typically see iLottery benefit from jackpot runs in two ways. First, during the jackpot runs themselves, with direct revenues due to the volume uptick. And second, as a result of the run, an increase of new player signups that post a jackpot run creates an opportunity for our customers and our marketing team to further engage and cross-promote these players through non-jackpot games. The end of the jackpot run in January segues nicely to my next topic, what we are seeing early in 2021. In Michigan, exactly the same time the double jackpot run was ending, the iGaming switch was turned on and we saw the launch of more than 10 iGaming and online sport betting sites. With the end of the jackpot run, we expected revenues would return to normal levels, and what we have seen during February is that revenue trends were largely aligned with that expectation, and run rates were at the average of the month prior to the jackpot. We see this as a positive early, and I do stress early, indication that our experience in Michigan may be no different compared to what we have seen and experienced in other jurisdictions. To remind listeners of what those experiences have been, I refer back to our IPO materials. As we mentioned in our registration statement, we strongly believe, based on experience in Europe as well as early cases in the U.S., that iLottery can grow and thrive parallel to introduction of sport betting and other forms of online gaming. Most recently, before Michigan, In New Hampshire, when sport betting was introduced more than a year ago, the lottery has reported strong parallel growth on both programs. One other recent early 2021 item I wanted to touch on is the announcement of our entry into a new market in Europe. We entered an agreement with the Austrian lotteries to provide them with great content from our market-proven library of games developed by our talented team at Neo Games Studio. which we believe will enhance the overall gaming experience offered by the lottery, adding a new level of entertainment to their online lottery players. From the NeoGames perspective, the agreement is further demonstration to one of the growth strategies we pointed out in our IPO, that was to leverage the successful content created by our studio and expand into more lotteries globally. We had a really strong finish to 2020, and we have started off strong in 2021. So what are we doing to keep up the momentum? Maintaining our edge is important, as we believe that the global iLottery market is poised for significant growth, especially in the US where the market is in its infancy, not only in terms of the number of unopened states, but also for the states that are already live with iLottery. The vast majority of regulatory states have only been online for a very short period and still present a sizable organic growth opportunity. From our view, the growth opportunity in the market for both the new states and live states remains tremendous. We also expect the external growth opportunities to continue to expand. We are beginning to see increased activity in some states, including legislation, and in some cases, gaming expansion committees that are holding public hearings on the matter. We are deeply engaged in those states, providing data to demonstrate the success and importance of iLottery and the impact it can have on state budgets. Underlaying both the organic and external growth opportunities, investors should expect us to keep investing in technology and product innovation. as that drives the monetization advantage we provide our customers. Our focus and expertise every day is on technology. We never sit back or stay satisfied on our tech because we know that we have to continue to be the best to gain the market credibility. We invest roughly $20 million a year in tech to ensure that our leadership is sustainable over the long run. On the game side, We believe we already have one of the largest and most successful iLottery game portfolios in the global lottery industry, with games that have proven to drive significant revenues in both North America as well as Europe. We are working to expand that even further. The competitive advantage of our exclusive focus on iLottery platforms also extends to our game studio that remains focused on delivering the best games to the iLottery market every month. We believe that having a full stack that includes the games, the technological infrastructure, and the operational expertise and experience embedded into our services combined with our operational and marketing expertise is the key to success in the iLottery industry over the long run. We think it's a principal reason we have had success with our current customers. We wanted to provide a bit more data and color on our success with customers around the globe. Since we launched in Michigan during 2014, iLottery has accounted for a growing percentage of gross sales. During the state's fiscal year ended September 2020, iLottery penetration of instance was nearly 44%, and iLottery penetration of the entire portfolio was 39%. In Europe, we are proud to take part of the continued success for Sazka in the Czech Republic. Sazka has mentioned that the online channel has grown to represent more than 30% of total GGR. In 2020, where draw game sales online mitigated a drop of retail lottery sales during COVID. The strong partnership with Sazka has led to a six-year extension of our agreement with them till end of 2025. We're also seeing accelerating trends in New Hampshire as we continue to improve our product and gain more market and operating knowledge. In New Hampshire, where we have been live for just a bit over two years, we also continue to drive volumes higher for our customer. According to ENK gaming research USI lottery tracker report for Q4, New Hampshire iLottery sales were up 168% year-over-year to $44 million during the fourth quarter. This represented a 12% increase sequentially from Q3. And the pace of getting to higher iLottery turnover rates has demonstrated itself very well in Virginia. For instance, according to ENK, in Virginia during the fourth quarter, which is only the second full quarter we are alive with a full iLottery program, iLottery sales increased 31% sequentially to approximately $160 million. By the way, the initial results significantly exceeded the state's projections and represented nearly 25% of the state lottery's gross sale during that quarter. And most recently, in Alberta, Canada, We went from signing the contract to going live within five months, which is record breaking in the Canadian market. We will continue to roll out additional gaming vertical to that customer during 2021. As you can see, we are very invested in success of our customers and our teams are working day and night to ensure our solutions continue to be the best in market. It is all well summarized in the fact that according to the latest Q4 iLottery tracker report from ENK, our U.S. accounts are driving 70% of iLottery gross sales in the entire U.S. market. With that, I'll now turn the call over to Raviv to discuss the financials.

Thank you, Moti. As Moti mentioned, during the fourth quarter, on November 24th, we've completed our IPO. The transaction provided us with approximate of net of $43 million of incremental cash net of deduction of issuance expenses on our balance sheet and put us in a strong financial position as we continue to execute our growth strategy into 2021 and beyond. Before I get into result and as a reminder, when we discuss our results, I would point out that our iLottery business in North America operates through our 50-50 joint venture, Neopolar Interactive, or MPI, except for the Michigan contract. To be more precise, our contract in Virginia, New Hampshire, North Carolina, and the province of Alberta run through MPI, and except for the MPI contracts, we conduct all our business through Neogames. And as a result, from an accounting standpoint, as probably many of you already know, we generate revenues and earnings through our only home operation and through our equity interests in NPI. With that, I will jump into numbers. Revenues as reported for the fourth quarter of 2020 on our income statements, which exclude our share of NPI revenues, was $14 million, up over 56%, over the same period last year. Our share of NPI revenues was $4.5 million, compared with $900,000 last year. The sum of total of these two numbers was $18.5 million during the fourth quarter, representing an increase of over 87% year-over-year. For the fourth quarter, our adjusted EBITDA was $9 million, up over 160% compared with $3.5 million last year. as we continue to demonstrate our ability to grow the profits alongside with the top-line revenues. For the full year, NEO Games reported revenues of $49.2 million, up over 48% over last year. In addition, our share of NPI revenues for the year was $9.5 million, compared with $1.9 last year. Looking at the two components together, they equate to $58.7 million for the full year of 2020, which is up over 67% compared with 2019. Our adjusted EBITDA was 28.7 million, which is over 140% compared with our 11.9 reported on 2019. Turning to our balance sheet, we ended up this quarter with a bit below 60 million worth of cash and cash equivalents. Our debt at the quarter end was approximately 35 million at the weighted average interest rate of 1.1%, leaving us with a net cash position of a bit below 625 million at the end of the quarter. Post our IPO, we had approximately 25 million shares outstanding. Few words before we dive into the guidance of 2021, and as Moti mentioned, fourth quarter results were ahead of our plan. With several tailwinds, including high volumes in Virginia, revenues coming online faster than we've anticipated in Alberta, impact of state home restrictions due to COVID and benefits from the U.S. jackpot run. As we look forward, we try to balance the aspect of what we can freely control and estimate and those that we cannot. With that looking ahead, we estimate that the full year for 2021 revenues plus our share of NPI revenues will range between $65 million to $69 million. The revenues guidance does not include launching any new turnkey contracts. With that, I will turn the call back to Moti.