Good morning and warm welcome to Kindred Group's Q1 2023 Earnings Presentation. My name is Patrick Kortman, and I'll be moderating the Q&A after the presentation. With that, I would like to welcome Kindred Group CEO, Henrik Tjärnström up on the stage. Welcome, Henrik. Thank you very much, Patrick. Thank you very much, everyone, and warm welcome to Kindred's Q1 2023 Presentation. First, I would like to make a comment regarding the separate press release that was issued by the board this morning. I will here today present the Q1 report and presentation and answer questions around this. I will not comment nor answer any questions related to that separate release. Any such questions will need to be addressed directly to the board. Thank you. Now again, a warm welcome to our Q1 presentation, and let's get into it. We have always been transparent that the fact that transformation will lead to short-term moving to locally licensed revenues and profits will lead to temporary margin pressures. This especially during times when one of our major markets are undergoing a local regulation, like we saw in Sweden in 2019 and now more recently in 2021 and 2022 regarding the Netherlands. We have always reiterated that after an initial margin pressure, we will see a gradual recovery and return to strong profitability. This will then be on a locally licensed base, which means that it's a high entry barriers with reduced competition and uncertainty, which also justifies a higher valuation. We have shown this market transition many times over and over again with France, Denmark, Belgium, U.K., Sweden, and it's therefore extremely pleasing to now show also that we have achieved this in the Netherlands. Big positives during the quarter has been the strong growth and the strong underlying EBITDA developments driven by the continued strong performance in the Dutch market. This gives us confidence both for 2023 and also for our financial targets for 2025. I would again like to take the opportunity to thank everyone and my colleagues at Kindred for making Kindred the great company it is. Thank you. This is the outline of today's presentation. I will start with some highlights on the Q1 and then take a look at the business overview and then round off with a summary. First, before we dive into the numbers, let's take a few steps back and really look through a wider lens. This is something that we talked about already at our Capital Markets Day in September last year. We have and we are and we expect to continue to deliver solid progress along the key drivers of the business for the coming years. Our financial outlook is strong and will drive significant shareholder value creation. If we look at the different items here, as you can see, in the market share growth that we mentioned already then in September, we've seen solid growth across markets, and now in Q1 as well, offsetting some of the temporary headwinds that we've seen in Belgium and Norway. We're also for the Dutch market, we are on track to become a market leader during 2023. As we showed in the Q1 now, we generated GBP 57.3 million of Gross winnings revenue in the Q1 alone in the Netherlands. Also for KSP, we have seen material financial benefits coming from our investments into our proprietary sportsbook platform, which is on track and progressing well to a first market launch towards the end of this year. For Relax, we're very pleasing to show strong performance with revenue growth of around 90% for the Q1 and EBITDA contribution of GBP 5.1 million for the quarter. For North America, we see very encouraging signs in North America with solid growth and also significantly reduced losses, but more of that throughout the presentation. If we look at the quarter in more detail and some of the numbers that's coming out of that, as we highlighted this morning in the report, we have growth and accelerated cost optimization remain focus to drive further scalability, but also that we've seen encouraging improvements in both revenues and profitability during the quarter. As an example, we see revenues growing 24% to GBP 306.4 million for the quarter. If we exclude the Netherlands, which of course is part of the business, but still if we exclude that, the revenues increase with 1%, but that's as a result of the headwinds that we've experienced still in Belgium and Norway. On that point, in Belgium, we have worked very hard now for the last couple of months and quarters to really try to return Belgium to growth over time. We see some positive signs now taking shape in Belgium with the Belgium revenues, the average daily revenues for the 1st to the 23rd of April during the Q2 is about 10% higher than the daily average revenues that we saw during the Q1. It definitely a step in the right direction. We will also be meeting easier comps in Belgium over the year. This again is a normal process when we're making the business more sustainable and therefore increasing the longer-term, sustainable value. We will look at the locally regulated share revenues. It came in on 81%, similar to what we had in the Q4. We see also a strong development now in underlying EBITDA, more than doubling to GBP 49.4 million, up from GBP 24 and a half million for the Q1 in 2022. With a strong underlying EBITDA margin of 16% for the quarter. Again, more on that later. Also strong free cash flow generation, GBP 29 million compared to a negative GBP 5 and a half million for the Q1 last year. Really strong developments. Also active customers up 18% and a net cash position of GBP 43 and a half million at the end of the quarter. If we look at the quarters over the time, as we see a strong performance again in the Q1, GBP 306.4. If we look back at our previous quarters, this will be our fourth strongest quarter ever, and still sort of the second strongest Q1 that we've ever seen as well. Again, definitely on the right path, but we're expecting more to come over the coming quarters and years indeed. If we look at the cost base, with the continuous focus we have on scalability, we really focus a lot on that. The cost actions that we're taking during the Q1 will have an increased impact during the coming quarters. Of course, M&A also impacts some of the historical comparisons. If you look at the cost of sales here, improving trend, and also on marketing, we came in on just under 21% for the Q1. This is in line with our expectation that we will have a declining trend over time, but we're also reiterating our guidance for the full year that we expect to come in with a couple of percentage points below 25% for the full year. We will expect to see a gradual increase in absolute marketing spend now for the coming quarters, and of course with Q4 being the peak quarter of the year. We also will see a salary increase, which is expected also on the back of both M&A, but also on the selective investments that we have communicated previously, both through our tech areas and especially also with our initiative to build our proprietary sports book. These 14.5% include some of the non-recurring elements. If we exclude them, the corresponding percentage would have been 13.7%, so more or less in line with what we saw for the full year. Clearly, we also see a bit of an impact from the ramp up in the Netherlands when both the nominator and denominator is impacted by the effects that we've seen through our investments and at the same time with the scaling up of the Dutch revenues. In cost other OpEx, we see a positive trend continuing and we also see that the same trend there on CapEx. If we look at the OpEx in more detail, just to highlight the underlying developments, the reported numbers you can see here at the furthest left and furthest right on the slide. We've exclude the non-recurring credits and cost in the respective quarters. We see a fairly stable development of the underlying adjusted OpEx for Q4 2022 of around GBP 64 million. Then we have some normal elements in salary increases that always happens at the beginning of the year. Then with we have some full-time employee growth as well versus the Q4 and some other adjustments as well, ending up on around EUR 65 million for the Q1. This is a level that we expect to remain for the coming quarters for the rest of the years. As we say, the initiatives that we took already early Q1 will take some time to have effect, and we can't see the full effect now already in the Q1, but they will make the impact during the Q2, Q3, and Q4 resulting in a stable adjusted OpEx levels of around EUR 65 million per quarter for the coming quarters. If we look at this, also in connection with the underlying EBITDA improvement, we are sort of seeing a clear improvement coming to 49.4%, up from the 24.5%, 102% up, as we mentioned. Also, if we look back at the previous years, the comment I made earlier regarding the transition that we're doing from dot-com to dot-country has been very evident in the short-term margin pressure that we experienced in 2019 with Sweden and now in 2021, end of 2021 and beginning of 2022, with the Netherlands. Also the gradual improvement and comeback that we're showing here already now visible in the numbers. Again, we're expecting this to continue to improve in the quarters to come. This again makes us very confident for the guidance, the non-recurring guidance that we gave at the time of the Q4 report, sorry, for at least GBP 200 million of underlying EBITDA development for the full year 2023. That of course, also provides confidence for the financial targets for 2025. If we look at the FX, there's been a fairly small movement in both directions really, the accumulated effect is a positive of around 3% for our P&L. Again, this is more for background information. If we look at the business overview, there's been a continued strong performance in our locally regulated business, and indeed it's been a core element of our strategy for many years to ensure that our locally licensed markets continue to grow faster than our own core markets. As you can see here, you see that the locally licensed markets from 2019 to the last 12 months at end of Q1 now, has been growing with 38% compounded annual growth rate, and at the same time, the other markets have grown with 12%. If you look at the right-hand side of the graph here, you can see that the last 12-month betting duties is fast approaching GBP 300 million. We're still showing an improved margin, underlying EBITDA margin development, which is really strong and showing our strong absorption ability. As we've highlighted before, this is completely again in line with the expectation that the pink line would dip for 4 quarters. Now when we're adding higher underlying EBITDA margin quarters than we're removing in the last 12 months metric, we will continue to see an improvement in the, in the underlying EBITDA margin for the last 4 months, gradually coming up towards the 21%-22% mentioned in the financial targets for 2025. We also here see the locally regulated share of revenues that has been also on the increase, and we're expecting this also to pick up over the rest of this year and beyond, and reach up also towards above 90% again that we mentioned at the CMD in September. If we look at the active customers development, we saw a solid activity following the World Cup. The World Cup again was a big acquisition and reactivation event for us. We of course worked very hard to make sure that as many of the customers remain active also now in the Q1. At the same time, we also know and are fully aware that some of the customers during a World Cup or a Euro tournament will only be active during those tournaments every other year, and then they will be dormant, and then we can reactivate them again at the time of the next tournament. Total active customers amount to the 1.62 million for the quarter, an increase with 18% compared to last year. Excluding the Netherlands, the active customers increased with 3%, which is also highlighting the higher base post the World Cup. The ARPU at the same time increased with 4% for the Q1. Here, if we look at the longer-term trends from 2011 to 2023, the compounded annual growth rate of active customers have been 14%, and the ARPU has grown with 3% during the same time. Clearly, active's growing much faster than average revenue per user, which is the sustainable way of growing the business. If we look at the product segment update, we see a strong development, especially within casino and games and poker and other products. For sports betting, including Netherlands, we saw an 8% increase during the quarter, and excluding Netherlands, we saw a decline, and that is largely driven by the significant headwinds that we experienced still in Belgium and to some extent also in Norway. Our proprietary racing product contributed to 4% due to the sports betting Gross winnings revenue during the quarter. At the same time, casino games increased with 35%, and when excluding Netherlands, we still saw an increase of 4%. After a very busy Q4 with sports, it's encouraging to see strong performance of especially casino and games and now being by far the largest segment for us. Still a very healthy sportsbook part of the overall business. Poker and bingo or other products remains on around 5% and increased 33% compared to the same period in 2022. If we look at the sportsbook margin in more detail, we can see here that it, of course varies, quite a bit between quarters, but as soon as we add 4 quarters to get to a 12-month basis, it becomes quite stable, as you can see here on the yellow line. Also if we look at the longer-term average, if we look at a 3-year horizon, it's been fairly stable and around 9.4%. In the quarter, the margin of the free bets came in on 9.9%, which is still 0.3% lower than the same period last year. If we look at the long-term average, it's been gradually increasing over the years due to the market mix, but also that it can vary quite significantly between the quarters. It's also worth highlighting here again that we're working very much on optimizing the margin rather than maximizing it, trying to create an as good customer experience as possible. Also, when we look at the regional update, we see a strong performance in the Netherlands also helping the overall region performance, with Gross winnings revenue increasing 37% year on year. If we exclude the Netherlands, we saw a decline of 8% impacted by the headwinds again in Belgium, but also the closure of the German market that we communicated during the second half of 2022. Germany was still in the numbers for the Q1 last year. Also in France, we saw a slightly lower betting margin, and that also impacted slightly negative. At the same time, U.K. reported strong growth of 7% despite the stricter affordability measures that we introduced gradually over the last couple of years, and especially during the second half of 2022. In the Nordics, we see an increase of 4% driven by strong growth in Denmark and stable development in Sweden, thereby offsetting the negative developments that we're seeing in Norway. In CES region, it grew 16% for the same period, and Romania continues to make up a significant part of the Gross winnings revenue in this region, and again, performing strongly. Also in the other segment, we're shown a growth of 4% driven by the growth that we're seeing in North America. At the same time as Australia, saw a 12% decrease, largely as a result of lower sports betting margins for the quarter. On more detail on North America, it's some really positive signs, both on the revenue development, but also on the cost base. We have had a two-pronged focus, really trying to grow as fast as possible whilst keeping marketing investments under strict control until we launch our proprietary technology platform. That's what we mentioned at the time of the Q4 report, and that's what we have now delivered on for the Q1. As you can see here, Gross winnings revenue of GBP 8 million for the quarter, an 18% increase year-on-year, and 8% increase in constant currency. The negative underlying EBITDA contribution reduced significantly in the quarter to minus five and a half million pounds for the Q1 versus minus eight and a half million pounds during the same period last year. Again, we're investing more selectively pending our platform launch. On 14th of April, we received the positive news from the DGE in New Jersey of the approval of our proprietary platform certification. We're expecting this, as we mentioned at the press release then, to go live in mid-May. Of course, our own platform will give us better tools and abilities to support the local team and also offer a superior user experience to our customers once we are live and with the app focus and everything that we have in that offering. If we look at the Netherlands, and just to highlight that this is a detailed reporting that we will stop after the Q2. If we look still for the continuous strong development we're seeing since we reentered the market in July 2022, we have seen continuous strong customer activity with now a number of active customers for the quarter of 205,000 customers. That we also reached about GBP 57.3 million of revenues and a sequential increase from Q4 of 8%. Also very positive, as I mentioned, that we returned also Netherlands to strong profitability already at this stage. Now we have a similar gross contribution margin for the Dutch market as we see for the group in average. Of course, we're expecting this as we grow further and get more scalability, that this will further improve in the quarters to come and years. Based on the performance that we saw in the Q1, we estimate that we have now around a 20% market share, pending sort of official data, but still that we also hold a top two position, which makes us confident to reiterate that we are firmly on track to become the number one operator during this year. Strong performance and really encouraging developments in the Dutch market. If we look at Relax, as I mentioned, really strong developments in Relax. The total revenues grew with 89% in the Q1, but the EBITDA grew even better to 200% growth. Of course, the total revenues amounted to EUR 12.3 million, as you can see here on the right-hand side. It's a really strong performance sequentially quarter-on-quarter now, especially from the Q1 of 2022. Really continuously very, very strong performance. With the Gross profit contribution in Q1 of EUR 10.2 million and the underlying EBITDA contribution of EUR 5.1 million with a 41% margin. As you can see here, it's contributing with around 10% of the overall group underlying EBITDA. Really strong performance there, which again, is perhaps not seen given the sheer size of the Relax business, but the strong profitability is really making a meaningful contribution to the overall group. The reasons for this strong growth and profitability improvement is that they've signed another eight new operator deals and had six network launches of own content during the quarters. We also launched our second exclusive game with Relax in February, several more games are planned on an exclusive basis for Kindred during the rest of 2023. If we look at the share of revenues from high-risk gambling and our initiative with Journey towards Zero, we remain our dedication and focus on this very, very important topic. As you can see on the press release the other day, the data from the Q1 highlights that the share of revenues have decreased to 3.0%, also we see an improvement in the effect after interventions up to 83% now. Positive developments in both directions that the share of revenues is decreasing and the improvement effect after interventions increased from 82.1 to 83.0% here as well. Also worth highlighting that we're now deployed our player safety early detection system with automated interventions in selective markets, and we're rolling that out gradually into our markets. That's a tool that helps raise awareness with customers, incentivizing them to make use of the control tools that are available, and that's clearly helping, and it's been shown also in the effect after intervention. If we summarize the Q1 and a bit of the outlook as well, we start with the trading update for the beginning of the Q2. For the first 23 days, we see a strong start of the quarter with high activity also on the back of the Q4 strong activity that was carried into the Q1. For Q2, the comparatives again distorted by the temporary closure of services to the Dutch residents last year. At the same time, the daily average Gross winnings revenue for B2C only for the group, up to and including 23rd April, was GBP 3.54 million per day, 38% higher than we had for the average for the full Q2 of 2022. If we exclude Netherlands, the same number would have been GBP 2.83 million, at 10% higher than for the full Q2 of 2022. Also, as we highlighted in the report this morning, the sports betting, Gross winnings revenue has been positively impacted by a busy sports calendar and also strong sports betting margin of the free bets of around 12%. Again, similar developments that we saw at the start of the Q1 at the time of the Q4 report earlier this year. Again, this is normal deviations from time to time, but they tend to normalize over time. Again, very strong start to the Q2 with encouraging development across both casino, but also on the sports betting. Also, I would like to take the opportunity to reiterate what we mentioned already earlier, that our financial outlook is strong and we will drive significant shareholder value in the coming quarters and years. We're making solid progress across the key value drivers in the coming years. We see here, again, the solid growth across all regions in the Q1 offsetting the temporary headwinds we've seen in Norway and Belgium, which is normal from time to time. When we address those headwinds, we are returning the markets to growth over time, which we indeed also have shown previously. For the Dutch market, we're on track to become the market leader with strong development in the Q1 and gaining market share gradually since re-entry. For KSP, we see material financial benefits, and we're firmly on track to launch our test market towards the end of 2023. For Relax, very strong developments, and we're expecting these also to continue as Relax rolls out into more countries and regions, but also adds more operators. Also for North America to become a top 10 operator in the market, and to really focus on also profitability and profitable growth also for the North American market over the years. We really look forward to launch our platform within the coming month. That concludes the presentation, and I invite back Patrick for the Q&A. Thank you. Before opening up from the webcast, we have a few questions that have come in through the web, and I'll take as a warm-up a couple of them. Yep. The first one, you touched a little bit based on the U.S., roll out your own platform. There is a question here: When do you expect to get approval of your own platform in other states in the U.S.? Are you looking to get the platform approved in all states where you're live? Eventually, that is for sure the ambition. We have a one platform strategy globally so that we would have the Kindred platform on all brands in all markets. It's been a concentrated effort now over the last couple of years to bring it to North America to roll it out there. We started, as we mentioned before, with New Jersey now, which will be go live towards the mid of May. We have been working in parallel with Pennsylvania as a second state for some time now and expecting that to happen during the second half of the year. Hopefully as early as possible in the second half, but during the second half of this year. Then gradually looking at the other states that we're live or if we're launching newly in the market that we would prefer to launch directly than with a Kindred platform. Yeah. Thank you. The second question is about our number of actives during the quarter. The question is, why has the number of active customers, excluding the Netherlands, only increased by 3%? Yes, it is a combination of different things. Of course, after a World Cup, as we say, we see a normal decline, and we also made some significant investments in marketing, especially during the Q4 and the beginning of the Q1. We held back a bit on investments, also waiting for like Champions League and other leagues to kick off. Now that we're gradually ramping the investments on marketing during the year, we're expecting that to continue to increase. It's also on the share size of the number when we're looking at 1.6 million, 3% is still quite a lot. It's of course also depending on the market mix as we've seen here with the likes of Norway and other markets as well. In Belgium, we've seen actually a positive trend, the number of active customers increasing, albeit that we've seen quite a big impact similar to what we saw in the U.K. when it comes more to the higher value segment. Yeah. I would like to just point out also that the closure of Germany obviously impacts these numbers, just to make it clear. The final question before opening up from the webcast is about the U.K. How would you describe your market position in the U.K.? Do you see forthcoming regulatory changes as having any impact on your business there? We see a positive position for us in the U.K. market where we're a little bit in the middle. We strongly believe that if we can be really agile as we have ambition to be and can adopt faster to changes than our competitors, then we have an opportunity to actually gain market share both from above, from larger operators and because further sort of regulatory changes in the U.K. will most likely mean that customers will spend their spreading more across more operators. We see that could be a potentially good opportunity for us to both take market share, continue to take market share from above, but also from below as smaller operators will struggle to comply with the complex regulatory situation. I think we have a really good position in that sense. We also have a very profitable position already at these kind of market shares that we sit on around 3%, 4% market share. We expect that to be a good thing. We also believe that the changes that we have made during the last couple of years, and especially during second half of last year, means that we are broadly compliant with what we anticipate will be coming in the white paper when that is published, if that is tomorrow has been indicated or not. We are confident on that. Thank you. Very good. With that, I'd like to open up for questions from the webcast. If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. The next question comes from Oscar Rönnkvist from ABG. Please go ahead. Thank you. Good morning, Henrik. Good morning, Patrick. Thank you for taking my questions. Good morning. Morning. First of all, I just wanted to tap on the underlying growth here because your marketing spend came down quite sharply in my view. Also, I mean, looking at the underlying growth, it's -1% excluding the Netherlands, and that is also affected a little bit by FX, I suppose. Correct me if I'm wrong, but in constant currencies, it should be down like 6% year-over-year, excluding the Netherlands. Just looking at your 2025 targets then, it seems like quite a, quite a steep run to arrive at EUR 1.6 billion, which is the low end of your target, but you seem quite confident in reaching that. How should we think about, I mean, the underlying growth and the marketing spend upcoming quarter to reach that? You lost me a little bit there at the end. Yeah, just to start with the developments during the quarter as you saw at the time of the Q4 presentation, the trading update, period margin was very strong around 12%. What we showed now for the full quarter was 9.9%. Clearly that meant that the average margin for the second half of the quarter was quite weak. That of course had an impact on also the Gross winnings revenue generation. If that would have been remaining more of kind of a normal level for the second half of the quarter, that would have meant higher revenues as well of course. Margin is what it is. At the same time, as I said, we're adjusting marketing spend also, to some extent more for the longer term, but also then more shorter term. When we see periods of lower revenue, then of course we're making sure that we take some actions that we can to optimize it. Again, it's in North America as well that I would want to highlight here that that's exactly what we communicated in the time of the profit warning and also at the time of the Q4 report that we were expecting. We actively take a decision to reduce marketing investments there until we launch our own platform. That's also helping in this kind of what could be seen, as you say, with a slightly lower marketing investment. As I said here earlier today as well, we're expecting this now to increase in absolute terms from these levels throughout the year. Also this normal seasonality pattern for a odd year is that Q1 is strong. Q2 and Q3 is normally slightly lower activity, but it can still be quite good profitability development. Then Q4 is seasonally the strongest quarter of the four in the year. Again, that is all put together for us being confident to reiterate our non-recurring guidance for the full year and also the financial targets of both about EUR 1.6 billion for 2025 in revenues, but also the underlying EBITDA margin of 21%-22%. We again remain firmly confident in then that now that we're coming out of the Dutch market, we're focusing more on growth and also with the cost control than that we can achieve very much on the financial targets. All right. All right. I mean, just doing some math, let's take the Q1 revenue times four just to get a sense of the run rate, including the Netherlands, then you would need to grow like 16% annually up until 2025 to reach the EUR 1.6 billion. Do you assume like a significant ramp up in some key markets to arrive there? Because I mean, the underlying growth just seems a little bit slow at the moment. Also if you're going to optimize costs near term, I mean, in marketing, for example, which should drive revenue growth ahead. Should we expect I mean, revenue growth to ramp up underlying because of some market tailwinds or do you think that you will get better return on the marketing investments anywhere near? We're expecting the initiatives that we're taking in markets like also Belgium and Norway to return those markets to growth over time. Also, as we say here to what we're optimizing is the OpEx elements, as we said here, to remain relatively flat on around GBP 65 million per quarter for the rest of the year. Then, to allow for more investments into marketing to indeed drive the top line developments of the group. Again, of course, we're expecting the initiatives that we and the good developments that we're seeing in the Netherlands and also in the U.K. market and across several other markets already to continue as well to ensure that we are on returning to stronger growth. We're expecting that to become visible now the coming quarters and years. For this year, as I said, Q4 is normally a stronger quarter than the first three quarters. I think coming in on these levels that we did now for the Q1, it still makes me very confident on the full year outlook and also for the financial targets. Okay. Perfect. Thank you. One last question just on, indeed the Q4, when you announced the preliminary figures in Q4 in the conference call there, you mentioned the 16% and 30% additional fixtures in Q1 and Q2 compared to the year before. I just wanted to get a sense of how much of a positive impact does the increased fixtures have in Q1 and also what you expect in Q2, if you could quantify that a bit. Yeah. It is a bit difficult to quantify that in more detail. Of course, it means that we have more high-quality sports throughout the weeks as well. That is, I think the main difference that we have continuously sort of a good offering rather than than what's normal when it's more directed towards the Champions League evenings and then also the weekends as such. It's more kind of a benefit to keep sort of intake and activity up on a higher level, having those kind of events happening. Now indeed, as we're expecting the fixtures to be boosted both for Q1 but also for the Q2. The activity base we're carrying in to the Q2 now is a positive in that sense as well. Okay, perfect. Thank you very much. That was all for me. Thank you. Thank you. The next question comes from Ed Young from Morgan Stanley. Please go ahead. Good morning. Three questions for me, please. First of all, just to build on the question you'd already asked, Patrick, on the U.K. It's quite a good growth number, considering you're taking affordability measures. It's better than others who've reported in that market so far. I just wonder if you could touch a little bit what you're seeing competitively in that market. The second of all, second question is on Norway. You've said it's a headwind, but could you perhaps quantify that? I don't think it's quantified in the statement from what I saw. Third on Belgium, you said you're seeing signs of improvement, but clearly a very negative number. You'd previously spoken about, sort of maybe a 6-month period to be able to meet some of the challenges around customer journey, et cetera. Do you feel like you've done that? What's sort of your expected timeline for that market to recover to flatten then into growth? Thanks. Thanks. I mean, for the U.K. it is, it's a competitive market and we are a mid-tier operator, you can say in the market. We are sort of just under the larger operators in the market, which again we feel is a relatively good position for us to be in. We can be sort of benefiting from being faster and more agile than some of our larger competitors. At the same time we see and expect to see continuously that smaller operators will struggle more with adaptation to the increased regulatory situation. That will be a potential benefit from both directions, as I said, for us in the market. When we look at Belgium, or sorry Norway, you had first there the Norwegian market, we're not disclosing any detailed numbers on that. As we highlighted at the time of the Q4 report as well, we've seen sort of headwinds from an activity and revenue point of view on the back of the further changes we made during the Q4 of last year. That those kind of headwinds are continuing now into the Q1. As I said already then, it is most logically will take up to sort of four quarters until we would expect to see any sort of change in that. It's a fairly stable development now compared to sort of the Q4, I would say in the first. For Belgium, we are clearly working hard to address all the items we saw. We made gradual changes during 2022 that resulted in the impact that we're seeing. The kind of the 37% decline that we saw now in the Q1 is largely a combination of the changes that we did voluntarily prior to the mandatory deposit limits check that came in in October. In some ways, we're working very hard now to look at the overall offering for the customers and improve that overall for customers and, actually, expect that to, as I say, we're starting to see some positive signs already compared to start of the Q2 compared to the average for the Q1 on daily average revenues. More work to do to improve the user experience for the customers and return to growth, most likely towards the mid to end of this year. It doesn't sound like it'd be unfair to think that might be four quarters from the October to be back into growth, but maybe better in Q3. Is that a sort of fair picture? We are of course working hard to make sure that it's ASAP. At the same time, it's also reality where it's an uneven playing field in the market where we have sort of complied with the regulations and we have a feeling that some of our competitors are still not compliant. We've again urged to cooperate with the regulator to make sure that there is a level playing field in the market and with the ambition of protection of the customers in the end of the day as well. Okay. Thanks very much. Thanks. The next question comes from Kiranjot Grewal from Bank of America. Please go ahead. Hello. We cannot hear you, Kiranjot. Should we move on? The next question comes from Martin Arnell from DNB Markets. Please go ahead. Hi, guys. Hello, Martin. I have just a couple of questions. If we try to lift this up and look at the bigger picture here and away from the nitty-gritty in terms of your group strategy, what are you most happy about in terms of execution so far and what's been the most challenging part in your view? The strong comeback that we've shown in the Dutch market is clearly beating our own expectations, and we're very pleased with that we have shown that we are still the only sort of traditional sort of dot-com operator, if we call it, that have got the license and are sort of doing really well in the market. We have a sort of very good sort of dialogue with the regulator and everything as well. We're very positive and proud of that comeback. Of course, also what we've seen in the U.K. market over the years where we've really focused a lot on growth initially for say 2012 to 2018, and then gradually turning that into profitability and profitable contribution throughout the last three, four, five years, making it one of our most profitable markets and actually growing into a hypercompetitive, super mature market in a very profitable way. Of course, we also experience headwinds from time to time with the likes of Norway and Belgium recently, but that's normal part of the business and if anything is normally around a 12-month cycle until we return to growth, and hopefully it's sooner than that. That's a normal part of the business. I would say the overall transformation that we're done and that we have now shown more than doubling of the underlying EBITDA for the Q1 compared to the same period last year, gives us confidence that we're well on track to achieve the non-recurring guidance that we say. Also, with the Sportsbook platform that's progressing really well, and we're well on track for launching our first test market. Also Relax doing extremely well, and also the improvements that we show now in North America for the Q1. I think as again, we highlighted those five key value drivers for the coming years, I think those are really key elements to look at and as you say, look a bit beyond the nitty-gritty numbers here now that we are really on a strong path to show strong value creation and that the outlook is strong. Thanks a lot. That's helpful. Can you just remind us what is management's view on timing for U.S. expansion turning profitable? Also when would you expect positive effects from the KSP initiative? The North America platform rollout is expected to have a positive impact immediately on kind of customer experience metrics like acquisition and also retention and overall experience. That will gradually then turn into growth in revenues and then indeed over time, also profitability. We are yet to see really what kind of effect we'll see in real time for the for our own technology there and what we can achieve. Right now we're still reiterating what we mentioned at the CMD of sort of a contribution break even in 2026 and then sort of moving forward on that basis. Of course it will depend also on what we see when it comes to our own platform. It could be sooner, it could be later, but most likely as we sort of delaying investments, it would be logically slightly later from that point of view. It also depends on how much we choose to invest, but depending on the effect that we're seeing from that platform. Then it was KSP. Okay, thank you. Where the benefits are coming from KSP, you had a question on. Yeah. No, that's good. KSP, we're expecting to launch the first test market now towards the end of this year and then gradually over the coming years, then roll out across our markets. We're expecting that to become, as we said also at the CMD already, that we're expecting the sort of the break-even point to come sometime during 2025. During 2025, and then see a sort of the investment we're doing until then is to reap the benefits from then onwards. The full benefit of the rollout is only happening sort of beyond the financial targets then as such. It's more for kind of building the long-term profitability of the business as such. Great. I have just a final question, and that would be how do you view consolidation trend in the market? What's the pros and cons for further big consolidation in the sector in your view? Scale is important, and that's what we've had as our one of our core themes as well over the last 10, 12 years to really make sure that we grow top line sufficiently fast so that we can absorb the increased costs on the back of the transformation, as we highlighted here with the especially betting duties. Of course, we also need to have money over to invest in marketing, which is a driver for growth. I think there's clearly a logic for larger scale. Of course you also need to be efficient and it needs to make strategic sense as well. It's, I don't think that our sector is that unique in that sense in business. Overall, it's size sort of matters in some ways, but of course you also need to be agile and efficient as well. Okay. Thanks, guys. Thanks, Martin. The next question comes from Simon Davies from Deutsche Bank. Please go ahead. Yeah. Morning. Just one broadly from myself about the Netherlands. It sounds like we're gonna get an advertising ban introduced in the beginning of July. How do you see that playing out? I understand at this stage it's just TV advertising. Is there a risk that they're going to broaden that out to include some digital advertising as well? Do you see some kind of land grab in terms of a drive to for competition in terms of customer recruitment ahead of the advertising ban? We're not expecting anything right now when it comes to digital. As you say, it's more about TV and out-of-home. It's been already agreed with source self-regulation, and there's a gradual change on first TV and media and then gradual to sort of shirt sponsorships and also the other things for over the coming years. That's been in the discussion to see what's gonna happen exactly on that. If, if anything, what the situation that we got used to in the Netherlands, sort of prior to September 2021 was very limited marketing opportunities, competing more on experience and product. That sort of helped us in that sense in even in that reality. Given the strong position we have and that we've had this kind of ramp up and time to get into the market, gives us confident that we can handle also further restrictions if they're coming. Again, we have been mentioning and it's also urging that restrictions on the regulatory system or regulated system is often to the benefit of the dot-com or the black market, which is clearly no one's interest. There needs to be a balance here between sort of restrictions and channelization as well. It's ideally it's an opportunity for re-regulated operators to really put their brand out there and attract customers to the regulated offer under strict control rather than to allow customers or push customers more onto the black market, which can happen if there's too restrictive restrictions put in place. You don't see a risk of a sort of massive short-term ramp-up in CPAs as everyone desperately competes ahead of the ban? No, I don't see that really. We have a long-term view and we're executing on our plan and positioning in the market and see good momentum on the back of that. Great. Thank you very much. Thanks, Simon. Thank you. The next question comes from Kiranjot Grewal from Bank of America. Please go ahead. Hey. Hey, sorry about earlier. No worries. Realize you're not commenting on the strategic review itself, but I was wondering, does the review impact any of your plans around building out the sports book or the US expansion? You've mentioned that the long-term average margin for sports has increased gradually over the last few years. In that backdrop, what should we consider as the new normal sports margin? The last one is actually just asking for a bit more color. The Western Europe segment is your biggest by far. Could you break it down a bit more in terms of what countries make up the biggest pieces there, and where do you think Netherlands will sit within that as well? Thank you. Thank you. The strategic review, I will not, as I said, make any comments on. I didn't really pick up your question either to be honest. If we look at the sports book margin, the developments that we've seen, as we highlighted, there's been a gradual increase over the years. For many reasons, both as we kind of dig deeper into our existing footprint and markets, and the marginal customer that we attract tends to be more of a higher margin customer, by default. Then it's, that's the nature of it, so across markets. Also with the sort of improvements that we're doing in risk management and other things are also helping that to some extent. Also on the French market contribution, when France has been growing for us as a market, and it's pretty much a sports-only market for us with some poker element, but still predominantly a sportsbook market. It also means that inherent cap of 85% payback is having an upward pressure on the group margins as well. There's a few combinations there. Also, as we've seen over the last couple of years, especially as we highlighted ourselves as well regarding bet builder and other kind of multiple driven sort of features, that also tends to increase the margin over time on the sort of the back of reduced share of live betting, which has a lower inherent margin. Also live betting margin has been picking up for the first reasons I mentioned. There's quite a few drivers in pushing the underlying sort of sports betting margin upwards over the years. Then the third one was. Sorry, Kiranjot. What was the third question? Western Europe. Your biggest segment. Yeah, Western Europe. The key countries there. Netherlands, you can see what Netherlands is through our reporting today, so how big part of that it is. With Belgium and France and U.K. and as indeed Germany now that we closed in the second half of last year, we have not given that kind of country breakdown. We appreciate that the people have quite a clear view on what the size of the markets are, and it's something that we revisit from time to time on kind of the segment reporting and kind of the breakdown and what we want to give and sort of feels that it's good to give as well. You can have a look at the capital markets, a presentation where we shared some light on that. Yeah. Yeah. Exactly. Thank you. Okay. Okay. Thank you. Okay. With that, we are concluded with the Q&A, and I'll hand over to Henrik for final word. Thank you, Patrick. Thanks everyone for attending, and thanks for the questions and attendance. We really look forward to meet you up again at the time of the Q2 report in July. Until then, really look forward to continue to work hard to make Kindred even greater than we are today. Thank you. Thanks a lot for today, and look forward to see you in July. Thank you.