Kambi Group plc

Good morning, everyone, and welcome to Camby's Q1 presentation. My name is Mattias Richthoff. I'm SVP of Investor Relations. I'm here today with our CEO, Werner Becker, and our CFO, David Kenyon. We will start with the presentation, followed by a Q&A. If you wish to ask a question during the Q&A, you can press pound key five, or you can write in the chat to me and I will read out your questions. So the agenda for today, we will start with some highlights by Werner and then we will move on to the financial summary with David. Then Werner will come back and speak a bit about operational highlights of the quarter. And then finally, we will have the Q&A. With that, I hand over to you, Werner. Thank you.

Good to be here again to talk through our Q1 report following a quick turnaround from our Q4 presentation late February. In Q1, we delivered revenue growth of 7% when excluding the impact of transition fees. While this financial performance is broadly in line with our expectations and under no illusion that we must improve and our aspirations for the business are far higher. As you'll be fully aware, the macroeconomic picture has become a little more volatile in recent months. Canby is not directly affected by the recently proposed US tariffs. But David will talk a little more about the Q1 foreign exchange impact. As highlighted at Q4, we signed an innovation agreement with Ontario Lottery, which will see Camby become the sportsbook supplier to OLG. OLG is the former sports betting monopoly operator in Ontario, so holds a prominent position in this market. On January 1st, the Brazilian regulated sports betting market went live and we are up and running with five partners. Four on our turnkey. with Reto Pitaco on our new Oatsfeed Plus product, which also went live with Hardrock in Q1. We also signed an extension to our partnership with Bad City, which is one of the leading operators in the Dutch market. We consider this to be a vote of confidence in Canby from Bad City owner Anteyn, which acquired Bad City two years ago. Now I'll hand over to you, David.

Thank you, Ernan. Good morning, everyone. So revenue for the Q1 was 41.5 million. This represents a 7% increase when excluding the transition fees that we recognised in Q1 2024. Our adjusted earnings for interest, tax and amortisation on acquisitions was 2.3 million, but excluding the impact of FX revaluations was 3.5 million for the quarter. And our cash at the end of the quarter was 56.4 million euros after concluding 7 million of buybacks in the quarter. This is the index we set out for the turnkey sportsbook, the key, the major part of our revenue. And it's the operator trading analysis which looks at the whole portfolio that we operate. The blue columns are an index of the turnovers originally set at 100 and aggregates the total turnover in the network. This index went up by 4% to 737 in the quarter. This was driven by new partner launches compared to Q1 last year. For example, Svenska Spel and LiveScore are now live, which weren't in Q1 2024. This was, however, offset by the introduction of deposit limits in 2024 in the Netherlands market, which had a major impact on that. It was also impacted by Kindred's exit from the US and dot-com markets between Q1 2024 and 2025. The operating trading margin you see is 10.2% across the network. This was up from 9% in Q1 2024. We saw favorable soccer results during the quarter, which helped that margin. But actually, the margin was impacted in the last couple of weeks of the quarter by some unusually player-friendly results in the March Madness basketball tournament. But still, at 10.2%, this was a strong quarter for the margin. Okay, here we see a chart setting out the development of our EBITAC from Q1 last year to Q1 this year on the adjusted EBITAC. Firstly, the organic growth. This, as I mentioned earlier, is the impact of the 2024 signings, in particular LiveScore and Svensk Spell, and also includes growth of certain other customers in our network. The operator trading margin impact is shown in the second light blue column, and that represents that increase I mentioned from 9% to 10.2%. The third column is the 2025 launches, which have helped our revenues this year. Firstly, Brazil, where we're live with four operators. We've seen a slow start, but the market is now picking up as the local football season gets underway. It also includes revenues from Hard Rock on the odds feed plus product. And we expect this to grow through the year as they take more sports from us. There is a negative impact versus last year of 4.4 million in terms of transition fees. This comprises 3.2 million in Q1 in relation to Penn National Gaming. This will continue to affect our comparatives until July this year. And Napoleon Gaming also had transition fees last year. And again, the absence of those fees will affect our comparatives through the whole of 2025, but at a lower level than the PEN fees. The operator migrations, as I mentioned, is the exit of Kindred from the dot-com markets and the U.S., Whilst the gaming tax and other includes a number of items, which I went through now. Firstly, we've seen gaming tax increases versus Q1 last year in the Netherlands, in Sweden and in Illinois, amongst others. We've seen reduced commission rates on some renewals of certain key partners in our network, but renewals which we're very happy about. We've seen during the quarter there was an introduction of a deposit tax in Colombia, and we've started to share some of the increased player bonusing offered by our operators there to support them during that more difficult economic environment. And we've also, as I mentioned earlier, seen the effect of new regulations impacting deposit limits in the Netherlands, which has had a major impact on a key market. So all these items are in that column entitled gaming tax and other. Our costs all in all are effectively flat, excluding FX revaluations. We've seen some increases in terms of inflationary increases, for example, on some web hosting costs. And we also had some travel and advisory costs in the quarter related to securing our Nevada licence in Q1, which we were delighted to obtain. These increases in costs have been offset by savings from our ongoing efficiency programme, which we've discussed previously, and which should yield greater savings as the year progresses. Lastly, there was this 1.2 million FX loss on revaluation, which relates to the revaluation of non-Euro balance sheet items. In particular, I'd mentioned the devaluation of the US dollar in March, which impacted some of our balances. Of the 1.2 million, 0.8 million was an unrealized FX loss. All of this led to an adjusted EBITDA of 2.3 million, And excluding the FX revaluation, which was the basis of our full year guidance, our adjusted EBITDA was 3.5 million. Now on to the cash flow during the quarter. We started the quarter with 61.3 million euros. We did have a tax inflow in the quarter due to the timing of a Maltese tax refund related to earlier years. We also carried out over 7 million of share buybacks in the quarter as we carry out the buyback program which we started in November. This leaves us with a cash balance of 56.4 million at the end of the quarter. And with that, I'm going to pass back to you, Werner.