Hi, and a warm welcome to Aspire Global's quarter report presentation and Q&A for the fourth quarter of 2020. My name is Jonas Almqvist, and I'm an Equity Research A nalyst at Redeye, and I will together with my analyst colleague. Those of you viewing the live stream, you're welcome to send in your questions already at this point, and that's easiest done through the form on the live streaming website just below the live stream. Without any further ado, I'd like to welcome Aspire Global's CEO, Tsachi Maimon, and CFO, Motti Gil, that are with us through video link. Welcome, gents. The stage is yours. Thank you very much, Jonas and Redeye, again. This is Tsachi here, the CEO of Aspire Global, and we have here also Motti Gil, the CFO. Before starting the presentation, I would like to say some words about the employees of Aspire Global and appreciate their work in 2020 throughout the challenging year of the COVID, and of course, to wish them and all of us to keep safe into the future. With that, I will start the presentation. It will be some interesting slides of Aspire Global to show a little bit about our achievements, but also about our plans for the future. What Aspire Global is about, we are supporting gaming giants. We have in our offering several products, gaming platform, managed services, Sportsbook, game aggregation, and game studio. We are offering it to more than 150 operators, partners around the world, and they are selling it to their own end users. Aspire have today more than 450 employees, and they are spread in several offices around the world. When we take those products of Aspire Global, we can see the broader spread around the regulated markets in the world. Here you can see around 26 markets, we are aiming to launch and go deeper in more regulated markets in the future. This is the future and the sustainability of the company to succeed in regulated markets. I can assure you that the spread of Aspire Global in regulated market is something that we can be very proud of when we see other companies a little bit challenged to enter regulated markets. The business model. We discussed about what products Aspire have. The business model of Aspire Global is pretty simple. We are offering our products mainly on a revenue share model. It means that we want that the operator and our partner will succeed because only if he will succeed and grow, all of our products will generate revenue share and Aspire will be able to grow. The operator have the ability to take the full set of products or to choose what exactly he want to take. This is also on the partner's discretion. Again, I'm repeating our vision that everything we do, we are doing to enable our partners to achieve their full potential. This is the business model of Aspire. Some high-level numbers. It's a record high revenues for Aspire Global in Q4. It is important to see that it was all over the segments of Aspire Global and in all KPIs. The revenues grew to EUR 44.4 million, representing 38% increase. The EBITDA reached all-time high of EUR 8.3 million, representing 90% increase over Q4 last year. The margin went up to more than 18%. When we zoom in only on the B2B revenues, it's increased by 42% over last year. We also decided in this quarter to share a little bit about how January ended. We can see that the update is that January was with EUR 15 million in revenues. Here representing 34% increase over the monthly average in Q1 2020. It's very much a strong start of 2021. As the last quarter of the year, we can see that the comparison between 2020 to 2019, we see that in all major KPIs, double-digit growth revenues to almost EUR 160 million. EBITDA, more than EUR 27 million. B2B revenues, EUR 110 million in B2B only. The EBITDA, only for the B2B, almost EUR 21 million. Needless to say that the growth of Aspire Global year-over-year on a yearly basis is on a trend of double-digit for many years now. This is something that we are looking forward, that the yearly performance of Aspire Global is here in order to reflect what we're expecting, and during the year, there can be some better and worse quarters, and we are happy to show good quarter right now. Very exciting for Aspire Global, some breakthroughs in the U.S. We are also going live with Rush Street. There is a nice slide in one second to show how it looks like. We received our license in West Virginia. We are also preparing additional licenses for Aspire Global in Pennsylvania and Michigan. We are also working on preparing our Sportsbook platform, newly Sportsbook acquired platform for a GLI 33 certification in order to be available for the U.S. market. We are in the process of recruiting managing director and the head of sales for the U.S. market only to manage the P&L for this huge potential market. This is how it looks like with Rush Street live in the U.S. This is the homepage of Rush Street. What we can see that in the best 13 locations on the homepage, the best seen locations, Pariplay is in three good locations, in the main banner and also two in the best 12 locations here. It's a good start for Pariplay, and we hope for a future fruitful interactive with Rush Street. In the next slide, I wanted to show the potential of Aspire Global. It's a huge market opportunities that we have. We see here what is the market expected to look like in 2025. U.S. is going to be a big market, $15 billion market in five years from now. Europe, Latin America, and Africa. As you all know, Aspire were focusing on casino mainly before the acquisition of BtoBet, and now with the acquisition of BtoBet, with our own sport platform, I'm happy to share that also the betting market is accessible for us, and we can see that the potential of us to grow in all of those jurisdictions and continents is there. We already present today in Africa, Latin America, Europe, and now entering to the U.S. In this slide, it was important for us to show the strength of the products that we have and the position towards the U.S. market. We identified some leading players, companies, suppliers in the U.S. market try to compare what are the products that we have to offer compared to what they have to offer in the U.S. market. We see that there are five, six main products to be offered in the U.S. PAM iGaming platform, this is the wallet where everything is happening. Sportsbook vertical, casino games, casino aggregation, live dealer, managed services. When we compare to other companies, we can see that we have a strong position. We almost have all the products that is available in the U.S. We don't have yet live dealer, maybe in the future. This is something that is bringing us to a very strong position to roll out in the U.S. in the future. I'm going back to Q4 and a little bit things that happened after the end of Q4. We signed William Hill, Betfair, top tier one operators in Colombia. 888, we entered with them to Spain. We also signed with the Sports Lotteries for the National Lottery in Russia, and with the biggest Swiss operator, Swiss Casinos, also entered in the Swiss regulated market, and we are live there with three big operators already. Some of the group achievements in the quarter. We launched Pay N Play in the end of the quarter. We also had in Karamba, our own B2C, record high quarter with EUR 14.3 million. It's amazing to see the progress of Aspire Global products and operators in the U.K. and Ireland market, the regulated market, with an increase of 155% year-over-year. We also won the Supplier of the Year of SBC and in the Hot 50 awards of the most popular gaming magazine, Gaming Intelligence. We are also happy to show the updates of the management. We recruited some top talents from the gaming industry, Antoine, Paul, Zoran, and Dima, which you remember was also the COO of Aspire Global. This is the product offering that we own today, gaming platform, managed services, Sportsbook, game aggregation, and game studio. It means that we can win any deal, anytime, anywhere. A little bit of the numbers of Q4. When I'm zooming in, not only to the Aspire Global as a whole, but in the next slide to the different segments that we have. This is still the overall of Aspire Global, EUR 44.4 million, a growth of 38% year overall, and EBITDA of EUR 8.3 million. This we saw also before, very strong quarter and trend. When we're zooming in only on the B2B, not B2C, but only on the B2B, we can see also that it was a strong revenue quarter with 45% year overall. When we take the EBITDA, it was 18% increase compared to Q4 2019, and also with increased margin. When we zoom in the B2B to AspireCore, the gaming platform, we saw that it was a strong quarter, 27% increase over Q4 2019. It was lower than the hype that we had in Q2 2020. We are mainly taking it to some changes in the markets, some uncertainties that we saw that our operators had for the German markets. They took back a little bit of their marketing efforts in the German markets, but still, we're stable on the EUR 25 million, which is still a very nice growth over last year. The main achievements for our AspireCore is that we have the industry-leading CRM system that we built in-house, together with a third-party supplier. We signed new deals and we launched also new brands during the quarter. I don't know if some of you are surfing around the Internet, but we are thrilled to introduce the AspireCore. We did a campaign, and we are in a process and in the middle of a campaign throughout the Internet, in LinkedIn, magazines, everywhere, in order to promote our AspireCore, the gaming platform, in order for it to share the operators that we have an endless iGaming opportunities for them. This is how it looks like all over the Internet. I will zoom now on the segment of Pariplay, the games and games aggregation. We can see also here, very nice trend of revenues and EBITDA. The revenues grew by almost 90%, and EBITDA grew by more than 156%. Good margin and good development of Pariplay. They entered one new market. They released six new proprietary games. We signed seven new operators. By the way, it's seven new operators that are adding up to around 30 new operators that we already signed and still not live. It means that we have in the pipe throughout 2021 to take those deals live. It's very exciting for Pariplay. One of the things that we know that others are not doing is that in the product, they have developed an automated game release process, and we believe that it will be a game changer for Pariplay compared to their competition. BtoBet. Let's zoom in. We can see also in BtoBet, nice development in the last quarters. We can see that they ended with EUR 2.2 million in revenues and EUR 600,000 in the EBITDA. Also here, it's a growth from previous quarter, very strong quarter of our Sportsbook platform. We launched with six new partners, and we signed with additional five, and we can see the strong names that we have. Some of them are not that familiar for people that are not that much familiar with the African and Latin America market, but I'm sure that everyone familiar with William Hill and Betfair, which is top tier one operators, and Betfair already went live a few weeks ago, and William Hill plan to go live in the coming weeks. Karamba, our own B2C. I'm pleased to present the growth of Karamba, 29% over last year with an EBITDA growth of 121%. They ended with EUR 14.3 million and EUR 2 million in EBITDA. Strong quarter also for Karamba. This is the split of the Aspire Global group, 68% represented by the B2B and 32% of the revenues by the B2C, and this is how it is split in the B2B with BtoBet 5% and Pariplay 11%. Motti, I will hand over for two slides for you. Thank you, Tsachi. When we're looking at our cash position and the balance sheet, on the right chart for the cash flow, we can see very strong cash generation during the quarter from the operating activities, mainly resulting from the good business results for the quarter. In addition to that strong collection and an increase in the accounts payable, which generated from the operating activities almost EUR 11.5 million. On the investing activities, most of the money was attributed to the acquisition of BtoBet that was completed during the fourth quarter, and we ended the year with EUR 28.7 million in our bank account, of which EUR 6 million are player balances. Moving to the left chart of the assets and liabilities, we can see that we managed to retain our strong earnings throughout the years. It is comprising 40%, which is very solid financial position for the company. Within the current liabilities, we have the bond that we took three years ago, which is due and matures in April 2021. We have secured the funds in order to repay it. Just to give a little bit of explanation, in March 2022, we are about to receive a loan that we provided sister group company for almost EUR 20 million. Therefore, we looked for a solution, short-time solution, in order to bridge. We secured it through a bridge loan from a few of our major shareholders, according to the same interest rate that we have with the bond. We are very pleased to take this bond off our balance sheet, and in the future, in case that the need arises, we will look into additional financing opportunities for us. In terms of the operating expenses, we can see that although revenues are growing, we can see that the expenses as a percentage of the revenues decreasing, and therefore, the profitability increased. We are now, when zooming into the distribution expenses, we can see that the percentage is lower by 2%. This is mostly attributed to the group synergies. We expect that in the coming future, we will have some additional synergies between the group companies with the inclusion of BtoBet. It will be between Aspire Global and BtoBet, also between Pariplay and BtoBet. We expect additional improvement on this part. In terms of the administrative expenses, we lowered it as well in terms of the percentage. However, it grew in the absolute numbers, but it demonstrates our scalability in our solutions and operations. In terms of the gaming duties, remained at the same level. We are almost at the same level of Q4 last year in terms of the regulated market. It demonstrated as well. Back to you, Tsachi. Thanks, Motti. Two, three more slides. We are presenting here the rolling 12 months of revenue and EBITDA, and we are proud to show and present the nice trend of the revenues quarter-over-quarter, and the EBITDA reaching to EUR 27 million, and it's a good trend in the most important KPIs of the company. Some items, and this is the last slide of the outlook and the strategic initiatives that we have for Aspire Global. First, we are now in the process, and soon to finish with it, the integration of our sport platform to Aspire Core, and it means that we will be able to launch a few brands and few operators before the Euro 2021 in June. This is very exciting for us. We are also working in those two processes of scalability for our operators to make more flows of their work more automated. One is the onboarding of their players, and the second is the cash out process to try and avoid any human touch in those very important and highly volumed processes in the funnel. We are preparing for the Euro 2021 big event that now with our Sportsbook platform together on our platform and on the operators that are working outside our platform. We are happy, for the first time, to offer our own Sportsbook a proprietary solution before this big event. Last but not least, the market focus. You saw also in this presentation, our focus towards the U.S. market. We are already completed with the Germany requirements and are waiting for the regulated market to open. We know that it will open up a lot of opportunities for our operators and for Aspire Global as well. The Netherlands market, we are preparing our system for that. We are also in the lookout for Brazil. We know that it's going to be regulated very soon for sport, and it's a huge market for sport. This is something that we keep our eyes on in order to enter the market with the strength we know we right now have. This is exciting future for Aspire Global. By that, I'm handing to you. All right. Thank you. That was a quite good presentation of quarter report. Really strong numbers. Let us follow up with some questions. Once again, for those of you viewing, you can send in your questions through the form on the live streaming website. First up, very impressed by the strong performance of the B2C business. Could you explain a bit more about the drivers behind that development? Yes. When Karamba was a little bit down a few quarters away, we knew that there are some strong quarter and then some weak quarters, and it's mainly due to fine-tune some marketing campaigns. I'm glad to say that Karamba succeeded to find some interesting marketing campaigns. They are doing a very efficient player campaigns even after they brought them to the system. Also with the U.K. and Ireland, it's something that a lot of operators we see going out of this market, and Karamba, they are not afraid, and they grew also in this very interesting and regulated market. Yeah, indeed. Very impressive. Another strong performance by Pariplay as well. Could you give us some more thoughts about the development for Pariplay? Slowly, operators realize that Pariplay is, I'm not saying it because we own the company, it's really the number one aggregator in the world. It's not only one integration that they have that provide the operators a lot of third-party content through one integration. They have layers of CRM. They have an added value, features, and tools for the operator to promote more games. It's a win-win. Once the operators spend less money on development and being able to promote better the games, so Pariplay enjoy as well. It's a great trend for Pariplay. Yeah, cool. Thanks. Talk a little bit about the market opportunity you talked about. Germany, it has been challenging for several other competitors. What's your view on the German market? We also Aspire, we exist in the German market for a while, and we saw that there was a decrease in activity in the German market. In parallel to that, we saw that even if players are playing with less bets, they are coming more often to the brand. The stickiness is there. They are not being burned out fast. It's too early to see how it will affect in the future. What we can see is that the German market is a huge opportunity for Aspire because we are now aiming to enter not only with our casino products, but also with our Sportsbook. I remind you that we don't have even EUR 1 revenue in Sportsbook right now in Germany. We are looking forward to activate our products in the German regulated market. Yeah. Interesting. Netherlands is a similar situation and what's your view on that regulation-wise? We are in the same frozen situation for some time right now, I think over two years. We are waiting. We are preparing our products to be certified for the market, and now it moved one month. Once it will be available to enter and to grant license and certification, we will be there. There is a projection I saw yesterday for the Netherlands market to be over EUR 1 billion in a few years from now. We can't let this market get away, and we will be influencing also this market as well. Yes. If we talk more about the positives market trends, what's the take on Brazil as you talk about in your presentation? Brazil is one of the most interesting future markets that we are looking at. It's planned to be regulated for sport in July, August this year. I hope that it will not be postponed, but it's okay if it will. Brazil is a sport country, and with our sport platform that we have, that already have a strong position in Latin America, we are already in contact with some potential operators that I hope we will be able to have the engagement with them. Brazil is a huge potential market for Aspire. We are looking our eyes, and we are considering also a local presence in that market. Okay. Interesting. You said you have launched your Griffon brand in Finland, the Pay N Play. How has that been taken by the market? Quite surprised, I must say. We expected good performance from the Pay N Play, also the UX and UI of Griffon. We did it for four months. We worked on it, and it went out very good. We were a little bit surprised because it went a little bit higher than what we expected. Of course, that it's also because of strong campaigns that we did. We see good KPIs. It's different aspect of player flow than regular market that is not a Pay N Play. We are still exploring it, and we now have not only Griffon in the B2C, but we have four more operators that took this product, and they already went live, some of them during the end, the last days of Q4, and two of them in the last two weeks. Okay, interesting. The last market you have talked about, what's the potential for the U.S. market, excluding or including Rush Street? Endless. I cannot pronounce it differently. We know that the big operators over there looking for great technology. We have the iGaming platform, which is certified already for eight states, and it's a big work to be done. We already after that. We are ready to be taken with the iGaming platform. We have our own games, Pariplay, and aggregation, and we have also the Sportsbook. We know today that the U.S. market is controlled by very few companies, that some of them I showed in the slides. We believe that as long as the time goes by in the U.S., they will prefer quality products and not only to go live first. This is why we are not stressed that we are entering now on the wave three of the U.S. There are some disappointment in the market through current suppliers, and it's okay. We want to grab this disappointment that they have from some suppliers, and also to prepare ourselves for the new waves of States that should be regulated in the coming years. Cool. Let us jump to BtoBet, a quite impressive acquisition there. How is the integration progressing? Is it going according to plan, and what's your view on that? Yes, we plan to finish the integration by Q1. Right now, the plan is to finish it and to go live with two, three brands already on April. I hope we will be able to launch one or two more before the Euro 2021. If we succeed, it's better for us. The remaining of the operators that we currently have for sport, but without BtoBet, the remaining, we are planning to roll out after the championship. We will not do anything during the months of the championship. Yeah. Cool. Looking on potential additional acquisition, is that on the topic or is the focus on integration of the acquisitions you have done? Right now the focus is to increase volumes and to increase more integrations, more operators to talk in to our products. This is where we focus in 2021. We have in our mind also acquisitions, but not volume-wise, but in order to grab more in the value chain of products, and you can imagine which products. Right now, we are focusing on organic growth. Yeah. I saw that you was missing live dealer there in the U.S. market, but we'll see. We have a question regarding AspireCore. All the other segments developed very strong, but AspireCore was a bit slower there. What's the reason behind this? Is the churn numbers doing okay, or how is that developing? On the AspireCore, what we saw during Q3 is we received in Q3, in the beginning of Q3, the requirements for the German market. It was a little bit uncertain. Right now we know exactly what are the requirements in the German market. Back then, seven, eight months ago, the operators in the market, not only for Aspire Global, were a little bit hesitating how it will look like. Will we be able to do campaigns or not? Will we receive the return on investment? Some of them pulled back the marketing spend on the German market and were a little bit uncertain. I believe that this is one of the reasons for the decrease from Q2. All right, mainly the German market there, then. Yes. The uncertainty from doing new campaigns for new depositing players. Yeah. You mentioned the churn was quite strong or the retention looking back a few years you mentioned that. I'm trying to figure out, is this still looking good for the B2B platform there? Better. Better. All right, cool. Are not any technical or product-related problems affecting the performance of AspireCore? No. No? All right. Yeah. Next question. Let's see. Looking at the associated companies, they continue to make losses. When do you expect that we'll see profitability from them? Motti, you want to answer. Business-wise, yeah. Some of them succeed more, some of them succeeded less. Motti, if you can share a little bit about what we are planning for them. Yes. Regarding the affiliated company, we are working closely with them in order to improve their performance. In the last quarter, there were indeed recorded a few losses from the affiliated companies. However, we are working closely with them in order to improve it. For the future, we believe that we will see improved results, at least from a part of them. All right, cool. Thank you. In 2018, Aspire launched a Sportsbook together with SBTech. Now you have BtoBet. What's the take there? Are you going to leave SBTech on the street? We have good relationship with SBTech, and they are familiar with our plans, and we are doing it not in one step. This is a rollout that we are doing throughout 2021. I believe that this is also something that they appreciate very much, that they have also their time to prepare being without Aspire Global. Yes. Regarding BtoBet, are they live in Russia at the moment, or when are they expected to be live? They are not live at the moment. It's still in progress, and we are hoping to be live in the next, let's say, month or two. This is the plan. Yes. Not related to BtoBet, we had a question about do you have any plans to change your listing from Nasdaq First North to OMX? I don't want to go into some strategic initiatives that we have internally, so I cannot comment on that. Thank you. Cool. We're receiving quite many questions regarding your dividend. I think you explained that a bit in the report, but we can take it again, I guess. What are your plans regarding paying dividend going forward? There is the aim to pay dividend. As we said when we took the bond, we want to make sure that we are also fulfilling the aim of taking this bond and to use it for further growth. I believe that now after we are going to secure the return of the bond, and we shared a little bit more details about it in the report, we don't see any reason not to continue with it in the future. Yeah. Cool. We also have quite many questions regarding the bond. I think you also explained that quite clear in the report, but could you shed some light about the refinancing of your bond? What's your view on that, and could you get a new bond with lower rate? Motti? Yes. Regarding the refinancing of the bond, we explored few opportunities during the last year. One of them was to refinance it with a new bond. One was perhaps to extend the current bond that we have for additional one year. As I mentioned during the presentation, we have the loan that is about to be repaid, loan that we granted sister group, NeoGames, which is now a public company, so one can see its numbers. We didn't want to refinance it with a new bond for three or four years without a specific target or aim. As we demonstrated within the presentation, Aspire Global is a cash generative company. We produce money on a quarterly basis. We will take additional bond whenever it is required. As for the repayment of the bond, we took a bridge loan from a certain of our major shareholders in the amount of EUR 10 million that are sufficient in order to bridge until we will receive the money from NeoGames. It is according to the interest rate of the bond. However, we saved quite a lot of expenditure around bankers and concession fees to the bond holder for the extension. This was the rationale behind this move, to save money. Oh, okay. Perfect. Thank you for that explanation. We have another Yeah, okay. Regarding your financial targets for 2021, are you viewed that you're still going to be able to reach them? You haven't mentioned anything about it in the report. Yes, we thought about if mentioning or not, and we said if we don't have anything to add to what we know already and discussed in the past, so we don't have any reason to mention it. Right now it's on track for the targets that we showed. All right, cool. We have actually received quite many questions here, but we're running out of time. I have to wrap this up, and I'd like to thank Aspire Global with Tsachi and Motti, as well as our viewers, and I hope to see you all next time. Until then, have a great day, and take care. Bye. Bye-bye.