Kambi Group plc (KAMBI) Earnings Call Transcript

So hello, everyone. I am so glad to see so many people here in our Stockholm office and of course, with us through the web. Very welcome to Kambi's Capital Markets Day 2023. For those who have never met me before, my name is Mia Nordlander. I am Senior Vice President, Investor Relations. And I have had the privilege to be with this company now for almost 5 years. And time is flying when you're having fun. And I will have even more fun with this whole new strategy. I will be your host today, and we have a very exciting afternoon ahead of us. But before we start, we have some formality to cover. So I would like to remind you that some statements that we make during this presentation may be forward-looking statements that are subject to risks and uncertainties, and they should not be relied upon as statements of historical facts. We accordingly also assume no responsibility for updating any forward-looking statements made as part of this presentation, except required by applicable law of stock exchange regulation. We are not making any financial forecast or giving specific guidance to future performance. And this full disclaimer will be included in this PowerPoint presentation and available later today. So I told you we have an exciting afternoon. And here's the agenda for today. I will start to talk about Kambi who we are and what we do for those who are new to us. Then our CEO and Co-Founder, Kristian Nylen, will come on stage and talk about his view. Then our CEO, Erik Logdberg, will talk about the journey to a limitless sportsbook. And then we will have a short break for coffee. Then Cecilia Wachtmeister, our CCO, will talk about optimizing commercial potential. And then our CFO, David Kenyon will talk about growing the revenue opportunities. Then Kristian will come back on stage with some closing remarks. And finally, we'll have time for questions. And I know there are two microphones laying around here. So if you are in this room and want to ask a question, you can just raise your hand or if you're following us through the web, you can send them to me and I will read them for you. So what can we expect from today? So when we -- when you have heard us all, there are five key takeaways I want you to take with you. The first one is that we are the world's #1 sports betting supplier with a long track record of success. And also further market regulation and increased our outsourcing demand will grow revenue opportunity for us. Also, the addressable market will also increase because of -- we will start selling models in [indiscernible] products. And then we will remove product boundaries with cutting-edge algorithmic trading capability. So we have a lot of revenue opportunities ahead of us. And by optimizing the cost control, we, earlier this morning, communicated that the 2027 EBIT target of SEK 150 million -- or more than SEK 150 million, which, of course, very exciting. So who are we? First of all, we are a company with more than two decades of experience and more than 12 as a B2B. And Kambi was founded in 2010 by our CEO, Kristian Nylen, and a Board member, Anders Ström, as a spin-off from Kindred. And the reason was really to help operators overcome rising barriers to entry and increased pressure on the technology. And there were two trends in the market. First of all, live betting started to become more and more popular. And this, of course, required more investments into technology. Second thing was the regulation started to happen, which also put pressure on the operators. So by pooling the resources, we really saw a scalable and cost-efficient way to help operators to enter the market and to compete with the biggest and the best. We listed on NASDAQ First North Growth market in 2014. And 4 years later, we took the first online bet in the U.S. after PASPA was repealed. And that was big and something we're really proud of, of course. And today, we have more than 1,100 talented employees across 8 countries, and we power more than 40 operators in more than 50 markets across the globe. So now you know who we are. What do we do? We actually only do one thing and we do it best, sports betting. And here on this slide, you see the sports betting value chain. And it starts with official real-time data. And this comes from a venue. For example, a football game between Liverpool and Chelsea and I see some Chelsea fans, of course, I need to bring them to this example. Then this data is then sent to Kambi, who proceeds with algorithmic models and of course, also our traders, both pre-match and live. And these traders are, of course, very good with understanding the sports, but also with the numbers. Interesting fact is that last year, we had 1 billion bets. That's a lot of data, right, a lot of bets. And we're up and running 24/7. So you need to have a very strong technology to do so. So within seconds from -- or at the -- we turn this data into seconds -- we turn this data within seconds to odds and that is not easy. And of course, we also need to make sure that the odds is accurate and that we're following the regulation in the market. For example, here in Sweden, it's not allowed to offer bets if the majority of our team is under 18. So that's super important. But of course, it also needs to be easy and fun to find the option to place the bets. But it's not Kambi that makes the transaction with the end users. This goes through the operator and the operator had the flexibility to make it look completely unique to attract end users. So they can place the bet with a favorite operator. So give you an example here, again, let's say, I want to bet on this Chelsea game. I want to do a combination to use something we call Bet Builder. And there, I can combine correlated selections. And I will actually naturally, if I could bet, but I'm not allowed, an operator that have Kambi as a sportsbook because Kambi has the best product out there. It is very, very difficult to do this. Even one of the -- some of the biggest operators out there, they are using suppliers. But Kambi sportsbook is so good. So we actually recently won an award for the most innovated products. That's impressive, right. So let's then take this example again. Let's say that I want to bet on Chelsea to win, Kai Havertz to have over [indiscernible] shots on target and more than 3.5 yellow cards in the game. And this is a very fun way to bet because you can actually win more, you multiply the votes and it's getting more and more popular out there. So back to my bet, I will go to the operator and place my bet. There's actually also where I make the payment, but it's Kambi that process these. It's Kambi who does it. And then when the game is over, the bet will be settled, and my money will be on the account with the operator. And since the start of Kambi, we knew that operating in a sustainable way was crucial to become the market leader and the best supplier of sports betting technology. And therefore, since day 1, we have operated our business in a fair and sustainable way. And on this slide, you see an overview of our strategy, and I will cover the three most important areas here. And the first thing is sports integrity. And the foundation of this industry is built on trust that the sports is played in a fair way. And any breakdown of this will have huge implications. And therefore, protecting it from sports manipulation is crucial. And we work closely with our partners, our suppliers, and of course, regulators and we educate our employees to build awareness and to detect signs of sports manipulation at the earlier stages. Secondly, we have cybersecurity. And as a technology company, information security and mitigating cyber-related risks are very important. But we're already doing a really good job here, but we need to constantly improve ourselves, and we do that through employee training and robust sophisticated process in place. And then finally, people, diversity and business ethics. We only recruit the best talents without any other considerations. And by upholding business ethics, we also achieved the highest level of diversity and to key to success are our people. So we want to have an environment where all our employees can excel and thrive. So to summarize, being a sustainable company has been in our DNA since day 1. And a rating institute, MSCI, recently upgraded us from BBB to A. And we will continuously improve ourselves, and that will make us the #1 sportsbook supplier in the world, which [indiscernible] of course. Over to you, Kristian.

Thank you, Mia and thanks for a great introduction. Good afternoon, everyone. Great to see so many faces. I mean, this almost feels like pre-pandemic, where we actually met a lot more people than we used to do in the last couple of years. I will start a little bit with just having a very short recap of 2022, of course, without any numbers. We will have a quarterly report in a few weeks' time. But just to set the scene in a little bit, and then I will start setting the scene for what Erik, Cecilia and David will talk about our new strategy. So I would say, 2022, after a few quite, say, eventful years where we had a few customers who left us that was quite big, pandemic that we had to go through, I think 2022 has been much calmer year. We could really focus on the business again. And I think we have had a great commercial momentum during the year and also as we will see soon, we have really focused on -- develop our strategy going forward. So we renewed the contract for three of our largest customers. Rush Street and betParx works to our most important customers in the U.S. market. Very pleased with those renewals, and of course, also Kindred, which is probably our most important customers since we were founded back in 2010. With Kindred, I would say, it was very important for us to feel that we had a long-term commitment and now we are tied with them for, yes, when we signed it for 5 more years, but now it's 4 more years. At the same time, we also communicated that we have achieved the financial targets that was set out for us to do an early repayment if and when we would wish to do so for the converted bond. During the year, we did a record 10 signings, most signings we have ever done in one single year. I will not mention so much about the different companies, but the one I would like to mention just a few words, and I will talk much more about it in a few weeks when we have a Q4 report is Rei do Pitaco, which was our #1 target in our Brazilian market. I commented before that we really struggled to find who will be the leading local players in the Brazilian market. But with Rei do Pitaco, we believe we have a really good shot of taking a great market share in Brazilian market. They are, say, Brazilian DraftKings or Brazilian FanDuel. We're doing fantasy sports for the local market in Brazil. So it should be an operator who can really do some good in the Brazilian market when it eventually opens, of course. We did, I would say, a remarkable 60 launches during the year. On an average month, that's 5. And I can tell you that it's not always it is 5 in 1 month, some months it's much, much more. I think this is outstanding and just shows the capabilities we have. And yes, we have a fantastic team to work with integrated new operators and launch in new markets. Of course, you can't do a recap of 2022 without talking about the World Cup. Again, I will not talk so much about it, but it was kind of a strange situation. We have never had a World Cup in November and December. Obviously, it's much, much better for any sports betting company when it is in the summer because summers nothing really happens when it comes to soccer. But I must say, I think it was an absolute great success as a football fan. It was an amazing tournament as well. It's hardly ever seen such good football, I must say. But for us and our operators, I would say, but we had a really, really good tournament. I think we displayed an amazing product. Erik will talk more about it later, but the expanded Bet Builder we had for World Cup was really, really good. We were only one able to have instant betting on penalty shootouts as far as I know at least. And mainly -- most important is that we really started to test our new third-generation trading on the World Cup. Only pretty much so far, but the results are amazing so far. And again, Erik will talk more about it soon. And of course, the final was a new record for turnover on one single soccer event. During the year, we also did an acquisition of Shape. I think, for us, this was something we're really looking for after analyzing the market. We have seen more and more, but our customers are demanding native apps. We have not had that capability in-house. Some of our largest operators have done it themselves or we have been able to give our operators rapid version of HML 5 client. But we have Shape Games, I think we take a massive step when it comes to actually being able to give customers an even bigger and better solution for front ends. In the U.S. market at the moment, I think roughly 90% of all U.S. mobile users are choosing apps over browsers. So it has become very, very important to have this technology in-house, I would say. This technology will be sold stand-alone. Shape -- we will not require any Shape customer to use the Kambi platform. But of course, I mean, for us to be able to add it to our turnkey solution makes a big, big difference. And it will be great for cross-sell. We have a lot of customers who are already looking at Shape front end. And as an example, the recently signed BetCity. So that was about 2022. I was thinking of just talking a little bit about the complexity of doing a sportsbook. And I started this business more than 20 years ago, 2000 to be exact as a trader at Unibet. At that point, live betting didn't even exist. There pretty much was more or less only betting on a home draw or away, so three outcomes. Systems were highly reliable and it was quite acceptable but the system was down an hour on a Saturday and everything was operated dot-com. So I mean you didn't have to think about regulations at all. And I think why I'm telling this is I don't think and people understand how complex sports betting actually is. Today, we are processing more bets on a daily basis than Amazon are taking orders. We -- I think Mia said that we are close to 1 billion order changes on a monthly basis. Order changes that's on a monthly basis. We are operating in more than 50 different regulations. We are translating real-time data from -- on an average day, probably 1,000 different locations. In real time, translating it to probabilities publishing it to odds. And we have professional [ prompters ] that's taking -- trying to take advantage of this. All of this we are doing 24/7, 365 days a year. So if you compare to stock exchange, for instance, they can have service windows every evening and -- or every weekend. All our systems has to be upgraded and updated when the systems are operating. I would say, it's such a massive complexity. And I would say most who are trying to replicate what we have are failing massively. We are the clear market leader, I would say. And we don't really benchmark ourselves compared to B2B market even. What we manage our product against this Flutter and Bet365, which I think is probably the two only operators who have product that is on par with what Kambi is doing. And for us, it's kind of obvious to do a benchmarking against them because that is a competition our operators are facing on a daily basis. Erik will talk about soon, the third-generation trading, I hope and think that we have a good chance of actually taking a leap and being better than both of these companies as well. During the last 12 years, as Kambi, I think we have built an amazing brand as well. Just being consistent provider with a very, very high quality, I think, and with Gerard's team, building a great brand. As you can see here, we have benchmarked ourselves to our biggest competition at the moment, in a research together with [ SBC ]. When the gaming people are asked aided almost everyone know that can be as a sports betting supplier. But more remarkable is what unaided. More than half of respondents actually know about Kambi. And as you can see, almost no one knows about our competition. So I would say we are in a great position as it is. What we have seen, and I guess now coming in a little bit on why we are changing a little bit on our strategy and why we think that there is a reason for us to tweak it a little bit to make everything even better. Of course, some Tier 1s have been outsourcing, I think, only by acquisition really but still they're in-sourcing their products. Having said that, there is no one who do everything in-house, not even Bet365 any longer. They have signed a deal with [indiscernible] recently. So no one is doing everything in-house, and I think that is really, really important if you look on more mid tiers and new comers in our market which is really important especially in U.S. and LATAM at the moment. They demand a turnkey solution still. And that will not change going forward. So somehow, we need to evolve to fit both types of customers. And I think we started talking about this, a long time ago, about modernization. And I think most, obviously, we will have -- be about how we can handle different customers. The future, I'm pretty sure that even with Tier 1s, we will start outsourcing more and more. And for us, I think it's really important to get the relationships with the Tier 1s now. Because if we have Tier 1 operators on a little piece now, we will get more pieces when the industry progresses. But if you look at any industry in the world, outsourcing is always where people end up when we need to reach profitability. So why do we believe that outsourcing will increase. First of all, it's just more and more regulated markets. And in regulated markets is becoming tougher and tougher conditions to follow for operators that usually means less profitability and also more and more technical pressure. For us, I think we like regulation. We're good at it, and it gives us more and more opportunities. The macroeconomic outlook, I mean, we all know where we are, rising inflation, rising interest rates. It's becoming tougher to have fixed costs, and we can help the operators with that. With Kambi, they can pay commission on the revenues rather than having fixed costs in-house and investors demanding profitability. In all cases, I would say, we can help with that as well. I heard some operators talking about saving money by doing it in-house. I would say that is never the case. There is not one operator in the world, but I wouldn't be willing to give a price, but made it cheaper for them to do it with us than do it in-house as long as we want a world class product, of course. Then if you look at the internal pressures, it's a massive gap for most, except Bet365 and Flutter, to having a great product. There's two ways to solve that, however, we have to spend even more money and it will take you a long time to close that gap or you outsource. Players are, of course, gravitating to two of the best products. It's one -- two ways to solve that, have a great product or retain them with bonusing. And finally, a lot of legacy tech is failing. You can't compete. It's so slow, so you can't really get to a situation where you can compete with a product anymore. And in many cases, they are restricted and can't enter new markets because they can't get their tech to deliver regulated offering in a new market. Last year, on the Capital Markets Day, we were talking already about what we were thinking about when opening up a platform. I'm not sure we used exactly these wordings, but what we definitely have been trying to do is to open up our platform to give more control to operators on deciding on their product, creating independent stand-alone services of two reasons: One, it makes our technology much, much more efficient, and we can work on different things at the same time in a much, much more efficient way. And of course, with that, we can also create stand-alone services. Of course, we bought a few stand-alone services as well in Abios and Shape, but we will see more and more stand-alone services going forward in our modernization. And with more focus, we can also become market leader in different areas, both when it comes to a platform and different products that we can add on top of the platform. So my last slide, and then I will hand over to Erik and Cecilia and David to explain this even more in detail. But what I hope we can show after today is, yes, how we can increase our addressable market by opening up the platform and provide stand-alone services, how we will continue to grow anyways because there is a lot of new markets and a lot of new opportunities out there for us. And finally, how algorithmic trading will make us taking a great leap and give us a unique USP in the future. Thank you, and I hand over to Erik.

Thank you, Kristian. Hi, everyone. My name is Erik Logdberg, I'm COO here at Kambi. This industry, I think, is up for quite a few very interesting challenges the coming year as it's getting more and more mature and as it's moving towards what we call the limitless sportsbook. The limit less sportsbook, we mean as a sportsbook, we're moving towards something where you can bet on anything at any time. And with our new strategy, we think we're achieving two things mainly in this environment. We think we're setting ourselves up to create value in several areas of the sportsbook better than anyone else. And we're also setting ourselves up to deliver this value in a multitude of new ways to fit this specific operator and customer challenges that will come up there. And I plan to talk about how we are going to do this. I want to start a little with a helicopter perspective of the changes we're going through here, scale, modularize, scale. As you know, 2010, we were once modularize, I guess, you could say. We were broken out to really focus on the sports betting opportunity only. And for most part of our journey, it's been a journey of scaling, scaling across countries, across channels, across customers and across new products. This has taken, of course, a lot of investment in time and money to achieve this. I think most important for us is required a really clear eye on the target, a clear eye on the scalability target. How we have been operating has been that no opportunity really during these years could ever be more important than our system and business on scalability. And I think that is what has taken us to where we are today. We have with a relatively lean organization compared to the big in-house books Kristian just talked about managed to stay in the forefront of sports betting. And that is because of this conviction we have had to build one solution for all use cases in our business. I will spend most of my presentation today, of course, on the last part here, scaling modules and what happens to 2023. But I want to stay a bit on the opportunities Kristian briefly mentioned that we saw back in 2020 when we started formulating our new strategy. We saw, of course, we had this great technical momentum of scalability, but we saw there was an opportunity -- there was a chance for us to take on new opportunities now. We had reached a type of scale and product competitiveness that we could afford to look wider. So we saw opportunities if we could create a more open service, we could allow our operators a great degree of differentiation. We saw that the assets we were creating as part of the full turnkey could really be valuable to anyone in the industry, not just as part of a turnkey context if you can find a way to take those also outside the turnkey. We saw huge market opportunities. And thirdly, we started seeing how sportsbook production essentially would change from the ground up. And if we could find a new level of focus internally, new innovation power, we would have the chance to be the first to really leverage new technologies and take a leap. So question was then, of course, how do we continue to ride on that technical momentum that we had on a scalable platform while also capturing all three of these opportunities. So what we did, we started to break our service up in product modules, on a high level the product modules were trading, the bet platform and the user experience. And we set two missions on each module: First one to provide the best service possible within their respective area. And the second one to seamlessly integrate to each other, of course, to deliver the turnkey, but also to integrate to third parties, to external parties. So for instance, we tasked our trading module to be able to integrate our own platform, of course, but equally be able to integrate to other's platforms and vice versa. The platform would be able to integrate to our trading module, but also to external trading modules. So we set a goal for ourselves back then around 2 years ago to go through with this separation, but then in time for the World Cup, come together again through the new integration phases and operate in a modular fashion. And as we heard, we made that goal. I will admit it was a small margin, but we made it and we delivered a fantastic World Cup. For our players and partners, this was totally seamless. The only difference they would have seen was a much stronger soccer product, but they still have the same stable delivery from the turnkey. But behind the scenes during World Cup, things actually work pretty different. We worked in a modernized way. So as we move forward now and start scaling into each of these three areas, building on those products and that new foundation and strategy we have, the turnkey continues to be absolutely crucial here. The turnkey is where these modules will come together and evolve and test new products and they can do all that without replicating costly capabilities such as regulatory compliance or data. And that makes it quite unique our strategy that we both have these modules, but we still have them in the big turnkey context with 5 million active players, 1 billion bets, 1 billion order changes is a lot of information that is valuable for all parts here as they're going to evolve the products. So I'm going to go through now the three areas, the platform -- I will start with the platform, then go to trading and then last user experience where we're headed in each area. So sports betting is probably most of the times associated with the odds, the probabilities, the bet offers. But actually, at the center of everything is something else. That is the bet platform. This is where you have all the regulatory compliance. You have the risk management, you have the bet acceptance. And this is where we really set the standards for how everything is orchestrated together. It's, I guess, the bank system of sports betting. It's the place where things never can go wrong and when the transaction load is very high and like Kristian said, it is always on. It's a big challenge to create this platform. Many have tried, most have failed. I think even bigger challenge is probably to, over the years, keep adapting this platform. If you look back to 10 years, there is sort of new things like mobile coming, cash out, the cloud, the Bet Builder, the new regulations, every one of these items, they really start asking difficult questions on the platform. And your challenge is to move the whole platform with you into these new products or countries. And what you often see around us is how company starts spreading their business on to several platforms and become a retail platform, it becomes a U.S. platform. It becomes a future platform, but there goes to scalability and then you become slow and very expensive. What we have done very successfully is to really manage to stay on this one same platform, although everything around us has changed. We have taken the platform with us through all these changes. So today, we operate 5 million active players across more than 50 markets, 6 continents, more than 50 partners, and we do this on the mobile, on the web and on retail and it's all from the same system. So anything we invest in this now it comes to the benefit of all stakeholders. Like Kristian said, we did 60 launches last year. That is actually mostly across the departments I had -- I was really surprised when I heard that number. I barely noticed it. And that's because it's so streamlined, automated, and we have solved these problems already somewhere in the world, and we just reused them, so we can spend most vast majority of our investments on innovation, product development because of the scalability. So what does it mean then the modernization strategy in the context of this bet platform? Well, it means that all the great things we heard that this platform is doing, it will continue to do, but we can now also do that with others. And the point of that, of course, is customer differentiation, handing more control to our customers. They get to decide more what goes into this platform, and they get to more decide how to package what comes out. In short, for us, the big change has been two things. It has been to create two interfaces: One we call the trading gateway; and the other one we call the user experience gateway. Our user experience gateway is very mature at this stage. I think in many aspects, it goes faster and cheaper for our customers to develop user experience on our platform than it does for their competitors on their own in-house books. The trading gateway, of course, was what we now went live with during last year. And World Cup was really the major milestone for us that we show that this now works, systems separated trading and platform. Going forward now with the trading gateway, it will be about expanding it, optimizing it to our internal trading units, but also to start taking in external trading, operators or third parties onto this platform. Bottom line here is that this gives us a greater commercial flexibility, more optionality for us in commercial to design packages like a specific operator situations. So having gone through the platform, we move over to the trading. So trading is what we mean by that, that is the production of the sportsbook offering. It's creating all the markets, all outsetting the probabilities. We think we are in a fantastic position here already, like Kristian said, there are a few B2Cs that are up there with us. But we also think with third-generation trading that will come to, we have a good shot at taking a leap even further away from any B2C or B2B competition here, and we'll get to that shortly. First, it can be good to understand how we think about trading and the trading strategy, I guess. Players will -- end users will, to a high degree, choose the sportsbook that best can entertain them, right? This is entertainment we're doing actually. And the first thing to know about trading in the sportsbook as opposed to what it may sound like is that this entertainment, it is created from the trading function. The more sophisticated your trading function is, the better you will be at entertaining. And I want to illustrate this with an example. We see here is a graph that shows bets per minute during Croatia, Brazil in the World Cup now. The game went to penalty shootout. And you can see how during the relatively short time period that the penalty shootout actually takes. We took 20% of all the bets on this game only during that period. And why? It's because that's when it's exciting to bet. I mean even if you're not a better, maybe you watch the game, you know that your heart rate goes probably twice as fast doing that penalty shootout [indiscernible]. And so it is with betting as well. That's what you want to bet. The thing is, though, the more exciting it is, it is also harder to actually trade this, to get precision probabilities during this penalty shootout is very difficult. I mean you're down to the mental strength of one person that decides everything, right, compared to [indiscernible]. We have been in that situation a million times, that's very easy. But if you don't get accuracy in your probabilities there, you will present end users a very bad product. You'll take down your offering as opposed to what Kristian mentioned, we expand the offering there. You will take down your limit, you will reject bets and you spoil the entertainment. So that's, of course, a rare example. We don't have Croatia Brazil penalty shootout every day, unfortunately. But the point is every day across the world of sports, you have thousands of these little moments. Just think about the breakpoint in tennis. Same thing, exciting, difficult to trade. Think about you have bet on corner and ball starts rolling towards the corner flag. That's when you want to cash out. You don't want it closed. And this is what costs and this is what becomes complex in sports betting. We invest a lot in our organization algorithms to keep this exciting offering open all times, always available, allow high stakes, keep fair and high odds to the players and take away any friction. But there's still a lot to do. I mean, we've been optimizing this for 10 years. We still improve significantly on our KPIs every year by iterating, iterating, becoming a better trading organization and better tooling. So trading quality, important, of course, features is another thing that is key within -- for the trading to produce. Bet Builder, as we heard, it's when you combine two bet offers within the same event. That has been the battleground of sports betting for the past 4 or 5 years or so. And you can see why our leading product now, we have 40% of our active customers, they use this product regularly. It now accounts for 15% of our total revenues on pre-match and probably big games, you get much higher than that relatively. And it's a new form of betting. And I think it's fair to say it's by far the most difficult thing, the trading functions and sportsbook maybe have faced the last 10 years. Vast majority of all operates in the market, they actually haven't pulled this off. They outsource this to a third party. We took around 5 years ago, a strategic decision and said, this is really going to be the norm. This is just going to be expanding, expanding. This is the new way of betting. We need to change both our platform and our trading system quite significantly to be able to get speed in this type of development. And that's what we really picked up now. We were first to launch what we call the multi-builder. It gets even worse. Then you're combining a Bet Builder with another Bet Builder. We were first to launch that. I think we were alone in the market probably for a year or so. For us, now, this takes up 70% of the total Bet Builders or multi-builders. So, of course, this being a product on the market that to a high degree, already is outsourced, us having a big edge here makes this a very interesting case for us to start selling also as a separate module outside the turnkey. And I think it's a great example of what you see of a product being evolved within a turnkey context, the type of level you can reach there with experience and with the data and with the feedback loops, as opposed to products being evolved outside the sportsbook. Another great edge we now have within trading is esports with Abios. We acquired Abios in 2021, actually not long after we formulated our new strategy because that new strategy made it more interesting for us to look at M&A. It was easier for us then to see how niche specialists really could contribute to the full ecosystem. And that's what Abios does. So they are a specialized organization in their specific domain of esports, of course. They really benefit from Kambi's scale. And on the other hand, they will contribute to Kambi, adding an edge into our turnkey service. We believe esport will be more and more important, maybe we'll be a top 5 sport or so. And I think important part of that is if you're a top 5 sports -- yes, maybe that's 5% of revenue, something like that, it's pretty good. But also if you're the top 5 sports, probably 30% of the end users every now and then use that product. And that's where you really want differentiation because that many end users will actually choose your sportsbook because you have an edge in that esport. So Abios deliver trading and odds and widgets and streaming. And they do that within the Kambi network and also outside. But the biggest focus is on trading to lead in the industry on esport trading the way Kambi is leading on traditional sports. And they certainly have the proprietary data to back that up. And now they combine that with Kambi's data as well. They will go live in Q1, both on the Kambi network and with their own partners with our new trading product. Okay. So Quality & Trading creates a higher degree on entertainment. The bet pillars and the esports, those are examples of why we are ahead already in this market. Third-generation trading then is our big bet for the future. It's something we have not talked so much about up until now because it was a research project that actually been going on for a bit more than 2 years now. But then with the success in World Cup, we are now confident that our plans and our strategy and the systems here will hold up. So we want to share a bit more what this actually is. So to understand third gen, we first look at second-generation trading. Second generation trading is what most out there do today and what can we do as well to a high degree. It's a pretty advanced system. You will have algorithms in that setup that have been evolved and optimized for 10 years, machine learning and all that. But the thing is that the human is still somewhat in the center. Human oversees all the information flow and human essentially drives this algorithm with a set of parameters that the human can understand. But what happens then when the product gets more and more complex? We're building up more and more data internally. From the stadiums, we're getting more and more data, down probably to the XYZ coordinates of every player and every ball. What do you do with that? Yes, this bubble of information absolutely explodes, and it becomes impossible for the human to process this. So the eye opener here is that we have to change the process. It cannot continue around the human if we're going to take this further. We have to build this process around the algorithm itself and that's third generation. If we build it around algorithm, we can work in no exaggeration, we do dimensions a million times bigger than the type of parameters set that a human can work with. With today's computing power, there is no limitation almost what you can do. But what we do then instead is we bring in the human right at the end here, and we'll let the algorithm ask the human the questions the algorithms can't answer, which typically will be where the data set is not rich enough. Humans are amazing to solve those type of problems. So why does this matter? Well, take it back to our trading strategy. Essentially, it's about this. if we can use that bubble of information that is 1 million times bigger, we can deliver on our trading goals far better. And when we do that, we can take away all those boundaries for the end users in what you can bet on and how you can bet towards the limitless sportsbook. So we thought to share a bit more. Actually, we, during the launch, during World Cup, we did some interviews with the teams building this. So I want to share a short video with some comments and perspective from them. Oh, and there might be some management guy here and don't mind him focus on what the expert says. [Presentation]

Okay. So to finish off on third generation here. I guess the question is, are we ahead here? Are others doing this? Impossible for us to exactly say. But when we look out there on what the products are achieving, when we listen to big companies, what the big sportsbook what they're focusing on, we don't see much of this type of third generation out there. And it probably makes sense. It is very hard to do, and it's a big risky bet to do. Gartner says that 85% of all machine learning projects fail and never reach production. And it's often not so much about creating these algorithms actually. I mean that is difficult, but there's a lot of people that can create good algorithms. It is more how you pave the way from these algorithms in your business and organization that algorithm-first approach. That is a transformation for a big part of the company. And I'm glad to say that we are among this 15% now. We're over that hurdle. I think also we were lucky enough to be in a very good position to be just the sportsbook product company, nothing more, nothing less. Because that meant we had all the data. You really need to do this. And we had the full decision power in the solutions we build. But we're also nimble enough to do transform. If you're a niche supplier not doing turnkey, you certainly can build good algorithms, I imagine, but that's just a small part. How do you fit that into the full turnkey context that we saw that was by far the more challenging part? And if you're a big iGaming supplier, how are we going to make this your #1 priority because you don't do this journey we have done unless it's really the company's #1 priority. That's for sure. So I hope I managed to explain a little bit about third-generation trading at least. Let's just look at some impacts we see already, early signals. So we launched it during World Cup to go over all the pre-match. Now it's running the top 4 or 5 leagues. And we're quickly adding more and more leagues as we go now during Q1. Deploy props betting and so being bet on the actual player, Messi, to shoot on target, that type of thing. It went up to 16% of the total turnover because of increased quality in the product and broader offering. And actually, we could see how competitors started following our prices. The Bet Builder went up to 24% of the total turnover because of the increased entertainment value in the offering. It should be said, those two things you do in second generation as well, but you don't do it with the same quality. And you don't have the same possibility we have now to iterate fast further and improve. The third one, full product published in 90 seconds, that you don't do in second generation. When the final whistle blew of the group stage games in World Cup, we click the button and in some extra checks probably, in 90 seconds, the playoff games were up with a full offering, the 500 bet offers or so. That used to take us 5 hours at best, and it takes our operators' competitors still 5 hours to do this. So those are some early signs showing us that this really is something else. And now going forward, probably the most exciting thing is that we more and more can scale now with data, not with people, not with building heavy systems, heavy, costly. It takes time. That goes exponentially faster, that type of scaling with data. So that's trading and third-gen trading. My last section is the user experience. User experience is more so than any other area, I would say here is about differentiation. It's very important. And that is a challenge, of course, being a scalable business, how do you supply that? We have since long introduced a developer platform. If operators want something very different, if something needs to be very different localized, we have the development platform where they can build this themselves. But as we saw with the trading that we have a unique position for our trading as part of this turnkey context, we could see the same with user experience. We could see that we could aim higher here in our own user experience going forward. But we needed to complement our capabilities. So we have a multichannel, multibrand platform. It delivers great experiences on the core sports betting journeys. And we have this development platform, of course, where we can create your own client, parts of it or all of it. What we didn't have was a native app service. And as you can see here on this slide, special with U.S. that had become more and more important. The American consumers across all industries, they are on the mobile, like most, but on the mobile, they almost never use the browser. They consume everything through apps. Another thing we didn't have was the ability to deliver really bespoke user experience for an individual operator, create bespoke features. We could let them build it themselves but often what we saw more and more, they want us to build it. And we also saw opportunities in other areas around the core sports betting [indiscernible], not just personalization, such as gamification. [indiscernible] Shape. So Shape really ticked all these boxes that we were missing for. They had a modular app platform. They could deliver full native apps, but they could also deliver components into someone else's app and they worked a lot with bespoke user experience. They had a scalable platform, but they could do bespoke branches of that for each operator and that we thought was very valuable to add to our portfolio. And we also had a great portfolio of site services such as personalization and social and gamification. So like when we added the third gen to the trading, when we opened up our platform, this was the missing piece in the -- on the UX side, the Shape added, so they also could go for product leadership in this area. I would think the challenges will be pretty big here. Also for us, as we move into India and Japan, you can imagine, there might be quite different requirements all the way to data costs in markets like that or to very different experiences might be required and not least the limitless sportsbook how are you going to be presenting that type of offering? During the break, actually, we'll play you a short video from some ideation about how the third-gen trading and the limitless sportsbook might affect the user experience, you can look at if you're interested. Finally, then, to sum up we believe that a big part of the market will not get close to the type of level that we think is going to be needed in these three areas with the third-gen trading, with adapting this platform to the continuous new requirements that comes from product and regulations or to keep delivering relevant user experiences cost efficiently down to a localized level. But we believe with modernization that we have a really good chance of doing this best in the industry and that the modernization, we can also then deliver more bespoke solutions to the specific operator challenges that will come. So I'd imagine these are interesting times being in the commercial organization. And Cecilia will tell you all about that after the break. Thank you. [Break]

So welcome back, and I hope you all feel energized now after the presentation of Erik, when he went through how we are now going to open up our platform and modernize our services. And I can honestly say that I have never felt more excited in my role as the Chief Commercial Officer for Kambi as I do today, because this opens up fantastic opportunities for us. And what I'm going to do now is to walk you through how we intend to bring this to the market and capitalize on those opportunities. Oh, it's me doing that, yes. So what this openness and modernization strategy allows us to, is to create targeted offerings for different customer needs out there in the market. And we have created these three targeted offerings that can be complete, can be flex and can be select and can be complete, that is, in essence, what we're doing today, our full turnkey market-leading offering, which suits operators that want to rely on a completely and market-leading completely outsourced offering or solution. With Kambi Flex, that is basically our open platform with the mix and match of different Kambi services on top of that. And this is a perfect solution for those operators who have a wish of a more open and flexible approach. For instance, those operators who want to do some of their trading in-house, but still rely on a market-leading high-quality sportsbook from Kambi. And finally, we do have what we call Kambi Select. And this, we think, will be a very appealing offering to those operators who have their own tech stack in-house, but for whatever reason, and as we heard from Kristian also, all operators do outsource to a certain degree and maybe they want to leverage some of our market-leading individual services. So if we look a little bit more in detail what those kind of services can be? Well, it can either come from our traditional Kambi trading services, pricing and trading services, but we can also offer services from our UX side, powered by Shape Games that we just recently acquired. And also we have from our esport, Abios, various suites of different services that could be offered as individual modular services. So from the Kambi Trading, we can offer whatever odds feeds, it could be local feeds, it could also be the Bet Builder that Erik was talking about, it could be instant markets. And we know that this is asked for because as we've heard, many operators have not been able to develop, for instance, Bet Builder in their in-house development and have had to turn to other solutions on the market. What we also can offer, and which we think will be extremely exciting, is our third-generation algorithmic trading that Erik went through. And this, of course, as we heard, will be a game changer. And for those since we believe that we do have an edge here, we do not foresee that anyone can come close to any such offering, at least within the foreseeable future. And when this becomes a norm or when we start to roll this out on a broader scale, this will immediately become a requirement on the market. And so those operators that cannot do this on their own, they will fall behind. So we think that this will also be a very highly sought for an attractive service to acquire from or outsourced to Kambi. Moving on to the UX and Shape Games. And they, of course, can provide an out-of-the-box front end. But as we heard also, they are working with various operators around the globe to develop very bespoke from these two different operators that are unique to them. And this will become even more important because, first of all, sports betting is transforming into becoming an entertainment product. The betters wants to be excited and they want to interact with our sportsbook and they want to interact also with other players, which they can do through the engagement tools that Shape Games is also offering. And not least, like Erik also was telling us about, when we now start rolling out this limitless sportsbook, a really powerful front end and how that is going to be presented is going to be key. So we think that with Shape Games being the clear market leader in this domain, that this will also be a very highly attractive service to outsource or to -- for us to sell to different operators. Finally, we also have something that we call free to play, and we have great experience from here. This is basically that you can let operate -- or players place bets, but in pre-regulated markets. It's not real money betting. And I can give an example here. We have our partner, Jack in Ohio, who just recently, now beginning of January, launched for -- with real money betting. But 12 months before that, they have been using the free to play. And hence, they have been able to build up a huge customer database. So obviously, they had a head start against other competitors in the Ohio market now when real money betting opened up -- finally opened up. And if you think about, there are many, many big markets yet to be regulated, such as Brazil, India and Japan. So if someone would like to get a head start in those markets, that could be a very interesting offering. Esport that is something that really starts growing now, and we see that we'll have a huge potential. There is a wave of regulating esports and Abios can offer range of services, such as feeds, odds or widgets for operators to complement or enhance their sportsbook with and to attract esports players. And their odds are really targeted to esports fans, and they follow all the major leagues -- esports leagues or esports tournaments, sorry, around the globe. And they do that on the fastest data available on the market. So we think also here that operators would like to tap into these services in order to broaden their sportsbook and attract esports players. Now with these offerings, we obviously have a mean of addressing a wider range of operators than we have been able to address previously. And if you have a look at how the sports betting operating market looks like, we can broadly divide that into 3 different segments. We have what we call the select outsourcing and the partial outsourcing and the full outsourcing. And as you can see, we're mentioning outsourcing everywhere here because the fact is, as we've heard several times here today, that no one is really doing 100% in-house. Everyone tends to outsource at least some parts. And the select outsourcing, those are typically the major, big players, the Tier 1s of the world. They own their own platform, and they manage most of the operation of the sportsbook in-house, but outsource selected parts of it. In the partial outsourcing, sorry, I'm also going to say that just because of the pure size of them, the Tier 1s, our estimate is that they represent around 50% to 60% of the global gross gaming revenues of the world. Going to the partial outsourcing. These are the operators who do not have their own platform in-house. They want to, and they are happy to outsource that, but they do want some openness and flexibility, such as maybe providing their or doing some of the trading themselves or maybe complement the sportsbook with other third-party bespoke offerings. And this segment represents around 20% to 25% of the global GGR market according to our estimates. And finally, we have the full outsourcing segment. And this is where Kambi has traditionally been targeting. And these are the operators who want a fully market-leading, full turnkey sportsbook. And this segment represents 20% to 25% of their global GGR. Now if we match -- no, sorry. So this is obviously the segment where we have been focusing, and we have been doing a very good job in that. We are the undisputed and clear market leader in the full outsourcing sportsbook segment. And I mean, the proof point of that is not only we have signed -- we have around -- or more than 40 customers, we are present in more than 55 jurisdictions. And we also have numerous awards that have been dedicated to us. But we think now that it's time for us to broaden our horizons and to address also other parts of the sports betting market. And that is exactly what our modernized strategy or modernization of our product is allowing us to. So if we map those offerings to these different segments, we can see that we are now unlocking the 75% -- the remaining 75% of the market. So it can be complete, we will, of course, continue to engage with those customers who want to appreciate and value a full turnkey sportsbook solution. And with our Kambi Flex, we will now be able to engage with those operators who also want to leverage our world-leading sportsbook platform, but who wants to do some of the trading in-house themselves or manage other parts of the sportsbook themselves. And finally, we now have, with our Kambi Select, interesting and appealing, stand-alone services to offer to those operators who do have their in-house tech stack and manages a lot of the sportsbook themselves. So now I'm going to deep a little bit -- dive a little bit deeper into each and every one of these segments and explain how we intend to leverage on those opportunities. So let's start with the Select Outsourcing segment. And just to remind ourselves, these are the Tier 1s. They do have their own tech stack in-house. And predominantly, these are the Tier 1s of the world with huge or long -- several years of sports betting knowledge or it could be all leaders in mature markets, but what they do have is their own tech stack, but they do actually also outsource some parts. And our estimation, based also on external data is that, on average, 10% to 15% of their GGR is derived through outsourced products. And this is obviously where we want to tap in. And that's where we believe that we have some interesting services to offer these operators in forms of our pricing and trading services, our UX services that I went through and our esports services from Abios. But another interesting factor of this segment in our view, at least, is that we believe that there is a potential or there is a likelihood that this portion of outsourcing, which currently is 10% to 15% of their GGR, actually has the potential to increase. And why do I say that? Well, first of all, as market matures, and competition intensifies, it will be really important. You will need to have a leading product in order to be competitive in the market. And we are seeing already today that many of these Tier 1s are actually struggling with it. Most of the Tier 1s haven't been able due to the complexity to develop their own Bet Builder. So we believe that product innovation will continue to drive further outsourcing from this segment also. Also looking at the complexity of regulatory environments, which is constantly increasing and for each jurisdiction, you're adding to your tech stack, puts another layer of cost and complexity to your own sportsbook platform. And that brings cost, of course, and it's time-consuming and complexity. So -- of course, both to keep up with competition in product innovation and to keep up with all the regulatory environments and those changes, that has a cost in itself. But if you fail in any of those and go late to market, either with new product features or come late into a market where you want to establish a position, that has a huge opportunity cost. So -- and that is a risk we believe that those operators would like to avoid. And finally, cost of capital is increasing. Macro factors are shifting to profitability. So there will be increased pressure on operators to show cost efficiency. So we believe that many operators will start to reevaluate what really is making sense to do in-house and what is maybe more cost efficient or maybe that I can obtain higher quality by outsourcing parts of the sportsbook or some services of the sportsbook. So we believe that it's neither sustainable or cost efficient for operators in the long run to do everything in-house. And therefore, we think that there is a probability that this portion will actually increase even in these Tier 1 segments. So why do we believe that we -- what are our USPs or why do we believe that we will be successful to address this segment of Tier 1s who has their own sportsbook in-house? Well, first of all, it all boils down to the quality of the product. If you don't have the best NFL product, if you don't have the best soccer product, if you don't have the best Bet Builder product, you will fall behind competition. And that's actually what we're seeing today. I've said it numerous times, but I will repeat it again. Many of these players have, due to complexity, not been able to develop the Bet Builder. And since a Bet Builder functionality is of such high demand out among the players, they have been looking to other solutions to in-source. And our Bet Builder is the market-leading Bet Builder. And it is that because we developed it from the basis totally integrated within our sportsbook. And that not only makes it consistent with the rest of the sportsbook, so we have the same probabilities in our Bet Builder as in single bets, but it also allows us to add new sports at a very rapid speed. And this is also what is being recognized. I mean we're really proud to have received the EGR Award for innovation, for our Bet Builder. And the motivation from the judges were that our Bet Builder showed true innovation and differentiation and also that outpaced most of the major U.S. operators. So we are happy to bring this as one of the services that we can offer out to this segment. Furthermore, we've heard here that we believe that we are the pioneers within the third-generation algorithmic trading and that this will really change or be the game changer in the market. So with -- if operators -- once we start to roll this out on a broader basis, there will be sort of a market demand for this. And for those who cannot do it in-house or solve it in another way, they are risking to fall behind. Because with this third-generation trading, as we heard or algorithmic trading, this can create the limitless sportsbook. And that is what the market is going to demand. Furthermore, with Shape and Abios, we do have the true market leaders within those segments, which is, once again, showed by different awards that they have received. Shape Games really can offer this front-end true differentiation with their front-end products and engagement tools, which are going to be more and more important because the sports betting is becoming an entertainment product, but also because when we are moving to this limitless sportsbook, that is what is going to be required in order to be able to present all these endless, limitless offerings. So we believe that -- an Abios, sorry, Abios also clear leader in their market. And since esport now is starting to become regulated, in the U.S., we see state-by-state considering regulations or doing regulations, and we think that, that will also be the norm in Latin America. So we think that there's an appealing opportunity for many of these operators to complement their sportsbook with these esport services in order to attract new customer database. And finally, since we are pulling our modular services from our full turnkey, we can actually put together very bespoke packages for operators. And we can meet whatever operators need there are. Say for some operator might want to outsource the Nordic sports together with Innovent combination in some U.S. sports or together with something else, we can put that together in a bespoke package to that operator. And that is very unlike other players in the market, providing isolated services because they tend to focus on one single service. And the value for the operator is, of course, that, first of all, they can fill their gaps with our different services they can pick and choose. But also, they only have to do that with doing one integration, not multiple, from different suppliers. And they don't have to manage several or multiple supplier relationships. So we're happy, and we know that we have a world-leading turnkey platform. That means that we can -- our individual modules are part of a bigger scope so that we know that they are proven, reliable and tested, and we're now happy to offer that up to this segment. And from our position, it's also a very good opportunity for us to start to build relationships with these customers, which, in the future, could lead to further upsell. So let's go into the Partial Outsourcing segment. And these are the operators that do not have their own in-house tech stack. They want to outsource it, but they also want some flexibility. I was mentioning before, it could be that they want to do some -- their own trading in some specific sports or they want to have an open platform where they can introduce services from other third parties. Typical customers we find here is, for instance, the state lotteries. They usually have their own trading organization or it could also be European -- legacy European operators who have been on their own tech stack, but that tech stack have become outdated. It no longer is either cost efficient or it's no longer can provide the functionality that they are needing. So they are thinking about moving over to a fully outsourced or an outsourced model, but they still want to keep some of the trading capabilities in-house. So for these operators, the Kambi Flex is a perfect solution where they can benefit from our proven, reliable and world-leading platform, pick and choose whatever services they want to have on top and complement that with their own capabilities or other third-party products. So why do we think that we will be successful here? Well, first of all, for operators that do wish to have some control on their own, they no longer have to evaluate the risky road of either going down to buy a sportsbook or to develop a sportsbook on their own. And in terms of acquiring a sportsbook, I mean, honestly, there are not that many options left there, at least not to the level of quality that Kambi can provide them with. And if you consider to build your own sportsbook, we can, for sure, say that, that is not an easy task and it, for sure, takes some substantial time and it's going to require some significant investments and without having any, any sort of guarantee that, that will succeed. So for those operators who want some sort of own control, the Kambi Flex is a perfect solution where they can leverage our world-leading platform and they can complement that with their own USPs, such as their own trading or their own capabilities. So they do get the flexibility that they are asking for. And many of these operators are also valuing the compliance capabilities that we are having and the speed to market since they are probably going to -- want to go into new markets, and there is the strength of Kambi. We know that we are really good in regulatory compliance, and we have a track record in launching first -- on the first day in so many markets. So the Kambi Flex really provides the optimum of two worlds for these operators that they can still do some of the operation in-house and rely on our market-leading product or platform. So then we come to the Full Outsourcing segment. And this is -- this has been the bread and butter for Kambi for -- since our inception 10 years ago. And we have done a fantastic job here. Not only manifested by the number of operators we have as customers, but also manifested by all the awards that we are receiving constantly. And operators in this segment can actually vary quite a lot. It can be from Tier 1s into -- down to new entrants in new markets, but it could also be tribal operators who have the asset of market access in terms of license for a market, but it could also be other players who are sitting on an asset -- valuable asset, such as a huge customer database and want to enter the sports betting market to leverage and capitalize on the opportunities there. Big media houses, for instance, is one example of those. But what these customers are looking for is that they do not -- they want to focus on marketing, brand and customer acquisition and not so much on technology. So they are looking for a reliable, high-quality, competitive, but also cost-efficient solution. And this is where Kambi really has been excelling in the market. So why do we think that we will be successful here? Well, first of all, we are the undisputed leader in the B2B outsourced -- fully outsourced turnkey solution. And if we think about -- and we believe that this segment of the market will continue to be highly relevant and very important for us. Because if we consider the markets that are yet to be regulated, we've been mentioning them before, Brazil, Japan, India, but we should not forget either that in the U.S., there are still around 20 states to become regulated. And in many of those, the access is restricted to tribal operators only. And for these -- in these scenarios, what these operators most probably will look for is to have a very competitive solution to a cost-efficient manner and speed to market is going to be of extreme importance. And these are what operators can get from a Kambi full turnkey solution. It is also quite risk-free because you know that the cost of the sportsbook is always going to be in relation to revenues. And that is another angle that these operators are appreciating. And in fact, we can see that operators that do choose to go on a turnkey solution often tends to be more profitable than others, and you will hear more about that in the next section from our CFO, David. And finally, one of the key assets that we have and that these operators can leverage is the full power of our network. Because we have, like we've been saying, over 40 customers in 55 jurisdictions and the amount of data -- real-time data that we collect from this network that helps us to continuously improve our offering, and we also can see how the behavior of these players are evolving, and we can improve our product and our offerings. So we put also continuous development into our platform to secure that we are on the edge and that we are pushing the boundaries constantly to have a very competitive and market-leading product. So -- but the beauty of all this is that with these offerings and with the fact that we are now opening up our platform and modernizing our services is that, first of all, we will have a relevant offering for all operators regardless of their strategy, but also regardless of where they are in their life cycle. So from now, operators do not have to feel confined into one solution -- one static solution. They can actually throughout their life cycle jump or move between these different offerings. So if you take an example, let's say, a company or an operator joins us on a Kambi complete full turnkey surveys. A few years down the line, they might -- when they have matured, when they have built up sportsbook competence, maybe they want to actually trade some sports themselves. It could be because they are sponsoring some teams or they are -- believe that they have an edge in particular sports. So we can easily move them over here. They can still benefit from our -- majority of our sportsbook from our really well-proven platform and complement that with whatever they want to maybe take in control in-house themselves. And likewise, we can envision an operator who have been using some of our modular services on their own tech stack. But a few years down the line, as we've heard, it's not easy to maintain and develop your sportsbook platform in order to keep it on the competitive level. They might run into the problem that the tech stack doesn't really work for them any longer. They can't keep up with competition in terms of functionality or they can't keep up with all the regulatory compliance or requirements. But still, they want -- they have competence in-house. They want to continue to trade or do other stuff. They can easily move over and benefit from our sports betting platform and pick and choose what they want to leverage from our portfolio and what they want to do on their own. So to summarize, we think that we are extremely well positioned for the future. Not only are we present in a market that is growing, sports betting is getting regulated on day by day in more and more space -- in more and more countries or markets and the industry is growing as -- in itself. But with our broader portfolio, we are also in a position to upsell and cross-sell. We have 40 customers plus. It's not that many of them that have either Abios or Shape. But now after our acquisition of Abios, we have 6 customers who have complemented this sportsbook with Abios' feeds and widgets. And of course, we see a possibility since user interface is going to be more and more important. And I think we stressed this several times here to offer their personalized user interface to our existing customer base. And likewise, I also think that there is a possibility that -- or we hope that there is a possibility that we also can leverage the customer base that Abios and Shape has in order to upsell our stand-alone modular services or even our sports platform. We also find ourselves in a position where we have a much stronger proposition for new partners or prospects because now we are a one-stop shop for those operators who want to have a combined sportsbook with a native front end. And since, once again, it's going to be extremely important to satisfy the engagement of the players that they want to interact with the sportsbook with the other players and also with this limitless sportsbook that we see coming here in the future, that could be a very appealing proposition. And we're now doing a much tighter integration between Kambi and Shape, which will allow further enhanced functionality. And finally, with this new proposition, the new offerings we are having, we can address all the segments of the market, regardless of the operator strategy or where they are in their life cycle. So with that, I just want -- I hope that I have been able to get you equally excited and convinced that we are extremely well positioned for the future. So thank you very much. Sorry, yes. So let me introduce David, our CFO.

Thank you. Thanks, Cecilia. Hello, everyone. Good afternoon. Welcome. My name is David Kenyon. I'm the Chief Financial Officer for the Kambi Group. And today, I'm going to talk you through our financial prospects in the context of Erik's product development strategy. And then Cecilia's presentation now on how she intends to commercialize the new portfolio that we have. I'm going to start by focusing on the revenue opportunity. We see -- I'm going to tell you how the revenue opportunity is growing. And I'm going to tell you what steps we're taking to really maximize our potential revenues. Firstly, we really think that the B2B sportsbook market is going to grow rapidly in the coming years. I'll talk you through, shortly, some of the key regulations that we see happening in the next 5 years. We also think that the global economic conditions, as we see at the moment, are really going to drive an increased appetite for outsourced services. And even operators who want to own their core technology will still use suppliers for core or adjacent services. High-quality sports data will drive automation, as Erik talked about, and that's going to drive new product opportunities for us and open up new revenue streams. And UX will become all the more important in this global economic conditions as operators need to have a kind of cutting-edge UX to retain and attract customers. But what are we doing -- what steps are we taking? We're not just letting the market grow, we're also taking active steps to maximize our revenues. You've heard about our market-leading technology, which we think will help us continue growing the turnkey revenue and sales. But also we're enhancing our portfolio, as you've heard today, with our open platform and the modular services. This is going to open up all new revenue streams and opportunities for us. Now I'll talk you shortly through how that significantly increases our addressable market. So let's look at the addressable market. I mean, we're obviously in many regulated markets today. But you can see here, there are some really key territories we've picked out that we think can materially grow the addressable market in the coming years. Firstly, in the U.S., we see potential regulation in Texas and California. We think Texas can be a EUR 1.5 billion to EUR 2 billion GGR market at maturity. Whilst California is even bigger. California, we think can be a EUR 2.5 billion to EUR 3 billion market. In Brazil, there's talk of regulation, and we hope it's coming soon. We estimate that to be a EUR 2 billion market. And as Kristian mentioned, we've made our first signing there, which we're very excited about. And looking further beyond -- and further beyond that kind of time frame into Asia, India and Japan, we think, may regulate. India, we estimated a EUR 2.5 billion market; and Japan, EUR 5.5 billion market. So these are just 5 examples of kind of territories we see that could regulate in the coming years and they're absolutely kind of a game changer in terms of the addressable market we can look at. You may remember back to the last Capital Markets Day, we talked to a total regulated sports betting market globally of EUR 44 billion to EUR 63 billion in 2026. Obviously, market conditions have changed somewhat and the regulatory timetables have shifted. So now we're looking at a market of EUR 50 billion by 2027. So maybe just moved on from that lower range of EUR 44 billion in '26, now we're looking at EUR 50 billion by 2027. But the important thing is not that it's doubling between now and then, but that we're also changing our business model, and that massively increases the parts of the market that we can address. So whilst today, we're looking at addressing EUR 11 billion of a EUR 27 billion market, by 2027, we think we can actually address and look at all of that EUR 50 billion market. So our addressable market goes from EUR 11 billion to EUR 50 billion in the next 5 years. I'm going to talk you through, firstly, on the revenue side of things by the different parts of the business, what we do today to drive revenue and why we think each part of the business will grow in the future. Starting with the turnkey. Of course, this has been the cornerstone since we listed in 2014. This is what's driven our profitable growth to date. We've got a history of increasing operator turnover. The blue columns in the chart, there's an aggregation of our operator turnover. And you can see a consistent level of growth despite a few bumps in the road that I'll touch on later. But overall, it's a very impressive increasing growth. And the orange line there is the operator trading margin where you can see, again, a steady level of profitability around the 7% to 9% level over the years. And with our revenue share model, which drives most of our revenues, that has led to an increase in annual revenue from EUR 76 million, 2018, steadily increasing through to EUR 162 million in our last full reported year of 2021. And I'll talk more later on our scalable business model, but you'll see that's continued. That's been kind of another cornerstone of our business model, and that's applied through the years. And so that increase in revenues has fed through to an increase in operating profit, EUR 12 million in 2018 growing through to EUR 57 million in 2021. We've got a very strong conviction as a company that operators who use Kambi for the turnkey are more profitable than those who try and buy it or build it and then run it in-house, and this for many reasons. You probably heard some of them today, but I'll just try and pull it together again because for us, it's so important to really try and explain why we think the turnkey can generate more sales and more revenues for us in the future. Firstly, we think operators using Kambi, their revenue grows faster than market. With our best-in-class technology and our kind of immediate access to new regulated markets, operators got -- we have a clear track record of operators growing faster than market. Secondly, with our cutting-edge technology, we think operators will need to spend less on free bets and bonusing to drive their revenues, which they would otherwise have to do if they had a product deficiency gap. It's an important part of their P&L. And with us, we think that can be smaller. Using Kambi removes the major upfront costs of buying or building, the risks of delayed market launches and the risks of the complete project failure, which we've seen over the years. Our pricing, as Kristian mentioned earlier, is done on a flexible basis, and we'll always flex it to -- depending on the size and the prospects of the operator. And as he said, we can assure you that any operator, we will always be able to offer pricing that is much lower than any cost they will have to run the sportsbook in-house. And again, moving to Kambi, it's a move away from a fixed cost base to a variable cost depending on the level of profits. In this time of high inflation and economic uncertainty, we think that move away from a fixed cost base makes all the sense in the world for operators. So when you put all these factors together, we have a really strong conviction that using the Kambi turnkey will increase the profitability and the competitiveness of any partner using us and takes away the risk of running a sportsbook. So to summarize everything you've heard today in terms of the turnkey, we see huge growth opportunities ahead of us. Operators will grow faster in the market with our best-in-class technology and speed to new markets. And there will be new markets. We see key regulations coming in the next 5 years. And we think our business model is perfectly suited to today's economic environment and makes all the sense in the world for operators to sign up to. I want to touch quickly on some of our -- the 2 recent acquisitions we've made as well, because these are kind of new to you, potentially. And it's worth explaining how the revenue -- what the revenue model is on each one and why it's going to grow in the future. So firstly, with Shape Games. So the majority of their revenue comes from the work they do on the front end. So their platform and the bespoke development they do for operators. And there, the fees are really driven by the level of work they're doing for their operators. And today, this is driving the majority of their revenues. They also work in the field of marketing and customer engagement. They offer marketing services and data and analytics. And this is a part of the business that we see quite strong growth prospects for in the future. We have an exciting portfolio of clients, amongst them Danske Spil, Norsk Tipping, BetCity, which was our first cross-sell for Kambi portfolio to a Shape opportunity; and betJACK, where they've been offering a free-to-play solution, as Cecilia mentioned, for a long time a pre-regulation. And now they've launched real money service for betJACK in the Ohio market. They posted around EUR 9 million of revenue for the first 9 months of 2022, and we see some real strong levers for growth in the future for Shape. As Cecilia mentioned, we've got a big portfolio of customers that we'll be looking to cross-sell Shape into. The native front end remains so important. We've heard today about why it's important from Erik. But mobile is driving such a big part of turnover for operators, so having that cutting-edge front end is critical for them, especially in today's economic environment where instead of putting marketing money at attracting and retaining customers, a strong UI user interface can really help the operators in that regard. Our new regulations, they also demand strong customer engagement tools to really build and retain a customer base when customers enter a market. So very exciting prospects for Shape. Abios, we've heard about. It's in the esports space. So today, all their revenue is coming from services in relation to data, visualizations and compliance in relation to esports on fixed fee -- recurring fixed fee basis. Going forward and looking at Q1, we're about to launch, as Erik mentioned, their odds and trading services for the first time, which will be on a revenue share, as you've seen historically with Kambi. And again, there's reasons for belief in the growth of Abios going forward. They've secured data rights long term, which is completely critical to their business model. They're about to launch odds and they have a signed contract for that, the first one, and hopefully, there'll be many more to come. And as Cecilia talked about, there's huge interest globally and esports is growing rapidly. And especially if Asia regulates sports betting, we think there's a serious growth potential there on the -- also in trading for Abios. And then the new one, which Erik talked a lot about, the Algorithmic trading, the last part I'll talk about -- the last division I'll talk about. This will drive 2 revenue streams for us, both on the existing turnkey. We heard all about how this exciting new venture will drive more markets, faster markets, more interesting markets, a wider range of markets, all happening at a much greater pace so that would increase our turnkey revenues and the revenues of our partners. But we'll also look to sell this externally as a module, so stand-alone. So it creates a separate whole new target segment we kind of attract with this algo-trading, and that will be on a revenue share basis quite likely. So these are next-generation products built from artificial intelligence and richer sports data. We can target new revenues with them and a wider customer base. They'll enhance our already market-leading pricing capabilities, as you heard from Erik, and increase the profitability of our operators with better and more interesting odds and that will obviously feed through to us through revenue share. So all in all, when I pull all of these factors together, it's a very exciting time, and there are a lot of reasons to believe in strong growth in our revenues. Our partners will grow faster than the market. We will enter new regulations, and we heard about some key ones earlier in the presentation. We believe in new signings. We think our business model is really well suited and outsourcing is definitely the future for sports betting. With Shape, user experience, I talked about being key for operators, and Abios are in a rapidly growing esports market. And algo-trading is the whole -- it's the new part of this jigsaw for us, but it can both drive our turnkey revenues and become a new revenue stream in its own right. And on that basis, we set an ambition level today in the press release this morning of growing our revenue from the 2022 levels to 2 to 3x those levels by 2027. Of course, while delivering on this financial ambition, it's really important that we optimize our cost base and control our costs carefully and get our money's worth from those costs. So I want to talk a little bit about what we're doing on costs. The really strong news we have here is that we're now in a position to benefit from the years of investments we've been making since we started the company really. And this will enable us to slow down our rate of underlying cost growth, especially in the turnkey product. We'll see increased automation in trading processes and the reduced focus we have on building trading systems for humans will free up resource for other development areas. The scalability principle we've had in Kambi since day 1 will continue to apply. And I'll talk shortly around significant cost efficiencies we expect to make through our modules. There will, of course, be some drivers of cost growth, and I'll talk about them. But really, the main message is our underlying cost growth can slow down, and we can focus on new investments on areas targeting commercial growth. Again, I want to talk through a little bit by division because, obviously, our business is getting more complex. We've gone from one product being the turnkey to being a multiproduct group. So I'll talk to a little bit the different parts of the business. Firstly, the turnkey, again, is what we've been doing for many years. The biggest part of our cost base here is our staff. So around 60% of our cost is related to our staff. We have 1,000 employees. But -- I'll talk more in a minute, but we spent a lot of time in the past and a lot of money on automation. And that and other investments we've made, historically, will enable us to slow down our head count growth. So that 10% to 20% head count growth we've seen in previous years will slow right down, and we'll give more detail on that as we go on this journey in the coming years. And the important point there is we'll be able to slow down the head count growth rate, but still whilst continuing to deliver on our revenue ambitions. 10% of our cost is in relation to our infrastructure. And this is our cloud-based services we pay for and the data centers we need. And these are driven by the regulations. So the more regulations -- when we go into a regulation with a new customer, this part of the cost base is affected. And the rest of our costs, all the other parts of our business. So our sales and marketing efforts, the cost of applying for and maintaining licenses; the offices we have for our 1,100 staff for the group; the data cost, which we have to incur and then recharge out to operators; and amortization on the acquisitions we've made in the last couple of years. So say all this 30% bucket of cost is really driven by development of the business, new customers, new jurisdictions and acquisitions when we make them. A little bit more on cost, I can say, we've been growing cost historically in the turnkey by around 15% to 20% a year and actually, even slightly higher in the last couple of years as we emerged from the quiet years of COVID and then have made 2 acquisitions as well in the last 2 years, which have added to our cost base. So we've been running slightly higher than 20% a year in the last couple of years. But when -- at that level of growth, we were focusing on some key areas in our technical development in our business: Reinvesting into the product; building out our channel expansion, so working in the retail channel; moving to new jurisdictions, new markets; integrating new customers; scaling up our internal infrastructure. These were all projects that enabled us to drive revenues. At the same time, we've also been focusing a lot on automation. And I'd say it's these initiatives altogether that today enable us to announce that we can slow down the cost growth rate on the turnkey product. Scalability, I've mentioned it before, it remains a key principle for us as we -- and it's been there since day 1. We do things once and it's for the whole portfolio of operators. We build one product. In trading, we set the probabilities and the matches once and then give our operators tools to adjust the payback. We have one technical infrastructure globally that covers -- again, works for the whole portfolio of operators and we do regulatory compliance once. We apply for licenses once and it's for the benefit of all operators who want to work in a given jurisdiction. And this effectively decouples our cost base from our revenue base. So when revenues go up, we don't need to grow our cost base at the same rate. This principle will apply -- continue to apply. And if we can grow our revenues at the ambition level that we talked about, then our profits can go up significantly. In addition to the turnkey and the cost growth elements we see there, the different modules are going to deliver different kinds of savings and synergies. And the first thing to say is we're going to share central functions across all these different -- across all these different modules you see before you and the others that come up in the future journey. So we share central functions to save on central costs and make sure there's no overlap and kind of wasted cost there. In terms of then of additional synergies with Shape, we're going to move to one front-end platform and one front-end organization and make synergies there. With Abios, we'll be able to move to 1 single esports trading team. Currently, we have 2. We'll move to, ultimately also, to an automated esports trading platform. And on algo-trading, there will be a 2023 ramp-up in costs when we kind of build up this capacity. But ultimately, we think that the savings we can make in the group are going to exceed that cost base as we free up development capacity, and we need less resource in trading. I'd say all these three blocks of synergies, in particular, the savings delivered by algo-trading, they are key parts of our planned cost growth in the coming years. So when I look at our cost growth from where we are in 2022, we will reinvest into turnkey, but as I said, it's going to be lower than the historical run rate. Of course, there were some pushes and growth factors in our costs, inflation, development of the support services we need to grow the business. Amortization will increase as we flow through the amortization on the acquisitions we've made. With Shape, of course, it's a new element to our cost base. But in general, any cost growth with Shape is linked to any revenue opportunities. And on Abios, we'll make an initial scalable investment into the trading platform for them. But again, the cost growth on that part of the business should be relatively stable. In algo-trading, there will be growth in costs in 2023, which we'll probably talk about at the Q4 report, and we'll give more color to that. But ultimately, those costs in that part of the business will be more than offset by the savings we can realize. And this forms our path to 2027 OpEx, which feeds into our financial developments and the targets we set today in the press release, which was sent out this morning. And it covered two points. We believe revenue can grow 2x to 3x from the 2022 levels. And we believe that EBIT will be in excess of EUR 150 million given all the assumptions you've heard today. We recognize, of course, there have been some bumps in the road in our financials in the last few years. There have been some customer losses. But the targets we set out here are based on our conviction in the business model you've heard today. We're excited to be able to take active steps to grow our revenue generation capacity. We believe we'll continue to show scalability. And the synergies and savings I talked about will suppress our OpEx growth and lead to a significant increase in profitability. And one of the reasons we have confidence in this plan is a strong financial base with our strong balance sheet. We're structurally cash generative and we can convert typically 60% to 80% of our operating profit over longer-term periods into cash, and we have a strong cash balance despite having made two recent acquisitions entirely using our cash reserves. We have the ability to repay the convertible bond with Kindred, and we have no other debt in the business. We also have a bank of repurchased shares that can fund future M&A. So all in all, we think it's an extremely stable base for our future plans. It's really important that we keep a strong balance sheet. Of course, we're in the sports betting business and there can be runs of bad results, which impact our results, especially on the revenue share parts of the business. And it's really important that we have a strong balance sheet for our partners and future partners to know that we're there for the long term, we're financially secure. But above that, it enables growth opportunities, whether it's the reinvestment into the business I've talked about, future share repurchases or M&A in certain areas, which could potentially still enhance our business further. So I want to summarize the investment case as I see it. We've got a unique strategic asset here, clearly recognized as the #1 supplier in the industry, the supplier of choice with kind of market-leading know-how and technology as you've heard today. I think it's a really unique asset in this industry. The flexibility we've introduced with our new business model increases our sales opportunities. And that business model will remain highly scalable. And this growth potential, as we enter this new phase, I think it can lead to significant growth in profitability as we saw in the targets we delivered. So yes, that's the investment case, and I hand you back to Kristian on that note.

Thank you, David. So I think 2 analysts, Oscar and one more this morning said -- had a high line ambitious targets. And I fully agree. It is quite ambitious targets. I will just go through a few things that really has to happen for these targets to be realistic. First of all, we need to retain our key partners. And I'm very confident with the platform we are building, giving operators slightly more flexibility, we are in a great position to retain our key operators. Secondly, we need to roll out a third generation trading that Erik has been talking so much about today. And Obviously, the most important of it is that it will increase our opportunities to sell more services and have an even greater product. But it also, of course, will make us being much, much more cost efficient in the future. Thirdly, we need to extend our lead as the #1 supplier in the Americas. I'm not worried at all about that. But as David just mentioned, in Americas, there are a few key markets, not opened yet, but is really, really important for us. I think we're greatly positioned, but we need the regulator to act as well. What I'm talking about is, of course, Brazil, Texas and California. They're really important for our strategy and our targets to be feasible. We need to sign Tier 1 operators across our product portfolio. Again, I feel we have a really, really good opportunity. And finally, we need to be able to launch in one major regulated market in Asia before 2027, either Japan or India or hopefully, both of them. If it happens, I think it's very, very feasible. So what do I want you to remember? What do I hope that we have conveyed talking to you today? Firstly, of course, we are the #1 sports betting supplier in the world undoubtedly at this point. Further market regulation will grow the business significantly as it is. On top of it, with more modernized services, we can increase our addressable market to well more than twice the size it is at the moment. And with cutting-edge third generation trading, we can take a leap and become the clear #1 even considering the leading B2Cs. And if we can do all of this, I'm sure that we can reach an EBIT in excess of EUR 150 million by 2027. Thank you very much. And over to Mia and Q&A.

Yes. And thank you, Kristian. Thank you, Erik. Thank you, Cecilia. Thank you, David. Now it's time for questions. [Operator Instructions] So I'll give you a few more minutes. So shall we start with questions from the room then? Yes, there you are.

This is Oscar Ronnkvist from ABG. First of all I just had a question for Kristian. Just on the pipeline that you've been talking about over the last 12 months, mainly, I would say, so you talked about a nice pipeline. We have seen 10 signings over the last year. Are you satisfied with the delivery of the 10 signings in terms of size and also on the number? Or should we expect that the pipeline is still very strong in looking into 2023?

I think pipeline is still very strong. Having said that, I'm really happy with, especially the last couple of signings we have done. We've Rei do Pitaco that I talked about a little bit, and of course, Great Canadian. None of them has really started delivering yet, but they will, I'm sure of. I just need Brazil to open up as well. But yes, very pleased with the signings and I reiterate that the pipeline still looks very, very strong.

All right. Next one, just on more of the product side. The 3 solutions, obviously, sounds fantastic, I would say. But just looking at the other suppliers in the market currently, let's say, DraftKings and Genius Sports, who powers the BetBuilder product at the moment. It doesn't really seem to be seamless. How are you going to solve the problem just integrating your modules into all the different legacy technologies? Are you confident in reaching that?

I think we have a much, much better chances than the solutions out there. I think -- we know what it takes. We are operating in all the different areas from the trading to the front end. So we understand how to support operators into doing that. I would say that, I mean, I'm more confident with some operators and others, but I'm sure that we will have the best solution on the market for the operators who are interested.

So just a follow-up, maybe a dumb question, but have you tried with anyone other than Kindred, for example, with more of an older technology to try to integrate one of your models?

Not yet.

All right. Next one, just on automation. So you are very optimistic about the automation and the AI, the algo-trading, I would say. But just -- Kindred, for example, when they are announcing that they're building an owned sportsbook with, well, 160 traders approximately versus your more than 400 traders. So if you can, like, automate it with AI, why do you need so much traders from your side?

Yes. First of all, I mean, I think it was quite clear, the message, that I mean, we believe that there is cost efficiencies to be done in the future here. We, more or less, just started. I think another comparison, I think, Flutter talked about having 1,200 traders last week or -- not last, a couple of weeks ago. So I mean, we are in a quite good position already, I would say. You mentioned Kindred and they have also talked about taking pricing feeds from other sources. So I mean, it's not a comparable figure. At the moment, we do all the pricing in-house on quite a low number of people, I would say, and we expect that number to be lower in the future.

All right. Then just also on the third generation trading. So aren't you worried that you are doing the groundwork and other suppliers or operators are just scraping your odds?

I can take that. No, not at all. I think the products are -- they're getting so much more complex with the BetBuilder, for instance, there is just no way to scrape that because it becomes a more on-demand. The player asks for a specific price. And the only true answer there is within your algorithm. It's impossible to scrape. Similar on the play props products. If you don't know what your odds is, you're going to need to set those limits very low. And then yes, your entertainment value is just really bad. So I think scraping is not much of an issue here.

Okay. Just one final one on the financial targets, which -- so maybe you're expecting some of your current clients rolling out from the platform, maybe Penn, Kindred and BetCity. But what are your assumptions? Because you're emphasizing the retention of your current clients in the financial targets. And also just on -- to be clear on the -- on Brazil, Japan and India, for example, you are not going to enter that as long as they are not regulated. Is that correct?

Do you want…

Yes, I mean, that is correct. We look at waiting for regulation in those countries. That's the driver for us entering Yes. I mean, of course, we factored in any expected losses or customer transitions. It is in all our modeling, of course. But really, the focus is on where can we grow the business. And you've heard all these different areas, which I think will drive growth in the coming years. That's really been the focus.

Martin Arnell with DNB Markets. My first question is, like, in a bigger perspective, what do you think is the main lessons that you've learned from the loss of customers in the past years?

How fast this can go. I think, especially with the success in share price, DraftKings had one way deal 02:31:43. I think a lot of the industry changed and it became so fashionable overnight, more or less to have a vertically integrated sports book. So I think, yes, we need to be more humble about it in the future and really make sure that we have a service that fits all kind of customers in all kinds of environments.

And when you look at these companies today, do you feel that they are struggling? Or that they would have been much better in your portfolio? Or how do you think about that?

I feel, obviously, that we would have been much, much better off in having us as a supplier still. But I leave it to you guys to look yourself. I think it's quite evident.

And today, you touched upon a lot of new things in the product. And when you do your own analysis of competition, how far do you think they have come in these areas? And what's your view on the competitive landscape and the progress?

Yes. I think we shared sort of mostly our view how -- where we are now. We are in the, I would say, shared lead with Flutter and Bet365, the 2 biggest B2C books. They beat us in some KPIs. We beat them certainly on some others, both when it comes to the American market and the European market. And we do believe that the steps we have taken now with the third gen trading, others have not yet -- have they started, I don't know. But we think we are ahead.

And on that topic, the limitless sports book and [ urgent turning ], how will it be visible for me as a player in how -- what will the opportunities...

It's the million-dollar question. So I don't know if you saw that video, but it's something we're exploring right now. One thing, of course, is how do you offer this choice to the players. I think it may not necessarily be that, wow, we present 500 markets, let's give them 5,000 in a more clever way. I think personalization will come in, for instance. So someone, probably other type of algorithms now has a much bigger library to pull from to that individual experience. I think that's one likely direction it will take. But yes, another thing here is a lot about these quality KPIs, rejecting fewer and fewer bets, being more sure about probabilities to take higher stakes and so on to publish earlier these algorithms. For instance, already now they can publish the full season. They can price the last game of the Premier League is and that's quite cool, what you can do with that.

And my final question for me is when you onboard a new big customer, how does the integration work today? How -- what's the average time to expect? If you announce a new big Tier 1, how quickly could you be fully up and running with that customer?

It depends a lot on -- I mean, for instance, to a carry-over on front end, where are we using our front end. Is it a new regulation? Or is it existing regulations? But I mean, as a benchmark, I would say, if there is no bespoke work more than a platform integration 8, 10 weeks.

I think in the case of someone with an existing sports often more going to be on their side, they're probably going to be -- want to have quite a bit of time there to plan a project like that more so than whether we can deliver.

[ James Thomson ] from [ Saint George Capital ]. Maybe first to David. Just sort of trying to break down that revenue growth target at 27%. If we look at the slide you put up in terms of the addressable full turnkey B2B, that's obviously doubling on your estimates between now and then. Could you perhaps break down in terms of that doubling, how much is organic growth, how much is kind of new market growth? And then perhaps any kind of share assumptions you might have made within that?

I don't -- I can't go to specifics, but I mean, a big part is that new territories that you saw driving on both the turnkey and open platform, but also on the modularization. And I guess the open platform is included in that, almost doubling in -- on the turnkey we're now adding in the open platform. So when we look at that, that's a new feature that we're -- it drives -- it significantly drives the 11% to mid-20s. And then on top of that, riding the modularization. So it's a combination of all these different things, but certainly, the regulation is a massive part of it.

And just on the California regularizations exception session is now online? Or would retail be enough to get you up to the terms?

To be honest, without -- yes, I think it wouldn't be very bad for Kambi per se, with only retail solution to start with. I think we're extremely well positioned with the casinos in California. And without having the competition of the big online brands, I wouldn't mind to see that as a start.

And just one last one, on the balance sheet, for David and Kristian would be, obviously, you've spoken about the benefits of being net cash, but does that kind of absolute balance grow in line with revenues in terms of where you're comfortable holding it? And then so kind of second of all, once you breach that level, where is that -- you obviously disclosed M&A repurchases, reinvestment, where do those kind of rank on a 12- to 24-month view?

I think it does go up slightly. And we've never put a public number on it, but we -- internally, we do have a kind of a level that we always want to keep on that cash balance. I think that probably would go up a little as we get bigger. And you obviously then -- I mentioned the possible run of adverse sports results, the bigger you either more slightly susceptible you are to that. In terms of ranking of use of cash, I think top priority will always be reinvestment into the business, because that's what really drives those revenue ambitions. After that, really, I mean, M&A is on an opportunistic basis if we need it, and it can really contribute to our revenue journey. Otherwise, share repurchase is absolutely something we've done before, and we could, for sure, look at doing again.

Viktor Högberg from Danske Bank. I'm behind the pillar here. So the revenue target 2 to 3x the full year 2022. That's quite a big span, but you're guiding on an absolute figure or at least a figure in EBIT. Is that EBITDA to be reached in the low end? At the midpoint? High? All scenarios? What I'm trying to get at, what was the implied OpEx? Is that something that you're guiding on that we could read between the lines? Or will you scale up with growth with the opportunities that you see in terms of, I think, regulation?

Yes, we will. I think the $150 million, clearly, it's much easier to hit near the top end of the revenue range. That's for sure. But it can be achievable even towards the bottom end. So I think we stand behind the number as such and just got to make the most of our opportunity to try and hit the high end of the revenue and that will make our life a lot easier, too. That's how I get on EBIT.

And what is in your hands in terms of reaching these targets? How much is new regulations in these new markets? How big is that in the delta between here and 2027?

I mean you saw the impact it has, just with those 5 markets I pulled out. Between them, they are kind of EUR 15 billion or so in terms of addressable market, just those 5 markets alone. So clearly, it's a material part of our revenue ambition. We haven't said exactly how much. I mean it's quite hard to put a specific number on it because it's such an easy target.

But largest driver -- individual driver when you -- because you haven't shared the individual stepping stones to reach.

I'd turn it the other what, if those regulations don't happen, it's going to be very hard to hit that revenue range, I think, is…

And do you have any idea on timing for these? And of course, I won't hold you to.

I think of all the ones we said, Brazil is most likely to be first in the line and probably the Asian opportunity Japan, India, probably at the back end and the American one's somewhere in the middle.

Yes. So that's another thing. The phasing of these targets, is it to be seen as very back-end loaded last 2 years or something like that with exponential growth from new markets? Or are you implying you will be able to grow revenues also in 2025, '26 with Kindred phasing out? Is that is how we should read your ambitions?

It's so heavily tilted by the regulation. And those Asian ones, I don't think we expect them to happen until, I don't know, really, the'25, '26. It's towards the back end of this period we're talking about. So we have to a little bit wait and see with that regulation.