Q2 2022 Bragg Gaming Group Inc Earnings Call

company just over a month ago.

As I need to mention, we'll be going over our second quarter highlights, financials, and operational updates. We'll be going over our second quarter highlights, financials, and operational updates.

Following the presentation, we'll be happy to answer any questions you may have.

The second quarter of 2022 marked the eighth consecutive growth quarter for BRAG. Raven News came in 34% higher to a record €20.8 million, while EB Dow rose 63% to €3.1 million.

Our gross profit margin has expanded as well, and the women will dive deeper into the drivers of these growth indicators in a moment.

During the passing quarter, we completed our acquisition of Spin Games, a key milestone in our U.S. growth strategy.

The Spin Deal closure follows the Wild Street Gaming's acquisition last year, and we're excited to welcome the Spin and Wild Street teams to the BRAD Global family.

BRANK went live with our proprietary content on the very first day of the newly regulated Ontario market, which was complemented by market entry and expansion in Europe .

After the quarter ended, with me joining the Bragg Executive Team and Board, we marked another U.S. market entry in Connecticut and rolled out our very first integrated spin or proposition in North America.

I'll share more details around these achievements after romance financial issues emerging.

Amen.

Thank you Yaniv, and good morning everyone.

I'll begin my comments on slide 7.

The group executed very well in Q2.

The second quarter revenue was up by 34.2% year over year to 20.8 million euros and up by 7.6% from the previous quarter.

Representing the REC Headquarter we are the heads.

This performance drives mainly organic growth from its existing customer base, the onboarding of new strategic customers in various jurisdictions, mainly in the Netherlands, in the PAM and expired destinations and time-uns threads.

In addition, we had a strong revenue performance from Wiserly Gaming, a business acquired in June 2021.

From a KPI perspective, the total wagering generated by games and content offered by Oryx and Wildstreak and Spin Games in the period was up by 9.2% from the prior quarter to €4.2 billion, a 9% up from the previous year.

As you can see from the wagering chart on the right hand side, the new German market restrictions on gameplay had an effect during Q3 2021, but ever since we are seeing a positive trend in momentum. This is a short video of the new German market restrictions on gameplay. The new market restrictions on gameplay have been affected during Q3 2021, but ever since

Growth profit increased by 65.5% to 11.6 million euros with margin increasing as well by over 1000 basis points to 55.9%. This is primarily attributed to a higher proportion of revenue derived from the growth in the proportion of the platform and 10K revenue alongside with wide strict proprietary games revenue which have no cost of sale compared to the licensed game and content which have third party costs associated.

Adjusted EBITDA for the quarter was up by 62.9% to 3.1 million euros with adjusted EBITDA margin reaching 14.9%, increasing by 260 basis points from the same period in the previous year. The increase in margin is mainly as a result of scale and improvement in the product mix of spam and 10K solution, offset by the increased salaries and subcontractors cost as part of the corporation's strategy of investment in the expansion of its software development

product and senior management function with focus on margin control.

Other highlights. During the quarter, we closed the acquisition of Spin Games and its trading was including from 1st June 2022. We finished the quarter with a reported positive net income of over 100,000 euros as compared to last period of net loss of 2.3 million euros loss.

From the perspective of the guidance, as a result of the positive momentum in trading, we are updating the financial year 2022 both revenue and adjusted EBITDA guidance. The new revenue guidance is expected to be in a range of €76 to €80 million representing an 11% increase from the previous consensus guidance.

The adjusted EBITDA is expected to be in a range of 10 to 11 million euros, representing a 5% increase from the previous consensus guidance, as the guidance includes the impact of continued investment in the business focused on driving further top-line growth.

I will now move to slide number eight.

As I mentioned earlier, our entry into new markets, in particular the Netherlands, has been exceptionally strong. Couple with new clients' wins and the ramping up of operators launched early in the year gives us significant momentum in this financial year.

Our entry into new markets, in particular the Netherlands, has been exceptionally strong. Couple with new clients' wins and the ramping up of operators launched early in the year gives a significant momentum in this financial year. During the quarter,

The new customers revenue, which related to customer joining 2021 and 2022, was up by 3.9% quarter over quarter, driven by new markets performing.

Legacy customers, including German-facing customers, have also seen a growth, quarter over quarter, by 6.8%, with a limited drop from the previous quarters due to the new German market regulations introduced in July 2021.

While Stric and Spin Games revenue was up by 50% quarter over quarter as a result of strong performance of the in-house build games.

Overall, the underlying recurring group revenue, including licensed German, increased by 7.6% quarter over quarter.

As you can see on the right-hand side, we presented the Q2 underlying business revenue mix that is moving into the next quarter and for the whole year after offsetting the headwinds for the German market since the new regulatory changes took place in July 2021.

Overall, the new business pipeline, new market entry, and more focused sales underpin 2022 revenue guidance.

In slide nine, the gross profit expansion, as you can see from the margin slide, the gross profit margins are in the gross momentum since Q2 2020. We're scaling up in line with the revenue growth and momentum in the product mix as presented in the right-hand side of the slide.

The product makes change since third quarter last year, and now trailing towards spam, tanky solutions and proprietary content while improving gross profit margin and profitability.

As we indicated in the past, platform and proprietary content products are carrying off third-party costs, which gives us the ability to scale up gross profit margins.

The PAM and 10Q solution improve the Q2 gross profit margin as a result of strong performance of our Dutch customers.

In slide 10, we would like to interconstrain that our continued revenue growth is monitored with margin control. Total operation cost.

excluding cost of goods associated with third-party content providers, continue to scale down since Q3 2021 and amounted to 40.6% as a proportion of the total revenue.

While the corporation continues to invest in expanding its technology, product and games development, the total cost of salary in subcontractors as proportion of the revenue scales.

to 23.9% and targeted the scale further with further growth.

Professional fees amounted to 4.1% of the total revenue and were mainly related to entering new jurisdictions, licensing, legal and audit fees.

IT and hosting costs scaled to 2.9% of the total revenue, mainly as a result of the group US expansion and organic revenue growth.

In addition, all other costs are targeted to scale in line with the future growth.

In slide 11,

I'll detail how we reconcile our operating income to positive adjusted EBITDA in this quarter. Adjusted EBITDA amounted to €3.1 million.

at 14.9% margins against an operating income of 0.8 million.

The gap can be explained by the following non-cash and exceptional items.

Depreciation and motivation and increasingly intangible and motivation is part of the Wildstrik acquisition in June 2021.

The Share Best Payment Awards granted to senior management in Q1 2022, composed of DSU and now they see the share option.

Transaction acquisition costs, costs associated with a corporation M&A strategy.

and the gain of the re-measurement of contingent consideration, which is mainly related to the show consideration element of the spin games of collision.

Moving on slide 12, as of the end of June 2022, cash balance was €11 million compared to €60 million on December 31, 2021, with no debt facility in place. Networking capital was €1 million compared to €11.6 million at the beginning of the year, with the main difference between the period was the €9.1 million investment in the consideration paid upon the spinner position.

We continue to project positive free cash flow from operations. As a reminder, our business strategy requires a little CAPEX related to technology debt requirements.

From a cash flow perspective, in the six months ended in June 2022, we generated 7.5 million euros from operating activities while investing 12 million euros in the acquisition of spin games and software development costs as part of the investment in our technology.

With that, I will turn the call back to Yaniv following that, back to the operator for any questions.

Back to you, Yuney.

Thanks, Manon.

I'd like to share a bit more details about the progress we've been making in our strategic journey.

While the fair acquisition was only completed on June 1st of this year, the Senate deal was announced and we've been making great progress in laying the groundwork to allow for fast and streamlined integration into the black business.

The technical integration between SPIN and OERX platform has been completed in record time, allowing us to start leveraging on SPIN's wide distribution network in the U.S. shortly after deal completion.

This was coupled with an extensive licensing effort to allow us to go live in Connecticut and Ontario shortly after closing, and this should help expedite our content rollout during the second half of the year and beyond.

Our recently acquired Wall Street team, headed by Doug Fallon out of Las Vegas, is already producing and developing proprietary content under our Atomic Slot Lab studio, which is now one of four in-house brag studios targeting the global iGaming market.

This growing content portfolio is powered by Orson's Remote Game Server and Player Account Management. on your

equipping brag with a full stack product offering and using state of the art technology.

We believe these synergistic assets will give us a competitive edge in the markets we age to grow in across North America, Europe , and Latin America.

focusing on the US.

With access to a material part of the addressable IBC market through existing relationships and integration, we see on slide 15 that we aim to enhance our footprint in the American market and help our operating partners grow revenues and profitability using Bragg's proprietary, exclusive and aggregated games portfolio.

Our rollout is underway, and we aim to make meaningful progress through the second half of 2022 and early 2023.

In the next slide, as for our longer-term business goals, Bragg has embarked on a mission to diversify its revenue sources from both a market and product perspective.

As you can see, we've made good progress driven by organic and inorganic growth in those directions.

We are equally focused now on complementary revenue growth with higher margins.

Our aim is to further diversify our product revenue mix through more proprietary gains and turnkey customers, all while maintaining operational discipline and cost control.

To summarize on slide 18, BRAC has enjoyed a strong quarter and the record first half.

We see this momentum continuing into the second half of 2022 as the amendment is outlawed.

We will be using this momentum to further integrate our recently acquired U.S. subsidiary into the broad business. We will be using this momentum to further integrate our recently acquired U.S. subsidiary

becoming a truly global iGaming solution provider.

Launching new products into new markets will be complemented by enhancing existing relationships, helping our customers compete and grow their businesses.

I'd also like to take this opportunity and thank the Bragg Executive Team and our employees across Slovenia, Malta, London, Nevada, and India for their hard work over the past few months which results in these impressive achievements. Thank you all.

We'll be happy to take your questions now, and thanks for missing.

At this time, I would like to remind everyone in order to ask a question, simply press star followed by the number one on your telephone keypad.

We'll pause for just a moment to compile the Q&A roster.

The first question is from the line of Neil Gilmer with Haywood Securities. Please go ahead. Thank you.

Yeah, good morning. Congrats on the good quarter. Maybe you just, you know, you talked in, or at least it was in your MDA about organic growth, excluding wild streak and spend games in the quarter of 25%. You touched on Netherlands and the prepared remarks in the call here, but just wondering if there's any other markets you'd call out that helps to drive some of that organic growth.

Yeah, hi. Good afternoon, good morning. When anyone to take that.

Yeah sure, good morning Neil, how are you doing? So yeah, we presented 25% growth from the legacy business, I mean excluding the acquisitions. The majority of the growth as we know from a nominal perspective is the Dutch market, as we're doing I would say quite strongly from four or five customers that we have there on managed services, thank you solution sorry, and iGaming platform and content of re-aggregating. you

We're also seeing growth of 10% growth from the legacy business, which is in various markets, some from the European market. In particular, I would say we have the Adriatic market, which is Serbia, Croatia. We can see some growth coming also from picking up from the UK, although in small scale. And we're seeing some kind of Portugal, which is centered, and some other markets that we see early.

we are operating in general in other European markets. So I can't say in particular there is one particular market that is as significant as the Dutch market as per se at this moment, but we're growing organically from all other markets in...

Simultaneously.

Okay, thanks for that. Maybe for my second question would be, you know, obviously last year was, you know, you had a couple of acquisitions with Wild Street and Spin Gaming. What's your look at this point in time on the M&A landscape? Are you seeing some, you know, interesting potential opportunities out there or your focus for the short term at least is just on growing the existing platform?

Well.

You're right in the sense that we've completed two meaningful acquisitions, and I think the landscape of life over the last few months.

could change considerably and there are definitely a few.

Interesting opportunities out there having said that management's current focus is integrating or further integrating Bragg into a new global business across three continents. And I think that strengthening the skeleton that can now house.

Additional deals in due course is our number one priority. Again, having said that, we.

meaning mostly people on this call are constantly evaluating opportunities. We have our ears to the ground at all given moments. And if it makes financial and operational sense, then we'll definitely be engaged. And at this point, as you correct the outline, default.

would be in the next few quarters is to further enhance and drive organic growth through the newly acquired assets.

Okay, that's great. Thanks for taking my questions.

Thank you.

Your next question is from the line of Harman Basi with Canaccord. Please go ahead.

Hey guys, good morning and great second quarter. I'm Matt Lee's associate. I was just following up on one of the previous questions. Are you able to give us any insights on how the North American market is unfolding and what type of market share you feel that break can attain?

Sure. The North American market, predominantly U.S. and Canada, we've been making great progress in basically distributing or establishing a new distribution network on top of the one that's been already established in the market and the idea that we utilize that network. We're seeing some good initial signs, but at this point, we've only...

deployed a limited amount of proprietary content into it. I think that the integration is definitely the acquisition definitely create an effective shortcut for us. So that will be our focus for the second half of the year getting as many of these integrations live in most of the I-gaming markets in North America and then building up our content portfolio with each.

I don't think there are some.

big targets, and the target concentration in the US is very much pushed upwards.

the top three or four operators control a meaningful part of that market. So it will definitely see us trying to bolster our business with those operators.

And I think it was mentioned on the call itself.

first half of the year was demonstrating

based on both the acquisition and the existing bread business. I think we'll be looking to accelerate those in terms of market share. It's a trickier point. I know that total addressable market was a topic of conversation, but I think that we're coming up from a relatively low base in North America, so even taking new points or single-digit percentage will be a material upscale additive to our existing...

There are various ways of measuring, especially on the B2B level.

But I think that we don't need to take a double-digit market share in those areas to make a meaningful impact on the business. So we'll be starting and focusing on that level.

Perfect, thank you so much.

Goodbye.

Your next question is from the line of David McFadden with the Coremark Securities. Please go ahead.

the next question. Hi, guys. Um thanks for taking my questions. So I was looking at some of the results of some of the other B to C operators. Operating in Europe and so some of them exited the net in the market to get a license. They received their license. Now they're entered back into the Netherlands market and reporting pretty strong growth, and I was wondering if you're seeing any

Is the regulator doing anything to clamp down on the grey market activity there and to help the white market operators? Thanks.

Sure, I'll take the first question about...

in the Dutch market. So far we've seen material growth from our clients in the Dutch market. I think the B2C operators, the regional and the global operators have only ventured back in lately. April and May concluded their blackout period, so they've ventured back in. We haven't seen, actually during the first half, we haven't seen or felt through our clientele a negative impact.

from the increased competition. But I think it's a bit soon. I think it's definitely about to become more competitive. I think we have the.

or sort of the privilege of partnering with some of the market leaders.

That'll be the incumbent at this point and others will need to carve out market share okay,

But definitely I think the Netherlands, Dutch market will continue to grow on the back of increased competition, but it would be...

The pieces of the pie would inherently have to grow smaller. Our focus is to onboard and launch additional clients and grow with the existing ones to sort of defend our position. But the other point is also diversifying our revenue sources just so it becomes well balanced.

As far as Germany, we haven't seen any...

specific actions by local authorities up until now. It doesn't mean that they're not happening, but again, our exposure to the market at this point after having exited it is limited. So, I don't know of any particular enforcement or any other measures. I do know that this is still very much a moving target. We're monitoring it very carefully.

It becomes relevant again where we definitely have the product set to be able to participate, but at this point we're monitoring it from the sidelines.

All right, thank you.

Next question is from the line of Jack VanderArde with Maxim Group. Please go ahead.

Okay, great. Good morning, guys. Congrats on the solid results. Good to see the guidance rate. Good to see the guidance rate.

I'll start with a question on the spin acquisition.

Just comments regarding Wild Street Plus Spin Revenue. Up 50% sequentially, it's great to hear. Just a couple follow-ups there. Does this mean pro forma spin revenue or is this only including one quarter spin, just given the timing of that acquisition? And then I have a follow-up. Acc 22150 Nonbrutalarrett Another Pl

Anyone want to check that?

Sure. Hi, Jack. How are you doing? So we presented quarter over quarter, 50%.

To be honest with you, it's not really presentable to present on a performer. And last year, spin was not required back then and last week was just one month of trading. So the best way to present it is to show it compared to the previous quarter. And quarter by quarter, there's a 50% increase. The part of spin was just only one month during the consolidation of this quarter, so it's not significantly impacted the growth. So it's all about proprietary content.

With Wild Quick, with the existing legacy customers and with the content that actually we're rolling out into the US land-based casino. So it's online and land-based casino, which is impressive on its own from our perspective.

That's helpful, Color. Appreciate that. And then just looking in the MBA comments.

It's nice to see you added 30 customers, it looks like, sequentially. 26 of those came from SPIN, I believe. So maybe, and that's a good sign, just given the tier one operator relationship. Maybe provide some color on what you're hearing from.

tier one operator customers and just how receptive they've been to the change in ownership and the newly integrated RGS platform. Just how are things going there and what you're hearing from those customers.

They've been incredibly receptive so far. I think the existing partners, sort of most of them, if not all of them are very.

Profit centric at this point. They welcome new content. They welcome streamlined deployment process. They've been nothing but cooperative and also eager to see the new content portfolio. We've actually been undergoing some road shows in demonstrating those portfolios. And I think right now it's mostly around.

two or three elements, which is time to market, certification and positioning. Naturally, it's a very competitive landscape from a content perspective, but all in all, the spin team and by can.

Young and his team, and Reno, and Vegas have been extremely effective in relaying the new solutions and the new story. We've been operating ever since the deal closed in tandem with them. All in all, it's been very well-receptive. The operators have been very receptive. Personally, I also have pretty good relationships from my previous position.

So leveraging on all of that, I think it's up to us to now complement it with some sound content delivery that will make an impact. And overall we're very happy with it.

the way this has been going so far.

Okay, great. And then just maybe one last question.

Given your debut in the newly regulated Ontario market, which just went live in April , so very timely, I'm just wondering, are you seeing any parallels to other markets you've recently entered and had success in? Of course, the Dutch market was kind of a unique opportunity, but nonetheless, they have a home run opportunity as well. Where would you rank on your initial?

your initial ramp up there and how you see things playing out.

Well, I think generally speaking, Ontario resembles more of what I call a transitional regulation rather than a market restart. Market restart, just like the Dutch or most of the American markets, by the way, that are basically shut down at the given moment and then restarted the Dutch market. The regulator was very effective in sort of restarting and leveling out the playing field. The American markets was a shame.

The Canadian, the Ontario regulators took a more transitional approach and sort of bringing existing dot-com operators under the tent which means it's a more gradual process.

So initial, members suggested it's a growing market and it's going to be a healthy one, but I think it will take a bit longer to hit or to sort of get to the same level as it was. All dot com revenues to come under that 10 and then continue to grow. And that's what we've seen in other markets, both for Bragg and generally speaking. And I do think it's also a much more competitive marketplace than the Dutch.

meaning there were, as far as I know, well over 100 applications in the marketplace, and that is only growing, which means, of course, for someone like us, it's a much bigger playing field, but it also means it's quite fragmented initially. And we're also waiting for a set of the formal numbers to come out of the regulator desk like we have in North America to get a bit more intelligent around it. But I would

From the numbers that we've seen so far, and generally I think it would be more gradual and would demonstrate consistent growth, but it won't be as dramatic as the Dutch market, which was basically sort of a day one.

day one launch, this will take a bit more time and the agency will have a lot of their play to go through, as I mentioned. They need to work through quite a bit of applications and certification and that's sometimes that is a bottleneck.

Okay, great. Really great color there. I appreciate it. Thank you.

Your next question is from the line of Dachem with GPI. Please go ahead.

Hi gentlemen, thank you very much for taking my call. It's a great quarter by the way.

I've been very interested in the company for a while now. Just a few questions if you don't mind. Just going through the financial statements a little closely here. The first one is more of an obvious one. Right now it looks like the company is right working capital deficiency right now. I was wondering if going forward, I know you're expecting to be cash flow positive, but I was wondering if you guys are considering maybe a raise for capital, if you need additional capital in the near future, maybe.

go for some kind of like a debt security. Please feel free to comment on that. That was my first question.

Yeah, go on then.

Sure. Dave, good morning. You're spot on. Yeah, we have a very narrow working capital. We knew that a few months ago. We knew that for the screen acquisition and the $10 million, we have to pay the initial payment. We're going to have a very tight working capital. Rightly, what you're saying is that we're generating cash on a monthly basis. We don't have any debt. We need to beef up the balance sheet and to keep it in a sufficient working capital to support our growth and continue with the momentum.

So we have numerous discussions with the board members and internally with management. There are several processes running at the moment. I believe in the next few weeks we're going to conclude about the process we started and we will notify the market. But yes, it's one of our important and key points to achieve by end of September and I think even earlier that we will come up with some kind of adjustment.

Announcement, sorry.

Thank you very much. The second question I have here, I noticed that the customer concentration risk definitely increased tremendously in this quarter. I see here based on my calculation that over about 46% of Q2 revenues are from one customer.

How would you feel about this concentration, risk, and is this a concern to you or is this an opportunity? How would you view this?

It's definitely – we were fortunate enough to partner with market leaders and we typically don't break off with specific customers due to financial confidentiality reasons. But we had a fortune of partnering with market leaders.

That is one positive aspect of it. The other part of it naturally, the other side of any customer that's fast growing, takes a growing part of your total revenue base.

And we're, you know, the solution there is to admit to further diversify your revenue streams and grow businesses in other parts of the world and markets, which is exactly what we're doing. Well, you're spot on. I mean, at the end of the day, company growth was powered or driven by this early success. And we want to leverage that to sustain that growth trajectory.

mitigate that risk. That's a great reading of the current

A momentum drive.

Thank you. Thank you.

Your next question is from the line of Adhere Kappa with eight capital. Please go ahead.

Hi, good morning guys. Thanks for taking my question. I wanted to ask a question on the platform strategy with the player account management. Obviously, we see strong traction in the Dutch market, but any other markets outside of that where you're seeing that traction, I think last quarter you guys had mentioned maybe in the Czech market, but how are those conversations and how are those rollouts going outside of the Dutch market with respect to the player account management and the platform strategy?

We have some interesting PAM opportunities. Definitely, the check market is just one of the opportunities that Omer mentioned. We have opportunities in the Dutch market in someone that already has track record in it. Other European opportunities in that regard, we are evaluating those sort of on a case-by-case basis, the PAM deals.

are more comprehensive in their approach, and they're more intimate relationships because the entire online proposition is powered by us.

But, and in regulated markets, as you can imagine, operators need to have certain assets and resources in order to push something through to meaningful scale. But there is definitely, I think, some of the climate around us. We also feel that has changed and sort of shifted towards profitability, which means that there are a lot more conversations around outsourcing. So if we think about how doing home-to-home goods is important, going back to looking at hierarchy, how do we coffee companies use those systems to challenge of the physician but how do we change system? these economic

I think operators realize that managing a full turnkey technical and product stack in material is usually marker, it's not marker.

that sometimes change or pivot to their business. So they're looking to partner with someone that can not just provide them with that, but also some of the delivery services, manage services, and we have all that at hand. So we want to make sure that we partner with like-minded operators that can achieve scale in local markets.

So the opportunity, the pipeline is definitely there, it's definitely healthy. We just need to make sure that we bet on the right partners and they bet on us. It's been a very healthy process.

The last few months, I would say.

Okay, great. And then, you know, just on the prop proprietary content, I think you guys mentioned in your press release this morning about 22 proprietary games to be released through the balance of the year. Maybe give us a sense of...

how the past releases have gone. Obviously you guys are seeing strong traction there, but how the learnings from those games can be translated to new markets. Because I think you guys have mentioned there is a level of customization that is required for every single title that is released. So maybe any learnings you've taken from your current portfolio that you can apply to new markets and how that can potentially accelerate.

Yeah, you're absolutely right. I think game development and content development is definitely an art form. It's very data-driven. So our main focus is taking the initial deployments that we've had, and as I mentioned, we've seen some initial success from the Atomic Plot Lab content deploy, like Egyptian Magic, and a few other key titles. And they're not just demonstrating early success, but they're also allowing us, enabling us to start building a data set.

that we can both share with partners, but also take back internally and see what works and what doesn't. It's more complicated than just the game itself. It's the map behind it, the RGS, the game server, and the way it's designed, all sorts of features and functionalities, and some complementing player engagement features. So I think one of the greatest assets that we have outside is a very proven and creative game.

team, content development team is also our approach to data and the way that we built it. This is definitely something sort of a flywheel we're looking to start implementing in North America and the success that we've had in Europe with it, the distribution that we've had with it to enhance that distribution in North America and start collecting a data set that will enable us to develop proprietary customized or sometimes adapted content.

For those markets, in some cases, it's even sort of a state-by-state tweak you can embark on. But that is definitely a major focus for us going forward. But for proprietary parties, not just the art or the math, it's also the data set that you're able to collect and then develop against that.

Okay, great. And then last one for me and I'll pass the line here guys. Just on the Italian market, that seems like, you know, I think the US we've got a good sense of where that's going. You said you're seeing some small, some good traction in the UK. I guess the next frontier would kind of be the Italian market. How do you see that market kind of playing out for you guys, just given its size and breadth?

So the second is from Sarmine. If I remember correctly, it's the second biggest market. So it's definitely something that we need to tend to. Just also, the research that we need to put in, it is a tap in a league much like Central Europe . Actually, Italy is also divided into two submarkets. If you look at this Southern Italy, Northern Italy, that is some somewhat different in terms of customer content.

All in all, it's also very localized. The land-based market has sort of put a certain flavor to games content that you see in different venues, very distributed. Local incumbents are very effective there that we would look to partner with, but it requires different data sets. We've had some early success in other markets where we've taken Central European developed or focused content both developed internally.

and also aggregated some of our exclusive content, and we were able to adapt it to localize it to other markets. But it is a smaller and more of a mid-term to longer term focus because again, it is just like its sizing, its mere size, it requires some specific attention. So I would assume that the gains that we develop towards that market will have a local flavor, local payout, RTPs and so forth. And naturally the technical integration involved.

in the market itself is something that we will need to focus on, but that's sort of a mint of all the terms just to make sure that we have our resources focused on our key growth market.

Great, thanks. And Yaneev, congrats on the role and looking forward to working with you. I'll pass the line, guys. Thank you. Thank you very much. Good luck today.

This concludes the Q&A portion of today's call. I will turn the call back to Mr. Spielberg for any closing remarks.

Thank you everyone for joining this morning and we hope that you enjoyed the presentation. I'd like to, like Adir said, welcome Yaniv Sherban to the team. So congratulations on that. We'll speak again in three months on our Q3 presentation. Thanks everyone.

Thank you for joining the Bragg Gaming Group, second quarter 2022 conference call. You may now disconnect.