NeoGames S.A.

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the NeoGames first quarter 2023 earnings conference call. At this time, all participants are in listen-only mode. The question and answer session will follow the formal presentation. Please note that this conference call is being recorded today, May 11, 2023. I will now turn the call over to Jacques Cornette with ICR. Please go ahead.

Thank you, operator, and good morning, everyone. By now, everyone should have access to our first quarter 2023 earnings release, which is available on the Neogames website at www.neogames.com in the investor relations section. Before we begin our formal remarks, we need to remind everyone that the discussion today will include forward-looking statements. These 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 uncertainty that could cause actual results to differ materially from what we'd expect. And therefore, you should exercise caution when interpreting and relying on them. We refer all of you 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 6K for the quarter ended March 31st, 2023, 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 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 Moti.

Thank you, Jack, and good morning, everyone. Last night, we released our first quarter 2023 results. This morning, I will highlight some key points from our first quarter performance and some trends we are seeing in the market before turning the call over to Raleigh to run through our financials in further detail. Overall, we began 2023 with a very strong force as we continue to capitalize on our investments in technology and game content. We continue to believe that our integrated offering across various segments of digital gaming will prove to differentiate us from our peers and enable us to engage with an increasing number of partners seeking to make the transition into the online domain or grow their existing operations. As we share that our inaugural capital markets day in March, each of our business units are led by talented individuals with significant experience in their unique market segments. And all of them are united by the goal of working together to take advantage of the convergence we are experiencing in digital gaming. But we will discuss the first quarter financial results in more detail later in the call. But I wanted to highlight some important figures before moving into business updates. On a consolidated basis, the total of revenue plus our share of NPI revenues was $64 million for the first quarter. Overall, we have seen strong growth both year-over-year and sequentially across our business when looking on a like-for-like basis. Moreover, our adjusted EBITDA but the group also continues to show strong growth as we posted $20 million for the quarter. In our iLottery business, we continue to exhibit strong growth with first quarter revenues of $29 million, an all-time high. The impressive results are primarily due to a combination of reasons. In addition to the expected strength of first quarter results due to typical seasonality, we saw growth and strong performance across all our key global accounts. Our solid first quarter performance in the U.S. was driven by both jackpot runs in each of January and February and the continued outperformance of our own initiative and game content. As we mentioned on previous calls, jackpot runs provide both an immediate boost due to increased engagement as it drives new signups as well as returning players, then followed by a longer-term growth opportunity in terms of player conversion into instant games and other non-jackpot games. This quarter's performance is a prime example of both effects. We are very pleased that this Trump performance was accentuated by our own selection of engaging games, which allowed us to grow WalletShare. In particular, we would like to highlight the continued performance of the new studio game, Desert Fantasy, which, as you may remember, was launched in Virginia in the fourth quarter of 2022 with the title The Lamp, quickly became the most successful game launched for the state's online lottery. In addition to other strong-performing games from our studio that rolled out with impressive performance, Desert Fantasy was recently awarded Gold Category winner for Best New Game by EGR North America. We are so proud that New Games has also won the overall category of Best Lottery Supplier of the Year by EGR North America. These are great achievements, particularly considering the competition we face for these categories. Before turning to our international accounts, we wanted to highlight an area of innovation in our iLottery offering, of which we are very proud. The Virginia Lottery recently became the first U.S. lottery to operate a completely cloud-based lottery program, including our draw game system, Neodrome, our player account management, Neosphere, and our game library. The cloud-based solution will allow the Virginia Lottery to improve efficiencies and more easily scale, particularly with the increased volumes associated with jet programs. Turning to international markets, we wanted to provide an update on the launch of Lotto Minas iLottery and online sports betting in Minas Gerais, Brazil. While we are currently still in pilot phase with this account, preliminary results continue to be encouraging as early adopters begin to engage with the offering. While we are pleased so far with several KPIs in this business, the rollout remains in the early stages as we function the service for the local market. Together with our local partners, we intend to continue to be deliberate and measured to ensure we are building a solid and proper foundation for long-term success, as marketing activities are planned to be enhanced post-FISA. We remain very excited to see our integrated offerings build and prove successful in this market going forward. as the market continues to evolve in offering new states, as well as potentially on the federal level, with only sport betting. In terms of new markets for iLottery, we have seen continued momentum in the U.S. and internationally. As this year's legislative sessions around the U.S. get closer to decisions on budget, we have seen progress in several states across the country. One such example is Massachusetts, where after authorizing supporting legislation, regulators have begun to give more specific attention and consideration to iGaming. In fact, a couple of weeks ago, state officials publicly supported the idea of allowing the state lottery to expand online. Turning to iGaming, we have been very pleased with the development on all fronts and the progress we continue to make in this space. In aggregation and content, TerriPlay has continued to establish itself as a prominent player in the burgeoning U.S. market. We launched content from our proprietary wizard game studio with market-leading draft teams in New Jersey and others. We view the progress TerriPlay has made over the last two quarters as a foundation for future growth with several key U.S. operators. All of this has resulted in impressive growth where our aggregation and content segment grew revenues impressively in over 15% year-over-year, as well as sequential. In our support betting segment, B2Bets had a very impressive quarter with strong performance of its major accounts, where March has been an all-time high in number of bets processed, leading also to both strong year-over-year and sequential growth. Through its five core, we continue to expand and grow as well. Subsequent to Quotaren, we launched three new brands. Among them, we are happy to share that we went live this week with our first partner in the regulated German sports betting market. In the context of our idea and existence review, I wanted to touch upon the recently released UK White Paper, which had been long anticipated by the markets. We view the draft is pretty much in line with our expectations. The UK remains a significant market for SPARCOR, so we have been paying close attention to this process for some time. We do not expect the effects of the white paper to have impact on our 2023 numbers. To prepare for the recommendation outlined in the white paper, we had already began to take steps to mitigate the potential future impact for both near-term and for future years. Longer term, we believe that White Paper provides a framework that will allow us to cater for ongoing sustainable long-term growth in the UK market. Overall, as you can see, we are very pleased with the progress we have made across our business in the short time since we last spoke. Specifically, the increasing number of developments that display the benefits of our integrated offering give us further conviction in the synergies that we still have yet to achieve as a result of our aspiring position. With that, I'll now turn the call over to Ravi.