Kambi Group plc

Good morning, everyone, and welcome to Canby's Q4 earnings call. At this time, all participants are in listen-only mode. After the speaker presentations, there will be time for questions and answers. If you wish to ask a question, please press star 1-1. Please be advised that today's conference is being recorded. And the agenda for today. We will start with some highlights from our CEO, Werner Becher, followed by a financial summary from our CFO, David Kenyon. Then Werner will come back with some operational highlights and the summary of the quarter. Following the presentation, we will have time for the Q&A. With that, I would like to hand over the conference to you, Werner. Please go ahead.

Thanks, Mathias. As we look back on 2025, we closed the year on a strong footing. Our adjusted EBITDA for Q4 grew 16%. And that momentum has not slowed as we've entered 26%. Since the start of the year, we've added another four partnerships, taking us to 15 since the start of Q4. We were also pleased to launch with Ontario Lottery in late January, making another major milestone for the business. So we ended the year with strong operational progress across the business and we started the new one with the same pace and conviction. Handing over to you, David.

I'll give you a start with the financial summary for the quarter and for the year. So revenue in Q4 was 42.7 million euros, buoyed by a strong operating trading margin. We saw a significant decrease in costs in the quarter versus last year. And this led to an increase in adjusted EBITDA earnings for interest tax and amortization on acquisitions from 6.3 to 7.4 million. The cash flow in the quarter was 6 million. For the full year, revenue this year was 162 million. Last year's number of 176.4 million included 12.5 million transition fees. And excluding these, revenue was down 1.2%. Here we saw the impact of the Columbia deposit tax, deposit limits in the Dutch market, and an increased tax also in that market. Plus the migrations of certain kindred markets away from the Canby network. And of course, we had a tough comp with the major football tournaments in 2024. This was offset by organic growth in the network, a stronger operator trading margin, and launches in 2025 on the network, including in the regulated market of Brazil. For the full year, our costs decreased as our efficiency programs took effect, and we reduced our variable performance-related costs in the business as well. This enabled us to post an adjusted EBITAC of $17.6 million, down $7.8 million year-on-year, despite the $14.4 revenue decrease linked to those transition fees. The cash flow for the year was $21.2 million. And we carried out buybacks in the year to a value of 25.8 million, utilizing excess cash from transition fees we'd previously received. Going forward, we expect to align the level of buybacks with the underlying cash generation in the business. So we end the year debt-free with 32.9 million euros in the bank and significant customer receipts after year end. So we finish the year with a very healthy balance sheet. Turning now to the operator trading analysis and aggregated performance of all the operators on the network using our turnkey offering. The orange line shows the operator trading margin across the network, and that was strong this quarter at 11.2%, due to operator-friendly results in the NFL and across various European soccer leagues. For the full year, margin was 10.8%, up from 10% in 2024. This was driven by the trend of increased use of high margin bet builder products. And we're raising our guidance to 11% for the operator trading margin going forward on this basis. The increase in margin from Q4 last year contributed to the 3% turnover decrease we see on the blue columns, the aggregated operator turnover. In addition to this impact from the higher margin, we saw the impact of the kindred migration from certain markets and foreign exchange, mainly the US dollar. These headwinds were offset by growth in the network, especially in the newly regulated Brazil market this year versus Q4 last year. Today we're setting out guidance for 2026. And our guidance is for adjusted EBITDA, excluding FX revaluations of 20 to 25 million euros, up from 17.6 million in 2025. We expect to be towards the upper end of this range if there's no introduction of a new sports betting tax in Colombia. Here we set out the transition from 2025 to 2026. The first column here is the organic growth in the business. This is broadly driven from the additional revenue from our odds feed plus customers and others in the network on the turnkey offering. 2026 launch column includes revenues both from signed but not yet launched at the start of the year customers and expected signings we expect to make this year. And the largest part of this column is from the recently launched OLG contract. The third blue column there is the 2026 World Cup, and Rona will talk more about the World Cup. We're really looking forward to it. With its extended format, we estimate this to be a 5 million revenue opportunity this year. The orange columns are the headwinds we're facing. So firstly, the migrations. This largely represents Kindred and Leo Vegas. We don't know yet the exact timelines of some of these migrations, so the numbers represent our best estimates. As previously discussed, the Kindred turnkey contract will be fully out by the end of this year. So the year on year headwind will last into 2027 and then it will disappear as they transition solely onto our odd speed plus service. The gaming tax, another column, includes impact on commission rates of certain key partner renewals, as well as increases in gaming taxes, for example, in the Dutch, Brazilian and Illinois markets, as well as other US states, which we know about today. Additionally, there is the indirect impact of the remote gaming duty increase in the UK, which will impact the level of marketing expected from certain UK operators we work with. On the cost side, firstly, Cost of sales will increase this year as we see an increase in recharged data supplier and other supplier costs which are charged through to customers. Our operating expenses on the other hand will be broadly flat with inflationary effects driving salary and supplier cost increases. But these will be offset by our ongoing efficiency programs as we look to rationalize costs across the business. And this year we're targeting an annual cash impact of our savings of around 9 million. Any one-off costs associated with these savings programs will be presented this year as in 2025 as items affecting comparability. So, assuming no introduction of a new Columbia sports betting tax, this broadly flat cost outlook should enable us to reach the upper part of the 20 to 25 million range you see on the screen. And with that, I'm going to hand you back to Werner. Thanks, David.