Bragg Gaming Group Inc (BRAG) 2023 Q3 法說會逐字稿

And thank you for standing by. I would like to welcome everyone to the Bragg Gaming Group third quarter 2023 earnings conference call. (Operator Instructions) Thank you.

感謝您的支持。我歡迎大家參加布拉格遊戲集團 2023 年第三季財報電話會議。 （操作員說明）謝謝。

I would now like to turn the call over to Yaniv Spielberg, Chief Strategy Officer for Bragg Gaming Group. Yaniv, please go ahead.

我現在想將電話轉給布拉格遊戲集團首席策略長亞尼夫‧史匹柏 (Yaniv Spielberg)。亞尼夫，請繼續。

Thank you, operator. Good morning, everyone, and thank you for joining our third quarter 2023 earnings conference call. I'm Yaniv Spielberg, Chief Strategy Officer for Bragg Gaming Group. I'll be hosting today's call alongside my colleagues, CEO, Matevž Mazij, who'll comment on our third quarter performance; and Ronen Kannor, our CFO, who'll review and discuss our third quarter financial results.

謝謝你，接線生。大家早安，感謝您參加我們的 2023 年第三季財報電話會議。我是雅尼夫‧史匹柏，布拉格遊戲集團首席策略長。我將與我的同事、執行長 MatevÅ⁄ Mazij 一起主持今天的電話會議，他將對我們第三季的業績發表評論；我們的財務長 Ronen Kannor 將審查並討論我們第三季的財務表現。

If you have not already done so, you can follow our earnings call presentation from our website at investors.bragg.group, that's investors with an s dot Bragg dot group, in the section called latest presentation. On this call, we'll review Bragg's financial and operating results for the third quarter of 2023. And following our prepared remarks, we'll open the conference call to a question-and-answer period.

如果您還沒有這樣做，您可以在我們的網站 Investors.bragg.group 上關注我們的財報電話會議演示，該網站是具有 s 點 Bragg 點組的投資者，位於「最新演示」部分。在本次電話會議上，我們將回顧布拉格 2023 年第三季的財務和營運業績。在我們準備好的發言之後，我們將在電話會議上進入問答階段。

I'll start the call with some brief cautionary remarks regarding certain statements that may be made on this call. Certain statements made on this conference call and our responses to various questions may constitute forward-looking information or future oriented financial information within the meaning of applicable securities law.

我將在電話會議開始時就本次電話會議中可能發表的某些言論提出一些簡短的警告性評論。本次電話會議中所做的某些陳述以及我們對各種問題的答覆可能構成適用證券法含義內的前瞻性資訊或面向未來的財務資訊。

Statements about expected growth, prospective results, strategic outlooks, and financial and operational expectations, opportunities, and projections rely on a number of assumptions concerning future events including market and economic conditions, business prospects or opportunities, future plans and strategies, technological developments, and anticipated events, trends and regulatory changes that may affect the corporation and its subsidiaries and their respective customers and industries.

有關預期成長、預期結果、策略展望以及財務和營運預期、機會和預測的陳述依賴於有關未來事件的許多假設，包括市場和經濟狀況、業務前景或機會、未來計劃和策略、技術發展和可能影響本公司及其子公司及其各自客戶和行業的預期事件、趨勢和監管變化。

While we believe these assumptions to be reasonable, they are subject to a number of risks, uncertainties, and other factors, many of which are outside the company's control and which could cause the actual results, performance, or achievements of the company to be materially different. There can be no assurances that these assumptions or estimates are accurate or that any of these expectations will prove accurate. For a complete discussion of these factors, please refer to our recently filed press release and other publicly available disclosure.

雖然我們相信這些假設是合理的，但它們受到許多風險、不確定性和其他因素的影響，其中許多因素超出了公司的控制範圍，可能導致公司的實際結果、業績或成就與實際結果、業績或成就存在重大差異。不同的。無法保證這些假設或估計是準確的，或任何這些預期將被證明是準確的。有關這些因素的完整討論，請參閱我們最近提交的新聞稿和其他公開披露的資訊。

With that behind us, I'd like to turn the call to our CEO, Matevž. Matevž?

講完了這些，我想把電話轉給我們的執行長 MatevÅ⁄。馬泰夫？

Good morning, everyone. I'm Matevž Mazij. I'm the Chairman and CEO of Bragg and I'm going to run through our operational highlights from the quarter. Then I'll hand over to our CFO, Ronen Kannor, who will take you through the financials. Afterwards, I'll take a few of the points in a little more detail wrapping up with our outlook and summary, and then Ronen and I will be happy to take your questions.

大家，早安。我是馬泰夫·馬齊吉。我是布拉格的董事長兼首席執行官，我將概述本季我們的營運亮點。然後我將把工作交給我們的財務長 Ronen Kannor，他將向您介紹財務狀況。之後，我將更詳細地闡述一些要點，最後總結我們的展望和總結，然後羅南和我將很樂意回答您的問題。

Turning now to slide 4, I wanted to run through some of the key points of third quarter, the quarter in which I was appointed CEO. I have a long history of Bragg. I originally founded Oryx Gaming back in 2012, running the company until I sold Oryx to Bragg in 2018. As a part of that process, I also became Bragg's largest shareholder. I continued as CEO of Oryx until in 2021. I stepped back from operations and join Bragg's Board of Directors. As a director, I have strongly supported our US acquisitions Wild Streak Gaming and Spin Games and was involved in developing our US expansion strategy.

現在轉到投影片 4，我想回顧一下第三季（我被任命為執行長的季度）的一些要點。我對布拉格有很長的歷史。我最初在 2012 年創立了 Oryx Gaming，並負責經營該公司，直到 2018 年將 Oryx 出售給 Bragg。作為這個過程的一部分，我也成為了 Bragg 的最大股東。我繼續擔任 Oryx 執行長直至 2021 年。我退出營運並加入布拉格董事會。身為董事，我大力支持我們在美國收購 Wild Streak Gaming 和 Spin Games，並參與制定我們的美國擴張策略。

I was subsequently appointed Chair of the Board earlier this year and then CEO at the end of August of this year. By appointing me as the CEO of the Board was seeking to align and streamline the interests of Bragg's shareholders with company operations and to unlock shareholder value, which is something I aim to do. So I'm delighted to be back and reporting on another quarter in which we continued to make good progress on our goals.

隨後，我於今年稍早被任命為董事會主席，並於今年 8 月底被任命為執行長。任命我為董事會首席執行官，是為了尋求將布拉格股東的利益與公司運營結合起來並加以簡化，並釋放股東價值，這也是我的目標。因此，我很高興能夠回來報告另一個季度，我們在目標上繼續取得了良好進展。

After Ronen has presented the financials, I'm going to talk a little about our extended agreement with BetCity, which will see us continue supplying our PAM content and content aggregation to BetCity into 2025. And I'm also going to reiterate and expand a little on the key pillars of Bragg's strategy of how we aim to take the business to the next level and to become a premier content and technology supplier to the growing global iGaming industry.

Ronen 介紹了財務數據後，我將談論我們與 BetCity 的擴展協議，這將使我們繼續向 BetCity 提供 PAM 內容和內容聚合直至 2025 年。我還將重申並擴展關於布拉格策略的關鍵支柱，我們的目標是如何將業務提升到一個新的水平，並成為不斷發展的全球iGaming 行業的首要內容和技術供應商，但我們對此的了解很少。

Our content roadmap is going very strong. We are on track to launch 68 exclusive game titles globally this year, putting our output among the top tier of online casino game developers on the market. Almost half of these titles are from our proprietary Bragg Studios brands generating higher gross profit for the business, and we intend to continue at this pace.

我們的內容路線圖進展非常順利。我們今年預計在全球推出 68 款獨家遊戲，讓我們的產出躋身市場上頂級線上賭場遊戲開發商之列。這些作品中近一半來自我們專有的布拉格工作室品牌，為業務帶來更高的毛利，我們打算繼續保持這個速度。

During the third quarter, we were pleased to see two of our Powered by Bragg titles into the top 25 new slot rankings published by Eilers & Krejcik. The success of Devil's Lock by Bluberi and Ultra Rush Golden Steed from Incredible Technologies is a testament to our strategy in the US of partnering with successful and familiar land-based slot brands and bringing them online exclusively available in the market via Bragg.

在第三季度，我們很高興看到我們的兩款由 Bragg 提供支援的遊戲進入了 Eilers & Krejcik 發布的新老虎機排行榜前 25 名。 Bluberi 的 Devil's Lock 和 Incredible Technologies 的 Ultra Rush Golden Steed 的成功證明了我們在美國的策略，即與成功且熟悉的實體老虎機品牌合作，並透過 Bragg 將其獨家提供到網上。

Our US rollout of our newest content and technology continues with recent launches with local market leaders, BetMGM in New Jersey and with FanDuel in Michigan and Connecticut, and we're pleased to be able to leverage our slot production capabilities to build and release a bespoke game for Caesars Digital with Lady Luck Casino Egyptian Magic which is now available exclusively to players of Caesars Palace Online Casino in Michigan and New Jersey. Our ability and capacity to build bespoke game titles is an additional differentiation point where we can deliver added value to our customers and build long-term growth.

我們在美國繼續推出最新的內容和技術，最近與當地市場領導者新澤西州的 BetMGM 以及密西根州和康涅狄格州的 FanDuel 一起推出，我們很高興能夠利用我們的老虎機製作能力來構建和發布定制遊戲Caesars Digital與Lady Luck Casino Egypt Magic 合作推出的遊戲現已專供密西根州和新澤西州凱撒宮線上賭場的玩家使用。我們開發客製化遊戲的能力是一個額外的差異化點，我們可以為客戶提供附加價值並實現長期成長。

In other markets, we continue to rollout our content with new customers. In Italy, we have launched with top two operators in the market, [lots of applications] Snaitech. And in Ontario, we went live with bet365. And in the UK, we launched games with Unibet, which is one of the Kindred's flagship brands.

在其他市場，我們繼續向新客戶推出我們的內容。在義大利，我們與市場上排名前兩位的營運商合作推出了[大量應用程式] Snaitech。在安大略省，我們開始使用 bet365。在英國，我們與 Unibet 合作推出了遊戲，Unibet 是 Kindred 的旗艦品牌之一。

With that, I'm now going to hand over to Ronen to present our third quarter financials. Ronen?

現在，我將由 Ronen 介紹我們第三季的財務狀況。羅南？

Thank you, Matevž. And good morning, everyone. I'll begin my comments on slide 6. As Matevž indicated earlier, the third quarter of 2023 was another positive step in our digital journey. We continued to execute against our mission and strategic plan, and we can sell it in our financial and operational results. In the third quarter, total revenue were up by 8% year over year to EUR22.6 million, continuing our growth momentum since the fourth quarter of 2021.

謝謝你，馬泰夫。大家早安。我將從幻燈片 6 開始發表評論。正如 MatevÅ⁄ 之前指出的那樣，2023 年第三季是我們數位化之旅中又一個積極的一步。我們繼續執行我們的使命和策略計劃，我們可以在我們的財務和營運績效中出售它。第三季總營收年增 8%，達到 2,260 萬歐元，延續了 2021 年第四季以來的成長動能。

The growth was mainly derived organically to our existing customer base, launching financial year '21 and '22, in particular the PAM and turnkey solution customers in the Netherlands, together with content offering and a solid revenue performance from the Wild Streak Gaming studio customers.

這一成長主要有機地源自我們現有的客戶群，推出了'21和'22財年，特別是荷蘭的PAM和交鑰匙解決方案客戶，以及內容提供和來自Wild Streak Gaming工作室客戶的穩定收入表現。

Third quarter, however, showed a slight sequential drop of 8.5% as a result of BetCity revised extended commercial terms. From an operational KPI perspective, total wagering generated by games and content offered by the group during the quarter was up by 24.6% from the same period in the previous year to EUR5.7 billion versus EUR4.6 billion in the same period last year. As you can see from the wagering chart on the right hand side, Bragg's ongoing positive momentum from the fourth quarter of 2021, which demonstrates our ability to transform and diversify our operations.

然而，由於 BetCity 修改了延長商業條款，第三季較上季略有下降 8.5%。從營運KPI角度來看，本季集團提供的遊戲和內容產生的總投注額較去年同期成長24.6%，達到57億歐元，而去年同期為46億歐元。從右側的投注圖表中可以看出，布拉格自 2021 年第四季以來一直保持積極勢頭，這表明我們有能力實現業務轉型和多元化。

Gross profit from the quarter increased by 13.5% to EUR11.9 million, with gross profit margin slightly increased to 52.5% from 50% in the same period last year. The gross profit is primarily the result of increased revenue performance in all content products, while recording slightly lower PAM and managed services revenue, which also as a result of BetCity, we negotiated extended commercial terms.

本季毛利成長13.5%至1,190萬歐元，毛利率從去年同期的50%小幅成長至52.5%。毛利主要是由於所有內容產品的收入表現增加，同時 PAM 和託管服務收入略有下降，這也是我們與 BetCity 協商延長商業條款的結果。

Adjusted EBITDA for the quarter was up by 70.5% to EUR3.8 million, with adjusted EBITDA margin reaching 16.9%, an improvement of 620 basis points from the same period in the previous year. The change in margins mainly as a result of scale in revenue while maintaining control investment in salaries and subcontractors and other operational costs is part of the company's strategy to expand software development, product, and senior management functions.

該季度調整後 EBITDA 成長 70.5%，達到 380 萬歐元，調整後 EBITDA 利潤率達到 16.9%，較上年同期提高 620 個基點。利潤率的變化主要是由於收入規模的變化，同時保持對工資和分包商以及其他營運成本的控制投資，這是該公司擴大軟體開發、產品和高階管理職能策略的一部分。

Operating loss increased by EUR0.5 million to EUR2.1 million, mainly as a result of the one-off termination of an employment contract and a loss from deferred consideration. We are pleased with the current trading, and we are reiterating our 2023 revenue guidance range of EUR95 million to EUR97 million and adjusted EBITDA range of EUR15.5 million to EUR16.5 million.

營業虧損增加 50 萬歐元，達到 210 萬歐元，主要是因為一次性終止僱傭合約和遞延對價損失。我們對目前的交易感到滿意，並重申 2023 年收入指引範圍為 9,500 萬歐元至 9,700 萬歐元，調整後 EBITDA 範圍為 1,550 萬歐元至 1,650 萬歐元。

As you can see on slide 7, the gross profit margin continued to show a growing momentum since the fourth quarter of 2021 due to the change in Bragg's product mix. We'll continue to execute against our mission and strategic plan, and we are scaling up our business in line with both our revenue growth and the continued movement in product mix, as indicated on the right-hand side of the slide. Gross profit increased by 13.5% to EUR11.9 million with margin increasing from previous year by 250 basis points to 52.5%.

正如您在幻燈片7中看到的，由於布拉格產品結構的變化，自2021年第四季以來毛利率繼續呈現成長勢頭。我們將繼續執行我們的使命和策略計劃，並根據我們的收入成長和產品組合的持續變化擴大我們的業務，如幻燈片右側所示。毛利成長 13.5%，達到 1,190 萬歐元，利潤率比上年增長 250 個基點，達到 52.5%。

The third quarter revenue growth year over year was driven mainly by the Dutch PAM and turnkey customers outperformance together with the improvement of our content offerings.

第三季營收年增率主要得益於荷蘭 PAM 和交鑰匙客戶的出色表現以及我們內容產品的改進。

In the third quarter, content revenue segment offering, which including aggregators third party, exclusive third party, and proprietary content increased to EUR17.9 million and represented 79.4% of total revenue as opposed to 69.9% on previous year, highlighting Bragg's execution of the content strategy.

第三季度，內容收入部門（包括聚合商第三方、獨家第三方和專有內容）增加至 1,790 萬歐元，佔總收入的 79.4%，而去年為 69.9%，凸顯了布拉格對內容策略。

Proprietary content development is positively progressing both in the US and EU markets by increasing both distribution and games performance. And as Matevž indicated, we have recently marked another key milestone with our recent launch of our newest tech stack in New Jersey, with BetMGM.

透過提高發行和遊戲效能，專有內容開發在美國和歐盟市場都取得了積極進展。正如 MatevÅ⁄ 指出的，我們最近與 BetMGM 在新澤西州推出了最新的技術堆棧，標誌著另一個重要的里程碑。

As indicated in the previous quarters, we are targeting gross profit margin improvements to exceed 60% by full year 2025, mainly by increasing the proportion of revenue, which comes from proprietary content, PAM, and turnkey solutions.

如前幾個季度所示，我們的目標是到 2025 年全年毛利率提高超過 60%，主要是透過增加來自專有內容、PAM 和交鑰匙解決方案的收入比例。

Moving to slide 8. Adjusted EBITDA amounted to EUR3.8 million against an operating loss of EUR2.1 million. The gap was driven by the following non-cash and exceptional items, depreciation and amortization, the increase in intangible amortization as part of the Spin Games acquisition in June 2022, increased level of investment in software development, and a change in the useful life of customer relationship.

轉到投影片 8。調整後的 EBITDA 為 380 萬歐元，而營業虧損為 210 萬歐元。造成這一差距的原因包括以下非現金和特殊項目、折舊和攤銷、2022 年 6 月收購 Spin Games 時無形攤銷的增加、軟體開發投資水平的增加以及軟體使用壽命的變化客戶關係。

Share-based payments, the charge for awards granted to senior management during the period composed of DSUs, RSUs, and options. During the period, one-off charge of EUR0.5 million was incurred relating to discounted contractor relationship of employee. Exceptional costs, mainly associated with the discounted contractor relationship of employee in the total value of EUR0.6 million.

股份支付，指在一定期間內授予高階管理人員獎勵的費用，由 DSU、RSU 和選擇權組成。期內，因僱員的折扣承包商關係而產生一次性費用50萬歐元。異常成本，主要與總價值 60 萬歐元的員工折扣承包商關係有關。

And gain on remeasurement of deferred consideration is mainly associated with the acquisition of Spin Games in June 2022, on the total outstanding deferred liability, that was adjusted to reflect the change in our current fair value.

重新計量遞延對價的收益主要與 2022 年 6 月收購 Spin Games 有關，對未償遞延負債總額進行了調整，以反映我們當前公允價值的變化。

Moving to slide 9, as you can see on the slide, we ended the third quarter with cash balance of EUR7.9 million compared to EUR11.3 million of December 31, 2022, with outstanding liability of USD5.5 million of convertible securities. During the third quarter and post quarter end, the company made cash repayment of USD2.5 million leaving our outstanding balance of USD4.5 million as of today's date. We expect to continue exercising our rights to pay down the existing convertible security subject to ongoing management assessments.

轉向幻燈片9，正如您在幻燈片中看到的那樣，我們第三季末的現金餘額為790 萬歐元，而2022 年12 月31 日為1,130 萬歐元，未償債務為550 萬美元的可轉換證券。在第三季和季後末，該公司償還了 250 萬美元現金，截至今天，我們的未償餘額為 450 萬美元。我們預計將根據持續的管理評估繼續行使我們的權利來償還現有的可轉換證券。

Our net working capital at the end of September 2023 is EUR6.3 million, which is excluding deferred consideration and convertible debt. This compared to EUR6.6 million at the beginning of the year.

截至 2023 年 9 月末，我們的淨營運資本為 630 萬歐元，其中不包括遞延對價和可轉換債務。相比之下，年初為 660 萬歐元。

From a cash flow perspective, for the nine months ended September 30, 2023, a total of EUR6.2 million generated from operating activities with underlying performance reaching EUR10.2 million offset by negative movement in working capital and income tax of EUR4 million. A total of EUR6.6 million invested in intangible assets, mainly related to the capitalization of software development costs in the period. And a total of EUR2.6 million used in finance activities, which predominantly related to the repayment of loans in relation to the convertible security in the total of EUR2.3 million.

從現金流角度來看，截至 2023 年 9 月 30 日的九個月，經營活動總計產生 620 萬歐元，基本績效達到 1,020 萬歐元，被營運資本和所得稅的負變動抵銷了 400 萬歐元。無形資產投資共660萬歐元，主要與本期軟體開發成本資本化相關。總計 260 萬歐元用於金融活動，主要用於償還與總計 230 萬歐元的可轉換證券相關的貸款。

Looking forward, management are projecting a positive free cash flow from operations, while there is no CapEx or technology that's required in the business. In addition, management is confident that there are no current financing or debt requirements needs for the business.

展望未來，管理層預計營運中將產生正的自由現金流，而業務中不需要資本支出或技術。此外，管理層有信心該業務目前沒有融資或債務需求。

With that, I would hand over back to Matevž to continue our business and operational activities.

至此，我將把工作交還給 MatevÅ⁄ 繼續我們的業務和營運活動。

Thank you, Ronen. As a recently appointed CEO and with this is my first time leading our earnings call, I want to remind everyone of the great business that we've built and of the exciting future we have ahead of us. Bragg is an award-winning supplier in the growing multi-billion-dollar iGaming market. We have over 450 employees in seven offices across North America, Europe, and in India.

謝謝你，羅南。作為最近任命的首席執行官，這是我第一次主持我們的財報電話會議，我想提醒大家我們已經建立的偉大業務以及我們面前的令人興奮的未來。 Bragg 是不斷成長的數十億美元 iGaming 市場中屢獲殊榮的供應商。我們在北美、歐洲和印度的七個辦事處擁有超過 450 名員工。

We are licensed or certified to offer iGaming products in over 25 regulated jurisdictions globally, including the largest markets in the US and Europe, such as New Jersey, Pennsylvania, Michigan, the UK, and Italy. Our customers number over 200 and include names such as BetMGM, DraftKings, FanDuel in the US; and Entain, Superbet, and Flutter in Europe.

我們獲得許可或認證，可以在全球超過 25 個受監管的司法管轄區提供 iGaming 產品，其中包括新澤西州、賓夕法尼亞州、密西根州、英國和義大利等美國和歐洲最大的市場。我們的客戶數量超過 200 家，其中包括美國的 BetMGM、DraftKings、FanDuel 等；以及歐洲的 Entain、Superbet 和 Flutter。

In view of recent M&A activity in the iGaming space, I believe that at Bragg we have built something very unique in the market. There are very few companies in the space that are able to offer what we can, which includes our full product suite of content, content aggregation, sportsbook delivery, PAM, promotional tools, and managed services. With this product suite, we are uniquely positioned to be able to deliver full turnkey, iGaming solution in regulated markets, and in a landscape where more and more markets are on the cusp of regulation.

鑑於最近 iGaming 領域的併購活動，我相信在 Bragg，我們已經在市場上建立了一些非常獨特的東西。該領域很少有公司能夠提供我們所能提供的服務，其中包括我們完整的內容產品套件、內容聚合、體育博彩交付、PAM、促銷工具和託管服務。憑藉該產品套件，我們處於獨特的地位，能夠在受監管的市場以及越來越多的市場處於監管風口浪尖的環境中提供完整的交鑰匙 iGaming 解決方案。

With that in mind, I want to take a few minutes to refine and reflect on Bragg's strategy, which I haven't fundamentally changed since coming in as CEO, but which we have refined and expanded and we now plan to accelerate. Firstly, our proprietary and exclusive games road map has been a renewed focus for us since we integrated the Wild Streak Gaming business into Bragg in 2021.

考慮到這一點，我想花幾分鐘時間來完善和反思布拉格的戰略，自從擔任首席執行官以來，我沒有從根本上改變這一戰略，但我們已經對其進行了完善和擴展，現在計劃加速推進。首先，自從我們在 2021 年將 Wild Streak Gaming 業務整合到 Bragg 以來，我們的專有和獨家遊戲路線圖已成為我們的新焦點。

Bragg Studios are our in-house studios, which now include Wild Streak Gaming, Spin Games, and Oryx Gaming as well as two new studios we launched last year, Atomic Slot Lab and Indigo Magic. Games from Bragg Studios, which are also built on our own technology and distributed through our own network, generate close to 100% gross profit margin for us. So these are an important part of how we will deliver the overall gross profit and adjusted EBITDA margin targets that we have set for ourselves that Ronen mentioned earlier.

Bragg Studios 是我們的內部工作室，現在包括 Wild Streak Gaming、Spin Games 和 Oryx Gaming 以及我們去年推出的兩個新工作室：Atomic Slot Lab 和 Indigo Magic。 Bragg Studios 的遊戲也是基於我們自己的技術構建並透過我們自己的網路發行的，為我們帶來了接近 100% 的毛利率。因此，這些是我們如何實現羅南之前提到的我們為自己設定的整體毛利和調整後的 EBITDA 利潤率目標的重要組成部分。

In a moment on the next slide, I'll show you how we are doing in terms of roadmap delivery for our Bragg Studio content. The rest of our exclusive casino games portfolio is made up of games from our Powered by Bragg partners such as Bluberi, Incredible Technologies, GAMOMAT, King Show Games, and many others. These gains differentiate our games portfolio and include big names from both land-based and online spaces. Games that are in demand and which are available online only to customers of Bragg.

在下一張投影片中，我將向您展示我們在布拉格工作室內容的路線圖交付方面的表現。我們獨家賭場遊戲組合的其餘部分由我們的 Powered by Bragg 合作夥伴提供的遊戲組成，例如 Bluberi、Incredible Technologies、GAMOMAT、King Show Games 等。這些收益使我們的遊戲產品組合與眾不同，其中包括來自陸地和線上領域的知名品牌。需求旺盛且僅向 Bragg 客戶在線提供的遊戲。

So we are leveraging our increasing portfolio of exclusive games to build brand recognition in North America, Europe, and Latin America. And the size of our portfolio and our production capabilities mean that we can offer locally adapted games titles in each of these markets.

因此，我們正在利用不斷增加的獨家遊戲組合在北美、歐洲和拉丁美洲建立品牌知名度。我們的產品組合規模和生產能力意味著我們可以在每個市場提供在地化的遊戲。

As you saw from the recent gaming built for Caesar Digital, Lady Luck Casino Egyptian Magic, we are also in a position of strength when it comes to our ability to deliver in-demand custom and exclusive content for our partners. We will also continue to grow our content distribution network in regulated markets. This means focusing on our relationship with Tier 1 and Tier 2 operators, who offer scale in multiple markets and we have content for multiple markets to match. We want to continue to grow in large regulated markets where Bragg online casino content is still underrepresented and these markets offer plenty of scope for growth.

正如您從最近為 Caesar Digital 打造的遊戲《Lady Luck Casino Egypt Magic》中看到的那樣，在為合作夥伴提供按需定制和獨家內容的能力方面，我們也處於優勢地位。我們也將繼續在受監管的市場中發展我們的內容分發網路。這意味著我們要專注於與一級和二級營運商的關係，他們在多個市場提供規模，而我們也有適合多個市場的內容。我們希望繼續在大型受監管市場中發展，布拉格線上賭場內容在這些市場中的代表性仍然不足，並且這些市場提供了充足的成長空間。

We are clearly focused on content rollouts in the United States, but markets such as UK, Switzerland, Italy, Poland, and Ontario are also important to our content delivery growth plans. We are closely watching regulatory developments as many markets, which currently have no legal framework for online casino or those which currently have restrictive frameworks are reviewing their laws with a trend towards more jurisdictions opening up for regulated iGaming in the near future.

我們顯然專注於在美國推出內容，但英國、瑞士、義大利、波蘭和安大略等市場對我們的內容交付成長計劃也很重要。我們正在密切關注監管動態，因為許多市場目前還沒有針對線上賭場的法律框架，或者目前有限制性框架的市場正在審查其法律，並且趨勢是在不久的將來會有更多司法管轄區向受監管的iGaming 開放。

As well as watching for the next states to adopt online casino in United States, we are well positioned to enter or expand in Latin American markets and newly regulated European markets. As these new markets regulate, we will explore all opportunities, not just for our content, but also for full product suite, including PAM and content aggregation. And I'll talk more about it in a moment.

除了關注美國下一個採用線上賭場的州外，我們還準備好進入或擴展拉丁美洲市場和新監管的歐洲市場。隨著這些新市場的規範，我們將探索所有機會，不僅是我們的內容，還有完整的產品套件，包括 PAM 和內容聚合。我稍後會詳細討論它。

A key differentiated product that we developed is Fuze. This as our multi-award-winning promotions platform that allows operators to run promotions such as free rounds, tournaments, missions, and quests to gamify and reward players. And these work across both casino lottery, and sports betting products. All Bragg content customers, whether for Bragg Studios, Powered by Bragg, aggregated content, or sports betting products that we deliver already have access to Fuze. And Fuze driven campaigns resulted in significantly more traffic, better conversion rates, better retention rates, and higher lifetime value, which is beneficial both to our customers and to us.

我們開發的一個關鍵差異化產品是Fuze。這是我們屢獲殊榮的促銷平台，允許營運商開展免費回合、錦標賽、任務和任務等促銷活動，以遊戲化和獎勵玩家。這些產品適用於賭場彩票和體育博彩產品。所有布拉格內容客戶，無論是布拉格工作室、由布拉格提供支援、聚合內容，還是我們提供的體育博彩產品，都可以存取 Fuze。 Fuze 驅動的行銷活動帶來了顯著更多的流量、更好的轉換率、更好的保留率和更高的生命週期價值，這對我們的客戶和我們都有好處。

And we are now focused on working together with our customers to roll out with more Fuze-driven promotions. And we're now also able to offer Fuze as a standalone promotion platform for both casino and sportsbook, and we have already integrated our first customers under this model. As we continue to develop Fuze with more in-demand features coming soon, we're also excited to be developing this proprietary functionality to create differentiated and unique casino content categories with an aim of creating a niche for Bragg content in a crowded marketplace.

我們現在專注於與客戶合作推出更多由 Fuze 驅動的促銷活動。我們現在也能夠將 Fuze 作為賭場和體育博彩的獨立推廣平台，並且我們已經在這種模式下整合了我們的第一批客戶。隨著我們繼續開發Fuze 以及即將推出的更多受歡迎的功能，我們也很高興能夠開發這種專有功能來創建差異化和獨特的賭場內容類別，目的是在擁擠的市場中為布拉格內容創造一個利基市場。

We at Bragg are extremely proud of our full product suite, which includes our proprietary and exclusive content, aggregated content, sportsbook delivery, PAM, managed services, Fuze promotional tools, and data and reporting products. We have over 200 customers, including some of the biggest names in the United States, Europe, and globally. Upselling our promotional tools, aggregation services, PAM, and turnkey services to existing content customers is a key growth channel for us.

Bragg 對我們的全套產品感到非常自豪，其中包括我們的專有和獨家內容、聚合內容、體育博彩交付、PAM、託管服務、Fuze 促銷工具以及數據和報告產品。我們擁有 200 多家客戶，其中包括美國、歐洲和全球的一些知名企業。向現有內容客戶追加銷售我們的促銷工具、聚合服務、PAM 和交鑰匙服務是我們的關鍵成長管道。

Likewise, we are working with our integrated sportsbook partners to create compelling new PAM and full turnkey propositions with the aim of expanding our platform business to new brands and new markets. And as always, we continue to invest in our product to refine, improve, and to explore opportunities in new jurisdictions.

同樣，我們正在與綜合體育博彩合作夥伴合作，創建引人注目的新 PAM 和完整的交鑰匙方案，旨在將我們的平台業務擴展到新品牌和新市場。像往常一樣，我們繼續投資我們的產品，以完善、改進並探索新司法管轄區的機會。

Our strategy is focused on expanding recurring profitability through our culture of continuous improvement with an eye opportunities for increased automation and lower cost to serve. This way, we will continue to expand our profit pools, and gross profit, and adjusted EBITDA margins. So to conclude, Bragg's long-term ambition is to maximize shareholder value by becoming a premier iGaming content and technology provider.

我們的策略重點是透過持續改善的文化來擴大經常性獲利能力，並著眼於提高自動化程度和降低服務成本的機會。這樣，我們將繼續擴大利潤池、毛利和調整後的 EBITDA 利潤率。總而言之，布拉格的長期目標是透過成為一流的 iGaming 內容和技術提供者來實現股東價值最大化。

Moving to slide 13, we extended the agreement with BetEnt B.V. where we have agreed to continue supplying our PAM. That's player account management platform and our content and content aggregation to its flagship brand in the Netherlands, BetCity into 2025. We partnered with BetCity to launch the brand back in October 2021, when the newly regulated Dutch market opened. And we're proud of our part in helping BetCity become one of the leading online sports betting and casino brands in the Netherlands today. And we are extremely delighted to continue to build on the success with them.

轉到幻燈片 13，我們延長了與 BetEnt B.V. 的協議，我們同意繼續供應我們的 PAM。這就是玩家帳號管理平台以及我們的內容和內容聚合到其荷蘭旗艦品牌 BetCity 到 2025 年。我們與 BetCity 合作於 2021 年 10 月推出該品牌，當時新監管的荷蘭市場開放。我們為幫助 BetCity 成為當今荷蘭領先的線上體育博彩和賭場品牌之一而感到自豪。我們非常高興能夠繼續與他們一起取得成功。

As a part of the extension deal, we will integrate several new third-party content suppliers for the Dutch market, further strengthening our localized content portfolio, but we will also continue to deliver content from our proprietary Bragg Studios, from our Powered by Bragg partners, and we will continue to be the exclusive content aggregator for BetCity via our product delivery technology for the duration of the agreement.

作為延期協議的一部分，我們將整合荷蘭市場的幾家新的第三方內容供應商，進一步加強我們的在地化內容組合，但我們也將繼續提供來自我們專有的布拉格工作室和我們的Powered by Bragg 合作夥伴的內容，並且在協議有效期內，我們將透過我們的產品交付技術繼續成為 BetCity 的獨家內容聚合商。

Moving to slide 14. On slide 14, I want to give you an update on how we're doing as a developer and distributor of exclusive online casino games. We are on track to release, 68 games titles globally for a full year of 2023, putting our output up there with the biggest game studios on the market. Proprietary and exclusive game production has been a renewed focus for us in the past two years. So I'm very proud of development capacity we have built and of the quality of the games that we are releasing.

前往投影片 14。在投影片 14 上，我想向您介紹我們作為獨家線上賭場遊戲開發商和經銷商的最新情況。我們預計在 2023 年全年在全球發布 68 款遊戲，讓我們的產出與市場上最大的遊戲工作室相媲美。過去兩年，專有和獨家遊戲製作已成為我們的新焦點。因此，我對我們建立的開發能力以及我們發布的遊戲的品質感到非常自豪。

As well as ramping up our online casino games production, we are maintaining a strategic balance with approximately half of the titles coming from our own Bragg Studios, which generate high margins for us and half of it coming from our Powered by Bragg partners, bringing diversity, richness, and in-demand studio brands for our portfolio. As you can see in the second half of 2023 our content releases significantly increased, and we plan to continue at this cadence into 2024 and beyond.

除了增加我們的線上賭場遊戲製作外，我們還保持著戰略平衡，大約一半的遊戲來自我們自己的布拉格工作室，這為我們帶來了高利潤，而其中一半來自我們由布拉格合作夥伴提供的支持，帶來了多樣性我們的產品組合豐富且受歡迎的工作室品牌。正如您所看到的，我們的內容發佈在 2023 年下半年顯著增加，我們計劃在 2024 年及以後繼續保持這種節奏。

So in summary, our third quarter revenue rose 8% year over year to EUR22.6 million. Gross profit was EUR11.9 million and adjusted EBITDA was up 70.5% year over year to EUR3.8 million. We have extended our agreement with BetCity to continue as their exclusive PAM content and content aggregation partner into 2025. We have our strategic pillars in place that will underpin our growth going forward and which will drive shareholder value. And our exclusive content production road map is firing on all cylinders with 68 online casino titles on track to be launched in the full year of 2023, including 30 from our proprietary Bragg Studios.

總而言之，我們第三季的營收年增 8% 至 2,260 萬歐元。毛利為 1,190 萬歐元，調整後 EBITDA 較去年同期成長 70.5% 至 380 萬歐元。我們已將與 BetCity 的協議延長至 2025 年，繼續作為其獨家 PAM 內容和內容聚合合作夥伴。我們擁有適當的策略支柱，這將支撐我們未來的成長，並推動股東價值。我們的獨家內容製作路線圖正在全力以赴，預計將於 2023 年全年推出 68 款線上賭場遊戲，其中 30 款來自我們專有的 Bragg Studios。

Current trading is in line with our expectations. So we reiterate our guidance for 2023 of EUR95 million to EUR97 million in revenues and EUR15.5 million to EUR16.5 million in adjusted EBITDA. The midpoints of these ranges represent 13.3% revenue growth and 32% adjusted EBITDA growth compared to our 2022 performance.

目前的交易符合我們的預期。因此，我們重申 2023 年營收指引為 9,500 萬歐元至 9,700 萬歐元，調整後 EBITDA 為 1,550 萬歐元至 1,650 萬歐元。與我們 2022 年的業績相比，這些範圍的中點代表營收成長 13.3%，調整後 EBITDA 成長 32%。

I want to thank you all very much for attending this presentation today. And now Ronen and I would be happy to take any questions you might have.

我非常感謝大家參加今天的演講。現在，羅南和我很樂意回答您可能提出的任何問題。

(Operator Instructions)

（操作員說明）

Gianluca Tucci, Haywood Securities.

吉安盧卡·圖奇，海伍德證券。

Good morning, guys, and congrats on another good quarter. I'm just wondering if we can start off on the news from earlier this week I think you did a good job of providing color mats, but the extension like does it take you through '25 or at the start of '25? And I am curious if you can speak to how the company expects the revenue like mix to shift from this one customer over the duration of this extension agreement.

早安，夥計們，恭喜又一個美好的季度。我只是想知道我們是否可以從本週早些時候的新聞開始，我認為您在提供色墊方面做得很好，但是像這樣的擴展是否會帶您度過 25 年或 25 年初？我很好奇你是否能談談公司預計在本延期協議有效期內，收入（如組合）如何從該客戶轉移。

(Technical difficulty) So the exact details of the commercial terms remaining, obviously subject to the party's eyes only as they're sensitive commercial terms. By negotiating this deal, we focused on keeping the PAM and aggregation deal, and it's in place until September 2025, and we reduced managed services resources, which Entain already has in-house.

（技術難度）因此，剩下的商業條款的具體細節，顯然只能受到當事人的注意，因為它們是敏感的商業條款。透過談判這筆交易，我們專注於保留 PAM 和聚合交易，並將其保留到 2025 年 9 月，我們減少了 Entain 內部已經擁有的託管服務資源。

Moving forward, we are going to work very aggressively on decreasing the exposure to some one of our top clients, and we are going to work very aggressively in the direction of growing our content, proprietary content portfolio of clients, the Tier 1s that we have signed recently, and the increasing number of aggregation and PAM clients where we believe that we have a very good opportunity to leverage that position and grow our proprietary and Powered by Bragg content revenue with them.

展望未來，我們將非常積極地努力減少對某些頂級客戶的曝光，並且我們將非常積極地致力於發展我們的內容、客戶的專有內容組合、我們擁有的一級客戶最近簽署的協議，以及越來越多的聚合和PAM 客戶，我們相信我們有一個很好的機會利用這一地位，並與他們一起增加我們的專有內容和由Bragg 提供支援的內容收入。

Great color. Thanks, Matt.

顏色很棒。謝謝，馬特。

And so on your commercial efforts with all the recent Tier 1s that have been signed over the last quarter or so, I'm just wondering how you're thinking about 2024 at this point from a growth perspective, combined with your cadence of games comment, accelerating. It appears that 2024 could be even a growth year than '23 at this point. Just curious for your comment on that.

等等，關於您在上個季度左右簽署的所有最新 Tier 1 的商業努力，我只是想知道您現在如何從增長的角度考慮 2024 年，並結合您的遊戲評論節奏，加速。目前看來，2024 年甚至可能比 23 年是成長年。只是好奇你對此的評論。

Sure. So we now have agreements with most of the Tier 1 operators, but they don't represent top customers for Bragg. Our plan in 2024 and '25 as well is to grow our wallet share with all of these existing content-only operators as well as existing PAM and aggregation operators as they present a great revenue growth opportunity for our proprietary and Powered by Bragg content.

當然。因此，我們現在與大多數一級運營商簽訂了協議，但他們並不代表布拉格的頂級客戶。我們在2024 年和25 年的計劃是增加我們與所有這些現有的純內容運營商以及現有的PAM 和聚合運營商的錢包份額，因為它們為我們的專有內容和由布拉格提供支援的內容提供了巨大的收入成長機會。

We are also looking to establish ourselves in markets that we're in, but we are underrepresented. And finally, newly regulated markets in LatAm and Europe are a great opportunity for our PAM aggregation, engagement ,and content products with these Tier 1 operators that we already signed with and new operators that are coming out of these newly regulated landscapes.

我們也希望在我們所在的市場中建立自己的地位，但我們的代表性不足。最後，拉丁美洲和歐洲新監管的市場對於我們與我們已經簽約的這些一級運營商以及來自這些新監管環境的新運營商的 PAM 聚合、參與和內容產品來說是一個很好的機會。

Okay. That's great. And my last question here. As it pertains to the American markets, the US particularly, are you doing anything differently or is it pretty much the same kind of execution plans from a growth perspective in the US?

好的。那太棒了。這是我的最後一個問題。對於美國市場，特別是美國，你們的做法是否有所不同，或者從美國成長的角度來看，執行計畫是否幾乎相同？

Well, as discussed in the presentation, in 2023 we will eventually roll out 69 titles, both in the US and Europe. And preliminary data suggests that the content performs well. Bragg is now live in four largest US iGaming markets being Pennsylvania, New Jersey, Michigan, and Connecticut with its proprietary content. And we continue to roll out with more operator brands in these states, further expanding its reach.

正如演示中所討論的，到 2023 年，我們最終將在美國和歐洲推出 69 款遊戲。初步數據顯示內容表現良好。 Bragg 目前以其專有內容活躍在美國四個最大的 iGaming 市場，分別是賓夕法尼亞州、新澤西州、密西根州和康乃狄克州。我們繼續在這些州推出更多營運商品牌，進一步擴大其覆蓋範圍。

To answer your question, we launched our content portfolio in Pennsylvania with Rush Street Interactive. And we've also launched a content with FanDuel in Michigan and Connecticut; and WynnBET in New Jersey, and we expect this trend to continue into 2024 and 2025.

為了回答您的問題，我們透過 Rush Street Interactive 在賓州推出了我們的內容組合。我們也在密西根州和康乃狄克州與 FanDuel 合作推出了內容；和新澤西州的 WynnBET，我們預計這一趨勢將持續到 2024 年和 2025 年。

I would like to also say that we're very excited about the US and I want to remind everyone that our business is extremely successfully in Europe and that we're one of the largest content aggregators and leading PAM providers in Europe. And we expect to leverage our expertise coming into the US and becoming a leading content provider in iGaming partners to global operators and US-only operators, obviously such as Entain, Flutter, bet365, and others.

我還想說，我們對美國感到非常興奮，我想提醒大家，我們的業務在歐洲非常成功，而且我們是歐洲最大的內容聚合商和領先的 PAM 提供者之一。我們希望利用我們的專業知識進入美國，成為全球營運商和美國營運商（顯然包括 Entain、Flutter、bet365 等）合作夥伴的 iGaming 領先內容提供者。

Okay. Thank you for the color, Matt, and congrats again on the quarter. Keep up the good work.

好的。謝謝你的顏色，馬特，再次恭喜本季。保持良好的工作。

Thank you.

謝謝。

Jordan Bender, JMP Securities.

喬丹·本德，JMP 證券。

Great. Thanks for taking my question. You actually just mentioned brush treating your prior comments, they are the new operator starting here soon in the State of Delaware to run the online platforms. I was wondering what does that kind of mean and can you kind of frame the revenue offer or potential revenue opportunity for the company over the course of ''24 and '25? Thank you.

偉大的。感謝您提出我的問題。實際上，您剛剛提到刷牙處理您先前的評論，他們是即將在特拉華州開始經營線上平台的新營運商。我想知道這是什麼意思，您能否為公司在“24”和“25”期間提供收入或潛在的收入機會？謝謝。

Hi. So it's probably too early to discuss the revenue opportunities for '25. We believe that Rush Street is a obviously a great operator that they have; an extremely good team, an extremely good product. And I believe that they're going to use all of that to significantly grow the GGR in the State of Delaware. And we plan to be very high on their priority list of content providers for that state. Exactly what the revenues are going to be is probably too early to discuss.

你好。因此，現在討論 25 年的收入機會可能還為時過早。我們相信 Rush Street 顯然是一家出色的營運商；一個非常好的團隊，一個非常好的產品。我相信他們將利用所有這些來顯著提高特拉華州的 GGR。我們計劃在該州的內容提供者優先清單中名列前茅。現在討論具體的收入可能還為時過早。

Understood. And then in terms of your player and wager growth, nice growth in the quarter but from a wager per player perspective, you're seeing a little bit of a deceleration year to date and especially here in the third quarter. Is that just a function of mix or is there something in the underlying consumer just spending less. Thank you.

明白了。然後就您的玩家和投注增長而言，本季度增長良好，但從每個玩家的投注角度來看，您會看到今年迄今為止有一點減速，尤其是在第三季度。這只是混合的函數還是潛在消費者的某些東西只是減少了支出。謝謝。

Yeah. So this is mainly connected to the seasonality. Third quarter is usually slower than first and second quarter.

是的。所以這主要和季節性有關。第三季通常比第一季和第二季慢。

I guess from a growth perspective, first half down roughly 5%; and the third quarter is down about 24%. Is there anything kind of in that?

我估計從成長的角度來看，上半年下降了大約5%；第三季下降約24%。這裡面有什麼東西嗎？

I wouldn't say there's anything in that -- any underlying reason that we would be able to identify.

我不會說其中有任何我們能夠識別的根本原因。

Understood. Thank you very much.

明白了。非常感謝。

Thank you.

謝謝。

Adhir Kadve, Eight Capital.

阿迪爾·卡德維，八資本。

Thanks, guys. Thanks for taking my questions. And Matt, congrats on the role; looking forward to working with you. I just wanted to talk about some of the European markets, specifically the UK and Italian markets. You've been in these markets for some time, some meaningful wins. How are you thinking about those two markets, just given how large they are and how meaningful they could be for your revenues moving forward?

多謝你們。感謝您回答我的問題。馬特，恭喜你獲得這個角色；期待和你一起工作。我只想談談一些歐洲市場，特別是英國和義大利市場。您已經進入這些市場一段時間，並取得了一些有意義的勝利。考慮到這兩個市場有多大以及它們對您未來收入的影響有多大，您如何看待這兩個市場？

Yes. So we were in -- we started with these markets anywhere between 24 and 12 months ago, and we were using this time to integrate with clients. These are obviously very heavily regulated markets. We believe that they are a great opportunity for our content-only proposition, and we believe that we were largely underrepresented in those markets, and we feel that these markets represent a great growth opportunity for our content in '24 and '25.

是的。所以我們在 24 到 12 個月前就開始涉足這些市場，我們利用這段時間與客戶整合。這些顯然是受到嚴格監管的市場。我們相信，對於我們的純內容主張來說，它們是一個很好的機會，我們相信我們在這些市場中的代表性很大程度上不足，我們認為這些市場代表了我們在24 和25 年的內容巨大成長機會。

Okay, excellent. And then just the content in different European markets, you've obviously had success. How easily transferable are those markets from say, the Netherlands into the UK and then into Germany? And just like how does that all work? And do you find that there's minimal heavy lifting or investment that needs to go into launching this content in different markets?

好的，非常好。然後只是不同歐洲市場的內容，你顯然已經成功了。這些市場從荷蘭轉移到英國再轉移到德國有多容易？就像這一切是如何運作的？您是否發現在不同市場推出此內容所需的繁重工作或投資最少？

We are integrated with most of the clients that are operating across these markets. So the heavy lifting has been done in the past. And what we need to do now is we need to use our data and build local custom content that is going to fit the requirements of these markets and effectively plays the content, position the content, and promote the content with these operators and use our engagement tools that will allow us to create certain unique and specific categories within the content portfolio to be able to compete with existing content providers in these markets.

我們與在這些市場上經營的大多數客戶進行了整合。因此，繁重的工作已經在過去完成了。我們現在需要做的是，我們需要使用我們的數據並建立本地定制內容，以適應這些市場的要求，並有效地播放內容，定位內容，並與這些運營商一起推廣內容，並利用我們的參與這些工具將使我們能夠在內容組合中創建某些獨特且特定的類別，以便能夠與這些市場中現有的內容提供者競爭。

I'm very positive about the progress that we have made over the last 12 months. And I believe that we have a great future ahead of us with two proprietary studios and roadmaps that have been put in place with these two proprietary studios and Powered by Bragg Studios that are developing content for these local markets in Europe.

我對我們過去 12 個月的進展非常樂觀。我相信，我們擁有兩個專有工作室和路線圖，我們擁有美好的未來，這兩個專有工作室已經制定了路線圖，並由布拉格工作室提供支持，正在為歐洲這些本地市場開發內容。

Excellent. Thanks, guys. Congrats on the quarter.

出色的。多謝你們。恭喜本季。

I'll pass the line

我會過線

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

[Daniel Rosenberg].

[丹尼爾·羅森伯格]。

Hi Matt and Ronen. My first question comes around cost controls and automation. So we're seeing some of the benefits take place here in the quarter, but just wondering how much more leverage do you have in terms of implementing other automations into your operations that could keep yielding strong results?

嗨，馬特和羅南。我的第一個問題是關於成本控制和自動化。因此，我們看到本季出現了一些好處，但只是想知道在營運中實施其他自動化以持續產生強勁成果方面，您還有多少槓桿作用？

Ronen, you want to take this?

羅南，你想拿這個嗎？

Sure. Daniel, good morning. Good morning, everyone. So the beginning of this year, we implemented quite a lot of cost control. Some of the areas that only focus on our growth and what we actually need to grow and to diversify in different markets for different products, and of course, the new content we're producing.

當然。丹尼爾，早安。大家，早安。所以今年年初，我們進行了相當多的成本控制。有些領域只關注我們的成長以及我們實際需要成長的內容以及在不同市場中針對不同產品多元化的內容，當然還有我們正在製作的新內容。

Of course, there's a lot of room for automation, it's from every single department. But I would have to say from a business perspective today, majority of the work is automated. Majority of the process is automated. We're becoming more efficient in the way we're operating, the way we actually building games. We are investing in our technology.

當然，每個部門都有很大的自動化空間。但我必須說，從今天的商業角度來看，大部分的工作都是自動化。大部分流程是自動化的。我們的運作方式和實際建立遊戲的方式正在變得更加高效。我們正在投資我們的技術。

We actually have at this stage, I would say, we're very well positioned to further growth with the same teams and the same operation we have today. So yes, there's a lot of growth, there's a lot of opportunities for optimization, but I think we're already there. I think what we're seeing right now, what we will be seeing right now is more commercial and more revenue coming from the same team, from the same functionality and infrastructure we have right now.

我想說，在這個階段，我們實際上已經做好了充分的準備，可以透過與今天相同的團隊和相同的運作來進一步發展。所以，是的，有很多成長，有很多優化的機會，但我認為我們已經做到了。我認為我們現在看到的，我們現在將看到的是更多的商業化和更多的收入來自同一個團隊，來自我們現在擁有的相同的功能和基礎設施。

Thanks for that context. My second question is around the BetCity contract. I was just wondering, it's nice to see the risks contained here. Is the final outcome in line with what you were expecting as you started negotiations and are there any other opportunities to work with BetCity that came out of those negotiations?

感謝您提供的背景。我的第二個問題是關於 BetCity 合約的。我只是想知道，很高興看到這裡包含的風險。最終結果是否符合您開始談判時的預期？在這些談判中是否還有其他與 BetCity 合作的機會？

Yeah. So our original agreement at a five-year term with a 12-month termination notice. So we're happy that we managed to secure the extension of the deal and obviously, in line with our expectation. BetCity and Entain as a group are a key partner of ours, and we're proud of what we have achieved together. We've been having a very constructive dialogue over the recent past, and we hope to be able to power the BetCity brand and Entain group as a global powerhouse going forward.

是的。因此，我們最初的協議期限為 5 年，並​​有 12 個月的終止通知。因此，我們很高興我們成功地延長了交易，顯然，這符合我們的預期。 BetCity 和 Entain 作為一個整體是我們的重要合作夥伴，我們為我們共同取得的成就感到自豪。我們最近一直在進行非常有建設性的對話，我們希望能夠推動 BetCity 品牌和 Entain 集團成為未來的全球巨頭。

We are right now very focused on making sure that BetCity continues to effectively utilize our product and continues to grow. And I think it's positive that that we have secured the longevity of the deal, and we have now a clear pathway of continued support of Entain's strategic initiatives in the market. Entain is a like I said, a global operator, presents a large opportunity for us as a content provider, for us as an aggregation solution provider, and for us as an engagement solution provider. So we will work together with Entain and BetCity to implement these solutions into their B2C network come across all different jurisdictions in 2024 and obviously 2025 and hopefully achieve similar success as with BetCity.

我們現在非常專注於確保 BetCity 繼續有效地利用我們的產品並繼續發展。我認為，我們已經確保了交易的長期性，這是積極的，而且我們現在有一個明確的途徑來繼續支持 Entain 在市場上的策略性舉措。正如我所說，Entain 是一家全球營運商，為我們作為內容提供者、聚合解決方案提供者以及參與解決方案提供者提供了巨大的機會。因此，我們將與 Entain 和 BetCity 合作，在 2024 年和 2025 年將這些解決方案實施到他們跨越所有不同司法管轄區的 B2C 網路中，並希望能取得與 BetCity 類似的成功。

Okay. Thanks for that. Lastly, just a quick one for Ronen. On the working capital, free cash flow you guys are expecting to do -- continue to improve and grow. Just wondering if there's any color you could give in terms of how working capital ebbs and flows in the coming quarters, if you require capital to scale, just from our working capital perspective?

好的。感謝那。最後，讓羅南簡單介紹一下。關於營運資金，你們期望的自由現金流——持續改善和成長。只是想知道，如果您需要資本來擴大規模，僅從我們的營運資本角度來看，您是否可以對未來幾季的營運資本潮起潮落給出任何顏色？

Yeah, so as you've seen in the last nine months of operation, the working capital relatively remain the same EUR6.3 million -- about EUR6.6 million dropped to EUR6.3 million, of course, with higher adjusted EBITDA compared to previous year. So we believe that in the next couple of -- I would say the next nine months, we'll be able to generate relatively same type of profits. We are definitely funding our investment on software development costs, which I think is going to be relatively the same. I don't think there's a big expectation to be much higher than that.

是的，正如您在過去 9 個月的營運中看到的那樣，營運資金相對保持不變，為 630 萬歐元 - 大約 660 萬歐元下降到 630 萬歐元，當然，調整後的 EBITDA 更高前一年。所以我們相信，在接下來的幾個月裡——我想說的是接下來的九個月，我們將能夠產生相對相同類型的利潤。我們肯定會為軟體開發成本的投資提供資金，我認為這將相對相同。我認為不會有比這高得多的期望。

We can serve the debt. That's what we're doing. And I think excluding the changes in working capital, last nine-month period would definitely conserve that and the working capital probably would improve with everything we're doing right now. So I'm quite confident that it will be slightly higher than what we're seeing right now compared to what we did so far, and we will improve [significantly. At least] EUR3 million, EUR4 million in the next couple of nine months' time. That's on the basis that we're going to secure the debt and we're paying on a regular basis to avoid any dilution into the shareholders.

我們可以還債。這就是我們正在做的事情。我認為，排除營運資金的變化，過去九個月的時間肯定會保留這一點，而且隨著我們現在所做的一切，營運資金可能會有所改善。因此，我非常有信心，與我們迄今為止所做的相比，它會比我們現在看到的略高，並且我們將[顯著改進。至少]300萬歐元，在接下來的九個月內400萬歐元。這是基於我們將擔保債務並定期付款以避免股東稀釋。

Thanks for taking my questions. I'll pass the line.

感謝您回答我的問題。我會過線。

Sid Dilawari, Cormark Securities.

Sid Dilawari，Cormark 證券公司。

Well, hey, good morning, guys. Thanks for taking my question. Firstly, just on the Ontario market, maybe if you can speak about the general landscape in Q3. You're now live with bet365, Rush Street Interactive, and maybe a couple of others. It seems like there was minimal sequential growth on the number of live operators. And just given that dynamic, do you see your future growth in Ontario from penetrating further with current operators, what from new operators coming live to the market?

嗯，嘿，早安，夥計們。感謝您提出我的問題。首先，就安大略省市場而言，也許您可以談談第三季的整體情況。現在您可以使用 bet365、Rush Street Interactive 以及其他一些公司。現場操作員數量的環比增長似乎微乎其微。鑑於這種動態，您認為您在安大略省的未來成長是否來自於進一步滲透現有營運商，以及新營運商進入市場？

All right. So we are seeing future growth coming from existing operators. Like I said, we are going to grow our wallet share with these existing content-only operators. And I believe they present a revenue growth opportunity as well as new operators coming into the market. Ontario has been a market that is growing slower than expected, but I believe that we are going to be able to increase our presence in the market through existing and new operators, like I said.

好的。因此，我們看到未來的成長來自現有營運商。就像我說的，我們將增加與這些現有的純內容運營商的錢包份額。我相信它們提供了收入成長機會以及進入市場的新營運商。安大略省的市場成長速度低於預期，但我相信，正如我所說，我們將能夠透過現有和新的營運商增加我們在市場上的影響力。

Okay, thanks. And then just going back to the PAM extension agreement, when Entain and BetCity -- nice to see obviously --. Your PAM market share in Netherlands also remains resilient. Any commentary you can provide on the competitive landscape there? And if you have opportunities now with more localized content to penetrate further in that market with more operators other than BetCity?

好的謝謝。然後回到 PAM 延期協議，Entain 和 BetCity 顯然很高興看到。您在荷蘭的 PAM 市場佔有率也保持彈性。您對那裡的競爭格局有何評論？如果您現在有機會提供更多在地化內容，透過 BetCity 以外的更多營運商進一步滲透該市場？

Yes, we have established ourselves as a leading PAM solution provider in this market. We believe that we have more opportunities to grow as a PAM and aggregation solution provider in this market. And we also believe that we are going to be able to leverage our position as a leading PAM solution provider and aggregation solution provider in the market to grow our wallet share, like I said, in the market. And I think the Netherlands has been a great market for us over the last two years, and we believe that we are going to be able to maintain our position in the market moving forward.

是的，我們已成為該市場領先的 PAM 解決方案提供者。我們相信，作為 PAM 和聚合解決方案提供商，我們有更多機會在這個市場上成長。我們還相信，我們將能夠利用我們作為市場領先的 PAM 解決方案提供商和聚合解決方案提供商的地位來增加我們的錢包份額，就像我所說的那樣，在市場上。我認為過去兩年荷蘭對我們來說是一個很好的市場，我們相信我們將能夠繼續保持我們在市場中的地位。

Okay. And then just one last one for me, just on the M&A landscape here. We've seen some industry consolidation over the last few weeks. As you also alluded to in your prepared remarks, do you see any opportunities in the near term to be acquisitive at accretive multiples? And if so, would your focus be primarily on gaming studios or somewhere else?

好的。接下來是我的最後一篇，關於這裡的併購領域。過去幾週我們看到了一些產業整合。正如您在準備好的演講中也提到的那樣，您認為短期內是否有機會以增值倍數進行收購？如果是這樣，您的重點會主要放在遊戲工作室還是其他地方？

Yaniv, do want to take this question?

Yaniv，你想回答這個問題嗎？

Yeah, sure. Thanks, Sid, and thanks for the question. We can see from recent M&A activity in the market that obviously capital markets are undervaluing companies, successful companies, and we've seen recent examples I mean the acquisition of Aristocrat of Aspire and obviously the recent acquisition that was announced yesterday between, Sega Sammy and GAN; companies that are trading at much lesser valuations than what companies are willing to pay for in terms of cash. And that, in our opinion is the true value of companies. And I think that is not in the capital markets today. That's on the landscape in general.

好，當然。謝謝希德，也謝謝你的提問。從最近市場上的併購活動中我們可以看到，資本市場顯然低估了公司、成功公司的價值，我們已經看到了最近的例子，我指的是Aspire 的Aristocrat 的收購，顯然還有昨天Sega Sammy 和Sega Sammy 之間宣布的最近的收購甘；公司的交易估值遠低於公司願意以現金支付的估值。在我們看來，這就是公司的真正價值。我認為今天的資本市場並非如此。這就是總體情況。

But in terms of acquisition, we have everything that we need in house in terms of the content studios, in terms of the distribution agreements, and especially the technology. We're looking to continue to grow the business and expand within our customers and to new customers and in new jurisdictions. And if there is an opportunity on us to be acquisitive then of course, we'll look into it. And of course, as a public company there are a lot of other opportunities to be in the M&A space. And that's something that we are open to and always are on the lookout for.

但在收購方面，我們擁有內容工作室、分銷協議、尤其是技術方面所需的一切。我們希望繼續發展業務，並在我們的客戶、新客戶和新司法管轄區擴張。如果我們有機會進行收購，那麼我們當然會進行研究。當然，作為一家上市公司，併購領域還有很多其他機會。這是我們持開放態度並始終在尋找的東西。

I'm sorry, so in terms of potential targets, would their primarily be focused towards content producers as in gaming studios or somewhere else?

抱歉，就潛在目標而言，他們主要關注的是遊戲工作室或其他地方的內容製作者嗎？

Mostly content. I mean, we have all the tools in-house that we need in terms of the technology, the distribution, and the licensing. And so if we were to be acquisitive, it would be about content and differentiated content that is localized to the jurisdictions where we operate in and the jurisdictions that we want to operate in.

主要是內容。我的意思是，我們內部擁有技術、分銷和授權方面所需的所有工具。因此，如果我們要進行收購，那就是針對我們營運所在的司法管轄區以及我們想要經營的司法管轄區在地化的內容和差異化內容。

Okay. Thanks for the clarity. I'll pass the line.

好的。感謝您的澄清。我會過線。

Thanks, Sid, and thanks to all our callers with questions today. And with that, I will now turn the call back over to Yaniv Spielberg for closing remarks. Yaniv, the floor is yours?

謝謝 Sid，也感謝今天所有提出問題的來電者。現在，我將把電話轉回給亞尼夫·史匹柏，讓其致閉幕詞。 Yaniv，地板是你的嗎？

Guys, thanks, everybody for joining our call. Thank you for being interested in Bragg. We're closing another very successful quarter, and we look forward to hosting you on our next quarterly call. Meantime, have a great day, everyone.

夥伴們，謝謝大家加入我們的電話會議。感謝您對布拉格感興趣。我們即將結束另一個非常成功的季度，我們期待在下一個季度的電話會議上接待您。同時，祝大家有美好的一天。

And ladies and gentlemen, that does conclude today's call. Thank you all for joining, and you may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入，現在可以斷開連線了。