NeoGames S.A.

Thank you, Operator, and hello, everyone. By now, everyone should have access to our first quarter 2021 earnings release, which is available on the Neogames website at www.neogames.com in the investor relations section. Before we begin the formal remarks, we remind everyone that the discussion today will include forward-looking statements. Forward-looking statements, which are usually identified by 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. Therefore, you should exercise caution when interpreting and relying on them. We refer all of you to our recent SEC filings for 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 6K for the quarter ended March 31st, 2021, when it's 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. The 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 Modi 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 Modi.

Thank you, Jack, and good morning, everyone. Welcome to our first quarter earnings call. As you can see from our announcement, we're off to a strong start in 2021. We continue to execute ahead of expectations for our customers, unleashing their full iLottery potential, empowering them with the best technology platforms, the most entertaining game experiences, and a complete range of expertise, services, and market-leading solutions. The strong start to the year was driven by a few factors, including continued strong performance in the recently launched jurisdictions of Virginia and Alberta and the double-jackpot run in the U.S. during January. I'll touch on these in a moment. This morning, I will highlight some key points about our first quarter 2021 performance and discuss the trends we're seeing thus far during 2021. Afterwards, I will turn the call over to Raviv, our CFO, to run through our financials and business performance. For the first quarter, revenues were $13.3 million, which is up 46.5% compared to the first quarter last year. In addition, our share of NPI revenues for the quarter was $8.2 million compared to $1 million during the first quarter of 2020. Looking at the two components added together, they equate to $21.5 million for the first quarter of 2021, representing growth of approximately 114% year over year. Equally important is that we're growing profitably as our adjusted EBITDA growth outpaced revenue growth. For the first quarter of 2021, we generated adjusted EBITDA of $9.7 million, up about 148%, compared to the same period last year. As I touched on briefly earlier in my remarks, the better than expected results for the quarter were due to a combination of a few factors. First, Virginia continues to operate ahead of expectations. We're seeing a higher and accelerated adoption rate compared to what we experienced in other jurisdictions. As we said in our Q4 call, we revised our expectations higher after we saw a faster pace of player conversion into e-instant games sooner than expected. These trends continued through the first quarter and were even amplified with a double jackpot, which brought a significant increase in new players and enabled the lottery to introduce them to non-jackpot games and especially e-instants. Interestingly, as many of you know, online sport betting launched in Virginia during January. Simply put, the launch of online sport betting has not slowed down iLottery in any way. iLottery sales continue to grow during the quarter, breaking records simultaneously with the introduction of online sport betting in the state. Second, outside of the U.S., revenues in Alberta exceeded our original expectations after only two full quarters of operations for the province's only regulated iGaming platform. and iLottery website, PlayAlberta. Results are growing, and we continue to introduce new gaming verticals. This quarter, we introduced LiveDealer, and we are beginning to implement the much-anticipated DrawGames vertical with a wide range of games. Third, results in Michigan continue to perform well, side by side with the introduction of online sport betting and iGaming. There has been a lot of market focus in Michigan, as more than 10 iGaming and online sport betting sites launched and aggressively advertised during the quarter. Along with what we are seeing in Virginia and what we have been experiencing in New Hampshire, our first quarter results provide additional data points supporting our view that iLottery can grow and thrive in parallel with introduction of sport betting and other forms of online gaming, given the unique proposition that lotteries have to their audiences. We've seen similar dynamics in other jurisdictions in Europe and in the U.S. Lastly, as we mentioned in our Q4 call, we benefited from a double jackpot run from Mega Millions and Powerball that carried into the early part of first quarter. While we initially enjoyed the benefits of increased traffic from these new players, we have been able to continue to develop deeper relationships with them which will continue to benefit us over time. Looking further out at the landscape, we remain confident that the momentum we have generated over the past year has put us in a strong position to continue growing in our existing markets and to be well positioned to take our successful model to new markets. We continue to believe that the global iLottery market is poised for growth and especially in the U.S., where we carry a market-leading position, and the market is still very new, and the opportunity for growth from both new states and live states is tremendous. When we look at how the U.S. market evolves, many states continue to have internal conversations and make inquiries into iLottery, especially as they see the strong results coming out of existing live jurisdictions, particularly those where we operate. We remain deeply engaged in providing data and insights to demonstrate the success and importance of iLottery and the material impact it is having on good causes and state budgets. One of the main reasons for our success is the superiority of our technology and content. As always, it is important to mention that investors should expect us to keep investing in technology and product innovation. as that drives the monetization advantage we provide our customers and provides the foundation for both internal and external growth. The success we have achieved is clearly tied to the investments that we are making in the business, which will total roughly $20 million in this calendar year. Together with our technology, our content is a significant driver of growth for our business. The superb games developed by Neo Game Studio play a central role in driving the growth of our full turnkey accounts. We also see growing interest in our content by lotteries with existing iLottery programs. One such deal has been announced with a launch with Austrian lotteries this quarter, and we see similar interest in a growing pipeline. We are proud that our results continue to strengthen as we execute on our internal and external growth strategies. In terms of execution on internal growth, one other way to demonstrate our leadership in the U.S. market is by the fact that the top three U.S. states for iLottery in per capita sales are our markets, Michigan, New Hampshire, and Virginia. This demonstrates the value added to all our stakeholders, including our shareholders and customers, as well as serves to highlight the value we present to prospective customers. With that, I'll now turn the call over to Raviv.

Thanks, Moti. Before I get into the results, as a reminder when we discuss our results, I would point out that all of our iLottery business in North America operates through our 50-50 joint venture Neapolitan Interactive, or MPI, except in Michigan, which is reflected in our top-line revenues. To be more precise, our contracts in Virginia, New Hampshire, North Carolina, and the province of Alberta run through NPI. Except for the NPI contracts, we conduct all of our business through NeoGames. As a result, from an accounting standpoint, as many of you know, we generate revenue and earnings through our only-owned operation and through our equity interest in NPI. Revenue as reported on the income statement, which excludes our share of NPI revenues, was $13.3 million during the first quarter of 2021, up 46.5% over the same period last year. Our share of NPI revenue was $8.2 million during the first quarter of 2021, compared with $1 million last year. The sum total of these two numbers was $21.5 million during the first quarter, representing an increase over 113% year-over-year. For the quarter, our adjusted EBITDA was $9.7 million, up 147% compared with $3.9 million last year, as we continue to demonstrate our ability to grow profitability alongside with revenues. We started off 2021 strong. which puts us in a great position to continue to execute during the remainder of 2021. With favorable results in Virginia and Alberta, added to its strong performance in our existing customer, we're starting to see greater diversification in our revenues across a broader number of key accounts. Turning to our balance sheet, we ended up this quarter with about $63.3 million worth of cash and cash equivalents. Our outstanding debt at the quarter end was approximately $135.6 million at the weighted average interest rate of 1.17%, leaving us in a net cash position of $27.7 million. Moving into guidance, as Moti mentioned, first quarter results were ahead of our expectations. As we've mentioned, we had several tailwinds, including higher volumes in Michigan, Virginia, and Alberta. and as a result of in part of ongoing implication of stay-at-home policies in most of our jurisdictions, as well as benefits from the dual US jackpot run. The good news so far is that the retention rates for new players are in line with past trends, which are favorable for 2021 outlook. As we look forward, we try to balance the aspects of what we can fairly control and estimate versus what we cannot control. With this in mind, looking ahead, we estimate that the full year 2021 revenues, plus our share of NPI revenues, will be between $73 million and $77 million. At the midpoint, the guidance represents year-over-year growth of 28%. The revenue guidance does not include launching of any new turnkey contracts. With that, I will turn the call back to Monty.