Evoke (LSE:EVOK) — Full Year Results for the 12 months ended 31 December 2020

0:03 Good afternoon, ladies and gentlemen, and welcome to the eight eighty eight Holdings PLC Full Year Results for the twelve months ended 12/31/2020 Investor Presentation. Throughout this presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Please just simply type in your question and press send.

0:26 The company may not be in a position to answer every question received during the meeting itself. However, the company will review all questions submitted today and publish responses where it's appropriate to do so. We will send you an email to notify you when these are ready for your review. I'd also like to remind you that this presentation is being recorded. Before we begin, we would like to submit the following poll. And if you could give that your attention, we would be most grateful.

0:51 And I'd now like to hand over to Ittai Pazner, its CEO and Yaref Dafner, CFO from eight eighty eight Holdings. Good afternoon to you both. Good afternoon, and thank you. Good evening, everyone, and thanks for joining us to hear about our record 2020 full year results. I'm Eti Pazner, the CEO of Innate Holdings, and I'm joined here by Yariv Dafna, our CFO. Innate is one of the leading betting and gaming companies in the world. We are listed on the London Stock Exchange since 2005, and today, we're part of the FTSE two fifty. At our core is our proprietary technology and our product leadership, and we are committed committed to safer gaming as this is a critical to the future of the business.

1:37 We're focused on driving growth in regulated markets by both launching into new regulated markets and growing our market share in existing ones. M and A is on our agenda, and we have a strong balance sheet and cash generation supporting a potential financial leverage to execute medium term and large deals. I'll now hand over to Yarif to go through some of our highlights.

2:04 Next slide, please. Thanks, Itay. In slide three, we have some highlights for the year, which was definitely an amazing year for the company. Not only did we reach record revenue of 850,000,000, but we saw records across nearly all our product and various KPI, which make us feel that we are in a really good shape to see continuous growth. In this call, we will expand on the factor behind this record performance, and I will start with the financial highlight. Next slide, please. Revenue were up 52% to 850,000,000 with strong growth in both our b to c and b to b businesses. Adjusted EBITDA increased by 69% to a 156,000,000 with a margin increasing to 18.3% supported by operating efficiency more than offsetting slightly lower gross margin and contribution margin.

3:02 Cash generation was very strong with free cash flow significantly up to a 146,000,000. This leave us with a year end net cash position of a 116,000,000 after player balances. The dividend for the year is 18¢ with a final dividend of 12¢, represent two third of our yearly dividend. Next slide, please.

3:27 You can see on the right a clear long term track record of double digit growth. The company is positioned well to become a leader in an attractive, large, and growing market and has demonstrated the ability to continuously grow through the rapid evolution that we have seen in the industry. On the left hand side, you can see a strong growth in new customer across the product range. This growth is a key indicator of our future prospect.

3:56 Next slide, please. On the left hand side, you can see the mix of regulated and tax revenue has been increasing over the years. We have grown our business in this market, and more countries have implemented the regulatory and taxation regime. One of our key goals is to build the business to be one of the leading regulated online betting and gaming businesses. We made a good progress in 2020 with 58% growth in our regulated revenue. With the few countries going into regulation, there is a potential to go to about 90 of our revenue coming from regulatory and tax revenue in 2023. In this country, I could mention Germany, Austria, Netherlands, and Canada.

4:46 On the right hand side, you can see the the revenue from geographic perspective. The UK remain the most important market with 39% of our revenue. Italy revenue were up 69% to 87,000,000, representing more than 10% of group revenue for the first time. There are no other countries that contribute more than 10% of revenue, but we enjoy strong diversified growth across a wide range of regulated market, including Romania, Sweden, and Portugal, as we continue to drive market share gains with our product leadership strategy. Next slide, please. More details about the dividend. The board proposed a final dividend of 12¢, taking the total dividend for the year to 18¢.

5:34 This follow a 6¢ interim dividend reflecting one third and two thirds split between the interim and the final. Given the strong year, high cash conversion, and strong balance sheet, we are pleased to be able to return significant cash to our shareholder while still supporting our strong growth ambition whether organically or inorganically as we see opportunity in the market. I will now hand over to Itay to tell you a bit more about the strategic priority and growth plan. Thank you, Yorif. Moving on to the next slide,

6:13 safer gaming. So in in 2020, it was a year where we started a significant product enhancement in terms of our safer gaming products. We basically have two main products that are supporting our safer gaming agenda. One is a back end product that's called the Observer. That is basically an algorithm that was developed in house and identifies and alerts us as an operator and players about potential harm that can be caused by their gaming activity.

7:00 Once the the players are alerted of this, they can either set limits or self exclude themselves from gaming, or we can do that on their behalf. In 2020, we basically launched a new strategy around safer gaming called safer, better together. With that, we made our eight commitments towards safer gaming, which you can see on the screen here. And and we have launched basically a new product called the control center. The control center allows players, first of all, to see their gaming activity in a very transparent way, how much they've been spending, how much time they've been spending.

7:51 And after they can see their gaming activity, they can also set all kinds of limits themselves if it's, again, time limit or amount limit on a daily, on a weekly, or monthly basis. So, basically, this this helps players in controlling and managing their gaming with us, and we see this as an integral part of our sustainable gaming model and that we believe that with time, this product, this gaming this safer gaming product that we launched will actually become a competitive advantage for us as we launch it into more and more markets and more customers recognize that they can use this in order to keep playing with us over a long term of time and enjoy in a safe way.

8:48 Moving on to the next slide. Here you can see our market share gains in regulated markets in 2020. 2020 was a very, very strong year for the company. We grew overall our revenue like Yariv showed. We grew overall 52% in our revenue. And these are some highlight markets and to show that our growth is is across several markets. You can see The UK grew by 63%, and we grew our market share by 30% in The UK, which is one of the most competitive markets around the world. Italy grew even further 69% in terms of revenue, and our market share grew by over 10% there. And Spain also grew by 11%. So we saw strong growth rates across all products and all markets in 2020.

9:45 And I'd like to explain through our product enhancements and the marketing capabilities, how we made that a growth level possible. So moving on to the next slide. Starting with our casino product, so you can see some trends of of our revenue in casino. This is an ongoing trend that started in 2019 and went into 2020. But in 2018, we we launched our new casino product that's called the Orbit. Orbit was basically our way to kind of modernize the the casino experience.

10:31 We look at some of the leading con content apps, entertainment apps online like Netflix, like Spotify, and the quality and the level of of service that we offer our customers is based on that kind of quality level. So we launched Orbit in 2018. That's three years ago since we over we grew our our casino business over two and a half times. And you can see it started the growth started in 2019 where we also acquired a huge amount of new players in casino, and that grew even further in 2020 when we went into the COVID period with a very, very strong casino product.

11:23 When we look at our casino product, basically, we have three layers of of product excellence that we look at in order to create what we call a superior and best in class product experience. The first layer is is is basically the usability of the product, how people can navigate between areas, find games they like easily, go into the cashier, deposit money, get money out. And overall, let's call it the the the the smooth the smooth navigation and experience that they see in the product is is the first layer that we need to make sure exist in all of our new products. The second layer is the layer of content and rich content.

12:14 So very much like Netflix, as an example, who create their own content, their own top class video content, but also also bring content from third parties studios. We also create our own content with our own games in our in our studio that's called section eight, but we also bring through integration into third parties, best in class third party game providers. We have over 60 providers. We bring all the games that are relevant in the industry, and we offer them to our customers in a way that's easy for them to find and actually is based on recommendation engines, based on AI algorithms that we implement in our product and offer them games that are relevant to them. Again, like they're used to seeing on other apps, top games for you, recommended for you based on their history and their play and similarity

13:15 to other players, or top games in your market, so games that other people like in their market that can be relevant to them. And and basically making the thousands of games that we offer on the on the platform available on an individual customer basis. The third level that we speak about on in in our casino Orbit platform is what we call the entertainment and engagement level. So on top of the games themselves

13:46 and the mechan the mechanics of the games, we want to add additional features that create a richer and more entertaining experience. So it's various types of jackpots. We can today offer jackpots, individual jackpots to players, weekly jackpots, daily jackpots. We have all kinds of other enrichment features in our casino product, which keep the players engaged, keeps the the

14:17 environment more exciting, more entertain entertaining entertaining and evolving over time. So that's that's our casino, and it's definitely been a a growth engine for the group in the last three years. And now let's look at some some of the other products that we've invested in in the last few years. So so the next product is is is poker, eight eight eight Poker. Again, one of the earliest

14:47 operators of poker in the world. It started in in 2001 in the original poker boom. It went through all the phases of of online poker. It had exponential growth at the beginning, then slowed down, then growth again. And we realized a couple of years ago that poker as a category hasn't received the same level of product attention that other products got like casino and sports betting in the industry. This is not. This wasn't an '80 eight issue. It was a industry wide issue, and we decided to make a massive investment into poker and basically modernize the poker experience, make it relevant to millennials, make it a mobile first experience.

15:33 So basic things like you can play in portrait mode with one hand. You have all kinds of you have a very, very easy navigation using big kind of tiles and icons to to show exactly what players are looking for. Again, AI recommendation engines offering the right table to the right player. We have thousands of poker tail tables that are available at any point of time, and you want to find the right one for you, so the right poker game, the right level of play, the right kind of players that fit you. So that's what we recommend our players. Cross selling between our different products because we developed all of our products in house, poker, casino, sports. We want to offer the wide range to as many as possible customers, and therefore, we make the the the cross product navigation very, very

16:29 seamless and easy. So players who play poker can can navigate easy into the casino product or into the sports betting product and make a bet on sports. And, again, you can see here that we put the same focus in in all of our products like we do like we did in casino just with an interpretation that's relevant for the world of poker starting with safety, usability, content rich, entertainment. We added very cool entertainment features, all kinds of throwables that players have. So when when someone's sitting on the poker table and not moving, not making the move, everyone's waiting for him, you can throw a virtual egg or tomato on him to get him moving. We have cool icons like you see on the screen here, which are kind of with the quality and the level that people are used to from leading social and gaming apps to use. So it's just very much a modern experience trying to bring back younger audiences, millennials back into poker because we know that poker is, in essence, a very, very popular game globally, both offline, online, and social apps, and casinos, in in home games, and we wanted to bring that kind of extra experience into the

17:52 world of online poker. We launched this product in the end of last year, Poker eight, around November last year. And since then, we've seen all of the KPIs that we're looking at, like revenue per player, cross selling into casino, amount of poker table, amount of poker games they played. All of these KPIs we see on an increased trend since the launch are over FTDs, first time depositors, also continuously growing since the launch of this product, and we're very, very optimistic that poker is also entering a positive growth cycle like we saw in our other products after launching new products. Moving on to the next product launch, and and this is probably the most significant one in the last couple of years and really changing the essence of of eight eight eight as an online gaming operator to an online betting and gaming operator.

18:54 So after almost ten years operating in the category of sports betting and managing to grow the sports betting vertical to over a $100,000,000 a year, we decided that it's time for us to own the technology of our sports betting. We used to have a third party sports betting platform that provided us. But as a company that believes in building the best in class products, which are unique to our customers,

19:24 we realized that if we want to make a big step in sports betting, we have to own technology as well, technology and the product. Therefore, couple of years ago, about two years ago, we bought a sports betting company that created that had shared very similar principles product principles as ours in in terms of the usability and content and entertainment and features. And we saw their product. We loved what we saw. We met the team. We were we we saw that we can enrich our DNA with with sports betting DNA based out of Dublin, which is one of the global hubs of of sports betting. And we acquired the the company. Since then, we've been busy with, first of all, enhancing the product that they have, making it ready to launch, integrating it into our leading back end systems.

20:17 And then towards the end of last year, we started rolling it out in the different markets in Europe, and that got to the kind of a peak in in January where we basically relaunched our new proprietary sports betting platform in The UK, replacing the third party platform and migrating all of our customers into our platform, offering them this, again, kind of unique eight eight eight product experience that we expect from all of our products with all of these features. So, again, AI offering them bets that are relevant to them, the kind of sports that are relevant to them, and bets that are are popular at that point of time in their market and to other pantries that are similar to them.

21:14 We have a really great and easy seamless cross sell again between sports into the other verticals. And and

21:24 we have things that make make it much easier to find the relevant bet for you. So a product that's called the bet finder that helps you find the relevant bets for you. Because, again, in sports betting, you have thousands of potential bets at any point of time, and we want the experience to be seamless. We want it to be fast. We want it to be easy, and we want it to be safe. And the access to the control center that I showed you before, again, is very, very easy. It's accessible for from from anywhere on on the client, and players can can set limits

22:00 while experience the the this leading sports betting experience. So, again, this was launched earlier this year full mode in The UK. We are we have seen very encouraging KPIs since the launch of this product. So, again, many of the KPIs have have have been positive over what we saw last year or or or the previous year on on the previous platform. And that reached to another highlight last week when while the Cheltenham sports betting horse racing festival festival was on in The UK, and and and, basically, we had the the the best opportunity to stress test this platform, how see how stable it is, how the customers like it and are betting on on on the horses.

22:56 And we saw significant increase in in betting volume during the festival, and we saw the the the product working very, very smoothly with no technical or any issues whatsoever. So we're very confident with that that we can take now sports to the next level. We have a relatively small market share in sports.

23:20 So depending on the markets, we have some markets that were one to 2%, some markets that were closer to the 5%. But overall, we have a lot of room for growth. And now leaning on this new advanced product, which is in its initial phases. We think there's plenty of room for growth for us in making sports betting basically a leading category in eight eight eight and becoming a real betting and gaming operator.

23:53 Moving on to the next slide. So after, you know, you have all of these leading and advanced products, And what we want to do is put them in front of customers in order to acquire more and more customers. Eight eight eight, by DNA, is a tech technology and data led companies that we do. We make all of our decisions based on data, analyzing data, using technology. And with that, we also that's also how we manage our marketing budgets, which are the biggest part of our budget or the biggest spend line in our budget.

24:38 Last year, we spent over or invested over $240,000,000 in marketing online. You can see on

24:48 the on the left hand side, the amount of FTDs. FTDs is first time depositors. These are new players. CPA is a cost per acquisition. So our aim is to continuously bring more and more first time depositors. That's the new blood into the system. That's where growth starts with new players coming in and growing the business. And our objective is to continuously reduce the CPA. And you can see the trend of the CPA, the cost per acquisition is is reducing over time while we're managing to increase the amount of players that we're bringing. We're doing this on the right, you can see all of the marketing channels that we're using. So we basically built a a marketing machine and an online marketing machine that's based on all the data that we gather and optimizes our spend between the different channels and in the individual channels.

25:46 Traditionally, gaming companies use most of their budgets either offline on things like sponsorships or or advertising on TV and in the sports channels or in the newspapers, and on online channels like PPC, which is Google search or affiliate channels. And what we've been doing in the last three to four years is basically with the shift of consumers to different type to consuming media and exposure in different areas, we shifted more and more more and more of our spend and more and more developed our expertise in the emerging channels where our consumers are spending time. So social networks, YouTube, apps, in games apps. And you can see here the different marketing channels mix that we have and how we manage to diversify and get more exposure to players in different places.

26:48 And what we don't know how to do exceptionally well is to actually measure what we call the attribution. So how the different channels impact each other and how to basically get an ideal journey in terms of our exposure in front of players until they finally convert into becoming members of eight eighty eight. So that's marketing, and that's how we take all the great products that we develop and bring them in front of customers. Now moving on to The US. So all the great things that I showed up till now haven't really been accessible in The US. Although we've been active there since 2013, we do not we did not implement the latest set of technology because of all kinds of regulatory requirements and restrictions in the market in the last few years, and we were very busy on investing and developing all the products that you saw and the marketing machines and rolling out into more markets in Europe.

27:53 And and last year, we decided it's the year that we're starting to shift more and more focus into The US. With that, we started building a new infrastructure there that will allow us to bring all of these products into the market and to roll them out to many markets in The US fairly quickly. And that new, basically, infrastructure is going to be launched shortly in a couple of months in in The US, and we're going to roll out into more markets. In terms of strategy in The US, we have two entry or or or market entry strategies. We have one b to b. Okay? B to b, we have a relationship with Caesars Interactive, a b to b relationship with them around poker and casino.

28:44 So we power WSOP Poker, which is today considered the leading US brand in in in terms of online poker. We launched with them in two markets in Nevada and New Jersey. And recently, we have extended the contract with them for additional five years. And now the market is starting to open up into more and more regulated markets in The US. The next ones that we're launching there are Pennsylvania Michigan, two quite significant markets. And two, we will have a shared liquidity poker network across all the markets that we work in in The US. This is now possible because of a a change in in in the regulation there, which allows shared liquidity or cross border poker activity between the different states that became available a few months ago.

29:38 And and now we're in the process of, again, launching into more markets and combining the markets together in poker. Liquidity is extremely important. We know the impact of sharing liquidity has on on on the attractiveness of poker. We see that in in Europe where we have a shared liquidity poker network between Spain and Portugal. In The US, when we combined Nevada and New Jersey, we saw a real uptake in in in the poker activity, and we're now looking in the near future, again, to combine all the poker markets in The US under one shared liquidity network. So that's on the b to b.

30:23 And ahead of us, there are going to be more markets that open poker. Some of the markets start with poker and gaming from the get go, and some of them start with sports betting, then we'll probably open up poker later on. And with that, we think we will have a leading position with Caesars and the WSOP in terms of poker in The US. Another part of our strategy, very important part, is actually the b to c side. So launching eight eight eight Sports and where possible casino and poker in markets where we got licenses in The US. Up till now, we had one license in New Jersey, and we acquired three more licenses in the end of last year, which are Colorado, Indiana, and Iowa. And we are looking to to acquire more licenses in more markets as we are opening.

31:14 This year, we're going to launch overall in two sports betting markets, two poker markets. So that's additional four markets that we will have in The US. And our projection is that by 2023, we will operate between 12 to 15 different markets in The US between our b to c and b to b divisions, taking again all of these leading products, the latest poker, our new sports book, and the leading probably the leading online casino experience in the world to The US starting to grow our share there to to become a meaningful part of our revenue by 2023. Now to the last slide. So just to to summarize before we jump into the q and a.

32:02 So 2020 was a record year for for 888. We grew by over 50% where our peers in the industry grew by an average of around 25%. Our product leadership strategy is delivering very, very strong results, and we know that we're at a beginning of a growth cycle in basically all of our products. Casino is continuing a very strong momentum with a leadership position in casino. Sports is in a in a brand new growth phase and so is poker like I explained before. We use our data driven investment in AI to drive ongoing marketing effectiveness of grow marketing and reduce our CPAs and get better returns. We're well positioned now to scale up in The US, and we're moving more and more forces, recruiting more people, launching into more markets in The US will become a meaningful part of our business in the next few years.

32:59 We have a very strong opportunity to leverage our our balance sheet to pursue nonorganic expansion, m and a. And the fact that we managed to migrate our sports the sports product from third party to eight eight eight, the all the great progress that we made on the product side, the strong balance sheet that we have, and the cash that we have on our balance sheet makes us feel very confident about our options in terms of m and a in Europe and potentially in other areas. And finally, the momentum has continued from last year through q four into q one this year with a strong current trading that we're seeing at the moment.

33:47 So So with that, I'll hand over now for some Q and A. It's a high, Yarif. Thank you very, very much indeed for your presentation. Ladies and gentlemen, just while the company take a few moments to review the questions already submitted today, I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q and A, can be accessed via your Investor Meet company dashboard. I'd also like to remind you that feedback is important to the company. And immediately after the presentation has ended, you'll be redirected in order that you can provide feedback so the company can better understand your views and expectations. Yarif, firstly, if if I could potentially ask you just to bring up the q and a box, that's the chat panel at the bottom, the blue button.

34:33 Yes, we have that open. Perfect. Okay. Ahead of actually addressing those on a live Q and A, perhaps I could start off with some questions that were presubmitted by investors. The first question that we received is, can you provide further details about the tax assessment on the Israel subsidiary in relation to the transfer pricing matters between 2016 and 2018? And what is the likelihood of paying additional tax and the potential amount? Okay. So the discussion with the tax authorities with regard to the total profits that needs to be attributed to the Israeli operation, this discussion will be concluded during 2021. We don't expect additional, tax expenses on top of what we already have in the books.

35:25 Perfect. Thank you very much, indeed. The second question that we received in terms of the change in the German regulatory regime and the application for a license, can you provide details on the progress and quantify the potential impacts on profits for the new licensing and toleration regimes? And so first of all, I'll I'll start with the the potential that I think the German market has, and then Yarif can elaborate a bit on the impact of of of taxes and changes in regulation. So indeed, in 2020 in the second half of two thousand and twenty and in 2021, there are going to be structural changes in the regulations in Germany, first of all, offering sports bed betting under a local license there.

36:14 And later this year, that will be expanded to gaming to casino and poker, a more limited gaming experience both in terms of of deposit limits and bet limits that they're putting there. But yet, it will the market will be opening up. That means that we will be able to start advertising their marketing our products there. We have been in in the German market for over twenty years now working through our Gibraltar license and our Maltese license. And now that it's becoming opening opened to work under local license, we see this as a future opportunity. Obviously, in in next year when all these restrictions are put into place, and then we'll see a dent in our numbers.

37:06 But we think that going forward, the market can be worth, you know, up to a couple of billion of dollars, which is a significant European regulated markets. We need to adapt our products in the way that we operate there to adapt ourselves to the the tax requirements. But, essentially, it's going to be an opening a reopening of a new big and regulated market, which is something that we welcome. In terms of the changes of the German regulations, so when we were indicating 70 to 100,000,000 impact on our revenue in 2021, this this was included within this number. From EBITDA point of view, so we already indicated that the the loss of revenue in Germany in terms of EBITDA is about 10,000,000 impact.

37:58 That's brilliant. Thank you very much indeed. The next question, what are your ambitions in The US, and what market share could we expect? Yeah. So so I think I I I explained, quite a bit about The US. In terms of market share that we can expect, we we see that in Europe, our market share our sweet spot of market share in the different markets is around, let's call it, between the four and six, 7% depending on the category. Mainly in gaming and casino and poker were more towards six, seven, 8%. In sports betting, lower, one to two one to 3%. So if we look at The US market, we don't see any reason why, over time, we shouldn't get to market shares that are in in the markets that we operate in, in the states that we decide to operate in, and we get market licenses, that we don't get to similar levels of between three to 5% of the market share in those markets. That will obviously take time. That will obviously require investment.

39:01 But just like we managed to do it successfully in literally every market that we launched in in Europe and in other places in the world, we we we don't see any reason why we won't be successful in The US. That's great. We've got three just final presubmitted questions, all short in nature. The first one is, what are your m and a plans? Yeah. So without going into any specifics, I mentioned before also, we feel that we we have a a a strong position at the moment with all of the products that we we we now got into kind of a a new growth cycle products that we recently launched, which are leading in the different categories.

39:50 We have a very strong infrastructure, which we believe we can now put significantly more volume over, and we can do that organically like we managed to do in 2020, but we could also do it unorganically through m and a opportunities. Our main focus at the moment in terms of m and a is more towards European m and a's. We have a strong balance sheet. We we have cash on the on the balance sheet. We have no debt. We have a great operations, a great marketing capability, and we think that we're very well posed to take on m and a opportunities in our core markets in Europe. Thank you. I know you did touch on, I guess, current trends, but the next question is, what are your current trading trends?

40:39 So will refer to this in a high level. So current trading is good. We start the year with strong momentum similar to the level we saw in q four. We are not providing details on on on the overall q one as we are planning a trading update at early May, which will provide more details on the performance of the first quarter of the year. That's great. And the the last question that was presubmitted ahead of today's event was what is your dividend policy? Oh, so the dividend policy is to distribute 50% of the adjusted profit after tax every year.

41:25 In in in most of the year, in in addition to the regular dividend that was the this is the policy. We also had some special dividend, and this is, of course, depends on specific circumstances on on a year on a yearly basis, which the board consider before declaring the final dividend. That's great. Well, look, that that deals with the questions that are presubmitted. What I would ask you to do now, if it's possible, is if you could select the q and a tab. If I could ask you to start at the top, if I could ask you to read out the question, who it's from, and perhaps give a response where it's appropriate to do so. And then I will collect you at the back when you finish and then divert investors for feedback. Great. So first question from Simon. I I think we partly answered, but I I can elaborate a bit. What are the limits to scaling in The US opportunity?

42:18 It's obviously a very competitive market. You look to partner. Okay. So we think that in The US, indeed, it is a very competitive marketplace, but I can't say that the other markets that we're competing in, The UK or or Spain or Italy are not competitive. We have probably even more competitors in in Europe than we have in The US. The advantages that we're bringing into The US market is is the products that we have. We think that today with the new casino, the new poker product, the new sports product, we will have a competitive advantage taking those products into the market with our, again, marketing machines and managing to achieve market share.

43:10 The in in terms of of our poker and b to b, I I spoke about that, but we do have a partnership with with WSOP, a b to b partnership, and they're going to launch that. It's probably the leading brand there. Now they're going to have the leading poker product with shared liquidity in The US, so I I'm very confident that we'll we'll manage to capture quite a significant part of poker. With poker comes also a good business of casino that we cross sell from poker into casino. So, you know, that's one way to to achieve a a market share. And the other way is b two c, which we discussed. And and are we looking to partner? The answer is yes. We are looking to partner with media and brands that can help us reach that three to 5% market share easier and and and faster.

44:00 We are in in various discussions. We hope to advance in those discussions in the near future and to also do partnerships that will help help us advance. But we believe that we can also achieve good results and market share in our current b to c and b to b mode. Okay. Next question from ABS. What is included in trade receivable of 84,600,000? So we have set of agreement with many payment service provider. The the trade receivable balance will present mainly the amount that we are expecting to collect from this provider payment provider.

44:55 The next question from a b, great presentation. What do you see as the biggest risk to eight eight eight as you move forward also from competitive point of view? How quickly do you see competitor copying your offering, and do you look to protect your position? Yeah. Well, there's there's different risks and and changes in our business. There's there's what we call a regulatory pressure in different countries in in Europe. Germany is one of them. UK is another one that that we mentioned. And we assume that this year due to these risks, our revenues and our numbers are going to be slightly up over last year while we deal with these risks.

45:47 In terms of competition, I think there are obviously large competitors in our industry that have been created mainly through through mergers and acquisitions. So those obviously have the benefits of scale. On the other hand, we have the benefit of owning our own technology, being more flexible, being able to move fast in areas that we want to move. So I think we're well positioned to deal with the risks that that exist in our industry. Another question from Nick to Itay. With your in house development creating new offering for client, how do you look to cross sell into your existing client base, and how do you target first time depositor? Will you do this organically or through m and a?

46:34 I hope I understand the the the question correctly, but in general, we we our our new products that we brought into market have been well designed to offer the full range of our products to different customers. That means it's easier to to cross sell or to navigate between the the products. We're already seeing with the new products that we launched better cross sell and figures. And, obviously, we're offering them the new products when we launch them. We go back to our databases and we offer we we tell them about the new advancements and enhancements we do into the product, and we try to reactivate all players and to offer the new products to all of our player base. And, yeah, the plan is to use our advanced products in m and a in order to create synergies, in order to offer our best in class products to other operators that might have been suffering from less from not as good products and performance in the last few years.

47:38 Another question from Alister. Do you to what degree do you estimate growth in 2020 was caused by COVID restriction and people not having access to their normal entertainment channels. I would answer this. So we definitely think that there is some play to the COVID in the performance of 2020, but we don't look at that that from the view of only gaming industry. Actually, we think that due to the COVID, there was a massive shift from retail businesses into online services. We, by the way, grew more than 50% while the market was was growing 25%. So definitely significant part of our growth was related to our product and offering.

48:27 And we also enjoyed from this massive shift to online services, and we do believe that this shift is is here to stay as as we see in other industry. Next question from Rebecca. Cesar have made no secret that they only want William Hill US business. Are interested in buying their European business and The UK in particular? Would like to tell you. Yeah. So we we also made it no secret that we would be looking at m and a opportunities in Europe. William Hill is one of those opportunities. It falls within the guidelines of the kinds of things that we would be looking at. So we will be looking at that opportunity as others that are becoming available in Europe.

49:22 Another question from Fabrice for m and a. What is the rationale for your next acquisition? What will they bring to you that you don't already have? Some example maybe. Hey, guys. So we spoke about this a bit. So I think in terms of the product, we're not looking to buy any more products. Our last acquisition was a sports betting platform. We now integrated and rolled it out. We have the full set of products, so we're not looking to acquire products. We are looking to expand in specific territories. There are territories where we can we would like to expand our market share faster. Scandinavia is is one of them. Eastern Europe is another example. But, basically, we're looking in general to scale and to leverage the platform and the products that we have us that we have in house and and and increase the volume that we're putting on them. And by that, enhancing our margins and profitability.

50:23 So those are the kinds of things that we're looking we're looking to add scale. Another financial question from ops. There was a 12,000,000 increase in provision on the the balance sheet. Are these likely to be one off addition, or should we expect more over the coming years? So this is very difficult to answer. Of course, provision by nature, you know, it's something that we need to measure on a year every year based on the risk that we need to to deal with them. Provision by nature always have an element of of one off. So I cannot really say what will be the level of provision looking forward. On the other hand, 12,000,000 increase is not is not normal increase that you should expect on a yearly basis.

51:14 Another finance income seems quite low relative to cash on the balance sheet even with such low interest rate. Is there any particular reason for this? Unfortunately, this is the this is the level of interest rate we see today. It's not it's not the the level that, you know, we can get more on the cash, and there is a significant movement on our cash flow. A lot of cash in and cash out, which do not make it easy to actually reinvest the cash with the with the such a level now. So we are looking also into this issue. That's brilliant. Yaraf, it's I think you've actually addressed every single question that's been submitted by investors. So thank you so much for for taking the time to do so.

52:07 I do know investor feedback is particularly important to you guys, and I will shortly redirect investors to to provide that. Before I do, perhaps I could hand back to you, Ittai, just for a few closing comments before I redirect investors. Yeah. So, again, first of I wanted to thank all the investors for for taking the time and and asking the the the great questions. I think eight eight eight is very well posed for future growth. I think we've elaborated how and where. So it's both on a product basis with our new sports poker product and our leading casino on a territorial basis in in The US and gaining more market share in our existing markets. And we're very, very well posed for m and a. So we're very positive about the outlook of the company.

53:02 That's it. Thank you very much for everyone. It's I, Yarif, thank you once again so much for your time today and for providing all investors access to your presentation as part of your investor roadshow. Can I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback? If you access this meeting from our website, then the feedback page will appear. But if you access this meeting via the link sent to you by email, you'll simply be asked to log back in to submit your feedback, and it'll be very beneficial that the company can hear your thoughts and your expectations. On behalf of Ittai and Yarif and the management team at 888 we'd like to thank you very much for attending today's presentation. That concludes today's session.

53:48 Thank you for your time once again, and good evening to you all.