Kambi Group plc

Good morning, everyone. My name is Mia Nordlander. I am Senior Vice President, Investor Relations at Cami Group. Today I have with me Christian Julien, our CEO, and David Kenyon, our CFO, who will start today with presenting the quarter. Thereafter, we will have time for questions. You can either call in through the telephone conference or send them directly to me through the web chat. So once again, very welcome and over to you, Christian.

Thank you, Mia, and good morning. I will start with a brief overview of the first quarter, after which David will take over and go through the financial performance. And then I will come back and speak more about the quarter in a little bit more depth. Oh, I forgot to show the agenda here. So, the quarter, I would say that overall we are very pleased with the quarter and I think we have a very strong financial performance yet again. We have a 25% operating turnover growth if you exclude the DraftKings numbers from last year. Most of this turnover growth is coming from existing operators growing in new markets, most notably maybe New York online and Connecticut. And I think they will go through these numbers more later on. As we communicated already during the Q4 report, we have extended the Kindred partnership until the end of 2026. And that gives us financial security with the revenues from Kindred for yet another five years. And at the same time, we announced the ability to repay the convertible bond. which means that we have much, much more flexibility with our strategic options going forward. During the quarter, we strengthened our position in North America with two new partnership signings. One is Maximbet and the other is Torstar, and I will talk more about them later. And just after the quarter, we launched in Ontario. There was a few really big events in the Q1. Super Bowl, of course, the biggest event we have on a yearly basis, and March Madness, the playoffs in the college basketball in the US. I will go through our product performance later on, but I'm very happy to see that we managed both these events without any disturbance whatsoever. With that, I hand over to David. I'll come back later. Thank you.

Thanks, Christian. So overall, let's say we saw a very strong financial performance this quarter. We continue to be profitable. We continue to be strongly cash flow generative. And we have a powerful balance sheet, which positions us well for continued growth. When you see the comparatives, of course, there will be some headwinds that we've mentioned previously. But just to reiterate, the DraftKings migration that took place in the second half of last year, that obviously shows in the numbers in Q1 last year. The DraftKings numbers are present. There's nothing in here in the Q1 2022 numbers. And also in the Netherlands, where some of our operators are still to obtain a license. And of course, Q1 2021, again, there are figures included for Netherlands for those operators. But I'd say operator turnover was extremely strong this quarter, and combined with an 8.2% operator trading margin, gave us an overall revenue figure for the quarter of £36.9 million. Costs of £29.5 million were in line with our expectations. And this gave us overall an operating profit of 7.3 million at an operating margin of 19.9%. We also generated 5.5 million in terms of cash flow from operating and investing activities, excluding working capital movements. This gave us a net cash position at the end of the quarter of 72.4 million. And this gives us firepower to continue using our balance sheet in the future, whether for M&A or for further share buybacks. This is the Canby turnover index. It's an aggregation of the results of all of our operators in the quarter over time as well. The blue bars is an aggregation of the turnover generated, and that's on an index basis, which we set at 100 when we started the business. The orange line is an aggregate of the trading margin made by the operators. That trading margin was 8.2% this quarter. More on the turnover then. 757 there, it's consistent with Q4, and I think this is largely driven by the sporting calendar. So there's some quite big factors here to explain. Firstly, American football. Q4 saw a full quarter of activity, whereas in Q1 we just saw the playoffs and the Super Bowl and the last few matches of the college football season. However, in basketball, this offset the American football effect. We had a full quarter of college basketball, including the March Madness tournament. On the European football front, there are actually quite a lot fewer matches in Q1 than Q4 in the Champions League, as it moved from the group stages to the knockout stages. So overall, 7-5-7, roughly in line with where we expected to come. Probably more explanation needed on the movement from last year, on the 1-0-5-6 down to 7-5-7, and I've set these out on this slide. Firstly, the headwinds I mentioned previously. So the DraftKings migration, which took place during the second half last year, that's actually contributed approximately 40% of last Q1's turnover. So a huge part that's come out versus this year. And secondly, the Netherlands regulation, as mentioned, a few operators are yet to obtain a licence. And we look forward to that happening, which will be a tailwind to our business when that does happen. But then on to all the factors which have actually boosted our turnover versus Q1 last year. Firstly, new operators. We've signed quite a number since this time last year, and some of those include BetCity and JVH in the Dutch market and the Belgian National Lottery, and we're very pleased with the progress of these operators. We've also launched into various new states in the US, including Arizona, Connecticut, Louisiana, and most recently New York Online, all contributing now to the Q122 numbers. And we've seen our existing operators grow both organically and expanding their geographical footprint. So all in all, excluding that DraftKings number, 25% growth in operator turnover, a number we're very pleased with. Finally, I just want to talk you through the Canby revenue conversion. So how that 28% decrease in operator turnover after FX ended up in just a 15% decrease in revenue. First thing to mention there, the operator margin, the 8.2%, that's against 8.5% Q1 last year, so a small negative for us on the margin front. But the biggest impact is in the other column there, which pushes up the deficit from 30% to just the 15% overall. The biggest factor here is the way we structure our contracts. So we structure our contracts in many cases with tiers, with significantly lower commission rates on the highest parts of the operator activity. So you can understand when we lose a big operator such as DraftKings, overall we end up with actually a higher effective revenue share across the network. Secondly, we have more live events here in Q122, which is not linked to the operator turnover, but does drive revenue for us. We also have other fixed revenues, which again are not linked to the level of operator turnover and are pushing that other bar up. And finally, we had a full quarter of ABOS revenues, the acquisition we made in the end of last year, which again is not showing in the Q1 2021. All of those contributed to overall a 15% deficit in revenue, but a significantly lower deficit than the operator turnover would initially indicate. So yeah, a very strong financial quarter. And with that, I'm going to pass you back to Christian. Thank you, David.