Kambi Group plc

very welcome to Camby's Q3 2024 report presentation. My name is Mia Nordlander. I'm the SVP Investor Relations and Sustainability. And today I'm here with our CEO Werner Becher and our CFO David Kenyon. We will today hear a presentation from Werner and David, and thereafter we will have time for questions. You can either call them in to me directly, but please remember to press pound key plus five, or you can send them directly to the chat. So once again, very welcome to this presentation. We will start with some highlights from Werner. Thereafter, David will talk about the financial summary. Then Werner will come back, talk about some commercial and strategic updates. And then we have a summary followed by Q&A. So over to you, Werner.

Thank you, Mia. And good morning. Q3 was another busy quarter for Camby, with Euros and Copa America tournaments ending and several important partner signings. We reported a solid underlying growth, with operator turnover increasing 14%. Despite a higher than normal margin, we also saw a 16% rise in revenue when accounting for last year's pen transition fees and one-off licence revenues. With KTO, we signed a fast-growing top 10 brand in Brazilian market. Rush Street Interactive has enjoyed great success across the Americas by utilizing our sportsbook. We are delighted to have signed a long-term contract extension with Rush Street to secure important revenue for Canby. Shortly after the quarter, we hit a key milestone in our modernization strategy. We presented our new product portfolio and announced partnerships with HardRock Digital and Raydubitaco for our new promising Ortsfeed Plus product. And just this morning, we announced a new share buyback program of 12 million euros, a size significantly larger than what we've previously done. handing over to you, David.

Thank you, Werner. Good morning, everyone. So, to start with the summary of the quarter, revenue for the quarter was 43 million, with an increase in both operator turnover and a higher operating trading margin than Q3 last year. Last year's number of 42.1 million included some non-recurring items also. 2.6 million of non-recurring licence revenues, and 2.3 million more pen transition fees, fees which actually ended in July 2024. So excluding these one-offs, revenue was actually up 16% year on year. Earnings for interest tax and amortization on acquisitions was 4.9 million, and our total expenses were 39.4 million. Excluding FX from these numbers, expenses were 38.5 million, which is at the bottom end of the range we previously guided on. We saw strong cash flow in the quarter, and this led to an increase in our cash balance by the end of September to 60.5 million. And as Werner mentioned, we're really pleased to have announced this morning a 12 million buyback programme, which will run until the next AGM in May 2025, putting our strong balance sheet to good use. This is the operator trading analysis we present. It's an aggregation of the results across the turnkey portfolio, with the blue columns being an indexed version of the operator turnover, originally set at 100 when we first floated. And the orange line there is the aggregated operator trading margin across the portfolio. So firstly, the operator turnover, that was up 14% from 6.02 in Q3 last year to 6.87 this quarter. We saw growth from our new customers, in particular LiveScore and Svenska Spel, as well as growth from our existing operators. We also saw this quarter the final matches of both Euro 2024 and the Copa America with 11 and 12 matches respectively in the quarter. And of course, the Olympics in July and August. These increases were offset by both Napoleon and Kindred in the US, which added zero turnover in this quarter. But all in all, a 14% increase in turnover. The margin was 10.4%, which compares to 8.8% in Q3 last year. This 10.4% is obviously a high margin, higher than we typically see. And we saw high margins, especially in the NFL, in baseball and in football, in particular in the Copa America. So these factors, which were offset by those non-recurring items I mentioned in Q3 last year, led to revenue increasing from 42.1 million to 43 million. In terms of our cash, we had 52.7 million in the bank at the start of the quarter. This was boosted by our operating profit of 3.6 million, to which we also add back amortisation on the intangibles we acquired through our M&A, another 1.3 million. We saw a positive movement on our working capital in the quarter, especially with debtors decreasing due to some payment timing differences on some of our larger accounts. And all in all, this led to an 8.1 million increase in cash to 60.5 million. As I mentioned, today we announced a 12 million buyback program. This is in line with the capital allocation strategy we announced earlier this year to return capital to shareholders through buybacks, whilst preserving sufficient capital for our operational requirements. This program takes us through to the next AGM where we will likely seek a fresh mandate in order to be able to carry on this kind of buyback program long term. And with that, I'm going to hand back to Werner.