Codere Online Luxembourg SA (CDRO) 2024 Q2 法說會逐字稿

Thank you for standing by. My name is Kathleen and I will be your conference operator today. At this time, I would like to welcome everyone to the Codere Online Second Quarter 2024 Financial Results. (Operator Instructions)

謝謝你的支持。我叫凱瑟琳，今天我將擔任你們的會議操作員。在此，我謹歡迎大家閱讀 Codere Online 2024 年第二季財務業績。（操作員說明）

Thank you. I would now like to turn the call over to Mr. Guillermo Lancha, Head of Investor Relations. Please go ahead, sir.

謝謝。我現在想將電話轉給投資者關係主管 Guillermo Lancha 先生。請繼續，先生。

Thanks, operator and welcome everyone to Codere Online earnings call for the second quarter of 2024. Today you will hear from our CEO, Aviv Sher; and CFO, Oscar Iglesias; our Executive Vice Chairman, Moshe Edree will also join us in the Q&A section.

感謝營運商，並歡迎大家參加 Codere Online 2024 年第二季財報電話會議。今天您將聽到我們的執行長 Aviv Sher 的講話；財務長奧斯卡·伊格萊西亞斯；我們的執行副主席 Moshe Edree 也將加入我們的問答環節。

Before turning the call over to Aviv, I'd like to remind everyone that during this call we will be referring to a presentation we uploaded to our website earlier today, which includes non-GAAP preliminary and audited financial metrics such as Net Gaming Revenue or adjusted EBITDA, for which you can find reconciliations in the appendix of the presentation. Please note that all growth rates discussed during this call are year-on-year comparisons, unless noted otherwise.

在將電話轉給Aviv 之前，我想提醒大家，在這次電話會議中，我們將參考今天早些時候上傳到我們網站的演示文稿，其中包括非GAAP 初步和經審計的財務指標，例如淨遊戲收入或調整後的 EBITDA，您可以在簡報的附錄中找到調整表。請注意，除非另有說明，本次電話會議中討論的所有成長率均為同比比較。

Let me also remind you that our accounting information is prepared under IFRS accounting standards, and that throughout this presentation, all monetary figures will be in Europe, unless expressed otherwise. Finally, please note that our replay and transcript of this call will be available on our website at codereonline.com where you can also sign up for our investor email alerts.

我還要提醒您，我們的會計資訊是根據 IFRS 會計準則準備的，並且在整個簡報中，除非另有說明，所有貨幣數字都將來自歐洲。最後，請注意，我們的電話會議重播和文字記錄將在我們的網站 codereonline.com 上提供，您也可以在其中註冊我們的投資者電子郵件提醒。

With that, I will go ahead and pass the call on to Aviv.

這樣，我將把電話轉給阿維夫。

Thanks Guillermo and thanks everyone for joining us today. I'm once again pleased to report strong set of earnings for the second quarter and to share our expectations for the remainder of the year. With two quarter behind us this year is poised to be a pivotal one in our company history, as we expect to achieve profitability in our third year post this pack.

感謝吉列爾莫並感謝大家今天加入我們。我再次很高興地報告第二季強勁的收益，並分享我們對今年剩餘時間的預期。今年已經過去了兩個季度，這將成為我們公司歷史上的關鍵一年，因為我們預計在本季後的第三年會獲利。

So jumping straight into the highlights of the second quarter of 2024 on Page 8, we delivered EUR54 million in net gaming revenue more than EUR15 million, or 13% above Q2 2023, this was also a sequential uplift versus the EUR53 million in Q1 thanks in part to the busy sports calendar with the Eurocup and Copa America.

因此，直接跳到第8 頁上的2024 年第二季度的亮點，我們實現了5400 萬歐元的淨遊戲收入，超過1500 萬歐元，比2023 年第二季度增長13%，這也比第一季度的5300 萬歐元有所增長，這要歸功於參加歐洲杯和美洲杯等繁忙的體育賽事。

In terms of product mix, the contribution from our casino segment reached a record high of 59% of total net gaming revenue in the quarter, and continues to be the key driver behind our goals as we not only acquire more customers in this segment, but also continue crossing spot betting customers over to the casino.

就產品組合而言，本季賭場業務的貢獻達到歷史新高，佔總淨博彩收入的 59%，並且繼續成為我們目標背後的關鍵驅動力，因為我們不僅在該業務領域獲得了更多客戶，而且也繼續將現場投注客戶轉移到賭場。

This was particularly relevant dynamic this quarter where customer remained engaged with us, notwithstanding the generally favorable sport results they enjoyed, especially here in Spain, with Real Madrid winning the Champions League and Spain winning the [Eurocup], this growth in net gaming revenue was driven by a 20% increase in average monthly spend per customer to, EUR125, together with a 16% increase in the number of average monthly active customers.

本季這一動態尤其重要，客戶仍然與我們保持聯繫，儘管他們享受普遍有利的體育賽事結果，尤其是在西班牙，皇家馬德里贏得了冠軍聯賽，西班牙贏得了[歐洲杯]，但淨博彩收入的成長每位客戶的平均每月支出增加了 20%，達到 125 歐元，同時平均每月活躍客戶數量增加了 16%。

In terms of customer acquisitions, we had 73,000 First time depositors and in average of EUR236 CPA. As we have discussed in prior quarters, our increased focus on casino first customers acquisitions in Spain and in Mexico is the main driver behind the increase in CPA, but the spend we see from customers in this segment is both higher and more stable, leading to a better returns on investment despite the higher level of upfront investment. Oscar will cover our improved outlook later. So we will conclude with my remarks with a quick mention of the changes we've done in the board during June.

在客戶獲取方面，我們擁有 73,000 名首次存款者，平均 CPA 為 236 歐元。正如我們在前幾個季度所討論的，我們對西班牙和墨西哥的賭場優先客戶收購的日益關注是每次轉化費用增長的主要驅動力，但我們看到該細分市場客戶的支出既更高又更穩定，從而導致儘管前期投資水平較高，但投資回報率更高。奧斯卡稍後將介紹我們改進的前景。因此，我們將在發言結束時快速提及 6 月我們在董事會中所做的改變。

As previously disclosed, we have 3 new board members joining us recently, an existing board member. An existing board member, Gonzaga Higuero, will be succeeding Pat Ramsey as Chairman going forward. We look forward to working with Gonzaga in his new role and would like to thank Pat, who was recently named to the Board of Directors of Codere Group, for his support, dedication and contributions over the past two and a half years.

如同先前所揭露的，我們最近有 3 位新董事會成員加入我們，其中一位是現有董事會成員。現有董事會成員 Gonzaga Higuero 將接替 Pat Ramsey 擔任董事長。我們期待與 Gonzaga 一起擔任新職務，並感謝最近被任命為 Codere Group 董事會成員的 Pat 在過去兩年半中的支持、奉獻和貢獻。

With this, I will now turn the call over to Oscar to cover the financial highlights of the quarter and our revised 2024 outlook.

現在，我將把電話轉給 Oscar，介紹本季的財務亮點以及我們修訂後的 2024 年展望。

Thanks Aviv. Turning now to the financial performance for the quarter on Page 10. Consolidated Net Gaming Revenue grew by 39% to EUR54 million. This growth was driven primarily by our Mexican business, which continued to outperform our internal expectations with growth of 57% to EUR28 million. In Spain, meanwhile, we also continue to deliver significant growth, with net gaming revenue up 25% to nearly EUR22 million.

謝謝阿維夫。現在轉向第 10 頁的本季財務表現。綜合博彩淨收入成長 39%，達到 5,400 萬歐元。這一成長主要是由我們的墨西哥業務推動的，該業務繼續超越我們的內部預期，成長了 57%，達到 2800 萬歐元。同時，在西班牙，我們也持續實現顯著成長，遊戲淨收入成長 25%，達到近 2,200 萬歐元。

Adjusted EBITDA was positive EUR1.3 million in the second quarter, nearly EUR6 million better than in the second quarter of 2023 and included a contribution of EUR6 million from our Spanish business. As a reminder, our country level results now include certain expenses that in the past were classified as undistributed B2B expenses, so the comparisons versus prior year periods are hard.

第二季調整後 EBITDA 為正 130 萬歐元，比 2023 年第二季增加近 600 萬歐元，其中包括來自我們西班牙業務的 600 萬歐元貢獻。提醒一下，我們的國家級結果現在包括某些過去被歸類為未分配的 B2B 費用的費用，因此很難與去年同期進行比較。

If we were to adjust Spain's adjusted EBITDA on the prior year period, for example, to reflect the same allocation of expenses, adjusted EBITDA on the current quarter would have grown 34% instead of the 5% reflected in earnings deck. Separately and for a second consecutive quarter, Mexico contributed to this improvement with a positive adjusted EBITDA on the quarter versus the negative EUR2 million in the prior year period.

例如，如果我們調整西班牙去年同期的調整後 EBITDA，以反映相同的費用分配，則本季調整後 EBITDA 將成長 34%，而不是損益表中反映的 5%。另外，墨西哥連續第二個季度為這一改善做出了貢獻，該季度調整後的 EBITDA 為正值，而去年同期為負值 200 萬歐元。

Undistributed B2B expenses, meanwhile, decreased by EUR3 million, primarily due to the allocation of certain expenses to country level results, looking now at our PNL on Page 11, the nearly EUR6 million improvement in adjusted EBITDA in the second quarter was primarily driven by the EUR15.3 million increase in net gaming revenue, partially offset by a higher level of marketing and investment than would have otherwise been the case leading up to and around the Eurocup and Copa America tournaments, which took place in the back half of June and front half of July.

同時，未分配的B2B 費用減少了300 萬歐元，主要是由於將某些費用分配到國家級業績，現在看看第11 頁的PNL，第二季度調整後EBITDA 近600 萬歐元的改善主要是由於淨博彩收入增加 1,530 萬歐元，部分被較高水準的行銷和投資所抵消，而歐洲盃和美洲盃錦標賽則在 6 月下旬和上半年舉行。

Turning now to Page 12, the increase in net gaming revenue is being driven by both an increase in active customers from Spain and Mexico, together with a higher spend per active FTDs, meanwhile, increased by 5% in the quarter, driven by our acquisition efforts around the Eurocup and Copa America, but perhaps more importantly, we had a 16% increase in active customers in the quarter, primarily due to improved retention of existing customers.

現在轉到第 12 頁，來自西班牙和墨西哥的活躍客戶的增加以及每個活躍 FTD 支出的增加推動了淨遊戲收入的增長，同時，在我們的收購推動下，本季度增長了 5%圍繞歐洲杯和美洲盃所做的努力，但也許更重要的是，本季我們的活躍客戶數量增加了16%，這主要是由於現有客戶保留率的提高。

This improvement reflects not only the improved quality of our customer acquisitions, but also the significant efforts from our CRM team, which is delivering day-after-day for our customers and for the company. Turning to the Spanish operating and financial metrics, net gaming revenue in the second quarter increased 24% versus the prior year, driven by a significant 27% increase in the number of active customers to 52,000.

這項改進不僅反映了我們客戶獲取品質的提高，也反映了我們的 CRM 團隊日復一日地為我們的客戶和公司提供服務的巨大努力。就西班牙的營運和財務指標而言，第二季度的淨博彩收入較上年同期增長了 24%，這得益於活躍客戶數量大幅增長 27% 至 52,000 名。

On a sequential basis, net gaming revenue decreased slightly displaced despite a 3% increase in active customers due to the favorable results for customers in Spanish football and tennis, which while increasing engagement from our customers, especially here in Spain, otherwise negatively impacted our sports betting margin.

環比來看，儘管活躍客戶增加了3%，但由於西班牙足球和網球領域的客戶取得了良好的業績，淨博彩收入略有下降，這雖然增加了我們客戶（尤其是西班牙客戶）的參與度，但對我們的體育運動產生了負面影響投注保證金。

That said, we would like to congratulate Carlos Alcaraz for his wins at Roland Garros and Wimbledon, our partners Real Madrid, for the win of the Champions League, and of course, the Spanish men's football team for their win in the Eurocup, though, a win in extended time would have been a better outcome for Codere Online.

也就是說，我們要祝賀卡洛斯·阿爾卡拉斯在法網和溫布爾登的勝利，祝賀我們的合作夥伴皇家馬德里贏得歐洲冠軍聯賽，當然，還要祝賀西班牙男子足球隊在歐洲杯中獲勝，如果長時間獲勝對於Codere Online 來說將會是更好的結果。

In Mexico, net gaming revenue was EUR28 million in the second quarter, an increase of 57% year-on-year, and 6% sequentially. With this impressive growth Mexico has already exceeded the EUR100 million mark in LTM net gaming revenue double that of 2022 in just a year and a half. The strong performance was driven by a 26% increase in the number of active customers and a 25% higher spend per active customer.

在墨西哥，第二季博彩淨收入為2,800萬歐元，較去年同期成長57%，較上季成長6%。隨著這一令人印象深刻的成長，墨西哥的 LTM 淨博彩收入在短短一年半的時間內就已突破 1 億歐元大關，比 2022 年翻了一番。強勁的業績得益於活躍客戶數量增加 26% 以及每位活躍客戶的支出增加 25%。

Turning to the balance sheet on Page 15, as of June 30, we had EUR41 million of total cash in the balance sheet, of which approximately EUR35 million was available, EUR2 million more than where we ended the first quarter. I believe this was the first quarter since listing the business where we have increased cash from one quarter to the next, notwithstanding that we had a few million in extended accounts payable at quarter's end.

轉向第 15 頁的資產負債表，截至 6 月 30 日，我們的資產負債表中現金總額為 4,100 萬歐元，其中可用現金約為 3,500 萬歐元，比第一季末多了 200 萬歐元。我相信這是自上市以來我們第一個季度現金增加的第一個季度，儘管我們在季度末有數百萬的擴展應付帳款。

In terms of networking capital position, we ended the quarter with negative EUR19 million, or around 9% of LTM net gaming revenue, which, while lower than in the past, reflects a new normal level of working capital for our business, given increasingly restricted trade terms from suppliers.

就網路資本部位而言，本季末我們的營收為負1,900 萬歐元，約佔LTM 淨遊戲收入的9%，雖然低於過去，但反映了我們業務的營運資金處於新的正常水平，因為受到越來越多的限制來自供應商的貿易條款。

Looking at our cash flow on Page 16, in the first half, we have utilized EUR1.5 million of available cash, including a EUR0.2 million negative impact from FX on ending cash balances. Turning to our 2024 outlook on Page 18, and once again, given the strong performance we have seen in the first half of the year, we are increasing the lower end of our net gaming revenue outlook by EUR10 million, and the upper end by EUR5 million, that is from a range of EUR195 million to EUR210 million, to a new outlook of EUR205 million to EUR215 million at the mid this would imply a 22% growth in net gaming revenue versus 2023.

從第 16 頁的現金流量來看，上半年，我們使用了 150 萬歐元的可用現金，其中包括外匯對期末現金餘額造成的 20 萬歐元的負面影響。轉向第 18 頁的 2024 年展望，鑑於我們在上半年看到的強勁表現，我們將淨博彩收入展望的下限上調了 1000 萬歐元，將上限上調了 5 歐元百萬歐元，即從1.95 億歐元到2.1 億歐元不等，到中期的新展望為2.05 億歐元到2.15 億歐元，這意味著與2023 年相比，博彩淨收入將成長22%。

In terms of adjusted EBITDA, and with the benefit of a busier than usual summer sports calendar now behind us, we are establishing a range of between EUR2.5 million and EUR7.5 million for the year, which reflects both our positive outlook for the back half of the year, but also leaves us with some wiggle room to continue investing where and when we see opportunities to do so in furtherance of creating meaningful value for shareholders. That's all from my end.

就調整後的 EBITDA 而言，由於比平常更繁忙的夏季體育賽事已經過去，我們將今年的收入範圍設定在 250 萬歐元至 750 萬歐元之間，這反映了我們對下半年，但也給我們留下了一些迴旋餘地，可以在我們看到機會的地方和時間繼續投資，以促進為股東創造有意義的價值。這就是我的全部。

I'll now hand it back over to Aviv for closing remarks.

現在我將把它交還給阿維夫做總結發言。

Thanks, Oscar. Before we turn to Q&A, I would like to thank the Codere Online team, as always, for their hard work to deliver these strong results, and for their effort to present earnings a month early in the newsroom. As we look out to the second half of the year, we remain fully focused on execution and are confident that we will continue to meet our goal of delivering sustainable and profitable growth, as always, thanks to the investors, analysts and other market participants for your interest and support, we look forward to speaking to you again soon and wish you a pleasant summer break.

謝謝，奧斯卡。在我們進行問答之前，我要一如既往地感謝 Codere Online 團隊的辛勤工作，以實現這些強勁的業績，並努力提前一個月在新聞編輯室公佈收益。展望下半年，我們仍然完全專注於執行，並有信心我們將一如既往地繼續實現可持續和盈利增長的目標，感謝投資者、分析師和其他市場參與者的支持。很快再次與您交談，並祝您度過一個愉快的暑假。

With that said, I will turn it back to the operator to open up the call to Q&A.

話雖如此，我會將其轉回給接線員以打開問答電話。

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。（操作員說明）

Jeff Stantial, Stifel.

傑夫·斯坦蒂爾，斯蒂菲爾。

Hi, good morning, Aviv, Oscar. Thanks for taking our questions. Maybe starting out here on the newly introduced foyer '24 EBITDA guide, now that you're through Copa and Euro's and add some greater visibility into plan marketing spend, I was just hoping to get some updated thoughts on how you see the underlying margin expansion algorithm from here, based on customer acquisition volumes and the return on the UA spend that you're seeing currently.

嗨，早上好，阿維夫，奧斯卡。感謝您回答我們的問題。也許從新推出的門廳'24 EBITDA 指南開始，既然您已經完成了美洲杯和歐洲杯，並為計劃營銷支出增加了一些更大的可見性，我只是希望獲得一些關於您如何看待潛在利潤擴張的最新想法此處的演算法，基於客戶獲取量和您目前看到的 UA 支出回報。

How do you think about leverage, throwing the PNL, going through the PNL? Maybe, looking out beyond this year, into 2025 and beyond, is there a rough, even flow through level that we should be anchoring to, keeping in mind opportunity to turn the marketing spigot back on here and there just any thoughts you could provide there on the margin expansion path from here would be helpful? Thanks.

您如何看待槓桿、拋出盈虧、透過損益？也許，展望今年、2025 年及以後，是否存在一個我們應該錨定的粗略、均勻的流程水平，牢記在這裡重新打開營銷龍頭的機會，以及您可以在那裡提供的任何想法從這裡開始的利潤擴張之路會有幫助嗎？謝謝。

Hi, Jeff. Thanks for the question. I heard the word algorithm in there. So I don't know if I should pass the call pass the question over to Aviv or not, but I think, I think it's a little bit early Jeff for us to give, let's say, longer term expectations in terms of where kind of the blended margin, or country level margins on the EBITDA front could play out. Obviously, we're already delivering significant EBITDA margin.

嗨，傑夫。謝謝你的提問。我在那裡聽到了算法這個詞。所以我不知道我是否應該透過電話將問題傳遞給阿維夫，但我認為，傑夫，我們現在給出更長期的期望還為時過早EBITDA 方面的混合利潤率或國家級利潤率可能會發揮作用。顯然，我們已經實現了可觀的 EBITDA 利潤率。

A significant and healthy EBITDA margin in Spain and Mexico is really, really the market where and again, we post US, SPAC, we really started to invest heavily in Mexico, and we're starting to see, I would say, over the last 1.5 year, the benefits of that early upfront investment, post US, SPAC and the unit economics have done nothing but improve in that market. That said. Mexico is a market that has a dis-advantage from a gaming tax rate versus Spain, it's something like 9 percentage points, 10 percentage points. So it's never going to be at that same long-term EBITDA margin that Spain will be all else being equal.

西班牙和墨西哥的 EBITDA 利潤率顯著且健康，這確實是一個市場，我們一次又一次地發布美國、SPAC，我們真的開始在墨西哥進行大量投資，我想說，我們在過去開始看到1.5 年以來，早期前期投資、美國後、SPAC 和單位經濟效益的好處除了在該市場有所改善之外沒有任何作用。就是這樣說的。與西班牙相比，墨西哥是博彩稅率處於劣勢的市場，大約是 9 個百分點、10 個百分點。因此，在其他條件相同的情況下，西班牙的長期 EBITDA 利潤率永遠不會相同。

So I think we're optimistic for the back half of the year. I think as we start generating positive EBITDA on Mexico, obviously we have to monitor, FX impacts, versus internal expectations the Mexican this has been a little bit all over the place. After the elections in early June, it devalued 5%, 10% that strengthened a little bit. It's now back on a devaluation track and we have US elections later this fall.

所以我認為我們對今年下半年持樂觀態度。我認為，當我們開始在墨西哥產生正的 EBITDA 時，顯然我們必須監控外匯影響，與墨西哥的內部預期相比，這有點到處都是。6月初選舉後，人民幣貶值5%、10%，略為走強。現在它又回到了貶值軌道，今年秋天晚些時候我們將舉行美國大選。

And the last time we had, elections, the last couple times we've had elections, it always has the potential to have a significant impact on the Mexican business. So I'd be hesitant to give any kind of real guidance in terms of margin expansion. Other than that, the underlying unit economics of the business are healthy. We continue investing and focusing on what's working, and hopefully that will continue.

上次我們舉行的選舉，最近幾次選舉，它總是有可能對墨西哥商業產生重大影響。因此，我對於是否在利潤擴張方面提供任何真正的指導會猶豫不決。除此之外，該業務的基本單位經濟效益是健康的。我們繼續投資並專注於有效的事情，希望這種情況能持續下去。

I don't know Aviv, if do you want to talk a little bit about the competitive landscape, because that obviously is the other side of the coin here?

我不知道阿維夫，你是否想談談競爭格局，因為這顯然是硬幣的另一面？

Yes, the competitive landscape in Mexico is getting tougher and tougher. We have new competitors coming in, new international competitors with a lot of money looking into this very lucrative market, at least from a TAM and GGR point of view. So we expect to try and increase our market share and defend it with more marketing budget in order to keep our self in the position that we are currently in Mexico.

是的，墨西哥的競爭格局變得越來越嚴重。我們有新的競爭對手加入，新的國際競爭對手投入大量資金進入這個利潤豐厚的市場，至少從 TAM 和 GGR 的角度來看是如此。因此，我們希望嘗試增加我們的市場份額，並用更多的行銷預算來捍衛它，以保持我們目前在墨西哥的地位。

In Spain, I think more or less it's a steady state, because we cannot advertise more because of the advertising ban. We do see some good investments on the casino front, but again, very hard for us to go over there. So we continue to focus our efforts in marketing, both in Spain and Mexico and then on the satellite sites right now, we are focusing on, on keeping, keeping them on a healthy, on a healthy state, and being able to break the break even with them and even a small profit.

在西班牙，我認為或多或少是一個穩定的狀態，因為由於廣告禁令，我們無法做更多的廣告。我們確實在賭場方面看到了一些不錯的投資，但同樣，我們很難去那裡。因此，我們繼續將精力集中在西班牙和墨西哥的營銷上，然後現在在衛星站點上，我們專注於保持他們的健康，保持健康的狀態，並能夠打破這一突破。微薄的利潤。

I think, up till now, if you are looking for more hints, I think we more or less the beginning of the road show. When we started with the investors and the dispatch, we gave like a map where we want to be. I think up till now, we kind of delivered, and hopefully in the future, we continue to deliver according to the 5-year plan.

我想，到目前為止，如果你在尋找更多的提示，我想我們或多或少是路演的開始。當我們從投資者和調度開始時，我們就像一張地圖一樣給出了我們想去的地方。我認為到目前為止，我們已經實現了目標，希望未來我們能夠繼續按照五年計劃實現目標。

Okay. That's perfect. That's really helpful and a great segue into my follow-up question, which was going to be on your Mexico operations. There's been some speculation that the transition to a new president could ultimately lead to some more formal gambling regulation, just given that the president elect of the history of working with the industry on some various initiatives, Oscar or Aviv, curious, just to get your perspective here and to the extent you do ultimately see some regulatory reform in the market, how do you think about potential implications to your business, whether positive or negative? Thanks.

好的。那很完美。這確實很有幫助，並且很好地延續了我的後續問題，該問題將涉及您在墨西哥的業務。有人猜測，新總統的過渡最終可能會導致一些更正式的賭博監管，只是考慮到當選總統有與該行業在一些不同舉措上合作的歷史，奧斯卡或阿維夫，好奇，只是為了讓你的從這裡的角度來看，如果您最終確實看到市場上出現一些監管改革，您如何看待對您的業務的潛在影響，無論是積極的還是消極的？謝謝。

I will answer in a very high level, because everything that we are hearing is merely speculation. President is still not in power. We didn't see what she's going to do exactly. We also hear rumors and things moving, but nothing official. In general, my view is that a formal regulation will only benefit us, since we are locally present there. We've been there for many years. We know how to work with the regulated market, that everything is clear right now.

我會以非常高的水平回答，因為我們聽到的一切都只是猜測。總統尚未掌權。我們不知道她具體要做什麼。我們也聽到謠言和動態，但沒有任何官方消息。總的來說，我的觀點是，正式的監管只會對我們有利，因為我們是當地的代表。我們已經在那裡很多年了。我們知道如何與受監管的市場合作，現在一切都清楚了。

The Mexican regulation is a little bit ambiguous and relies on very, very old rules. So I think any regulation that will come a modern regulation will help us and will benefit us as a big operator in this market, and hopefully we can contribute in the process and help them to get to an efficient regulation that eventually will generate more tax money and will be a safer environment for the players.

墨西哥的法規有點模糊，並且依賴非常非常古老的規則。因此，我認為任何現代監管的監管都會幫助我們，並使我們作為這個市場的大運營商受益，希望我們能夠在這個過程中做出貢獻，幫助他們實現有效的監管，最終將產生更多的稅收將為玩家提供一個更安全的環境。

Okay, that's great. Thank you, Aviv. Then, if I could just squeeze in one more quick one here, yes, Oscar, is there any way that you could quantify the overall contribution to Q2. The Q2 and, even July as well as you can from the Copa America and the Euro's. And then, similarly, is there any way to decide the hold impact from Spain winning the Euro's, Rio winning Champions League, Carlos winning Wimbledon and Roland? Just, any sense there to help us calibrate your Q3 and next year estimates would be helpful. Thank you.

好的，太好了。謝謝你，阿維夫。然後，如果我可以在這裡再快速地講一個，是的，奧斯卡，有沒有什麼方法可以量化對第二季度的整體貢獻。第二季度，甚至七月，以及美洲盃和歐洲盃。那麼，同樣地，有沒有辦法決定西班牙贏得歐洲盃、裡約贏得歐冠、卡洛斯贏得溫布頓和羅蘭的影響力？只是，任何有助於我們校準第三季和明年預測的意義都會有所幫助。謝謝。

Yeah, I think in there definitely was a margin impact, and in particular in Spain, I would say, almost exclusively in Spain, the sports side, and that was true in June and the first part of July. I mean, happily, what we're seeing is a good dynamic on the casino side. So it's, it's hard to quantify and put numbers behind it, but, but when more we're returning more money to the customers on the sports side, having the strong, strong casino business, and again, for the subset of customers that play across both channels, we're then seeing greater activity on the casino front.

是的，我認為肯定會產生利潤率影響，特別是在西班牙，我想說，幾乎完全是在西班牙，體育方面，六月和七月上旬就是如此。我的意思是，令人高興的是，我們所看到的是賭場方面的良好動態。所以，很難量化並用數字來衡量，但是，當我們向體育方面的客戶返還更多的錢時，擁有強大的賭場業務，並且再次，對於參與遊戲的客戶子集通過這兩個渠道，我們會看到賭場方面的活動更加活躍。

So the interplay between those two verticals that that we've always understood, I think, is even more important in the context of some of these major sporting events, when we're having some, let's say, the favorites win or specifically the dynamic here in Spain, which is there there's a bias to bet in favor of Spanish sports figures or Spanish teams.

因此，我認為，我們一直理解的這兩個垂直領域之間的相互作用，在一些重大體育賽事的背景下甚至更為重要，當我們擁有一些熱門球隊獲勝或特別是動態賽事時在西班牙，人們傾向於投注西班牙運動明星或西班牙球隊。

So I don't want to put a specific figure on that, but I would say just in terms of margin off whatever would be our regular targeted margin, we probably lost 3 percentage points to 4 percentage points there, so still a positive contribution, which was then more than compensated versus internal expectations on the casino front

所以我不想給出具體的數字，但我想說的是，就利潤率而言，無論我們的常規目標利潤率如何，我們可能會損失3 個百分點到4 個百分點，所以仍然是一個積極的貢獻，與賭場方面的內部預期相比，這超出了補償範圍

Great. Very helpful. Thank you both. I'll pass it on.

偉大的。非常有幫助。謝謝你們倆。我會把它傳遞下去。

Thanks. Jeff.

謝謝。傑夫.

Thank you.

謝謝。

Ryan Sigdahl, Craig-Hallum Capital Group

瑞恩‧西格達爾 (Ryan Sigdahl)，克雷格‧哈勒姆資本集團

Hi, good day, guys. Congrats on another strong quarter. Maybe just staying on the topic of Eurocup and Copa. Any other notable trends besides kind of win rates and, Spain winning, whether it be bent builders, parlays, anything relative the last time these tournaments were held?

嗨，美好的一天，夥計們。祝賀又一個強勁的季度。也許只是停留在歐洲盃和美洲盃的話題。除了勝率和西班牙獲勝之外，還有其他值得注意的趨勢嗎？

Aviv, do you want to talk about that builder, some of the new product.

阿維夫，你想談談那個建造者，一些新產品嗎？

Yeah, so from product perspective, I think right now, our sport product is in-line with, let's call it an industry standard. We even added for the Eurocup bet builder live features, which not all the competitors have. We still don't see big movements into new product features. It's more supplemental to the current betting behavior that we see in the sports to tap into what Oscar said in the previous question.

是的，所以從產品的角度來看，我認為現在我們的運動產品符合，我們稱之為行業標準。我們甚至為歐洲盃投注建構器添加了即時功能，而並非所有競爭對手都具備這項功能。我們仍然沒有看到新產品功能的大動作。這是我們在運動中看到的當前投注行為的補充，可以利用奧斯卡在上一個問題中所說的內容。

I think those winnings of Spain for us as a company, and we stated that in the speech before, since we are already with 60% of the NGR relying on casino those events, although are fun and we see impact, are not so impactful in the in the revenue stream itself, maybe a few point of percentage up or down. And we are more stable now, and hence easier for us even to focus the future in a better way.

我認為西班牙的那些獎金對我們公司來說，我們在之前的演講中說過，由於我們已經有 60% 的 NGR 依賴於賭場，這些活動雖然很有趣並且我們看到了影響，但在收入流本身可能會上升或下降幾個百分點。我們現在更加穩定，因此我們更容易以更好的方式關注未來。

So in terms of betting behavior, we didn't see anything big in a change from a product perspective, we see how people are engaged. We also now learn that if they are winning, they stay engaged with us for entertainment purposes and spend some money in the casino, whether it's a roulette, blackjack or slots a little bit.

因此，就投注行為而言，從產品角度來看，我們沒有看到任何重大變化，我們看到的是人們參與的方式。我們現在也了解到，如果他們獲勝，他們會出於娛樂目的而與我們保持聯繫，並在賭場花一些錢，無論是輪盤賭、二十一點還是老虎機。

So overall, I think the trends are healthy and stable for us. In that sense, it's not that the one winning of Spain or Alcaraz or Real Madrid will move the needle for us.

總的來說，我認為趨勢對我們來說是健康和穩定的。從這個意義上說，西班牙、阿爾卡拉斯或皇家馬德里的一場勝利並不會對我們產生推動作用。

Yeah. Thanks. Then just switching over to CAC continues to move higher in the quarter. How much that is the competitiveness you mentioned in Mexico, versus just seeing higher spend proactive and allowing you to be more aggressive on the customer acquisition side, to target those higher LTVs.

是的。謝謝。然後，僅轉向 CAC，該季度的股價就會繼續走高。您提到的墨西哥的競爭力有多大，而不是僅僅看到更高的主動支出，並讓您在客戶獲取方面更加積極，以瞄準那些更高的生命週期價值。

What we see because, because we are aiming to buy more casino first customers, they cost us more because there are the TAM of casino is smaller than sports. We do see increase in media prices, still not significant enough. It's more significant that we moved our buying strategy to be more casino oriented, so it's more expensive for us to find and purchase those casinos players eventually ending with, of course, higher LTV and more stability over time.

我們所看到的是，因為我們的目標是購買更多賭場的第一批客戶，所以他們花了我們更多的錢，因為賭場的 TAM 比體育還要小。我們確實看到媒體價格有所上漲，但仍不夠顯著。更重要的是，我們將購買策略轉向更加以賭場為導向，因此我們尋找和購買這些賭場玩家的成本更高，最終當然會隨著時間的推移獲得更高的生命週期價值和更高的穩定性。

I think this is more effect currently. I'm saying currently, because we do see our competitors coming into Mexico and prices of the media going up. But currently it's strong, a stronger effect of our aim to target casino players, then the media prices goes up, but there is a contribution still. I think it's a marginal but it's there. It's you're correcting that analysis.

我認為目前這個效果比較明顯。我說的是目前，因為我們確實看到我們的競爭對手進入墨西哥並且媒體價格上漲。但目前它很強大，我們針對賭場玩家的目標效果更強，然後媒體價格就會上漲，但仍有貢獻。我認為這是一個邊緣，但它確實存在。是你在修正這個分析。

Yeah, little bit of both. It's a little bit of both. It's definitely a little bit of both. Every year it seems like we're talking about different competitors that are coming into the market that we're monitoring to see how they behave, but there's definitely more interest. I mean, some of the revised market forecasts that an HTC or others are putting out.

是的，兩者都有一點。兩者都有一點。這絕對是兩者兼而有之。似乎每年我們都在談論進入市場的不同競爭對手，我們正在監控他們的行為，但肯定有更多的興趣。我的意思是，HTC 或其他公司正在發布一些修訂後的市場預測。

I mean, I think it's starting to get on everyone's radar, given the existing size of the market. In some cases, well, I think in most cases, I think people believe that Mexico is already bigger than Spain, and the market forecast, in terms of the growth potential in the market, is significant, so I think it's starting to catch everyone's attention.

我的意思是，考慮到現有的市場規模，我認為它已經開始引起每個人的注意。在某些情況下，嗯，我認為在大多數情況下，我認為人們相信墨西哥已經比西班牙大，就市場成長潛力而言，市場預測是巨大的，所以我認為它開始引起每個人的關注注意力。

Yeah. On a side note, the Copa America and the Eurocup prices went a little bit higher than previous years on those two events. Copa America was less interesting for us because Mexico lost quite early in the stages, but still, the media was a little bit more expensive with those events.

是的。另一方面，美洲盃和歐洲盃這兩項賽事的價格比往年略高。美洲盃對我們來說不太有趣，因為墨西哥在階段很早就輸了，但媒體對這些賽事的報導還是有點貴。

Last one for me, just any update on your -- guys, thoughts around Peru?

最後一個問題是，各位，關於秘魯的想法有什麼最新消息嗎？

This is a strategic, we were looking at Peru. I think we were looking at Peru, it's important to say we were looking at Brazil as well. I think right now where we are at company level, after looking at all the possibilities and things that we are able to do, I think we continue to focus on our core markets. We still have a lot of room to go out there.

這是一個策略，我們正在關注秘魯。我認為我們正在關注秘魯，重要的是我們也在關注巴西。我認為目前我們在公司層面上，在考慮了所有可能性和我們能夠做的事情之後，我認為我們將繼續專注於我們的核心市場。我們還有很大的空間可以出去。

And right now, in the short-term, we don't see ourselves opening any of those new markets and in order to compete and put a lot of money into them, where we can still invest very effectively in the two core markets that we are operating, this is -- was maybe a short-term decision that we make again, probably at the end of the year, we will look at it again.

目前，在短期內，我們不認為自己會開放任何新市場，為了競爭並投入大量資金，我們仍然可以非常有效地投資於我們的兩個核心市場。決定，可能在今年年底，我們會再次考慮。

We see a lot of competitors. Now our street is coming into Peru. We see a lot of money pulling in. We made evaluation of this market. We think it's going to be interesting, but at this moment, not interesting enough, more than Mexico and Spain.

我們看到很多競爭對手。現在我們的街道正在進入秘魯。我們看到大量資金湧入。我們對這個市場做了評估。我們認為這會很有趣，但目前還不夠有趣，比墨西哥和西班牙更有趣。

I think our most -- just to add to what Aviv said, Argentina is still something, a situation that we are monitoring and could be of interest up to us. Given that the fact that we have already a stable team operating in the city, we just launched in the Province of Mendoza, we have the River Plate sponsorship.

我認為我們最重要的是——只是補充一下阿維夫所說的，阿根廷仍然是一個我們正在監測的情況，我們可能會感興趣。鑑於我們已經在該市擁有一支穩定的團隊，我們剛剛在門多薩省啟動，因此我們得到了河床隊的贊助。

So and significant synergies to the extent that we can find our way into a license in the Province of (inaudible) given that our retail parent is the leader in that market with something upwards of 40% market share. So, I think Argentina is probably the one that, if there is an opportunity to do so, and in a way, that makes sense for us, we would be looking to commit resources to before any other expansion market where we don't have existing operations or capabilities.

因此，考慮到我們的零售母公司是該市場的領導者，擁有超過 40% 的市場份額，我們可以在（聽不清楚）省份獲得許可證，從而產生重大的協同效應。因此，我認為阿根廷可能是一個，如果有機會這樣做，並且在某種程度上，這對我們有意義，我們將尋求在我們沒有的任何其他擴張市場之前投入資源。

Thanks, guys. Good luck.

謝謝，夥計們。祝你好運。

Thanks, Ryan.

謝謝，瑞安。

Michael Kupinski, NOBLE Capital Markets.

邁克爾·庫平斯基 (Michael Kupinski)，NOBLE 資本市場。

Thank you for taking the questions. And let me offer my congratulations as well in the quarter and the positive adjusted EBITDA. My question is really related to your guidance in the second half, particularly given the trajectory that you have done in the first -- this particular quarter, it seems like your guidance might be a little conservative. I know that the sports calendar gets a little lighter, but I was wondering if you can just give a little color on your thoughts in terms of the marketing spend and where you planned to, like you said, have a little bit of wiggle room.

感謝您提出問題。讓我也對本季的業績和調整後的 EBITDA 的正值表示祝賀。我的問題確實與您下半年的指導有關，特別是考慮到您在第一季所做的軌跡，這個特定季度，您的指導似乎有點保守。我知道體育賽事日程會變得更加輕鬆，但我想知道您是否可以在行銷支出以及您計劃的地方（就像您所說的）有一點迴旋餘地方面給出一些想法。

If you could just add a little color in terms of what your thoughts are, in terms of the trajectory and in particular, Spain and Mexico, and if you are planning to spend a little bit more heavily in some of more developing markets, like you just mentioned, Argentina, this is kind of a broad question about the second half.

如果您可以在您的想法、軌跡方面添加一點色彩，特別是西班牙和墨西哥，並且如果您計劃在一些像您這樣的發展中市場投入更多資金剛才提到，阿根廷，這是一個關於下半場的廣泛問題。

Maybe I can start and just splitting the guidance between the revenue guidance and the adjusted EBITDA. On the revenue side, I think the only thing that's keeping us a little bit cautious, looking at the back half is what could happen with the Mexican peso. As you know, this is already over half of our the top line in our business, and any significant devaluation, the Mexican peso could affect our trajectory going out to the balance of the year.

也許我可以開始將收入指導和調整後的 EBITDA 之間的指導分開。在收入方面，我認為唯一讓我們有點謹慎的事情是，看看後半部分，墨西哥比索可能會發生什麼。如你所知，這已經超過我們業務收入的一半，墨西哥比索的任何大幅貶值都可能影響我們今年剩餘時間的發展軌跡。

That said, obviously the cost structure is also peso-denominated, so we would be more hedged from an EBITDA standpoint. And as you say rightly, on the EBITDA front, I think it's just maintaining that flexibility in the event that we see opportunities, and opportunities always do arise. It's across one or both of our core markets to be able to invest a little bit more than maybe what we have planned internally.

也就是說，顯然成本結構也是以比索計價的，因此從 EBITDA 的角度來看，我們會更加對沖。正如你所說，在 EBITDA 方面，我認為這只是在我們看到機會時保持靈活性，而機會總是會出現。我們能夠在一個或兩個核心市場進行比我們內部計劃多一點的投資。

Obviously, this is always in coordination with our Board of Directors, but I think there always are opportunities, so we want to keep a little bit of wiggle room there. I think it's less the case that it would be Argentina. I think Argentina is more we are setting our sites to more like a 2025, in terms of if and when we would be deploying additional monies in that market, if it makes sense for us to do so. It would be more if opportunities come up in Spain and Mexico. In the front half, we are spending something like EUR22 million, EUR23 million on average.

顯然，這總是與我們的董事會協調，但我認為總是有機會，所以我們希望在那裡保留一點迴旋餘地。我認為阿根廷的情況不太可能。我認為阿根廷更多的是，我們將我們的網站設置得更像 2025 年，就我們是否以及何時在該市場部署額外資金而言，如果我們這樣做有意義的話。如果西班牙和墨西哥有機會的話會更多。上半年，我們平均花費約 2,200 萬歐元、2,300 萬歐元。

Last year we were spending about EUR20 million a quarter, other than the fourth quarter, which is always a higher spend quarter, a lot of events, a lot of activity, and we spent EUR25 million. So, hopefully the guidance is conservative, but we think it's appropriate given what we are seeing today and how the business is performing.

去年，我們每季的支出約為 2000 萬歐元，第四季度除外，第四季度始終是支出較高的季度，有很多活動，有很多活動，我們支出了 2500 萬歐元。因此，希望該指導是保守的，但考慮到我們今天所看到的情況以及業務的表現，我們認為這是適當的。

Thanks for that color. And just one quick follow-up, I know that you have cash, and obviously now you are looking at your more maturing markets, like State of Mexico, positive EBITDA. I was wondering, does it become a prospect that the company would look at M&A and some of the competitors that may be struggling a little bit, but may offer an opportunity to kind of get a little bit better foothold in some of the developing markets, I mean is that a possibility?

謝謝那個顏色。我只想快速跟進一下，我知道你們有現金，而且顯然現在你們正在尋找更成熟的市場，例如墨西哥州，正的 EBITDA。我想知道，該公司是否會考慮併購和一些可能陷入困境的競爭對手，但可能會提供機會在一些發展中市場獲得更好的立足點，我的意思是有這種可能性嗎？

I mean just, maybe I will kick it off and then Aviv if you want to jump in. I mean I am a finance guy, and I think that that to the extent it's always a question of price and structure, but if there is good opportunities, M&A opportunities in the market, and it makes sense for us as a company, and it makes sense for our shareholders, then I think we obviously would be pursuing that. I don't think we would ever close the door on M&A.

我的意思是，如果你想加入的話，也許我會先開始，然後是阿維夫。我的意思是我是一名財務人員，我認為這在某種程度上始終是價格和結構的問題，但如果市場上有好的機會、併購機會，這對我們作為一家公司來說是有意義的，而且它對我們的股東來說是有意義的，那麼我認為我們顯然會追求這一點。我認為我們永遠不會關閉併購的大門。

I think it's easier, Mike, as you have pointed out, now that we are inflecting to profitability, and we have more visibility over, let's say that trough cash position, again, all else being equal, which is significantly more than three years back when we had our investor plan where we thought we would be three years forward. So I think now is a better context to be thinking about those things. But we are not going to do any deal that doesn't -- that isn't compelling, that doesn't make sense for us as a company.

我認為這更容易，麥克，正如你所指出的，現在我們正在轉向盈利，並且我們有更多的可見性，讓我們再說一遍，在其他條件相同的情況下，現金狀況處於低谷，這明顯是三年多前的情況當我們制定投資者計劃時，我們認為我們將向前邁進三年。所以我認為現在是思考這些事情的更好背景。但我們不會做任何不具吸引力、對我們公司沒有意義的交易。

Aviv, anything else you want to add on the M&A front?

Aviv，您在併購方面還有什麼要補充的嗎？

No, I think M&A in general, for any company at our position should be interesting, should take us with another big block to the next level. We see opportunities coming in. We didn't see any interesting one so far. We have a very good team for M&A, Oscar and his team, they know what they are doing. So, we are constantly looking into this, but it's not part of our short-term strategy.

不，我認為總的來說，對於任何處於我們地位的公司來說，併購都應該很有趣，應該會讓我們又一個大塊進入下一個水平。我們看到機會來臨。到目前為止我們還沒有看到任何有趣的東西。我們有一支非常優秀的併購團隊，奧斯卡和他的團隊，他們知道自己在做什麼。因此，我們一直在研究這個問題，但這不是我們短期策略的一部分。

There is some deal flow coming in. We think with the little cash that we have, I know it looks like a lot, but with the little cash that we have, maybe we can do something interesting. We look, especially in the core markets that I mentioned before, but in the short-term, it's not something that we have on the table, but we keep looking for that.

有一些交易流進來。我們認為，憑藉我們擁有的少量現金，我知道看起來很多，但憑藉我們擁有的少量現金，也許我們可以做一些有趣的事情。我們著眼於，特別是我之前提到的核心市場，但從短期來看，這不是我們可以考慮的事情，但我們一直在尋找。

Thanks for that. If I could slip one more quick question in, previously you mentioned that you were monitoring the situation in Spain after the Supreme Court overturned some restrictions, and I was wondering if there is any updates on that and how things are playing out.

謝謝你。如果我可以再問一個簡單的問題，之前您提到在最高法院推翻一些限制後您正在監視西班牙的局勢，我想知道是否有任何更新以及事情進展如何。

No, actually, there is no real updates. We think that, eventually what the Supreme Court gave us back, the possibility will come back as a law, and maybe next year, it will come back to the situation that was before. We all the time keep close look on the Spanish regulation, which changes constantly. I already commented in different panels about it.

不，實際上，沒有真正的更新。我們認為，最終最高法院還給我們的東西，有可能會作為法律回來，也許明年，它會回到以前的情況。我們一直密切關注不斷變化的西班牙法規。我已經在不同的小組中對此發表了評論。

It's -- I can't say it's hard to follow, but it's becoming more and more strict. Hopefully, it will stop at some point. Right now, from a development point of view, we need to do heavy, heavy development just to change all the reporting modules to fit the new regulation demand.

我不能說這很難遵循，但它變得越來越嚴格。希望它會在某個時候停止。現在，從開發的角度來看，我們需要進行大量的開發，只是為了改變所有的報告模組以適應新的監管需求。

So, it's heavy lifting there in the regulation, and we are doing our best to follow it up. I don't think from the Supreme Court point of view, nothing changed. I think eventually the Parliament will come back with the law and bringing things to where they previously were.

因此，監管工作很繁重，我們正在盡力跟進。我認為從最高法院的角度來看，一切都沒有改變。我認為議會最終會通過法律回來，並將事情恢復到以前的狀態。

Thank you for that. That's all I have. Thank you.

謝謝你。這就是我所擁有的一切。謝謝。

Mike Hickey, Benchmark.

麥克·希基，基準。

Hey Aviv, Oscar, great quarter guys and congrats on growth in Mexico. I guess that's the first topic here. Just curious, if you have a sense now of your market share in Mexico, and when you look at your NGR growth, nearly 60% in the quarter, if you can sort of balance that growth between growth that you are seeing in the Mexican market and growth may be that you are seeing in share gains, that's the first topic.

嘿，阿維夫，奧斯卡，偉大的季度夥計們，祝賀墨西哥的增長。我想這是這裡的第一個主題。只是好奇，如果您現在了解您在墨西哥的市場份額，當您查看 NGR 增長（本季度接近 60％）時，您是否可以在墨西哥市場看到的增長之間取得平衡增長可能是您在股票收益中看到的，這是第一個主題。

Second topic on competition, it sounds like it's getting more competitive in Mexico. Not new news, but growing. On that front, do you feel like your products in the Mexican market is strong enough, relative maybe some of the new products coming in, and how you think about sort of innovation on the product side over time to remain competitive. The third topic is just cash flow, nice to see, but just curious, cash flow on the quarter, your thoughts on cash flow for ‘24 and how you think it trends moving forward? Thanks guys.

第二個關於競爭的議題，聽起來墨西哥的競爭越來越激烈。不是新消息，而是成長。在這方面，您認為您的產品在墨西哥市場是否足夠強大，相對於一些新產品的推出，以及您如何考慮隨著時間的推移在產品方面進行某種創新以保持競爭力。第三個主題是現金流，很高興看到，但只是好奇，本季的現金流，您對 24 小時現金流的看法以及您認為未來的趨勢如何？謝謝你們。

Aviv, do you want to take the first two and I can address cash flow?

阿維夫，你想接受前兩項嗎？

Yes. Listen, it's very hard for us, and we are doing a lot of efforts to try and estimate the size of the market. We get a lot of numbers from a lot of sources, but there is no official number for the size of the market. We think that we have a market share of low-double digits compared to our biggest competitor over there, that we think controls most of the market, with a huge market share of above 60% and so it's very hard for us to estimate the size of the market, we get a lot of number.

是的。聽著，這對我們來說非常困難，我們正在做很多努力來嘗試和估計市場的規模。我們從許多來源獲得了大量數據，但市場規模沒有官方數據。我們認為，與我們最大的競爭對手相比，我們的市場份額只有低兩位數，我們認為該競爭對手控制了大部分市場，其市場份額超過 60%，因此我們很難估計其規模市場上，我們得到了很多數字。

We are -- of course, we are growing. We are not sure exactly if the market -- if we are not just growing with the market, we think we are performing a little bit better, not a lot. Let's say, if the market goes every year 20%, maybe we are doing 25%. I think the market, by the way, goes more than 20% a year in Mexico. And our biggest competitor there is heavily invested into marketing. So, it does -- it grows the market, and now more international competitors come in, so the market will continue growing. And I think our product is well established. We have a few advantages over our competitors.

當然，我們正在成長。我們不確定市場到底是否——如果我們不只是與市場一起成長，我們認為我們的表現會好一點，而不是很多。比方說，如果市場每年上漲 20%，那麼我們可能會上漲 25%。順便說一句，我認為墨西哥的市場每年增長超過 20%。我們最大的競爭對手在行銷方面投入了大量資金。所以，確實如此——它擴大了市場，現在有更多的國際競爭對手加入，所以市場將繼續成長。我認為我們的產品已經很成熟了。與競爭對手相比，我們有一些優勢。

One of the main advantages is that we are still a local company. We have local presence. We have points to cash-in and cash-out in our retail location, which gives us an advantage. We have some local knowledge utilized into the platform. And let's say we have knowledge coming from the retail about the game selections and what the players like, more or less. And we are utilizing all this knowledge into the product.

主要優勢之一是我們仍然是一家本地公司。我們在當地有業務。我們的零售店有提現和提現的積分，這為我們帶來了優勢。我們在平台中運用了一些本地知識。假設我們從零售業獲得了關於遊戲選擇以及玩家或多或少喜歡什麼的知識。我們正在將所有這些知識運用到產品中。

I think we have in our sleeve a couple of more products, not so innovative, but I think will increase our reach to new audiences, and will enable us to compete a little bit differently and not directly with the same sport product (inaudible) So, I think we have a few tricks that we can still pull, and we are working on that. So, I think overall, looking in the next couple of years, we are well positioned with a good platform, a good platform partner in the Mexican market. And I think it will help us to get to the LTVs that we want, and eventually to the results and to the P&L that we want, so.

我認為我們還有更多產品，不是那麼創新，但我認為這將增加我們對新受眾的影響，並使我們能夠以稍微不同的方式競爭，而不是直接與相同的運動產品競爭（聽不清）所以，我認為我們仍然可以使用一些技巧，並且我們正在努力。因此，我認為總體而言，展望未來幾年，我們在墨西哥市場擁有一個良好的平台和良好的平台合作夥伴，處於有利地位。我認為這將幫助我們獲得我們想要的生命週期價值，並最終獲得我們想要的結果和損益。

I will only add to that, Aviv, on the product front that the payment integrations that we have done, I think it's been a lot of work over the last 2 years, 3 years to really improve the efficiency and the effectiveness of those payment options that we offer customers for deposit and withdrawal. And I think that we have done an excellent job, and we spent a lot of time on that internally, and it's critical to that customer experience, and ultimately that retention of existing and new customers.

我只想補充一點，Aviv，在產品方面，我們所做的支付集成，我認為在過去的 2、3 年裡我們做了很多工作，才真正提高了這些支付選項的效率和有效性我們為客戶提供存款和提款服務。我認為我們做得非常出色，我們在內部花了很多時間，這對於客戶體驗以及最終保留現有客戶和新客戶至關重要。

So, I think there, we have made a lot of headway. On the cash flow front, Mike, I would just point out, beyond just producing positive adjusted EBITDA, cash flow is -- there is other components there. And again, we have third-parties that provide platform services to us across our jurisdiction, so we don't have that technology in the perimeter.

所以，我認為我們已經取得了很大進展。在現金流方面，麥克，我只想指出，除了產生正的調整後 EBITDA 之外，現金流還有其他組成部分。再說一次，我們有第三方在我們的管轄範圍內為我們提供平台服務，所以我們在周邊沒有這種技術。

So, we don't have much in the way of CapEx, but we do spend a lot of time and manage very carefully our working capital position, and spend a lot of time managing and structuring, and it's any multinational and operating in different jurisdictions.

因此，我們在資本支出方面沒有太多，但我們確實花費了大量時間並非常仔細地管理我們的營運資本狀況，並花費大量時間進行管理和構建，而且它是在不同司法管轄區運營的任何跨國公司。

It's not just the gaming tax frameworks, but all the different elements of corporate income tax that have to be managed and structured properly in accordance with all the rules and regulations in place. So, I always talk about in the sessions that Guillermo have, one on ones with investors and analysts, that though the holy grail of converting adjusted EBITDA to free cash flow, right. One for one, it's not achievable.

不僅僅是博彩稅框架，企業所得稅的所有不同要素都必須根據所有現行規則和法規進行適當的管理和結構。因此，我總是在吉列爾莫與投資者和分析師一對一的會議上談論，儘管將調整後的 EBITDA 轉換為自由現金流是聖杯，對吧。一報一報，這是不可能實現的。

There is always corporate income taxes that you have to pay across jurisdictions, even during periods, sometimes when you are loss making for a number of different complex rules that apply in every jurisdictions, its own world. But we spend a lot of time on that, and I think it's a critical element of value creation. It's the top line growth. It's the flow through the EBITDA, and then it's the conversion of that EBITDA to cash flow.

您始終需要跨司法管轄區繳納企業所得稅，即使在一段時期內，有時，當您因適用於每個司法管轄區及其自己的世界的許多不同的複雜規則而蒙受損失時也是如此。但我們在這方面花了很多時間，我認為這是價值創造的關鍵要素。這是營收成長。它是 EBITDA 的流量，然後是 EBITDA 到現金流的轉換。

Thanks.

謝謝。

Thanks. Mike.

謝謝。麥克風。

(Operator Instructions) There are no further questions at this time. I will now turn the conference back over to Mr. Guillermo Lancha.

（操作員說明） 目前沒有其他問題。我現在將會議轉交吉列爾莫·蘭查先生主持。

Okay. We don't have any questions coming in through the webcast either, so we will leave it here. Thank you everyone for joining us. If you would like to follow-up on any of the topics we discussed, feel free to reach out to Oscar or myself, and if not, we will talk again in November with our Q3 results. Thank you everyone.

好的。我們也沒有透過網路廣播提出任何問題，因此我們將其留在這裡。感謝大家加入我們。如果您想跟進我們討論的任何主題，請隨時聯繫 Oscar 或我本人，如果沒有，我們將在 11 月再次討論我們的第三季結果。謝謝大家。

Thanks everyone.

謝謝大家。

Thank you.

謝謝。

Ladies and gentlemen, that concludes 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。