Good day and thank you for standing by. Welcome to the LeoVegas Q1 2022 Report conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one on your telephone. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link any time during the conference. Please be advised that today's conference is being recorded, Monday, the 2nd of May 2022. If you require any further assistance, please press star zero. I would now like to turn the conference over to your speaker today, Gustaf Hagman. Please go ahead. Oh, thank you so much, and warm welcome everyone to this quarterly presentation for the Q1 report, LeoVegas. Also, as probably you have seen this morning, we will talk about the offer from MGM. Besides, Stefan Nelson. Good morning, Stefan. Good morning, Gustaf. Good morning. I also have our Chairman, Per Norman, here with me in the call. Good morning, Per. Good morning, Gustaf. Good morning. With that, let's start with the Q1, the quarterly report here, and then we will move over to the offer made by MGM. If you look at the quarter, we our revenues were EUR 98.5 million. That's an increase of EUR 1.8 million for the quarter. Our organic growth 8%. Sorry, 0%, but excluding the Netherlands, 9%. Our EBITDA was EUR 14.1 million, and that's a 14.4% margin. Our regulated and taxed share of our revenues was 71%. Regarding our product mix during the quarter, 72% came from casino classics, which is basically our slot games. Then we had 16% of our revenues coming from live casino and 12% from sports. The sportsbook has been particularly strong during the quarter. Some comments here around the Nordics. We had an all-time high in the Swedish market, and we are the largest private operator in the Swedish market, and expect to continue to deliver exceptional growth during the quarter. In the rest of Europe, our license application for the Netherlands was submitted. Spain and Italy continued to deliver solid growth, but also the closure of Netherlands and Germany affected us, and some headwinds continued to impact our reported numbers in those markets. The rest of world, we had a successful launch in Ontario the fourth of April, and it's promising to see Ontario as a regulated region in Canada now. Our preparation for the U.S. launch is according to our plan. All in all, Nordics were about 51% of our revenues, rest of Europe 26% of our revenues, and rest of world 23% of our revenues. Some business updates. We are expanding in our tech and product vertical. We are having two new hubs coming up, and we will hire 100 new developers in the coming two years. We also launched our first games with Blue Guru Games, and we are expecting expansion into the US market during the year with Blue Guru Games. I think this is exceptionally interesting actually that we are widening our strategic focus also into the content side and building our own games. We have settled with the Dutch tax authorities EUR 14.9 million and income tax relating to Royal Panda for the years of 2015 to 2018. We also increased our ownership in CasinoGrounds to 80% and Pixel.bet to 90% during the quarter. Luckily enough, we happened to win the Online Gaming Operator of the Year awards, International Gaming Awards, and then also Online Casino of the Year at the Global Gaming Awards. This is again a testimony to what we're doing here at LeoVegas, being the forefront of this industry, driving the mobile and the smartphone part of this industry. I think it's the fifth consecutive year that we actually win these awards. Really amazing. A big kudos to all our teams out there. Current trading start of Q2, April numbers here, EUR 34 million, and that's on a 4% increase, 12% if we exclude the Netherlands compared to April last year. With that, I leave to you, Stefan, to run some business KPIs and financials. Thanks, Gustaf. I'll do a brief overview. Our main KPIs and looking at our customer intake, our new depositing customers decreased 6% year-on-year, but was up 1% quarter-on-quarter. Meanwhile, our returning depositing customers increased 2% year-on-year and decreased 1% quarter-on-quarter. If we look at our total customer base, it was fairly unchanged both year-on-year and quarter-on-quarter. As we've talked about before, this of course is impacted by that we temporarily closed down the Netherlands at the end of September. Meanwhile, our average customer spend or player value increased 5% year-on-year and with a slight uptick 1% quarter-on-quarter. The long-term trend has been quite stable the past couple of years. Long-term, we see that a shift in this is explained by primarily a larger share of leisure players and also a change in geographical mix over time. With that, I'll move over to our results on the next page. As Gustaf previously mentioned, we had a strong EBITDA of EUR 14.1 million in the Q1, and that reflects an EBITDA margin of 14.4%. We don't have any adjustments in this quarter. If we look at our improved results, which is our best EBITDA since Q2 2020, this primarily reflects improved supply terms but also lower marketing investments, which have more than offset that we are continuing to invest in our personnel, not least on the tech and product side. We also have some costs related to strategic projects such as the U.S. Primarily, if we look at the marketing spend, we have been able to improve efficiency more and more during the past few quarters and after last year when we did some specific investments, not least the launch of Expekt, we have taken down our marketing a bit in Q1. We do expect, however, that marketing will go up a bit as we, you know, Ontario regulated in April, and we also hope to go live again in the Netherlands, where we have applied for a license. Looking at our last twelve months EBITDA, it has increased versus the past couple of quarters. Finally, looking at our financial position on the next page, we continue to generate a strong cash flow. We have about 100% cash conversion in the last 12 months. We also have a strong balance sheet where we are more or less unleveraged, say, 1x adjusted EBITDA. We are with that well below our leverage target of 1x last 12 months EBITDA. With those words, I'll get back to Per, right? Yes. Thanks, Stefan. With that, we will hear about this exciting news this morning. Welcome, Per, to tell us more about, and the market more about the offer from MGM. Thank you, Gustaf, and thank you, Stefan, and hi, everyone. Let's go through this. The bidder is, as you noticed, MGM, a global entertainment company, hotels and land-based casinos listed in New York. The price that has been offered is 61 SEK per share. It's almost 6 billion SEK in total. Compared to the share price on Friday, it's a 44% premium. If you look upon a six-month volume weighted average, it's a 76.5% premium. The board unanimously recommends the shareholders to accept this offer. This is also supported from BDO, who has made a fair value assessment. We also conclude that almost 20% of certain shareholders, including Gustaf Hagman, have agreed with irrevocables or intention to tender. Finally, MGM is also very clear in its release that this acquisition will provide a unique opportunity for LeoVegas to create a scaled global online gaming business. The board believes that the logic, the industrial logic strategic fit between LeoVegas and MGM is very attractive and should serve both the companies and its employees very well in the future. The conditions for the offers are pretty straightforward. It's 90% acceptance rate and regulatory approvals. The indicative timetable is that the offer documents will be ready in the beginning of June, and settlement is planned for the beginning of September. As always, most of the questions around this bid or offer should be directed to the bidder. They will have their presentation of Q1 later tonight. Recommendation is to attend that. I think it's 11:00 P.M. tonight, Gustaf. Yes. Yes. 11:00 P.M. tonight. All right. Thank you, Per. Really exciting news this morning. With that, I open up for Q&A. Welcome, everyone. Fire off. Thank you. As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, please press the hash key. Please stand by while we compile the Q&A roster. Your first question comes from the line of Martin Arnell from DNB Markets. Please ask your question. Hello, guys. Good morning, Martin. How are you? Morning. I'm fine. You? Yeah, we're fine. We're good. Yeah? Yeah. My first question is clearly the obvious one, sort of how you reason about you're out saying that you accept or recommend. Mm-hmm. The board is recommending the bid, and also to you, Gustaf, as the largest shareholder. Can you just give us some clarity on how you reason about the level? Maybe I should start. It's Per. As mentioned, we looked on the price and we think that or conclude that there's a good premium on the share price, not only from last week but also if you look on six months or 12 months. We look on the consensus from the market, which I believe is around SEK four to six per share. Of course, we made a lot of different comparables and peers and things like that when the board looked upon the price and then concluded that we believe it's a fair value, which also then was confirmed by BDO. that has been so to say the base, but it's been a lot of interactions and a lot of comparables and a lot of analysis made, but we recommend, and we think it's a fair value. It's a bit interesting when you look at your history in the last few years you've had a lot of temporary negatives. It started with the UK, then you had the Swedish re-regulation impact, then you had Germany, now it's the Netherlands. Do you think that if you look one to two, three years out, do you think that there will be a much smoother ride, or do you think that you will still have these certain markets that will be problematic for you so that you have to exclude when you look at organic growth? Well, as you stated, Martin, it is an industry that has some challenges from time to time. I think if you look at a part of them like at a higher level, it's like it's an industry that are about to regulate in different countries. When that happens, you also have pushback from authorities and the public opinion in these countries. That actually sometimes creates some hurdles for us. My humble opinion here is that maybe for the time being, it's better for these companies to be in a private sector and not on a listed environment because of that risk. For us, I think continuing to grow in different countries will of course, then of course things will happen. It's hard to foresee what's gonna happen. We couldn't foresee Germany coming that hard, and also with the Netherlands, that happened last fall. For sure, we know that things will happen in different countries, and then it's perhaps better to be in a private environment when you can tackle things in a better way. If I just can add something, we also see that the consolidation is ongoing in the industry, and that size will matter even more in the future in order to continue investing in product and platform and marketing and to cope with taxes. There is an obvious economy of scale if you want to take on the leader hat and be the leading online gaming company in the world. That is the vision and mission for LeoVegas. One of the obvious questions here is you're about to enter the U.S. in New Jersey with Caesars. How do you look at that, you know, in a situation where the bid goes through? All in all, some questions we need to leave for MGM to answer at their earnings call tonight. I believe it's around eleven o'clock Swedish time. For us, it's an amazing support that we will have with MGM throughout the world. We will continue to build LeoVegas to the largest iGaming brand out there. We'll have the ability to make some acquisitions, as Per mentioned. We will continue to consolidate in the industry. Okay. Can you just comment also on Canada, how the start in Ontario was for you in April? Canada, we are really happy about that the Canadian market development of the Canadian market and also that Ontario decided to become a regulated part of Canada, and hopefully other parts of Canada will follow. I will not comment specifically on Ontario more than Canada continues as a market to grow for us, and it's gonna be one of the strongest market for LeoVegas going forward, I believe. Just a final question on this situation. What do you think is the most sort of important that you can bring to the table here in a global entity? If we look a little bit at what MGM states in their press release, I think, first of all, what they actually really, really liked about LeoVegas is the lion and the culture that we have and the digital mobile/smartphone heritage. The lion, this is two lions that comes together, and that's culture-wise really, really strong. They have a land-based presence today and not really an online or digital presence. With LeoVegas, they will get that, and we will spearhead their consolidation in the industry and help them to grow on the digital side for many, many years. Again, it's when they looked at LeoVegas, it's the brand. They really believe that Las Vegas is offline and LeoVegas is online, of course. That we have our platform, which we built over ten years now, and that we have eight local licenses on that platform. We have a great team. I think all in all, we are, like, a good piece for them, with roughly 900 people at LeoVegas. Yeah. What, just a final question there on your technology. What is it about it that sort of distinguish you from others, if you could summarize? Well, it's very modern. As you know, we built our PAM during 2013-2015, so it's one of the youngest ones on the market. Many of these companies that have a technology which is from late 90s to early this century. It's a very modern and it's built in a way which is scalable and very efficient as a PAM. When I'm talking about the PAM, that's player account system, and that's our backbone. We call it the Rhino here internally. It's a strong technology and a great team that we have, and that's what not only MGM found out about, but also other people found out about that. Okay. Thanks, guys. Good luck. Thanks, Martin. Thank you. Once again, if you do wish to ask a question, please press star one on your telephone. There seems to be no further questions from the audio. If you would like to take the questions from the web. Okay. There are a few questions here online as well. Here is a question from Oscar. Will you retain Kambi as a sportsbook provider? The clear answer is yes. We have a long-term relationship with Kambi, and we are very happy with the support and the product that we got from Kambi. Yes, we will continue doing that. Hopefully they will help us now when we are entering new countries, making acquisitions. Yes is the answer, Oscar. Then there is a question from Roald. Hi, guys. Could you elaborate a little bit more on the tax payment to the Dutch government regarding Royal Panda? Will there be any additional fines or payments in the future? Well, there will not be any more payments in the future to the Dutch government. We made a settlement with them, but this is due to earnings back in 2015-2018. It's an old sort of thing that we've been discussing with the Dutch authorities. That's past and history now. That was actually the only two questions online. Do I have any more questions on the call? Once again, if you do wish to ask a question, please press star one on your telephone. You have a further question from the line of Martin Arnell from DNB Markets. Please ask your question. Hi again, Martin Arnell. Hi again. Hi. I just wanted to jump in here and also ask you just briefly on, I just saw that you did EUR 14 million EBITDA in the quarter. If you can elaborate a little bit on, I think it stood out a bit on EBITDA because the top line was fairly in line with the previous quarters or a bit above. What have you done here on the efficiency side? Maybe a question to you, Stefan. Sure. I think as you could see, the marketing spend is lower in this quarter. I would say that is the main difference if we compare Q1 and the previous quarter where we had roughly the same top line but a bit lower EBITDA. As we talked about before, I mean, our marketing goes up and down. We have a very, you know, data-driven approach, where we always go for ROI. We did spend a bit more than normal during a few quarters last year, as I mentioned before, not least with the Expekt launch. During Q1, we have had a bit of a lower spend. On the other hand, our ROI has been very good in the quarter, and we've seen good value coming in. I mean, there are a number of reasons we took down a bit of marketing in LATAM for the time being, as an example. If you look in the future, as you know, when we see the opportunities and we see good ROI, we'll invest. Of course, going into Q2, we have Ontario launching, so that will drive some more spending. We feel that we have a very good efficiency right now in the group, and we intend to continue that. If you look at that EBITDA for the quarter and if you look into the next few quarters, that sort of level where you think that you will be able to be or should it move down with your investments in Ontario and focus on recovering the top line growth given the situation in the Netherlands? Well, we don't give guidance on profits, right? As you also know, we are a growth company. That's our main ambition, to grow. We see a lot of good opportunities. When we do, we will invest. We're also investing in our personnel. We have high ambitions on the tech and product side. As Gustaf mentioned, we're creating new tech hubs. We've proven this quarter, we've proven in other quarters with our business model is scalable, and we definitely can achieve high profit margins. Our primary focus is to grow our revenues. That will scale down over time and generate more profit in absolute terms. Okay. The start to the Q2, if you could, give some flavor on the growth? I can continue then. I think as we saw, we have a fairly good April as well. If we exclude the Netherlands, we're growing double digits in April. I don't see any big shifts in trends from the different markets we are in in April versus Q1. Okay. Thank you, guys. All right. Thanks, Martin. If there are no further calls, operator, could you please check questions? Sorry. Of course. Once again, if you do wish to ask a question, please press star one. There seems to be no further questions. Please continue. Okay. With that, we are closing off this Q1 report and also the report around the offer. Thank you everyone for listening in and stay tuned for more information around the LeoVegas. If you really are interested listening tonight at 11:00 P.M. Swedish time at the earnings call for MGM. Thanks, everyone. This concludes today's conference call. Thank you for participating. You may now disconnect.