Q3 2021 Gan Ltd Earnings Call

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Ladies and gentlemen, and welcome Peter Ganz third quarter 2021 earnings conference call. All lines have been placed in a listen only mode and the floor will be open for your questions and comments following the presentation.

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Reminder, today's call is being recorded.

At this time, it's my pleasure to turn the floor over to your host Robert shore, Sir the floor is yours.

Thanks, a lot thanks for Linda and good afternoon, everyone <unk> third quarter 'twenty 'twenty. One earnings release was issued today after market and is posted on the company's website at Ww again Dot Com with me today are chairman, President and CEO and careful our CFO. Please note because I guess at a powerpoint slides to.

To accompany our prepared remarks, you may access these slides on the Investor Relations section of the website and we will start with page two is our safe Harbor disclosure.

We'd like to remind you that except for the factual sticking to say to take the information contained in this conference call, including any financial and related guidance you're right. It consists of forward looking statements involve risks uncertainties and assumptions that are challenging to predict worse expressions, reflecting optimism satisfaction with current cloud <unk> as well as statements in the future tense identified for them to stay.

But their absence does not mean that a statement is not forward looking forward looking statements should not be interpreted as a guaranteed performance or results such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements.

So the important factors that could cause such differences are discussed in the risk factors section of the annual report filed on form K 10-K on March 31st Franklin one.

Forward looking statements speak only as of the date. The statements are made the company assumes no obligation to update forward looking statements to reflect actual results changes in assumptions or changes in other factors affecting forward looking information, except et cetera required by applicable securities laws.

During the call there would be discussion of non-GAAP financial measures and a description of these non-GAAP financial measures is included in the press release issued this afternoon and reconciliation of these non-GAAP financial measures to the most directly comparable U S. GAAP measures are included in the appendix of the Investor presentation and press release issued this afternoon, both of which are available in the investor tab of the web.

Right.

With that I'll turn the call over to Germany for opening remarks. Please go ahead Gary.

Thank you Bobby and good afternoon, everyone. Please join me on the fourth slide presentation released earlier today to discuss third quarter performance consolidated and operating segment results encompassing our b to B Enterprise software segment, and our international B to C sports betting segment.

I'm pleased with the third quarter performance, particularly with <unk>, delivering 5% sequential growth and the all important take rate from grid, operator revenue moving upwards driven by continued strength in our gaming together with overall strong consumer demand in the U S market.

Quarter on quarter growth has been delivered by our <unk> division, despite the third quarter being the seasonally slowest of the calendar year and granting our BTB divisions significant momentum in the current fourth quarter.

I'm also excited to announce today, our second client for Omnichannel Gan sports being the island view casino resort in southern Mississippi, which will be a new state for again and will shortly become our 10th state into which we are operationally deployed our technology platform.

And so we have now entered the seasonally strongest operating period of Q4, and Q1 and at this midpoint of the fourth quarter and satisfied the BTB will continue delivering topline growth as we move into 2022, which will actually be our 10th year operating our technology platform right here in America.

Since the beginning of the third quarter, we've shown strong execution of new B to B client launches and with Arizona is September sports betting launch and Connecticut I gave me launched last month.

<unk> technology platform is now powering online gambling in nine states nationwide, including New Jersey, Pennsylvania, Indiana, Michigan, Tennessee, Colorado, West, Virginia, Arizona and of course, Connecticut additional incremental launches in Louisiana.

Linde and Arkansas are anticipated in the coming months, which together with Mississippi will see Gan technology platform live across 14 states up from just three states literally this time last year.

With each state our capability increases as does the scarcity of our technology platform and therefore its inherent value.

In fact Gan remains the only major BTB provider with a proven one account one app multistate capability, which is contributing significantly to our sales pipeline and contributed greatly to our recent major client win of Red Rock resorts also known as station casinos, which remains a.

And that opportunity to demonstrate our omnichannel sports betting capability, and which I will comment on further later in this presentation.

Shortly after a highly successful <unk> conference and securing a number of coveted BTB industry Awards, we held a strongly attended investor event setting at the multiple pathways to serve as the basis for us targeting $500 million to $600 million in top line revenue by 2026, together with long term adjusted <unk>.

But our target is in excess of 30%.

As we move through the last quarter of 2021, our <unk> Division remains in robust health with a strong sales pipeline of significant multistate opportunities for both our gaming and Omnichannel sports study across multiple new and existing states with a fast expanding engineering capability here in the U S. Ably led by our COO Mr Dong.

Ryan.

And so turning now to our BDC International Division unfolding, a standout performance in the second quarter, the third quarter, so active customers, increasing 6% quarter on quarter as expected BTC revenues were impacted by a quieter third quarter International sports calendar without major sports tournament events, but we experienced strong.

Substitutional engagement by sports Gamblers active within the online casino.

Our <unk> Division ably led by Mr. Anders Karlsen also scooped a number of Covenant International industry Awards in the period, including mobile sports product of the year from International Gaming Awards.

Record levels of BDC customer activity has continued into the fourth quarter with active customers, reaching an all time record in October and looking forward into 2022, we are preparing for incremental launches in Latin American markets, which are complementary to and will build upon our existing strong market position in that region.

Moving now to slide five.

Despite having personally Mr. G to a courtesy of Covid I'm happy to report the rest of the <unk> leadership team was in full and healthy attendance at this major and you'll be conference for both our Super Rgs and Gan sports Omnichannel offerings were extremely well received by executives are potential <unk> clients.

We're in the final stages of launching our first major BDC, operator clients all Super Rgs and the first portfolio of Ainsworth on my slot games had just received regulatory sign off in Michigan and will be live by the end of this month.

We're now at the contract stage with nearly all tier one BDC operators all by gaming and based on this strong commercial demand. We believe the substantial majority all BDC operators of I gaming here in the U S will become clients of our Super Rgs in relatively short order.

As a reminder, gans exclusive content portfolio already represents a must have collection of online <unk> of retail slot machines, which we believe are critical to optimizing any BDC operators cost of online customer acquisition customer retention and therefore extending lifetime values.

We've observed a growing market awareness that I gaming sits at the heart of BDC operators pathway to future profitability and high quality instantly recognizable online slot content, such as <unk> exclusive and substantial Ainsworth content portfolio has a critical role to play in supporting BDC operators profitability by.

Lowering the cost to acquire the highest value players of online casino games.

Also at <unk>, we demonstrated our Omnichannel sports betting solution with physical kiosks and over the counter capability demonstrated alongside our award winning and fully U S localized mobile sports betting experience.

We believe our sports offering demonstrates the superior user experience for both retail and mobile sports betting as evidenced by our recent major new client win of station casinos set at on the next slide.

And so here on slide six several months ago station casinos initiated a request for proposal subsequently evaluating all major vendors of sports betting technology with a view to upgrading the sports gambling experienced currently available in both retail and online in Nevada.

At that time Gan has been serving our stations provider of simulated gaming for more than four years.

Demonstrating operational excellence transparency and that we deserve their trust as technical custodians of a substantial database of their own make patrons many of whom have linked their stations retail loyalty cards to the online accounts and reliance on <unk> patented <unk> framework.

This factor gate and a series of competitive advantages and seeking to extend the relationship from just simulated gaming to a mission critical part of their operating retail business their sports book.

We are trusted by stations we are respected by them. We have operated online successfully together four years. We also have unique intellectual property the value of which was clear to the stations executive group and we have a longstanding technical integration into their casino management system, enabling reward cards to be linked to online accounts and reward points.

To be triggered by Atlanta activities.

Furthermore, Gan had completed the acquisition of cool that at the outset of the year and was able to demonstrate the merits of a modern sports betting technology system designed to render a modern omnichannel social sports gambling experience to cater to veteran and recreation sports gamblers of all clients.

Finally stations also had the option to execute against any gaming opportunity, which might arise from regulation of online casino in Nevada.

Which leading on strip casino executives have been calling for it in recent public statements Gan.

<unk> believes its platform as the largest U S platform for I gaming and I'm happy to state today that in the event, Nevada, and I gaming becomes a reality beyond just online poker that we will be serving as stations exclusive provider all that gaming by against platform not just sports betting.

To our knowledge there were two other major sports gambling providers at the table and I'm proud of our sales executives for security competitive commercial terms for the full provision of Omnichannel sports betting technology together with custom managed trading services and risk management.

Stations is not only our first U S retail casino operator client all began sports, but actually stations represents a rare market opportunity not just to demonstrate our sports betting capability, but the demonstrated at considerable scale in arguably the most complex regulated market environment in America.

The Las Vegas locals market is $125 million plus existing retail and online sports camera market with stations being the clear market leader.

Their business will be operating on Gan technology in the second half of 2022 with the upside of our gaming with the market leader in the increasingly likely event that I gaming comes to pass in Nevada, possibly limited to holders of retail reward cards, which will play it against intellectual property in that specific domain.

Our intellectual property in this area is highly valuable has been licensed many times and we believe we believe delivers extraordinary value to online operations went seamlessly and automatically linked to retail reward programs.

We most recently licensed our intellectual property at $75 per card link and Theyre, a reported 150 million retail reward cards inactive circulation.

Finally, it's worth pointing out the strategic value to Gan or partnering with station casinos in Nevada, which many perceived in the industry to be the inner sanctum of retail gaming here in America.

Not only do we have the privilege of having a major retail casino group as a sponsor for Gans gaming license here in Nevada, but we have the opportunity to further enhance and optimize our omnichannel sports solution by working with one of the most sophisticated sports gambling executive teams anywhere in the United States.

I have little debt again sports will not just be proven at scale the greatly optimized by the operational experience and associated learnings, we will inexorably developed during a substantial multi year contract.

This major strategic relationship should play scan sports on a glide path to becoming the leading Omnichannel sports betting solution for all retail casinos in America and.

And I'll take this opportunity to congratulate our teams in Estonia, and the U S who secured for against shareholders, there's massive opportunity, which further validates our $200 million acquisition of cool that first announced this time last year.

And so moving on to the final slide and supported their 70 narrative and serving as a summary recap over the investor event held last month and still of course available in full online at <unk> com.

We continue to experience strong demand for our battle tested <unk> technology platform and related services here in the U S market evidenced by our recent slew of new client wins or state by state expansion with existing clients in a densely populated sales pipeline.

We will also be expanding into Canada as part of a major expansion for an existing <unk> client relationships. We will also be launching super Rgs. This month and commencing the work to bring our Omnichannel can sports offering to life in Nevada for station casinos.

Overseas in international markets, we will continue to benefit from PTC operations in Europe, and Latin America, and anticipate annual gains and operating leverage as both the <unk> and BDC divisions continued to scale.

We believe both the <unk> and BDC opportunities represent continuing major total addressable markets, respectively. Here in the U S and select international individual markets, principally located in Europe, and Latin America.

Gan remains the very definition of a technology led growth story in our view and we remain committed to execution on the path towards our 2026 revenue target of between $500 million and $600 million in revenue coupled to our long term adjusted EBITDA target margin range of between 30 and 35%.

And with that I'll pass the discussion to our CFO Karen Flores.

Sure.

Thank you Jeremy and good afternoon, everyone. Some brief housekeeping items first.

My comments today around our consolidated results will once again focus on sequential quarter over quarter comparisons given the effect of the call that acquisition on January 1st of this year and the resulting impact on comparisons to prior year operations. Additionally, as the SEC is closed today in observance of veterans day, our 8-K and thank you.

<unk> will be filed tomorrow.

Starting with our consolidated financial results on slide nine.

Third quarter revenues of $32 3 million were down 7% from Q2.

Our revenue performance was driven by growth in our <unk> segment, while we observed seasonality and lower sports hold rates against the backdrop of strong underlying customer trends in our <unk> segment.

<unk> segment revenue of $11 2 million was up 5% sequentially.

Our development services and other revenue increased 84% or $1 1 million quarter on quarter.

The increase was driven by hardware sales in advance of upcoming new client launches, which will convert into recurring SaaS revenue in the future.

Our global recurring SaaS revenue declined 6% during the quarter, primarily due to the impact of seasonality and lower revenues in our Italian operations as a result of the reopening of retail venues as COVID-19 restrictions have eased.

Our core U S business hazard Zurich sustained strong levels of online gaming activity with no change in quarter over quarter Casino SaaS revenue and <unk>.

Year over year growth at 80% as compared to the third quarter of 2020.

<unk> segment revenue of $21 1 million in the third quarter was down 12% or $2 9 million versus Q2.

<unk> results were primarily impacted by a 7% decline in sports turnover due to the seasonality of the sports calendar as well as a 280 basis point decline in sports hold resulting from a higher mix of player friendly event outcome.

Looking forward all key sports are running from the end of October and we are already observing acceleration of player acquisition and engagement trends with.

The first week of November setting a number of records, including for the highest weekly turnover in net gaming revenue.

D to C. Casino was also very strong in the third quarter with casino turnover up 17% or 58 million from Q2.

Before I move on to comment on our net loss and adjusted EBITDA I'd like to point out that we incurred a number of unique expenses during the third quarter totaling $1 5 million. These included a 600000 increase in our tax provision expense 500000 related to FX and 400000 related to a year to date adjustment of Ameren.

Jason of intangible assets as we finalize the purchase accounting for the pull that acquisition.

Operating expenses increased by $1 8 million or 7% sequentially to $27 8 million.

This included 900000 related to FX and purchase accounting as I just mentioned.

The remaining portion of the increase was attributable to a 6% or 35% headcount increase in our global personnel to 639.

Increased facility costs associated with the opening of our new Miami Tech hub and relocation of our London office.

Additional marketing spend for our <unk> segment and increased professional advisory services incurred in connection with the upcoming anticipated launches of new jurisdictions for both our <unk> and <unk> segments.

With the revenue impact of the BDC sports turnover and hold rate as well as the unique items around tax FX and purchase accounting adjustments totaling $1 5 million or net loss for the quarter increased to $7 9 million.

Adjusted EBITDA was breakeven this quarter and year to date, our adjusted EBITDA stands at $6 4 million for an adjusted EBITDA margin of 7%.

Our balance sheet remains strong with a cash balance of $50 million at quarter end.

Slight decline versus prior quarter of $1 8 million, primarily related to payments for exclusive rights for leading on lifestyle content related to the upcoming launch of our Super Rgs product offering.

We continue to remain debt free granting us a clear path to focus on high growth initiatives, securing additional market share and delivering the best platform technology to the market.

Moving on to our key performance indicators on slide 10.

<unk> gross operating revenue from our clients declined 3% quarter on quarter to 215 million.

Total U S gaming gross operating revenue was roughly flat versus the prior quarter.

And up 99% year over year from 96 million in the third quarter of 2020 to now $190 million.

Quarter on quarter market share was down slightly from 21% to 19%.

Turning to B to C. Key performance indicators remain at exceptional levels across the board with active customers up 6% to nearly 200000.

The total marketing spend ratio increased to 15% of revenue in the quarter and cost per acquisition increased from $30 to $45 and spend became less efficient for a period of time.

While these marketing metrics are still well below industry averages.

Wrapping up on the next slide slide 11.

While we are pleased with our continued progress this quarter, we are laser focused on ramping the profitability and ultimately cash flow of the business to reiterate some of my comments that our virtual investor event last month G&A is our single largest cost category at 37% of revenue year to date, which is down from 62% of revenue.

For the same period last year.

We are getting more efficient and we anticipate that our G&A costs as a percent of revenue will continue to decline over the next several years towards the 10% steady state environment.

We are building the product and operating infrastructure to support our operations in a number of new jurisdictions. We recently partnered with tangible in Connecticut for I gaming in mid October and are pleased that the speed with which this market is ramping up 10% versus the launch results.

<unk> in Pennsylvania for the same period, when we first launched that state.

Although it will take some time for new markets to develop in our operations to achieve efficiencies.

We are excited about our near term growth strategy with new offerings, including Gan sports and Super aren't yet, which will increase our recurring revenues and enable higher take rate of operator revenues.

And we are committed to delivering improving margins on an annual basis operating margin profitability by 2023, and long term EBITDA of 30% to 35%.

Finally, I recently returned from beautiful Estonia headquarters for a B to C segment, and I couldn't be more impressed with the team their strategy and the outlook for growth across Latin America, and Europe for our D to C business.

At this time, we are reiterating our full year revenue guidance of $125 million to $135 million.

The variability in our results for the full year will be determined by the sports hold rate, which we anticipate to range between 7% to 8% and any normalized partner.

A repeat of the sports hold rate of six 8% that we observed in both Q1 and Q3 of this year will put us in the midpoint of this range and each percentage point up or down roughly equate to $1 million of revenue.

I'll now turn it back over to <unk> to conclude our remarks Dermot.

You can wrap it up we delivered 5% sequential growth in <unk>. We've demonstrated again the excellence of our would be to see international product driving all time record customer activity unexplained for what we believe is the necessity of investing to accommodate expected growth in demand for our <unk> technology and services here in the U S.

After the seasonally weakest third quarter strong results should not followed the seasonal U S ramp threat to key NFL sports selling season with forthcoming client launches coming.

In the next few months in Canada, Michigan, Louisiana, Maryland, and Mississippi, continuing to enhance our growth profile and demonstrating projected operational leverage in Q4 and Q1 and.

In 2022, Gan will deliver a highly scalable and recurring revenue business model, which will maximize value for all of our stakeholders.

That concludes our remarks, and we will now open the line for questions.

Thank you the floor is now open for questions. If you do have a question. Please press Star then one on your telephone keypad to join the queue.

Youre using a speakerphone please pick up your handset to provide the best quality again, ladies and gentlemen, if you do have a question or comment. Please press Star then one on your telephone keypad at this time and.

We will pause briefly to assemble our queue.

And our first question comes from Chad Beynon with Macquarie.

Macquarie. Please go ahead.

Hi, Good afternoon. Thanks for taking my question Dermott, Karen I wanted to ask about a super large, yes, and the the launch I believe you said in Nevada we're.

We're going to start seeing that this month with respect to other deals that we expect to see on the tape.

I guess.

Dual part question firstly.

When should we start to see these announcements come out secondly, after the deals are now and how long does it take to integrate and then finally is this factored into the guidance for this year. Thanks.

I'll, let Karen deal with the last part of your question Chad just to be very very clear the Super Rgs content business, we've seen exceptionally strong demand from all the major operators of I gave me. The Ainsworth is a very very respected instantly recognizable suite of retail slot machines available online exclusively through distribution.

But again platform, so and that is the Super Rgs. So what typically happens is you have.

An experience I can describe as order, taking so you're not in the consultative combative competitive multi month sales cycle that you associated with platform sales, you're literally pulling up the major commercial operators and asking their casino management teams. Okay. How much you're prepared to pay you negotiate the key term, which is typically the percentage of net gaming revenue.

Definition between what is G. G R waters net gaming revenue.

All of those conversations have taken place already with nearly all of the tier one b to C. I gaming operators here in America. The demand is extremely strong. We then go into technical integration that we will be launching the first <unk> clients actually in Michigan, Northern Nevada, Michigan is obviously, a very exciting market for I gaming so.

So that'll be launched before the end of this month, which is what's going to be an excellent inflection point for us and these technical integrations tend to starts in advance of the contracts being consummated the contracts tend to be multi month.

Associated work streams. So you tend to get the agreement in place start work in good faith on the technical integration and then you get to the point of launching and typically when the integration is done that as the foresee factored to sign the contract to make the announcement. So it's as simple as that these things happen in parallel we don't wait for the contract to close than announced.

And then start working the technical integration you agree the key commercial terms then get busy on the technical side.

Karen would you like to comment on guidance, yes, with respect to the guidance it would be upside for anything received an ear. It's not included in 2021.

That's great. Thank you both and then my follow up just with respect to some of the M&A that we've seen in the space to large b to B I would call them competitors of yours.

Now to be sold in the quarter and then separately we saw the vertical integration of Caesars and William Hill, and then you talked about winning something like station. So.

Given everything that we're seeing out there how does this change how you view your position in the space is it better worse. The same given some of this activity and yeah. Just wanted to understand that as you kind of you know focus toward some of the targets that you put out there. Thank you.

Couple of a couple of aspects that Chad I think the corporate transactions, taking place simply increase the scarcity value of our technology, so not necessarily unhappy by any of that activity going on.

Secondarily, our corporate transactions like Caesars coming together with William Hill actually splits into the market a bunch of competitive replacement opportunities and in fact, we just picked up one of the one we announced today in Mississippi being island view casino and resort, so not necessarily unhappy about the consequences of that specific M&A.

Beyond that I don't think I'd offer any other insight other than we're very very happy with the reception of Gan sports. We are now legitimately a one stop shop solution for every single part of our one stop shop solution is of extremely high quality and I note that certain other.

Direct competitors of ours here in the U S have actually divested themselves of certain assets, which means they are no longer a one stop shop and it's worth pointing out that we are the only one stop shop proven at considerable scale active here in the us and it speaks to our very active sales pipeline and of course, the very recent major win.

The Red rock resorts, which is a multi month due.

Due diligence process by Red rock resorts with station casinos, and we're extremely happy with not just the shape and value of the commercial terms, but theyre very clear market message started sounds.

Thank you very much appreciate it.

Next we go to the line of David Bain with B Riley. Please go ahead.

Great.

Thank you so much.

I guess my first question would be you know looking at the strength of the balance sheet and their strategy for exclusive or our unique content from partners.

Do you stick with the more established contact like Ainsworth incredible at this point do you look to studios.

And basically like what Chad was mentioning on some of the competitive moves.

Our proprietary tables of life dealers or other elements or other types of content that is that on the map just trying to envision what the content strategy looks like going forward.

Okay, well, we've been bulking up in our internal development resources, David So we have been looking at a very small number it's effectively actually hires very cost effective not not substantial or in any way you can describe a little has a bolt on we are of course looking at gaming content portfolio portfolios of all kinds of you can remember a lot of I gaming content.

That exists overseas has got some compliance intellectual property infringement issues associated with them. So I kind of broadly describe them as European and Asian slots that may not necessarily translate well here in the U S. And there are a number of very interesting small medium sized a class two or.

Last three equipment manufacturers that are actively tyrosine distribution opportunities in the online channel and we're engaged in a number of conversations. So we really like you know retail slot machines available in various markets that we foresee I gave me will come to eventually and we will continue to depress for exclusive content distribution deals.

In order to leverage our balance sheet strength beyond that Karen would you like to offer any additional comment.

No I think that pretty much covers the giant.

Okay, perfect and then the last would be or my follow up would be I don't I'm not sure you want to opine on any specific I gaming state that may liberalized near time, like Illinois, Massachusetts, but what I'm, hoping to understand or at least confirm is that what kind of what new states need to.

Go live with I gaming, specifically if any.

For the 20th twenty-three guidance set out at analyst day to be Matt is that incorporated it anymore.

Within that.

It's it's hard to have a crystal ball in terms of the sequencing of states, but certainly we've assumed new territories and new states going into the 2023 guidance since that there is a ramping proportion of new opportunities that are built into the long range forecast of 500 to 600.

The 2023 time frame you can assume it's at least several new states.

Okay, and I gaming correct.

Yep.

Okay, Alright, great. Thank you so much.

Again, ladies and gentlemen, if you do have a question or comment. Please press Star then one on your telephone keypad at this time and we will.

We'll go next to David Katz with Jefferies. Please go ahead.

Oh, Hi, good evening, everyone and thanks for taking my question.

Yes.

Maybe a bit sort of all I'll get off the grid, but I wanted to ask about New York, which we've talked about in the past and since it's topical of the week.

Do you expect that there could be sort of.

Second bites at the Apple or incremental opportunities.

To participate there.

Going forward and what my waterfront Micros Brooklyn.

David. Thank you, yes, we do in fact I have written down in front of me second bite at the Apple we very specifically.

Got out of the way, we saw an environment, where a consorted as would be formed where the underlying technology providers, we're being asked to stump up as much as 50% of the upfront license fee and we just couldn't make those numbers pencil in.

We're not in that specific business, but.

But we do have continuing opportunity with multiple.

Multiple consortium members that have been announced and also tribal gaming operators in the state of New York. So Yes, New York is still very much a viable state for again, not just upfront, but also we do foresee an alignment with most of the operators there in the executive groups active that that gave me will come to pass in New York within two to three years of sports betting launch.

Alright.

<unk>.

Apologize if you've talked about this already but in terms of further M&A or incremental tuck ins.

We've certainly seen in the public markets are better but calming down.

I don't want to say in a downturn, but that's certainly a little bit of a calming and valuations are you finding that when you look at tuck ins out in the private market as well.

Yeah. The market was extremely frothy 12 to six months ago David.

I think the assets available for sale are somewhat more realistic today than they were particularly on the content side. I think there were some very very high profile and expensive seeming the acquisition is being undertaken in the industry generally so we have a particular interest in getting engaged in that particular game, but yes.

Wouldn't disagree with your perspective.

And I suppose what I was getting at was should we.

Should we expect that there might be some more tuck ins for you.

Going forward as a result of that.

So at this point in time, we are definitely we have an active radar, we're pinging, where we're speaking with numerous different opportunities lots of assets come onto the market.

There was a lot of dealer rest of the kimpton market a few months ago that I believe has just traded but we couldnt get comfortable with the compliance profile and the fact that 50% of historical revenues that come from Turkey, which is obviously finance the development of our technology technology assets that we deemed it to be rather team too. So we are looking at light dealer solutions.

Solutions, but.

Really that would be tech plus of team acquisition versus even.

<unk> transaction described was a bolt on.

Understood. Thank.

Thank you very much.

Thank you there are no further questions at this time, we returned to permit smurfit for closing remarks.

Thank you all for joining today for our third quarter earnings. We now have the clients required to prove that to be complete and high quality, one stop shop product offering and are continuing to build the engineering bandwidth. We believe will continue to help even the largest BDC operators execute on their state is get to market.

The strategies, we have the I gaming content portfolio, which will ensure the success of our Super Rgs and the key clients and station casinos, who success will ensure against <unk> market leadership with Gan sports overtime, we affirm visibility of our domestic and international growth strategy to support the perceval bandwidth required to continue.

Delivering for our clients and accordingly, we look forward to strongly executing in the current fourth quarter as we exploit the seasonally strongest period in America is fast growing and faster regulated online gambling industry.

Thank you all again and stay safe wherever you are.

Thank you. This does conclude today's teleconference. We thank you for your participation you may disconnect. Your lines at this time and have a great day.

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Yeah.

Okay.

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Okay.