Kambi Group plc

Good morning, everyone, and very welcome to Canby's Q1 2024 quarterly report. My name is Mia Nordlander, and I am Senior Vice President, Investor Relations and Sustainability. And I am here today with our CEO, Christian Ullén, and our CFO, David Kenyon. Today, we will start with some highlights from the quarter that Christian will present to you, followed by a financial summary from David. Then Christian will come back and talk about some commercial and strategic updates and a summary. And finally, we have time for questions. You can either call them in directly to us through your telephone or send them through the web to me. So once again, very welcome to our presentation and over to you, Christian.

Thank you, Mia. Good morning. So yeah, this quarter, I would say, yeah, it's a solid financial performance. Revenues in line with expectations and costs slightly below. David will of course talk more about that later. Yesterday, we signed Tesseract, partnered with Quiff, and we'll provide their BatBuilder product to Quiff. Hopefully, we will be online with that well in advance of the Euros. So, very exciting. I'll talk more about that later. As I already mentioned last quarter, we extended our retail agreement with Penn. And during the quarter, we have done launches of Nigeria and after the quarters also in Netherlands. And one of the large things for this quarter, I would say, is that we have really done a lot of development to open up our platform more. And I will talk more about that later. But for now, I hand over to David to go through the financials.

Thank you, Christian. Good morning, everyone. Revenue for this quarter was 43.2 million euros, held by a strong margin of 9% compared to 8.2% in Q1 last year. The strong margin was offset by the impact of some new commercial terms on certain renewed contracts that we mentioned in the last report. Earnings for interest tax and amortisation on acquisitions was 5.8 million, which was in line with last year's number. OPEX was actually at the low end of our guidance this quarter at 38.8 million, and that compared to 39.5 million last year. Last year did include some one-offs and an FX loss, whereas this quarter we had a very small FX gain, but that helped in the comparative for the OPEX. Cash balance at the end of the quarter was 46 million. We put our cash to use this quarter with 2.3 million being invested on share buybacks during the quarter. And I'll talk more about those shortly. We actually also had some major cash receipts after the quarter end, which significantly boosted this cash balance. This is the turnover index that we set out each quarter. It's the aggregation of the performance of the entire Canby network, with the blue columns being an indexed aggregation of the turnover of all our operators that we're working with, originally set at 100 when we started the business. and the line there is an aggregated operator trading margin for the quarter but firstly i'll start with the turnover itself so you'll see a down click from q4 last year very similar to what we saw uh last sorry a downtick from q4 23 very similar pattern to what we saw 12 months ago versus q q1 from q4 Again, this is a sporting seasonal pattern. So, for example, NFL, we had one month of action in Q1 versus three months in Q4. And in the Champions League, fewer matches in Q1 than in Q4. But offset, as usual, by basketball with NBA and NCAA B having a full quarter in Q1 compared to approximately two months in Q4. Now is also the time I should mention an agreement we've reached with Napoleon. So Napoleon have moved off the Camby platform following their acquisition by Superbet. It was a contract that was due to end at the end of 2024. We've reached a settlement with them which ensures no material impact to our revenues. But of course, it impacts the index. There was no turnover from Napoleon in this Q1 number. And comparing to Q1 2023, there have been some growth factors. We've seen growth from some new customers, including Bally's, and from some new states in the US. We've also been helped by the foreign exchange, particularly the Colombian peso, which has strengthened against the euro. However, when you look versus Q1 last year, there was a reduction in the number of fixtures in the top European soccer leagues after the Football World Cup in Q4 22, which caused some rescheduling, which meant more matches in Q1 23. And also Napoleon and Penn, as I mentioned, which have left the network, but both, of course, paying fees. So our revenue is not impacted at this stage. The largest impact on the turnover here is from Penn. And stripping out Penn's numbers, we actually see a 3% turnover growth from Q1 last year. The margin was strong this quarter at 9% versus 8.2% in Q1 last year. And we saw, particularly in basketball, a stronger margin with more bet builder action on basketball this year. So turning now to developments of our cash during the quarter. We started at 50.5 million of cash at the start of the quarter. boosted by 4.4 million of operating profit. You see a big decrease in working capital. That was as our debt has increased, particularly the transition fees for Penn as they accrued during the quarter. As mentioned, we invested 2.3 million on share buybacks, which I'll talk more about shortly. But that left us with a closing balance of 46.1 million euros at the end of the quarter. We did see, however, some large balances coming in post-quarter end, so specifically the last PEN transition fee instalment, so that was to the value of $6.5 million or €6.1 million that came in subsequent to the quarter end, and also €4.6 million from the annual Malta tax refund process. So our cash balance significantly boosted from this number as we stand here today. As mentioned, we've been busy with share buybacks during the quarter, putting our cash to use. So we invested 2.3 million euros in buying 244,000 shares during the quarter. This meant we hold just over 3% of the total shares in the company at the end of the quarter. This is in addition to approximately 0.8% of the shares that we've previously used to settle share options. So we've invested in around 4% of the capital of the company. We recently announced a new €4 million share buyback programme. That runs until the AGM. And at the end of the quarter, there was €3.3 million of that €4 million still left to use on that mandate, on that programme. And in the AGM notice, you'll see that we're seeking a fresh mandate this year to enable further share buybacks in the future. So I think we can expect to see more of those post-AGM. And with that, I'm going to hand you back to Christian.