Full Year 2020 Evolution Gaming Group AB (publ) Earnings Call
And some non recurring costs from 65 some.
EBITDA and margins, but of course for the non adjust.
And for non recurring costs are for that was 65, 1% and the mountain to 115 6 million and the room, which is an increase of 107% and compared to last year.
And from that sounds to this figure with $9 2 million in Europe.
I'm, particularly pleased with the Pos and strong momentum and player numbers and engagement level for our product, which continues to drive high volume increase now and that first and how this together with our cost efficiency has paid off and our strong results for this quarter.
All and all I would like to sum this up it's nothing but a fantastic achievement for evolution of his team members.
Next slide please.
Yeah.
Let's look a bit closer on the acquisition of Max out and how we see that contributing to the company's short and long term.
Next slide.
[laughter].
Our long time.
Our mission is to become the world's leading provider of online casino and <unk>.
And sometimes when times are and the second vertical and two great brands, which together with the evolution of stronghold and loved casino.
A significant step forward towards this ambition.
As a group we're committed to creating the best gaming experience for every play and both light and salt as well as the mash up between the two west coast.
And in recent years evolution has redefined line casino by creating and the game show and segments, which combined for life products and the LNG element I'm excited to six global coming down and now that we have slots.
We see strong revenue synergies as well as cost synergies I mean have the low now some deliberate.
With acquisition was taken and that even a stronger position on the North American market, but we also see positive effects of a strengthening our position on other markets.
That's hard to think of the market with a broad portfolio comprises investment each vertical and that's what is the ultimate thing. So the two will be and an even stronger positions and capitalize on opportunities and the market growth.
And classes.
Following the completion of the acquisition it was a priority for us to ensure our staff and integration and we're well prepared on restructuring and things are starting to meet with the Broncos.
It might be seen abruptly even boots. So that's.
And literally the day and one company and move past towards the two and two instead of getting stuck in a long term integration project that often never out and somehow thing and deliver boats.
But in a fast moving industry.
And that's at the moment on the actual change so from land based online and it's an exciting time, but we need to work hard to deliver to earn our position on this market and we need to do that as one company with multiple brown.
And like lumpy redemptions and push forward towards the future is important and therefore, this restructure and needed to be fast.
Costume and Jason.
And it is initiatives have been implemented that will result in approximately $40 million, which is coming in and more than previously communicated this effect what happened during the first half from subsequent along about six to nine months early and compared to the pre deal announcement.
Moving forward, our focus will be on developing a new company without losing so you don't have anywhere to growth.
And I was shot emphasis on product innovation and the ultimate sales experience and by utilizing combined millwall from the new organization and wave to speed up our market penetration and increased compensation even further.
Continue to strength, though strong interest and in line and the same at the same time and expand our slot systems and some new markets.
And extracted.
Yeah.
And that's not mode to some more detail so light.
Evolution line on the next slide.
Yeah.
And 20 times a day, we launched a record number of 12 New games. This includes seven new releases and our award winning game show category and the new system and interest from casino traffic such as Kraft line cuts.
That's like Kryptonite is of course, very interesting and focus specifically on the U S. There and they stepped up and go lives. During two went the wrong volume.
And all.
And Thats herself and show strong promise here for evolution.
And I'm not looked at that.
Future and the roadmap with tons of countrywide and we will continue to expand our range of immersive and engaging game shows and utilizing the newest technology and technology and live casino and information to appeal to an even broader spectrum of players.
In addition, we will continue to pay and the success of our first person range and we are also working on new games and features to support continuing growth in the Asian market with tailored content from this region and and players.
It's a mouthful trapped against us will lessen and blackjack and baccarat and remains high and we also continue to develop variants and unique twist to this game fabric same site revenue.
And I would not something that's part of a new channel.
And I'm, playing favorites and to the world of likes to say no to create the new wave of games that provides players can get more cooling and income payments experiences.
Needless to say I'm very excited.
But they come and game launches and what kind of comes along.
Bold evolution lives and stops.
Thanks.
Yeah.
As you know by now basketball, it's a good indicator for activity and our network.
The positive trend with a strong and create some basketball.
We have seen all cause and trying to fund the continued and accelerated and the fourth quarter and.
And number of basketball from ambulances amounted to $15 3 billion compared to have them day in and the same period last year and Jason growth by one of them and 16%.
Historically, the best force have increased at the February but in the second quarter tons and constantly experienced a strong increase in volume, which has been continuous throughout the year.
This is partly yourself from them and you're facing and lives into the pandemic and everything down and based on other flights.
Meanwhile, and other explanation and the reason is the impact.
Kris and Ranjan Gainesville started game and generate the high volume of small and Beth.
Crazy time, which launched last summer has seen a phenomenal success and they came in from say a favorite taking at record levels up from kind of players the game Showboat co and it's an important part of our offering since we have found completely new sales group and increased our market would be and some of these games.
We of course needs to milk and come back and and Mckesson and positive impact and in fact, all those things you know and that's why we also need to note that it's Barry Chairman and simple friendlier and depend on it we are simply not operating at full capacity and necessity and U S. We have had challenges.
And the end of Q2, and Q3, I think because of the effects of the pandemic from new drill most likely and positive for evolution line and that is still a valid stay from.
Ex crushed it.
[noise].
In addition to our product development and continue to invest in a tube sales from Houston, and Dallas, but have been delayed, but sometimes make both and makes them. Some time to transit bus. The inhibition of you are getting.
Getting that regulate and very high demand in Europe, and now need to work hard to increase capacity.
We opened our second U S State, Pennsylvania and line.
And during 'twenty 'twenty, one we will expand into Michigan with a new state of August and Bill.
Well on the acquisition and that sounds we expect our U S footprint to grow and higher speed and that's something that's has a leading position in new Jersey, which most of the person that states regulate since 2015 and that's again have games has also went live on the first day of regulation and Pennsylvania in 2019.
West, Virginia and from the frontier and in Michigan upfront that comes along.
During this quarter also went live with a midsized English speaking through there and look right now.
To meet the high demand and from out of Europe and Asia.
We are also counting there that day and <unk>.
Additional channel for new students and Europe during the year.
Next slide please.
Now, let's move to a few slides from the whole group of evolution from extracted.
Yeah.
Due to the pandemic and they relate to and restrictions we opened fewer table, sometimes doing from pumping a few of them and the mountain.
As a consequence, the head counts were low in the second and third quarter done and the first quarter and all expanding in all locations from the and on the fourth quarter, we reached 8700 employees.
Teams work with them and go after the number of different things from that day and day basis.
There are a lot of hard work.
And behind each and every number that I put some to our evolution to ensure that we stay one step ahead and product innovation and never lose sight of quality and reliability.
They are they want to ensure that we pay attention to the small and some.
Sounds actually baked pizza revenue.
I wish and Atlanta thing, but most of all their people company and thought I would focus on day to recruit the best talent and each market and that remains as relevant today.
And continue to see a high demand for paper and will continue to grow without customer and therefore, I expect the number and I'm pleased to growth path.
And sometimes that makes it allows and give them across the country.
Thanks Ludwig.
Okay.
This slide shows the breakdown of our revenue by geographic region, and its been evident and stuff like that.
Ma'am and growth is truly global and the Nordics and a stable rig them, even if our smallest contribution was about 6% and total revenue during transit times and the growth was moderate and.
The fourth quarter.
Uh huh.
And where we saw stronger development.
And the same break of negative comps from the UK and the fourth quarter and year on year comparison shows and go from $6 from the rest of your life continues to develop well and constitutes about four six months of revenues and growth rate year on year amongst the 28 or something.
And so we're seeing during the past year Asia, and North America growth inside itself.
Year on year growth amounted to 137% and 91% respectively.
Hey, good potential and both these markets and expect to.
And that high growth rate going forward, particularly as we are smaller and Asia with a recent regulatory movements and U S and becoming Michigan and studio.
There, including South America, and Africa, and remain and part of the World show some growth good growth of 68% and the long term and it seemed that the south American market with promising and in the quarter evolution with a third surprised and launched live casino games and the newly regulated Columbian market.
Revenue from regulated market showed some growth of 52% and constitute 30 pick some from revenues and creates and the share of revenue from regulated market and of course and due to the growth and U S and all day as well as one that we have operating more than paid within the quarter and.
A large part of our own type of seats are in the regulated market, absolutely and do two more tables and operators and those fees are higher in Q4 and it also increased as a percentage of the show revenue and from regular marks in the quarter.
I will now pass over to Jacob who will take the two of the financial details.
Thank you Martin and good morning to all of you and this thing and.
And now for a couple of sites, but a closer look at our financial development during the period I'm on slide number 14.
This slide shows the group's performance adjusted for the non recurring restructuring costs from 19.4 million Euro.
Revenue amounts to 107, seven 7 million Euro and the fourth quarter and that includes $17 8 million euros from the acquired and desktop business.
And that that I've mentioned, a few times that we concluded with one month and the fourth quarter P&L. So from December.
Our non casino business has developed really well and the quarter revenue from that because they know, it's about 160 million euro and the quarter.
Comparable to previous quarters in this chart and you can see a 20 million euro or 14% increase from the third quarter of 2020 and compared to Q4 2019, the growth rates of the 51%.
The strong performance and trading across all products.
And as Marty mentioned, both our traditional paper games as well and the new game real interest from 'twenty to 'twenty.
Crazy times.
Earlier this year.
Contributes and then this quarter and the new gaming is the law.
Kind of a cup game, which.
And that's found in and what the answer or so outside of it.
Let's say whole markets of the U S where it will be launched later this year.
And second wave of the pandemic that we've seen in most countries. During the end of last year have given us a tailwind to all front line activity, including online casino. However, as you see.
And the Blue bars, and the chart, we had a very good growth coming also from so coming into 2020. So the current growth rate is definitely not only resonates and sort of pandemic something we do see is that many new players have found our games earlier, this year or staying in and that work and best cost of data and contributed to growth.
The business also finished the year with increased volumes.
In December and.
Looking pro forma for the third and fourth quarter.
And comparing to the same period 2019, and we estimate growth at about 5%.
And our ambition for growth are higher and as Martin and Martin mentioned earlier, we feel good about the product development and the growth prospects going forward.
Especially during the second half of the year, when we will see some results of our joint product development.
And for 'twenty 'twenty, one with mid single digit growth in this area and the Tox business will make up about 20% to 25% of group revenue and could come into 'twenty one and.
Q1, and going forward, we reported live and Orangey revenue separately. So you will be able to cope with this development going forward.
EBITDA for the quarter amounted to 115.
6 million Euro again, and this excludes the $19 4 million and restructuring costs taken in the fourth quarter.
EBITDA margin and five 1% in the fourth quarter. This is the highest level, we achieved for a single quarter.
Our guidance for full year 'twenty 'twenty, one if that's what we aim to reach the fourth quarter love them also for the full year quite country. So aiming at about 65% for full year 'twenty wanted and the day.
And there are several balancing factors affecting margin.
One we added the business right now with the lower margin coming into the year, but we would have cost savings from this entity.
Which should support margin.
To date and before we will prioritize growth over margins and hopefully we will be able to open more tables and also expand more rapidly and for example, you are and what we have been able to do during the second half of 'twenty and 'twenty.
We are right now from what boosted on the module side from the special circumstance that would come with it comes out and make high volume, but with fewer available table.
Did that and decided that the margin actually you could have jumped up to a level from from the second quarter.
And so after that.
From there and make hopefully longer so we should be able to fix them faster.
Would pressure margins in the short term, but on the other hand, our scanner and that they should be investing for growth and top line also supports our growth and modules. So some of it is some of that oil and all the things that 65% from that with the reasonable expectation right now for 'twenty and 'twenty. One we will of course come back to day after year goes on.
Let's go to the expenses.
This slide shows our P&L and a bit more detail and the as reported meaning it includes the non recurring items are excluded on the previous line.
Walking through the items from film from the health and again with Citi revenue of 177 million Euro, 68% increase year on year, including the one month of the from S M business with it.
Full year revenues are just over 560 million euro and growth and 63% organic growth is just under 49% reported full year.
If it's a quarter with several moving parts, especially on the crop side, So, we'll try and sort them out.
And for you here operator, let's go to the next slide.
So there's a zoom and.
And a bit on the on the on the call here going forward, we will not report grip and met them a separate business units. We will report revenue and separately as I mentioned earlier, but operations will be fully integrated.
Yeah.
And also.
They put already on head up stuff.
Working hard to kind of create one company.
However, try and consortium participants here in Q4, so that will have a common starting point.
Let's walk through to the reported operating expenses amounted to $92 8 million Euro you would recognize that number from the previous line were $38 six and personnel expenses and net adds about $3 4 million here in Q4, making the comparator, but underlying and increased about 6% and from the same period last year.
Here for the rest of the group.
Depreciation and includes $2 9 million related to amortization from the deal and about 1 million euro from the underlying net that business.
Making the depreciations for them.
And the evolution of it the seven 6 million and that's.
Also an increase of 6% compared to.
Fourth quarter upfront and 19.
And then other operating expenses, that's reported at $42 8 million euro and the quarter distinctive and the restructuring costs that we mentioned earlier from $19 4 million and.
And that's an underlying increase of $1 3 million euro and the quarter and so those are the main items affecting comparability between them.
Between the fourth quarter and the same period last year.
And I'll repeat what we said before we will run the evolution of one business. So, we'll probably never seen such a neat and tidy side again.
And operations are integrated.
Okay.
Your line and get blurred, but it gives them explanation of what has happened and the fourth quarter.
Alright.
Operator, let's go to the NAV.
And that takes effect and the prudent and L.
So if I continue down from operating profit.
And I shall items.
Just over 800000 every quarter, bringing up to profit before tax of 84 point.
And it before.
Jeff Brown makes it 4 billion Euro and tech.
Tax rate.
For one for sand and the quarter slightly lower than normal and for the full year four 7%.
Broker for the period, and 86, and which dumping suits the nonrecurring items and as mentioned earlier earnings per share 41 per share and the fourth quarter and the.
One point and 51 euro per share for the full year and quite frankly, and that's M. H.
And 84% increase compared to 2019.
That completes the day now operator, let's look at the next slide please.
Before I hand back to Martin.
And look at cash flow and financial condition.
Looking to the left and the slide the chart shows the developmental capital expenditure.
Day bars represent investments in intangible assets, mainly our studio constructions and jumped over 6 million euro and the quarter and the blue part of the bar and intangible investments and intangible assets and that's related to develop and from new games and features to the platforms and it's $4 seven and it relates to capex related to the intangible assets.
And in the quarter, So Scott from previous day. This year total capex for the full year.
Almost 77 million Euro this fall and that's our guidance for 'twenty and 'twenty is up from about 30 million Euro and 2019.
And again with market and said earlier here, we will continue to pay and best and used studios and product. So we're expecting a continued increase in capex for 'twenty and 'twenty. One however in relation to revenue I think we'll see a doctor and continue continue down as revenues increase.
And even if all of them.
And the middle of the client and we look at operating cash flow cash conversion and stacked and nowhere in the quarter, but they've done a good level up nearly 8%.
And right and decide to look at the balance sheet and.
And there are some from changes from from the previous quarter, the increase and non current assets is related to mainly the goodwill and other intangible assets from the acquisition.
And on the equity and idle tragic and the equity increases with the new share issue and that's also taking place from the quarter during.
During the quarter, we have repaid the debt that came with the <unk> acquisition.
Acquisition.
Maintain 220 million euro.
And in cash.
<unk> has proposed to dividends over and above.
145 million Euro.
68, and for sure and I guess the.
<unk> payout ratio of slots here and 51% from net profit for the air and.
It was in line with our dividend policy.
So.
Yeah.
I'll stop there, that's what band and my prepared remarks.
And now back to you Martin.
Thank you very much and let's move to the outlook slide.
And then the two comments from me.
And I'm very pleased to conclude a strong quarter and then overall very successful year for evolution, which has included many important achievements. Both in terms of financial results product launches and addition of a second vote and Super strong Brown to the group.
About the kinds of funds along with a good momentum and are equipped with expanded product portfolio and kind of following the completion of that acquisition.
While Instagram integration is well underway and the older and country themselves and stuff but.
And in this area from 'twenty, one and will continue to be about how we can leverage to John's knowledge experience and additional revenue company and project two new thrilling Fei and experiences has always cost efficiencies.
We'll remain as important and our efforts to restructure the cost base to reach and increase the effectiveness and we continue and we expect to sustain margin levels from Q4 and kind of 'twenty one.
And so this year I have highlighted the passionate and online casino product.
Although the line they've got to go still sounds from majority of the social casino market insight and could play a role and the deep Sun Life's Asia and industry.
More and more players experience online casino through all of the games.
And that pushed out.
And they come back online over the years to come and remains unpredictable. However, we have and I would go from away from place to capitalize on the develop them.
And for them to try and they have been and unexpected partly about difficult here and also fantastic. Our teams have worked hard to keep the distance learning through the effects of the pandemic and I want to take this opportunity to once again highlight the thousands of individuals and stuff the evolution of sales, so and who together with the management magazine and do some products for some.
Good day and possible.
Evolution scores based on the Sham decides to win and so collectively constantly push ourselves to the next level make evolution and loose.
And good day. Thank you for listening now, let's move to the last slide and your question and thank you.
Thank you if you have a question from the speakers please press and hero, one telephone keypads and now.
Our first question comes from the line of Martin Arnell from Dnb. Please go ahead.
Good morning, guys.
Good morning.
So just on the on personnel and the New studios.
Your.
And we're launching and Michigan.
On the line Ponca and yes can you tell us more on the timing and what restrict you from just.
Having one or two rooms opened in Michigan and so far.
And I have commented at the time and subsequent data from study one and we will we will of course do it as soon as possible and we won't open and staples and our Sydney and.
Michigan it needs to be at the site. So that we can support the market and the and then we will open gradually and.
And as soon as possible.
Okay.
And I'll ask enough to go and show them being low.
And.
And Michigan and so far.
Good.
And we were pleased with the launch that and Michelle.
Okay and.
Looking at your and dedicated cables capacity now.
Compared with a.
Three months ago over or even nine months ago, I guess, it's not really where you expected it oh.
We're gonna be but can.
And it gave us some flavor on sort of how much capacity you you're a weighted.
And as a percent of gaming total.
I wouldn't I wouldn't think too.
And to two hours and put up.
We are actually.
But what we should be and then make because it.
And we're coming out of the little bit that fleet and.
About what we planned.
And on the other hand of course, it would have been a normally and we would've been much further.
Well, what I'm, saying from that.
And I don't have to.
Co payments from make this restructure was compounded cash off the day from basketball and so we are what we should be coming.
Coming into it from day one.
Of course hope that come about and they've got to everyone else that it comes in and and that weekend food and they expand and.
And recoup and of course, we are they're supplying and at the moment. So we have a higher demand and what we supply.
And and how the support and when you are selling these states dedicated table the.
Two new customers can't change cell. So the future capacity now or are you restricted and those kind of.
And discussions.
That works like in and out of the business we.
You cannot force sell but you have to also be careful not suddenly and once we can deliver so did the weekend standby right now there's no limitation for that.
Okay, great. Thank you and on that.
And then the synergy scenarios and.
And what have you learned there I mean, what's really changed because it's quite good.
And that they get.
[noise] change overall, and the race and the synergies and also the climbing producing it and so I'm just interested to hear what what's changed.
And you go into a deal of this size and make an acquisition and besides just when you make the Pea and pre deal announcements you don't really know so as you go in and to the company and see what it can do do do of course, you get more and.
Substantial information and might not always be confident that we can deliver and fourth dominion and then it will be.
Six to nine months earlier than what we predicted before.
We were well prepared and done and integration and.
The old and that sounds, which is which is rapid and ease.
And as I stated earlier, maybe in the route and but we want to move fast into one company and we want.
And from day, one strong unit with average bombs and avid knowledge and depth that shows are also in the figures and the reason for the earlier deliberate and put them on net.
Where do you think you can have and your R&D growth.
And further out.
Do you think it can be.
And above 10% and RMG.
We don't guide on the growth from the Orange, but of course, that's before we see the on the 30 million level, we'll see this and to do some revenue and higher than the same channel costs and Theres, all Bulks yoga yoga yoga fit geographical net growth, but Lucy and ER.
Of course, there's great potential for Andre and do something and pins.
Regulus and we also see that we can do these new products and continue to sort of.
Develop and innovate all non casino with both the line that's why let's logs from the combination and between.
Okay, Thanks, and on your margin target for 'twenty and 'twenty one.
And does that include more aggressive expansion and the second half from the year one and.
Hopefully dependent and the castle and you don't see it.
Sure.
It's tough.
I will set the standard.
And as a big assumption from that.
And moving parts already like we said I mean.
If we can expand the big faster, we will always go for that.
Kim and the in a quarter that can lead to lift and higher cost cutting and a quarter, which line pressure margin, but at the same time.
That should lead to higher top line.
We tend to government support module so.
But where we.
And we've given it its kind of a full year guidance.
And we'll probably see it vary quarter to quarter and.
And progressive.
And be able to come back to it but that's kind of how we see it now with the one of the high level view.
Okay, Thanks, and on your new games, and the timing for the game launches and Scott.
Similar this year that you would even start gradually from February and and have gradually rollouts during the year or how should we view the timing from you get and Jack.
From the.
Same procedure, except from the fact that we don't do life.
Okay. Thanks, and just my final question and so on the start for 'twenty and 'twenty one.
And is that.
Driven by a sort of a good or two and volumes.
And we have great momentum coming into the country and.
And it's driven all of a lot of different factors, but I'm very excited about the play and numbers and the engagement levels.
Okay. Thank you guys.
And everything.
And the next question comes from the line of and young from Morgan Stanley. Please go ahead.
Good morning, Thank you for taking my questions. The first one is on the revenue.
Revenue synergies just mentioned above.
Instead of commodity and the revenue synergies from the Yeah. You took the weighted out was in the presentation, but can be.
Sectional net and if you'd like Keystone up what do you mean exactly by revenue synergies is that extending and attempting to new geographies is that including.
And you kind of hybrid products, just trying to get and I like to hear about how to frame and.
Sorry, if you've talked about the 'twenty 'twenty one.
And essentially.
Or some more about this and so of course, including what we could do a product innovations in between line and slots, but it's also what we can do with slots or they are right now because of the competence, we have them and to pay your base on the net book, we have but it's also of course, how we can.
And monetize the slots in our lives and line amounts as well and how we can monetize live and the slots and my mum, meaning how we will make it possible from.
Players too.
Seamlessly use both products as well that's of course, a geography, where we see that we are stronger and some of them and not from installment and and others.
Okay, Thanks, and what will keep oral argument lumpy I guess on that.
On the U S and.
I mean, and initial day to fuel, Michigan, Georgia ex Oxy very positive on the line sorry can you tell us what scale.
And the tables and the U S and amendment or when you could get to this year and I'm trying to think how big kind of U S. C D I b.
And also how should we think about the level of gaming choice. These T. H can provide at this scale and you mentioned crops and in 'twenty and 'twenty, one and that quite small studios compared to some of your other studios.
So what are the kind of cadence do you think is reliable and scalable tool came out and in that context as well to see decent volume at nice.
Can you give your thoughts from state levels and she's nationally scalable Street gauge how do you think the environment will shake out there.
Okay.
A couple of the.
Questions that I would say like.
And when it comes to the gaming suite from the players and U S. Our ambition at the day. The U S payer should have Golden suite of games, meaning all the beautiful game, but we can come from give to them give them that the regulators on these march's mark and allows them. So they are different regulation and different states and that is sort of also living there.
Or and enabling different games and so the U S market Theres no limitation from our side we should.
We should give them the full suite of.
Games.
And then when it comes to the table and and how we will expand and and both New Jersey, Pennsylvania, Michigan and potentially company states beyond that.
He will expand.
Doing price and sent to them.
And as it comes down and it allows.
As we can.
The only limitation for that expansion right now I see as the pandemic, we are on the supply and we need to do more so some so that it's very hard for me bounce because no one actually and almost exactly how this will play out and I were talking about filled way and it's also the difficult thing and and.
And safe day, and I'm thinking about that.
And then there were certain things.
Find me what was the.
Just on me on the wireline and talks at this chance to potentially move towards moving that way.
Oh, sorry, sorry.
And that the the wire and now the recent development.
It's been soft and as you know me and ended up okay potentially you could take that silver state to state borders, but well we are providing live casino.
And there's a substantial amount from work based system and for you.
And that and the Linky with up to the regulator to state and they want to have that and inside the state there outside or somewhere else and at the moment, the regulation and the regulatory requirements and each day states that test and be inside and state.
It has to be even though the Tesla and Apple would allow it has to be changed from a state level estimates right now and.
And I have no knowledge or actually a decent benefit adjusted and have them.
From our point of view.
And I.
And I don't view, the coupe and the studio and each state that's a problem, even if we need to be for decrease due just to come and yes, we will do that and.
The markets and substantial we have scalability, we have scalability on the science of the states and even if they would and past scalability and one rather St and the wood supply line for those things.
Yeah.
Understood and my final one zone geographic growth he remonstrate early and but obviously, that's a geographic mix.
Ported basis, so it's a little hard to parse out the growth rates I mean, you mentioned Asia was.
It's very strong triple digits, and you said, 137% I mean that obviously includes the pitch of contribution from net and maybe not a lot because it wasn't a big business for them, but that's you cannot ship and lowest rate to the year, suggesting that the acceleration you saw in the life business came from a strengthening and on the other regions and you mentioned a little bit can you just give us some color on that and.
Any of the regions, where you saw.
And quarter on quarter.
Uh huh.
And then probably exactly we're comfortable.
That's why I call it.
We start with.
Ah patient go and very fast and the contribution from net in those figures are even six months ago, but that's the first day and go on sensors right now, but you don't need to think about it and that prospect.
And we see a continuous zone the mountain parish from sometime and any shop and.
So we stay put and therefore, where we see growth highway hydro think bags on board.
And when it comes to the low one day.
Of course there.
Gary effect from it comes to the growth rate and not something because nothing that's a big market for non stop but we see and we sort of turned the corner and the Nordic either and so in Q4 and life. So there were.
The pressure on the market.
It's less and and we'll see.
Growth, just like we do and U K and sort of turned the corner, how long and what what happened and some and the regulatory aspects of that and that perhaps.
We have to look into lots of moving program.
And.
Well, it's something.
And I'm afraid and I think that the.
We see a very high growth rate over and work with it.
And kind of comes through.
No one really jumps out and.
And there's more and come in and there's less and Albert but Oh I don't know.
And it doesn't.
Me too.
And what it really.
Europe is growing very nicely and.
Moving.
And Q4.
And strong.
I don't know if I'm not giving up.
Okay. That's all I have thank you very much.
And thank them.
And the next question comes from the line of Oscar Ericsson from Carnegie. Please go ahead.
Thank you and good morning, guys.
One of them.
So a couple of questions from me.
First of all interested to hear what type of reactions to that professional net.
<unk> seen a problem from customers and partners and us.
And the negative reactions pulsative potentially.
Potentially if any do you see from.
Renegotiating deals or combining and just sort of offerings and.
Okay and the U S. Thank.
Thank you.
Yeah.
I think that.
Everyone is excited about what we can do for the players and how we can actually do do gains and some not without another tool to do that.
And then lots of prolonged and sometimes they take from inside and Atlanta to be new great games, both and saw sunlight and in between.
And I think that everyone and thrilled about that and I think that the industry and government needs to move on with it with innovation.
And that part of it.
And possibly pay back I would say.
And I want to state or so and that's about I mean, we need to continue and earn the trust from every operator and.
And.
And I think that we haven't even grapes and possibly do that now with these tools.
Great and I mean, it seems like a new flow.
Quite close to.
This is all just a new games with a special focus on the game show vertical.
It's supposed to give any color from the number of new launches that you expect and also how you feel about them anything but sort of sticks out.
And what's needed to take to take it to the next level from I.
I mean cause very high low I should say.
And we will of course make public public announcements from relief against and malware.
And do you guys think that internalize and I'm really looking into how we do it and they own and statement of course.
And several times and I'm very thrilled and excited about the roadmap from day one.
And we have us all with a high or even extreme ambitious line cost of product development.
Great and I'll pull it.
Touch up on the.
A strong performer and the rest of your freedom.
And I mean, the German market in particular, what you called up at all and Q2.
You've seen so far in Germany.
With respect to smaller players.
It's going to license given the tough regulatory I'm not sure, it's all growing quite fast and capturing market.
Is that your pressure flow.
And so stay tuned and Q3 revenue 10%.
Revenue from them and go to market them and use the regulation and of course I'm habit hakes.
And downgrade of the love Us since now and.
And how exactly that's gets between and things.
Hum and all the information on that.
And.
Got it and just a final question from me.
So you have to expenses.
And you've seen this year are highly engaged and of level type player numbers. What price are telling you to expect that this is more of a structural shift.
And it could go over time.
As the COVID-19 situation normalizes.
Oh.
And could you have a lot.
Yeah, I was talking about or maybe it puts and calls.
Calling from Jacob bout.
In the World that comes down and then initiate the paradigm shifts from sort of physical and whatever to online and about it not that it's not exclusive online gaming or online casino, it's everywhere, we know and how it so we see that now.
We're off.
<unk> 8007 hundred Anthony is we we are affected and also physically where physical company integrate and ticks down some and it's very very challenging the wrong. So when I come out like it's starting to postpaid.
Maybe neutral and.
That's because it's hard talk right now and.
And going forward I think that many many people believe and see them on doors today think about how to make the cars on line and that will affect the comparison and increase the speed of moving from Lambda Fisher and whatever to online.
And I'll tell you want add something just I mean, we've.
There is no way profit to sort of.
Really quantify exactly what the perfect order comes out and the White House I think what we come up with that before I mean, we knew that we had very strong growth coming into this period. So so.
And that's.
And that didn't disappear overnight and and at the same time, it's also reasonable foods to sit up and.
One on line activity.
Golf and a bit of a.
And Penguin from from the and people.
People are spending more time on line basically and so.
And there's something there I guess, we you know we want to truly know until it's done.
But.
The bank market is that I mean.
No doubt about it we would.
We would deal.
If we could.
Good day.
And I'm Gonna go away that would be better for all three of you know, we would be able to take on more of them and and and.
And in fact, it out and now with where we're really trying to grow as much as possible of course with the best margin and we can do.
And if there's a trade off we will go for growth.
And talking about Canada, and some of them.
Yeah.
Perfect. That's it for me and thank you very much.
And I'm on.
And your next question comes from the line of Cantor <unk> from Bank of America. Please go ahead.
Good morning, guys My question and perfect.
And secondly, you asked he's talking about north American demand and being exceptionally high. So maybe is that more color around that I think most of us I'm, calling from guys that are investing heavily in marketing and the U S. So what degree is the high demand being driven by a higher than anticipated demand from maybe trying to table.
And maybe a comment on what you're seeing in terms of the U S and costs and the trend is that actually better than anticipated and like all things.
Yeah.
And I think that when we get what we.
Called shelf life has been.
And on the low side, the U S and there's potential to grow inside the market data and if the market will stay but.
And just a dimension to grow that why because the line product, it's kind of a new product to the U S M.
So about that that this one and level of growing them and.
And has online and it's coming it's growing and itself of course, taking them and people slowly getting and.
And at a constant and instead of going to land based casino them and pay online and that is also growing and.
And the cross border and that is also down and growing with us being that and people.
And now with them and.
They are willing to sort of play with and without product.
That's a transparent answer the demand and build up not only by customers wants and delicate to table the amount that we see right now it's build up also.
The market and seems to have slowed the maturing and getting more and focus I would I would look at it that way.
Okay, and I'm, sorry, and in terms of U S. G expansion, you know mentioned and thing from a cup at the moment and the New Jersey, and Pennsylvania, All day extensions, but theres already and the wax I know, there's some restrictions I believe around and New Jersey Chengdu.
Batch and potential tax and other here or not.
The expansion and Pennsylvania is already on its way are underway and are and.
And we're expanding and fastest and candles and that sounds like a day and New Jersey, and then and we're building we're expanding already before building in Michigan, and so sort of taking on larger and larger student from Minnesota and from self.
And then the last question around competition and the U S. I mean, how far you've been there you know a big power are you seeing any one out for any other players that you haven't got with before and that market and <unk>.
And you're not gonna and seniority.
We're still alone and the U S market, but we should expect competition I mean, it's not.
It's the P T.
It's a huge market online casino and live with the company and wish them and.
And then.
We should expect competition I'm not afraid of that we have the best product, we should increase GAAP competition, but there will be competition like edition and Europe.
And anything else would be.
I'm Lucky.
And I I can finish off and just on Asia and fuel.
Are you seeing them.
And then kind of going to continue I think that was the last comment I'm, giving it being driven by market share capture and stuff.
Tasteful are you worried about any color they want to NAV.
Yeah.
Yeah, we do.
We see a great momentum and growth in.
And Asia, and we expect it to continue to grow and a high rate.
Okay perfect. Thank you.
And just as a final reminder, and if you wish to ask a question. Please press star zero and one on your telephone keypad now.
And next question comes from the line of Nashville, and our Hamstrung from Craig Hallum. Please go ahead.
Hi, its actually its inbox Catholic order today and moves over to the bauxite, Hi, Martin and Jacob.
And your question a few questions.
First on the cost synergies and going into 2021 and what run.
Run rate or are we now and that's done and there was close to have these assays and 15 million Euro and U S professional.
And those 50 million euro and knocked him. So right now where are we and the four chameleon and your own cost saving and when will that be a she is going into the second half of 2021.
Yeah, that's a good thing now.
And we want to do.
Kicking gradually.
During the first half from the areas kind of dipped down right now so I would say we win.
The full effect will be sort of comes from the start of the third quarter I guess.
So some of that's the way we haven't broken out exactly to what extent whats. Some of course I can say that some of these savings are where and they shaped. It also crazy. So so that's so that's ongoing and so we thought.
About the wait and see already.
Well I think the it won't be the initiatives that'd be done now in December from December we'll start having effect from already now and then and sort of gradually during the first two quarters here.
Yeah.
Okay and that's it.
You, usually provide something I could fourth quarter reports, where every year you said something about the operating table and you gave us a hint where where you are in terms of operating people.
Yeah.
You're right.
We will we will provide that number.
And.
And we normally do and say we are we are back to the lab as we work and that make even and if you hired and that so a little over 700 revenue.
And a a rough numbers. We will include a 10 day came down and who reports that's normal and.
So more or less what we've done.
I think they like market that I mean, the non brokered and sit there and to support and there's nothing like for likes to go through that and studio space during the year. So it still is.
And you know everything is back to normal and that that's not the case, but the and number of day both of your off price, where theyre more of the effect.
And and also another question yes.
This is the case, the net downtown and Apple.
Going into 2020 event after the restructuring and it made in December and how many of the net employees, it's still less so.
What share of the 8007 hundred.
Our legacy AOS.
And decided I think it's 818 relates with the marathon and the 8007 hundred R. R M.
And the evolution of all what do you want to call it.
Yeah and.
On the revenue synergies so the 30 million and you recall from he is here.
Yeah.
Will there be good.
Our slot revenue and stuff you are bringing net and to your customers and in Asia.
Oh wait and wait.
Even though it's a bit too early to comment on them and we.
We went out and soil sales dipped to one or the other direction due to Oh, we bumped it to vishal, sorry, but we just need to focus on the best user experience and the best product on the market them and we'll just see where it sort of bounce.
Mhm.
And also I noticed that the net margin and that you reported for December.
And below the Q3 levels at a net down to report that will stuck board and buy.
From special items et cetera, or what's the deal.
Lower volume on the costs.
It's a little lower than that and it's also it's one month and.
And of course and above and below.
And moving parts, we are of course trying to capture.
Some of those why don't think thorium and the and the nonrecurring items.
They don't capture everything so.
It's oh, it's a I wouldn't sort of like my childhood and about one month number, but hmm and also.
Also another NAFTA and specific.
Specific question I guess, they have had a larger exposure to German does day compared to what you had.
And the way for example, and so best zone, or what 70% down in Germany, and Luckily weak December.
Have you seen dock effect from that down to 12.
And we haven't got any and any numbers, but I would say that the effect.
It's it's it's quite it's about what we've got into and the third quarter I mean, there is.
And there's a significant drop in India, and the volume send them and want.
The regulation I think haynesville hooked up and come back and you're right I mean, they've been from a day this month.
But that's not I wouldn't say, it's a huge difference, but yes, Germany negative and it can do.
And the fourth quicker.
And a final question here and areas.
And I spoke like I used to come back to it it's the way the D to T Con.
Contract.
Are you now at the table and discussion with a loud and Brooks Corral Brown or is it some kind of time period, where place that kind of exclusive exclusivity.
Or.
And I got a question, however, I won't answer it.
We our ambition is to find any and all the operators.
Statistic is a big Guangdong and others and Europe.
Okay. Thank you guys.
Thank you think of them.
And as there are no further questions I'll hand, it back to the speakers for closing remarks.
Okay. Thank you very much for joining this call and.
And thank all of our figures.
And it was a lot of that gives me and figures and.
And we look forward to come back in <unk> and.
Reported the the queue well thank you very much.
This now concludes our conference call. Thank you all for attending you may now disconnect your lines.