Q1 2025 Evolution AB (publ) Earnings Call

Operator: Your line is muted. Call recording is on.

Your line is muted cool recording is on.

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Okay.

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Operator: Welcome to the Evolution Q1 Report 2025 presentation.

Speaker Change: Welcome to the evolution Q1 report 2025 presentation. During the question and answer session participants are able to ask questions by Dialling pound key five on their telephone keypad now I will hand, the conference over to the speakers CEO Martin Carlson and CFO, Joe Tim Anderson. Please.

Operator: During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad.

Operator: Now I will hand the conference over to the speakers, CEO Martin Carlesund and CFO Joachim Andersen. Please go ahead. Good morning.

Speaker Change: Go ahead.

Martin Carlesund: Welcome, everyone, to the presentation of Evolution's report for the first quarter 2025. My name is Martin Carlesund and I'm the CEO of Evolution. With me, I have our new CFO, Joakim Andersson. Joakim joined Evolution in February and it's great to have you here Joakim. I will start with some comments on our performance in the quarter and then hand over to Joachim for a closer look at our financials.

Speaker Change: Good morning.

Speaker Change: Welcome everyone to the presentation of Evolutions report for the first quarter 2025.

Speaker Change: My name is Martin called <unk>, and I'm, the CEO of evolution with me, our new CFO George Joachim Amazon.

Speaker Change: European joined evolution in February and it's great to have you here Joachim.

Speaker Change: I will start with some comments on our performance in the quarter and then hand over to you walk inputs also looked at the financials. After that I will conclude with an outlook and then we'll open up the call for questions.

Martin Carlesund: After that, I will conclude with an outlook and then we'll open up the call for questions. Next slide. Let's start with the financial and operational highlights of the quarter. And first, let's focus on the operative side, operation side, as two activities have had certain impact on the financial results. The first one, which I highlighted already in the last earnings call, is that we started to add new technical measures that aim to more effectively ring-fence the markets with the local regulation and ensure that our games are only available with locally licensed operators for markets where such license exists.

Speaker Change: Next slide please.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Let's start with the financial and operational highlights of the quarter and first let's focus on the operated side operation side as two activities have had such an impact on our financial results.

Speaker Change: The first one which I highlighted earlier in the last earnings call is that we started to add new technical measures that aim to more effectively ring fenced the markets with a local regulation and ensure that our gains are only available with locally licensed operators for markets, where such license success.

Martin Carlesund: Following the introduction of such ring fencing measures in the UK, we have moved forward with other European markets in the quarter. This is a proactive measure. It's a move from our side in markets with high, sorry, from our side in markets with high generalisation that The ring fencing has had limited impact. However, in markets with low generalization, we have seen a drop in revenue. As you know, we believe that regulation is positive over time, and we support the regulators in the ways we can. However, as a supplier, our impact is actually quite small, as generalization is highly dependent on the regulatory framework and the parameters used, such as tax rates, proactive measures.

Speaker Change: Following the introduction of suffering something he matches in the U K, we have moved forward without with other European markets in the quarter. This is a proactive measure.

Speaker Change: Move from our side in markets with high.

Speaker Change: <unk>.

Jim: Sorry from our side in markets with high shouldn't let's say Jim that.

Jim: The ring fencing has had limited impact.

Jim: However in markets with lotion, let's say so we have seen a drop in revenue as you know we believe that regulation is positive over time, and we see support support the regulators in the waste. We can however, as the supplier our impact is actually quite small as sterilization is highly dependent on the regulatory framework and the permit the shoes.

Jim: Such as tax rates and proactive measures.

Martin Carlesund: If it is too expensive or too complicated to play, the players will disappear. That is the reality and for Regulator it's about finding the right balance to keep the channelization on high level and to protect the most vulnerable players. The second activity with an impact of the result is the continued work to stop the criminal cyber activity that we face in Asia. We are making constant progress, but the measures do impact the network in general, and the revenue is in line with what we have seen in the last couple of quarters.

Jim: If it is too expensive or too complicated to play the players will disappear that is the reality ample regulator, it's about finding the right balance to keep the generalization on high level and to protect the most vulnerable players.

Jim: The second activity with an impact of the result is the continued work to stop the criminal cyber activity that we face in Asia.

Jim: We are making constant progress, but the measures to duly impact network in general and the revenue is in line with what we have seen in the last couple of quarters.

Martin Carlesund: Despite the ring fencing effect and the cyber challenges, I'm positive about 2025 as a whole, with a very strong product roadmap that we only just have started to execute on, together with the solid underlying demand. Both online and live casino are at early stages on the global level and we will continue to expand to meet demand. In the first quarter we have opened a new studio in Romania, which partly makes up for the capacity that we've lost in Georgia. Later this year we will open a new state-of-the-art studios in Brazil and in Philippines, as well as a second studio in Michigan, while also expanding at full speed in Malta, Colombia, Argentina, New Jersey and Philadelphia, to name a few.

Jim: Despite the ring fencing effect and the cyber challenges I'm positive about signs of tons five as a whole with a very strong product roadmap that we owned adjusted starts to execute them together with the solid underlying demand.

Jim: Both online and live casino.

Jim: At early stages on the global level, and we will continue to expand to meet demand in the first quarter. We have opened a new studio in Romania, which parked it makes up for the capacity that we've lost in GA. Later this year, we will open a new state of the Art studios in Brazil and in Philippines.

Jim: Well as a second suite in Michigan, while also expanding our full speed in Malta, Colombia, Argentina, New Jersey and Philadelphia.

Jim: Mark.

Martin Carlesund: I believe that this is a testament to our stance that we will always prioritize growth and to take market shares over margin. Even though we had various challenges in the quarter, we do not compromise with our long-term beliefs and priorities. In Georgia, the situation for evolution continues to be stable and we operate without disruption. Our decision to not increase capacity remains as before, as we want to achieve a better balance with less dependencies on a single studio. And while we are speaking about Georgia, I would also like to highlight that we have engaged a highly reputable accounting firm, one of the large four, to conduct a full independent investigation of our operations.

Mark: A few.

Speaker Change: I believe that this is a testament to our staff, but we will always prioritize growth and to take market share over margin, even though we had various challenges in the quarter, we do not compromise with our long term beliefs and prioritize.

Speaker Change: In Georgia the situation for evolution continues to be stable and we operate without disruptions.

Speaker Change: Our decision to not increase capacity remains as before as we want to see the better balance with less dependency on a single studio.

Speaker Change: And while we are speaking about Georgia I would also like to highlight that we have engaged a highly reputable accounting firm one of the large four to conduct a fully independent investigation of our operations.

Martin Carlesund: They have complete access to the Jordan studio and have reviewed several hundreds of documents and materials. The conclusions are not to surprise Clark, failure levels are well above comparable lows. Any issues with work environments have been dealt with years ago and in direct connection with when they occurred. Any violence of our code of conduct have been handled as they should and strike participation levels have not even been close to what was reported in the media.

Speaker Change: Yeah.

Speaker Change: Complete access to the Jordan to do it and have reviewed several hundreds of documents in the theater.

Speaker Change: The conclusions are not surprised stop salary levels are well above comparable knowles.

Speaker Change: Any issues with work environments have been dealt with years ago and in direct connection with when they occur and the violence of our code of conduct have been handled as showed on strike participation levels have not even been close to what was reported in the media.

Martin Carlesund: I could go on about this for a long time, but I think we'll leave it there. For Evolution, the strike is a past chapter, and we will continue to provide a great workplace for our employees in Georgia and elsewhere.

Speaker Change: I could go on for.

About this for a long time, but I think we'll leave it there.

Speaker Change: For evolution of the strike as the past chapter and we will continue to provide a great workplace for our employees in Georgia and elsewhere.

Martin Carlesund: Let's say a few words on the actual financials. Net revenue came in at EUR 520.9 million, corresponding to year-on-year growth of 3.9%. EBITDA decreased 1.1% compared to last year, and the EBITDA margin comes in at 65.6%, which is somewhat below our estimated full year guidance of 66-68%. As a reminder, we foresaw a softer margin in 2025 compared to 2024 due to both the ring pancing in regulated markets and the cyber attack countermeasures in Asia. We do, however, believe that the second half of the year will be stronger than the first half, and we keep our full year guidance as before.

Speaker Change: Let's say a few words on the actual financials.

Speaker Change: Net revenue came in at <unk> 529 million corresponding to a year on year growth of three 9%.

Speaker Change: EBITDA decreased one 1% compared to last year and the EBITDA margin comes in a 6% to five 6%, which is somewhat below our estimated full year guidance of 66% to 68%.

Speaker Change: As a reminder, we foresaw a softer margin in 2025 compared to 24 due to both the ring fencing in regulated markets and the cyber attack countermeasures in Asia. We do however believe that the second half of the year will be stronger than the first half and we keep our full year guidance as before.

Martin Carlesund: Our live segment was impacted by the European and Asian development with the revenue coming in at $448.7 million, corresponding to growth of 4%. We continue to see good momentum in North America and also believe that activity in Latin America will pick up, supported by the new regulation in Brazil. R&G revenues total €72.3 million, growing year-on-year by 3.1%, a development that was softer than in the fourth quarter. I believe we can grow more, and our No Limit City brand is a testament to that, as they have several successful game launches in the fourth quarter. To conclude this slide, I'm of course not happy with our current growth, but the measures behind it are important for our overall work to increase the gap to competition.

Speaker Change: Our life segment was impacted by the European and Asian development with revenue coming in at $448 7 million corresponding to a growth of 4%.

Speaker Change: Continue to see good momentum in North America, and also believe that activity in Latin America will pick up supported by the new regulation in Brazil.

Speaker Change: R&D revenues total Euro 72, 3 million growing year on year by three 1% on.

Speaker Change: On development that was softer than in the fourth quarter I believe we can grow more and our no limits at the bone is a testament to that.

Speaker Change: Have several successful game again.

Speaker Change: And again most of us in the quarter.

Speaker Change: So control this slide I'm of course, not happy with our current growth, but the message behind it are important.

Speaker Change: Our overall work to increase the gap to competition.

Martin Carlesund: We face challenges that we meet. Any issues we see, we face. So that we become even better every day. And we have an exceptional position to do so.

Speaker Change: We faced challenges that we meet.

Speaker Change: And then any issues with C with fixed so that we can become even better everyday and we have an exceptional position to do so.

Martin Carlesund: With the best product in the world, in a structurally growing market, combined with a scalable model, a strong balance sheet, and a team of more than 22,000 employees to realize the potential. Next slide, please. Moving on to the operational KPIs, which are the headcount numbers and the game rounds index. Looking at the headcount, we have kept the pace in recruitment in the quarter, and for the first time ever we've surpassed 22,000 employees, corresponding to an 8.4% year-on-year growth. In order to meet demand for our services, we need to increase our footprint and expand our teams on a global level.

Speaker Change: With the best product and the one in a structurally growing market combined with a scalable model a strong balance sheet and a team of more than 22000, and I'm pleased to realize that potential.

Speaker Change: Next slide please.

Speaker Change: Yeah.

Speaker Change: Moving on to the operational Kpis, which are the head count numbers on the game rounds index.

Speaker Change: Looking at the head count we have kept the pace of improvement in the quarter and for the first time ever we surpassed 2000 and the corresponding to an eight 4% year on year growth.

Speaker Change: In order to meet demand for our services, we need to increase our footprint print and expand our teams on a global level I'm very proud of the work base, we offer and our dedication to offering career opportunities at all our sites are currently doing a major recruitment push in Brazil and Philippines.

Martin Carlesund: I'm very proud of the workplace we offer and our dedication to offering career opportunities at all our sites. We're currently doing a major recruitment push in Brazil and in the Philippines, ahead of the opening of our new studios there. The Game Round Index can be seen as a general indicator of activity throughout our network over time. For an individual quarter, it does not always correlate with the revenue development, which is evident this time. The increase of 10.9% in the quarter is most related to the progress of our game shows that are hugely popular.

Speaker Change: Ahead of the opening of our newest do just that.

Speaker Change: The game round index can be seen as a general indicator of activity throughout our network over time.

Speaker Change: For an individual quarter. It does not always correlate with the revenue development, which is evident at this time the increase of 10, 9% in the quarter is mostly related to the progress of our game shows have a huge urgency popular.

Martin Carlesund: Next slide. Now we are on the most exciting slide and the foundation of our business to offer the best and most innovative games in the world. We refer to 2024 and 2025 as our product lead years, and this year we will in total release more than 110 games across our portfolio. and Ice Exhibition in Barcelona in January, we showcased many of the headline games and the response from operators was truly great. We are now in a launch mode and among the releases in the first quarter are War, our version of Casino War game, with an engaging setting and simple routes, and Racetrack, which is a great example of how RNG games can be elevated using a live host.

Speaker Change: Next slide.

Speaker Change: Yeah.

Speaker Change: Now we are on the most exciting slides on the foundation of our business the offer to offer the best and most innovative games in the world.

Speaker Change: We refer to trying to transform 2005 as our product leap years and this year in total we will in total released more than 100 ton games across our portfolio.

Speaker Change: The ice exhibition in Barcelona in January we showcased many of the headline games and the response from operators was truly great. We're not in a launch mode and among the releases in the first quarter Our war a reversion of Casino War game.

Speaker Change: With an engaging something simple routes and race track, which is a great example of how R&D game can be elevated using alive, but also released <unk>, which is an exciting take on the classic game.

Martin Carlesund: We also released Best Stack of Blackjack, which is an exciting take on the classic In the beginning of April, we launched one of the most anticipated games of the year, Marble Race. It's as simple as it is exciting. Players bet on which marble ball that will win the race, or the top two winning combination. It's a fast-paced, super easy to take part in, or actually just to watch. Reception has been great. Among the upcoming releases we have Super Color Game, which is just a few weeks away. Three big dice, quick rounds, with single, double and triple betting options with a multiplier of 1000.

Speaker Change: At the beginning of April we launched one of the most anticipated Gamestop midyear modulates. It's the same philosophy. This exciting players bathroom, which marvell ball that would win the race or the top two winning combination it's a fast paced super easy to take part in or actually just to watch reception has been great.

Speaker Change: Among the upcoming releases, we have super color game, which is adjusted few weeks away. So the big guys quick rounds with single double and triple betting options with a multiplier of 1000.

Martin Carlesund: This will be a hit, and then during the summer we have what I believe is the most anticipated game of them all, Ice Fishing. Speed Game Show with a money wheel unlike anything else. The live horse will catch for multipliers fish in an icy water. It's a truly something different. It's spectacular. On the RNG side, we have launched 17 new games in the quarter, and another 19 are set to release in the second one. The titles from No Limit City are doing exceptionally and we are currently releasing some of the best slots on the market.

Speaker Change: Yeah. This will be a hit and then I'm done during the summer we have what I believe is the most anticipated game of the mall ice fishing, a speed game show a speed game show with the money will unlike anything else. The live host will catch for multipliers fish in Isa water.

Speaker Change: A truly something different it's spectacular.

Speaker Change: On the R&D side, we have launched 17, new games in the quarter and another 9% are set for release in the second one.

Speaker Change: The tightest from no limits city are doing exceptionally and we are currently or at least some of the best lots on the market.

Martin Carlesund: One of the games that I would like to highlight is Duck Hunters, which was released in February, and that has been off to a tremendous start. You would have to go back a very long time to find something similar in terms of format.

Speaker Change: One of the games that I would like to highlight the dotcom thirst.

Speaker Change: Which was released in February.

Speaker Change: That has been off to a tremendous start you would have to go back a very long time to find something similar in terms of performance.

Martin Carlesund: So all in all, there's a lot happening right now, and I'm very excited about both the latest and upcoming releases. We continue to push the limits and provide the most thrilling player experiences, further widening the gap to competition, and creating value for all our stakeholders.

Speaker Change: So all in all there's a lot happening right now and I'm very excited about both the latest in upcoming releases, we continue to push the limits and provide the most thrilling player experiences further widening gap competition and creating value for all our stakeholders.

Speaker Change: Next slide please.

Martin Carlesund: Moving on to the geographic breakdown with the revenue performance across our regions. What stands out in the quarter is the development in Europe, which was more or less flat compared to the first quarter in 2024 and down by 6% from the fourth quarter. You can clearly see the effects from the ring fencing in these numbers. What is important to remember is that the underlying demand remains strong and that we, through the ring fences measures, have created an even stronger foundation that we can grow from. Asia remained on a stable level compared to last quarter with a revenue of 201.9 million and growth of 2.2% compared to the first quarter of 2024.

Speaker Change: Moving on to the geographic breakdown with the revenue performance across our regions.

Speaker Change: What stands out in the quarter as the development in Europe, which was more or less flat compared to the first quarter. Its one four and down by 6% from the fourth quarter.

Speaker Change: Let's see the effects from the ring fencing in these numbers what is important to remember is that the underlying demand remained strong.

Speaker Change: Through the ring fences measures have created an even stronger foundation that we can grow from.

Speaker Change: Asia remained on a stable level compared to last quarters with revenue of $201 9 million and growth of two 2% compared to the first quarter of transport as for Europe underlying demand is strong and we see great potential as soon as we have come to terms with the ongoing issues with the cyber criminals.

Martin Carlesund: As for Europe, underlying demand is strong and we see great potential as soon as we have come to terms with the ongoing issues with the cyber criminality. North America continues its strong performance with year-on-year growth of 15 percent. Live games are still at early stages in the region, and we find new audiences every day. In February, we expanded our partnership with BET365 in New Jersey, adding to its live dealer offering already available in Pennsylvania. LATAM exhibited 9.7% growth year-on-year but declined slightly compared to the fourth quarter. We highlighted already in the last report that Brazil's new regulation had experienced some initial teething problems which have had an effect on the performance.

Speaker Change: North America continues its strong performance with year on year growth of 15% La against are still at early stages in the region and we find new audiences every day in February we expanded our partnership with battery six five in New Jersey.

Speaker Change: I think too it's live dealer offering all of the available in Pennsylvania.

Speaker Change: Latam exhibited at nine 7% growth year on year, but declined slightly compared to the fourth quarter.

Speaker Change: Highlighted already in the last report that Brazil's new regulation.

Speaker Change: <unk> experienced some initial teething problems, which have had an effect on the performance. It's not unusual that it takes some time for us to settle in with the new regulation of VC activity picking up.

Martin Carlesund: It's not unusual that it takes some time for us to settle in with the new regulation but we see activity picking up. Other regions mainly consist of Africa and continue to show good year-on-year growth. A development worth noticing is the jump in revenues from regulated markets, now with a 45% share of total net revenues, which is mostly connected to the Brazil regulation.

Speaker Change: Other regions, mainly consist of Africa and continue to show good year on year growth.

Speaker Change: The development worth noticing is the jump in revenues from our regulated markets not with a 45% share of total net revenues, which is mostly connected to the Brazilian regulation.

Joachim Andersen: With that, I will hand over to Joachim for a closer look at our financials. Next slide.

Kim: With that I will hand over to <unk> Kim for a closer look at our financials like cyclists.

Joachim Andersen: Thank you, Martin, and good morning to all of you on this call.

Speaker Change: Thank you Martin and good morning to all of you on this call I'm very happy to be on board and hope to see you all in person at some point in time.

Joachim Andersen: I'm very happy to be on board and hope to see you all in person at some point in time. I will now present the financial performance in some greater detail, starting on this page, page 6, with our financial development over time. As you can see on this page, we are on a long-term growth trajectory, but as shown in the report this morning and as presented by Martin earlier, we currently have some headway. Net revenue in the first quarter was $520.9 million, corresponding to a growth of 3.9% compared to the first quarter last year. On a constant currency basis, we estimate the growth to 6.1%, as we saw continued negative effects from changes in the currency.

Speaker Change: Now pushed out of the financial performance in some greater detail starting on this page page six with our financial development over time.

As you can see on this page we are on a long term growth trajectory, but thats shown in the report this morning and as presented by market earlier, we currently have some headwinds.

Speaker Change: Net revenue in the first quarter was 529 million corresponding to a growth of three 9%.

Speaker Change: Compared to the first quarter last year.

Speaker Change: On a constant currency basis, we estimate that growth to six 1% attrition.

Speaker Change: As we saw continued negative effects from changes in the currency rates.

Joachim Andersen: Our reported EBTA was 342 million in the quarter, meaning that our margin was 65.6%, which is at the bottom end of our full year forecast of 66-68%.

Our reported EBITDA was $342 million in the quarter.

Speaker Change: Our margin was 65, 6%.

Speaker Change: Which is at the bottom end of our full year forecast of $6 to $6 68.

Joachim Andersen: Let's go to the next slide. Here we will take a closer look at the Profit and Loss Statement. Let's start with the break up of our revenue. We had this quarter as a consequence of the earlier mentioned issues, showing a relatively low growth both in live and RNG, with a growth of 4% in live and 3.1% in RNG year on year. You all know that we expect more from both categories, and we are working hard, as Martin mentioned, on solving these issues. Our total operating expenses in the first quarter amounted to $217.5 million, which is 15% higher than the same period last year.

Speaker Change: Let's go to the next slide.

Speaker Change: And we would take a closer look at the profit and loss statements.

Speaker Change: Let's start with the breakup of our revenue we are this quarter as a consequence of the earlier mentioned issues showing a relatively low growth both in life and R&D with a growth of 4% or three 1% in R&D year on year.

Speaker Change: You will note that we expect more from both categories and we are working hard as Marty mentioned on solving these issues.

Speaker Change: Our total operating expenses in the first quarter amounted to $217 5 million.

Speaker Change: Which is 15% higher than the same period last year. This is a result of our increased investments into new products and new capacity, which in turn will give us continued growth in the future.

Joachim Andersen: This is a result of our increased investments into new products and new capacity, which in turn will give us continued growth in the future. Our personal expenses amounted to $119.9 million, which is an increase of 12%, driven by the net addition of 1,686 employees year-on-year. The other operating expenses amounted to $59 million, which corresponds to a 21% increase. Within this number, we, for instance, see a higher level of legal cost as we, as a large global business, more frequently are engaging in complicated projects where external legal advice is necessary. This cross-line will over time, as for the other cross-lines, scale and grow slower than our average.

Speaker Change: Our <unk> expenses amounted to $119 9 million, which is an increase of 12% driven by the net addition of 1686 employees year on year.

Speaker Change: The other operating expenses amounted to $59 million, which corresponds to a 21% increase.

Speaker Change: Within this number we for instance, the higher level of legal cost as we as the large global business more frequently are engaging in complicated projects or external legal advice is necessary.

This cost line will over time as will the other cost lines scale and grow slower than our revenue.

Joachim Andersen: It's also worthwhile reminding that, compared to last year, we are now running our studios with a less favourable, more costly, resource-intensive approach. as a consequence of the measures we took last year in connection with the strike in Georgia. This partial move of operations out of Jogja is having a negative impact when comparing the cost base and profitability year on year. As part of our ordinary course of business, we are obviously monitoring the news flow related to the potential changes to global Paris. At this point in time, and from what we know today, we do not expect any material impact on our results.

Speaker Change: It's also worthwhile reminding that compared to last year, we're now running our studios with a less favorable more costly resource mix as a consequence of the measures. We took last year in connection with the striking Georgia.

Speaker Change: This partial move operations out of yoga is having a negative impact when comparing the cost base and profitability year on year.

Speaker Change: As part of our ordinary course business. We are obviously monitoring the news flow related to the potential changes to global tariffs at.

Speaker Change: At this point in time and from what we know to date, we do not expect any material impact on our results.

Joachim Andersen: The financial items were negative 1.3 million this quarter, primarily driven by revaluation of bank balance. Next tax was 47.5 million in the quarter, with a tax rate of 15.7%. And all in all, we had a profit for the period of 254.7 million. And with 205.6 million shares outstanding, we get to earnings per share, EPS, of 1.24 euro, which is almost in line with the 1.25 we had for the same period a year ago.

Speaker Change: The financial items were negative $1 $3 million this quarter, primarily driven by revaluation of bank balances.

Speaker Change: Our next tax was $47 5 million in the quarter with a tax rate of 15, 7%.

Speaker Change: All in all we had a profit for the period of $254 7 million attribute to under $5 6 million shares outstanding we get to earnings per share EPS of one 124 zero, which is almost in line with the $1 25 for the same period a year ago.

Joachim Andersen: Let's move on to the next slide. And now I'm on page 8, where we have an overview of our operating cash flow and capital expenditure. Let's start by looking at the graph to the right, which shows the development of our cat. Total CapEx in the period amounted to 33.6 million and was split almost evenly between intangible and tangible assets. The investments into intangible assets was 16.6 million and were mainly spent on development of new games and technical improvements to the platform. The annual investments were 17 million, mainly spent on studio space, gaming tables, servers and other technical equipment.

Speaker Change: Let's move on to the next slide.

Speaker Change: And now on page eight where we have an overview of our operating cash flow and capital expenditures, let's start by looking at the graph to the right which shows the development of our Capex.

Speaker Change: Total capex in the period amounted to $33 6 million and was split almost evenly between intangible and tangible assets.

Speaker Change: The investments into intangible assets was $16 6 million I wouldn't may spend on development of new games and technical improvements to the platform.

Speaker Change: The tangle investments were $17 million, mainly spent on studio space gaming table service and other technical equipment.

Joachim Andersen: In the graph you can also see how our investment pays relate to the last four quarters revenue for each one. As communicated last quarter, we expect the full-year CapEx to amount to around $140 million. If we then take a look at the graph to the left, we can see the development of our cash flow and our cash conversion. The operating cash flow after investments amounted to $327.7M in the quarter, with a very strong cash conversion of 87%. with good improvements both year-on-year as well as quarter-on-quarter, with a good contribution this quarter from a reduction of the accounts received.

Speaker Change: In the graph you can also see how our investment pace related to the last four quarters revenue for each of the periods.

Speaker Change: As communicated last quarter, we expect the full year capex to amount to around 114 million anymore.

Speaker Change: If we take a look at the graph to the left we can see the development of our cash flow our cash conversion.

Speaker Change: The operating cash flow after investments amounted to $327 7 million in the quarter.

Speaker Change: With a very strong cash conversion of 87%.

Speaker Change: It's a good improvement both year on year as well as quarter on quarter with a good contribution contribution this quarter from a reduction of the accounts receivables.

Joachim Andersen: Finally for me, some brief comments on our financial position on the next phase. On this page, you will, as usual, find a summary of the balance sheets for the first quarter compared to what it looked like at the end of last quarter. As you can see, our strong financial position remains. We have our bond portfolio, 101.6 million, and a cash balance of 969.2 million. Our total equity amounts to almost $4.2 billion. There are no material changes during the courtroom. We have our annual general meeting on the 9th of May, and if the shareholders vote in favor of the board's recommendation, we will, which is in line with our capital allocation framework, pay a cash dividend of 2.8 euros per share, which means that a total amount of 572 million will be paid to our shareholders.

Speaker Change: Finally for me some brief comments on our financial position on the next page.

Speaker Change: On this page you will as usual find the summary of the balance sheet for the first quarter compared to what it looked like at the end of last quarter.

Speaker Change: You can see our strong financial position remains.

Speaker Change: We have our bond portfolio, $101 6 million and a cash balance of $969 2 million.

Speaker Change: Total equity amounts to almost $4 2 billion.

Speaker Change: There are no material changes during the quarter.

Speaker Change: We have our annual general meeting on the 19th of May and if the shareholders vote in favor of the Board's recommendation, we will which is in line with our capital allocation framework pay a cash dividend of $2 eight per share, which means that the total amount of $572 million will be paid.

Speaker Change: Our shop with us.

Joachim Andersen: During the first quarter, we used our mandate to repurchase approximately 2.1 million owned shares in the market for a total amount of $154.1 million. As communicated last quarter, the board has decided to repurchase shares for 500 million during the year and will restart the next program of the repurchases within short.

Speaker Change: During the first quarter, we used our mandate to repurchase approximately two 1 million owned shares in the market for a total amount of $154 1 million.

Speaker Change: As communicated last quarter. The board has decided to repurchase shares for 500 million during the year and we start the next program of the repurchases within short.

Martin Carlesund: With that, I will hand it back to Martin for his closing remarks. Thank you Joachim.

Martin Carlson: With that I will hand, it back to Martin for his closing remarks.

Martin Carlson: Thank you Kim.

Martin Carlesund: So let's summarize the presentation and then move to the Q&A session. Financially, we've been off to a slow start this year due to the ongoing continued issues in Asia and the self-imposed practice strictly ring-sounding of regulated markets in Europe. In consequence, and in combination with ongoing investments into expansion, our profitability in Q1 comes out on the low end of our estimated full year. And this is, of course, not good, even though we always have quarterly variations. The revenue growth has simply been slower than what we have capacity. However, Am I unhappy with the overall development in the quarter?

Martin Carlson: Let's summarize the presentation and then move to the Q&A session.

Martin Carlson: Financially we have been off to slow start this year due to the ongoing continued issues in Asia and the self imposed proactive stricter ring fencing of regulated markets in Europe.

Martin Carlson: As a consequence and in combination with ongoing investments into expansion our profitability in Q1 comes out on the low end of our estimated full year range and this is of course not good even though we always have quarterly variations. The revenue growth has simply been slower than what we have capacity for her.

Martin Carlson: However.

Martin Carlson: And my I'm happy with the overall development in the quarter definitely not because everything that we have them support the mission to increase the gap to competition trying to testify would be yet another great year for evolution that is the bottom line.

Martin Carlesund: Definitely not, because everything that we have done supports the mission to increase the gap to competition.

Martin Carlesund: 2025 will be yet another great year for Evolution. That is the bottom line. We are more paranoid than ever and working with an incredibly strong product roadmap and continued studio expansion. We see strong underlying demand. Both the studios in the Philippines and Brazil will be state-of-the-art, using all expertise and experience that we have built during our soon 20 years' history. On the game side, as I said before, we will deliver experiences that players have never seen before.

Martin Carlson: More paranoid than Alberta, and working with an incredibly strong product roadmap and continued suite expansion, we see strong underlying demand both the studios in the Philippines, and Brazil will be state of the art.

Martin Carlson: Using all expertise and experience that we have built during our assumed 20 years history on the game side have said before we will deliver experiences that players have never seen before.

Martin Carlesund: As Joakim mentioned, next week, we will hold our annual general meeting that, among other things, will resolve on the board's dividend proposal. We remain committed to deliver strong shareholder returns under our capital allocation framework. As a last remark, as you know, we always aim to make evolution a bit better every day, and we have no time to waste. We are already entering May, which practically means that Christmas is around the corner.

As you walk you mentioned next week, we will hold our annual general meeting that among other things when they are sold on the board's dividend proposal, we remain committed to deliver strong shareholder returns and our capital allocation framework.

Martin Carlson: That's the last remark as you know, we always aim to make evolution a bit better everyday and we have no time to waste we have all of the entering made with a fact, which practically means that Christmas is around the corner. It's full speed ahead for all our teams and I look forward to what the rest of the year will break.

Martin Carlesund: It's full speed ahead for all our teams, and I look forward to what the rest of the year will bring.

Operator: With that, as an end-remark, we move to questions. Next slide, please.

Speaker Change: With that person and remark we move to questions next slide please.

Operator: And the first one out is... To ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad.

Martin Carlson: First one out is.

Martin Carlson: Yeah.

Martin Carlson: To ask a question. Please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question. Please dial pound key six on your telephone keypad.

Martin Carlson: Yeah.

Oscar Ronnkvist: This question comes from Oscar Ronnkvist from ABG Sundal Collier. Please go ahead. Thank you, good morning Martin, good morning Joachim, thanks for taking my questions, so my first question would just be on the ring fencing in Europe, so you said it started in February and it obviously had quite a big impact on the numbers in Europe, so could you say anything on sort of when that started in February, was it like one month contribution or was it two months contribution in Q1? It's a good estimate to count on two months contribution in the first quarter.

Speaker Change: Question comes from Oskar Rockfish from APG Sundar Collier. Please go ahead.

Speaker Change: Thank you.

Speaker Change: Good morning, good morning at what Kim Thanks for taking my question. So my first question would just be on the the ring fencing in Europe.

Speaker Change: So you said it started in February and it obviously had quite a big impact on the on the numbers and in Europe. So could you say anything on sort of when that started in February what's it like one month contribution or was it two months contribution in Q1.

Speaker Change: Uh huh.

Speaker Change: Good.

Speaker Change: Estimate to account on two months' contribution in the first quarter.

Oscar Ronnkvist: Perfect, thank you. And then, I know it's, you know, very difficult even for you, but, I mean, you always had two percentage points FX headwinds and, you know, it appears like, you know, two to three percentage points headwind from European ring fencing in Q1. Is it any, you know, in any way possible to sort of quantify the cyber attacks impact so we can get a little bit better sense of the underlying growth in the quarter? It's very hard to quantify the Asian growth. We have now three quarters in a row where we are essentially flat.

Speaker Change: Perfect. Thank you.

Speaker Change: And then I know, it's very difficult even for you, but I mean, it was they had two percentage point FX headwind.

Speaker Change: It appears like you know two to three percentage points headwind from from European ring fencing in Q1.

Speaker Change: Is it any you know in any way possible to sort of quantify the cyber attacks impact. So we can get a little bit better sense of the.

Speaker Change: Underlying growth in the quarter.

Speaker Change: Yeah.

Speaker Change: It's very hard to quantify the Asian.

Speaker Change: Growth.

Speaker Change: We have now three quarters in a row, where we are essentially flat.

Oscar Ronnkvist: If you go back three quarters before that or even a little bit longer, you will you will see that we quarter on quarter had a much better growth. Of course, we we might not see that we even if we turn this around in a couple of quarters, but come back to that level. But of course, we should have a quarter on quarter growth.

If you go back.

Speaker Change: Three quarters before that or even a little bit longer you will you will see that with quarter on quarter, how to a much better growth of course, we might not see that we.

Speaker Change: Even if we turn this around.

Speaker Change: In a couple of quarters, but let's come.

Speaker Change: Come back to that level of course, we should have a fourth quarter growth.

Oscar Ronnkvist: Alright, perfect.

Oscar Ronnkvist: So, just again on the cyber attacks. So, you have gotten that from, I think you started mentioning that in Q3 last year, so it's now the third quarter that you mentioned it. So, can you talk a little bit about how the development has been going? I mean, have you seen more pressures than you initially did after you, you know, started that with, you know, just thinking on the revenue side, if you, you know, limit the access to some aggregators possibly, and so on. So, is the headwind becoming bigger initially when you, you know, stop the distribution to some aggregators, and we'll see that, you know, picking up in the next few quarters, or has it been kind of stable over the last couple of quarters?

Speaker Change: Alright perfect.

Speaker Change: And then just again on the cyber attacks.

Speaker Change: No.

Speaker Change: You have gotten that from I think you started mentioning that in Q3 last year. So this is now the third quarter. You had mentioned it. So can you just talk a little bit about how the development has been going I mean have you seen more pressures.

Speaker Change: Initially they had the after you.

Speaker Change: It started that way.

Speaker Change: Just thinking on the revenue side if you.

Speaker Change: I'll limit the access to some aggregate there is possibly a and so on so if the headwind becoming bigger initially when you.

Speaker Change: Stop this true distribution to some aggregate there was someone will see that picking up in the next few quarters or has it been quite stable over the last couple of quarters.

Yeah.

Speaker Change: Okay.

Oscar Ronnkvist: We have good traction on the actions we take. The actions we take in Asia is of course partially shutting down and partially growing. And then the sum of that right now is coming out as flat. We're in that process, we're doing the right thing and then The actions that we take will eventually move to a greater increase than what we take away. Perfect, and I guess there's no additional comments on any timing when we could expect the quarter of growth to pick up. I don't have any more insight on that right now. Got it.

Speaker Change: We have good traction on the actions we would take the actions we've taken Asia of course, partially shutting down and partially growing and then the some of that right now is coming out as flat.

Speaker Change: We are we are in that process, we're doing the right thing and then.

Speaker Change: The actions that would take will eventually.

Speaker Change: Move to a greater increase than what we take away.

Speaker Change: Perfect.

Speaker Change: Yes, Theres no additional comments on any timing when we could expect the quarter over quarter growth to pick up.

Speaker Change: Okay.

Speaker Change: I don't have any more insights on that right now no.

Oscar Ronnkvist: Perfect.

Oscar Ronnkvist: That was all for me. Thank you. Thank you very much. Thank you.

Speaker Change: Got it perfect that was all for me. Thank you.

Speaker Change: Thank you very much thank you.

Speaker Change: Yeah.

Raymond Ke: The next question comes from Raymond Ke from Nordea, please go ahead. Hi, good morning. A couple of questions for me as well, starting on Europe and the sales there impacted by your ring fencing actions. Could you provide some color on whether the growth pace of the countries with high channelization in more recent quarters has been higher or lower than the countries with sort of lower channelization, just to understand the underlying growth pace of Europe? I won't comment on the growth in particular countries, in general we have seen... a blended rate of 9% and I wouldn't say that any of the countries stick out in any extreme way.

Speaker Change: The next question comes from Raymond <unk> from Nordea. Please go ahead.

Speaker Change: Hi, Good morning, a couple of questions from me as well starting on Europe, and the sales that are impacted by your ring fencing actions.

Speaker Change: Could you provide some color on whether the growth pace of the countries with high channel. The station in more recent quarters has been higher or lower than the countries with sort of lower generalization just understand the underlying growth pace of Europe.

Speaker Change: I won't comment on the growth in particular countries.

Speaker Change: In general we have seen.

Speaker Change: Our blood.

Speaker Change: The rate of 9%.

Speaker Change: I wouldn't say that any of the countries stick out.

Speaker Change: Extreme way.

Raymond Ke: gives you some kind of color, I hope.

Speaker Change: It gives us some kind of color aisle.

Raymond Ke: Yeah, that was helpful.

Speaker Change: Yeah that was helpful.

Raymond Ke: And then I noticed on Latam, sales falled sequentially here in Q1. Trying to understand, was this in line with your expectation? And could you maybe share what you think is behind this development? Yeah, I can give you that. I can give you a little bit more color. It's as simple as... Latin America, except Brazil, is doing very well. We're growing very nicely there. And then we have Brazil, which is the regulation just came into force, and that has... made that market decline and grow from a lower level. That's, I would say, have taken a little bit slower start than expected, but we have not changed any of our outlook.

Speaker Change: And then I noticed on the last sales fall sequentially here in Q1.

Trying to understand was this in line with your expectation and could you maybe share what you think is behind this development.

Speaker Change: Yes, I can give it that I can give you a little bit more color.

Speaker Change: It's the same philosophy nothing.

Speaker Change: Latin America, except for Brazil is doing very well growing very nicely.

Speaker Change: And then we have the sale, which is the regulation just just take came into force and that has.

Speaker Change: Made that market decline and grow from a lower level. That's I would say have taken a little bit slower start unexpected, but we have not changed any of our outlook. It looks very promising in this 230 million people living in Brazil. So the.

Raymond Ke: It looks very promising and there's 230 million people living in Brazil, so the future looks good.

Speaker Change: The future looks good.

Raymond Ke: Great.

Raymond Ke: And just another question also on Asia and the technical actions you implemented there. You talked about shutting down and also growing in some parts and yielding a flat top-line result. But could you maybe elaborate a bit more on any technical actions that you've implemented, or is it just about essentially shutting down in certain parts? We work both technically as well as commercially, of course, with the customers that we have there. And we often relate to technical implementations. And we are simply solidifying our protection against theft and detecting of theft. And then when we do that, we shut down parts of it and the other parts continue.

Speaker Change: Great and I'm just another question also on Asia on the technical actions to implement their you you talked about shutting down and also growing in some parts and are you being a flat topline result, but could you maybe elaborate a bit more on.

Speaker Change: Any technical actions that you've implemented or is it just about essentially shutting down in certain parts.

Speaker Change: We work both technically as well as commercial Air force with the customers that we have there.

Speaker Change: We often related technical implementation and we are.

Speaker Change: Or simply solidifying our protection against theft in hour and detecting them first and then when we do that we shut down parts of it and the other portion continues to grow.

Raymond Ke: Okay, perfect. Very clear.

Speaker Change: Okay, perfect very clear Oh for me I'll get back in line. Thank you.

Raymond Ke: All for me. I'll get back in line.

Raymond Ke: Thank you.

Speaker Change: Thank you very much thank you.

Georg Atling: The next question comes from Georg Atling from Pareto Securities. Please go ahead. Good morning, Martin and Joachim. A couple of questions from me, starting also with Europe. I'm trying to understand if the ring fencing that you've done, have you done that all at once, or will we see ring fencing in more markets in, let's say, Q2? There won't be more markets. We're sort of done what we're supposed to do, or proactively did, and it all more or less happened in the beginning of February. So, as I said before, two months out. Okay, so a new base from early February, I guess you can read that.

Georg: The next question comes from Georg <unk> from <unk> Securities. Please go ahead.

Speaker Change: Good morning.

Speaker Change: Kim a couple of questions from me starting also with Europe I'm trying to understand if the the ring fencing that you've done.

Speaker Change: Uh huh.

Speaker Change: Have you done that all at once or what was seen ring fencing in more markets and let's say Q2.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: There won't be more markets we are.

Speaker Change: We were sort of done what we're supposed to do or proactively did.

Speaker Change: And it's all more or less happened at the beginning of February so as I said before to two months out of three.

Speaker Change: Okay. So a new base from early February I guess, you can you can read about us.

Great.

Georg Atling: Second question on LATAM, you mentioned Brazil here and I know that the start was quite weak but could you comment on the trend throughout the quarter as that growth pace in Brazil picked up towards the end of Q1? We see activity increasing and I want to leave it with that, not to make sort of quarter-on-quarter projections.

Speaker Change: A second question on old laptop, you mentioned, Brazil here and I know that sort was quite weak, but could you comment on the trend throughout the quarter and stuff.

Speaker Change: Based in Brazil picked up towards the end of Q1.

Speaker Change: We see activity, increasing and I want to leave it with that not to make sort of quarter on quarter predictions.

Georg Atling: Just a final question on Asia. You said you shut down some of your aggregators or distribution partners here. Could you comment on the growth excluding the aggregators that you shut down? It's a combined measure, there is a lot of things going on and I don't want to go into details, it will only lead us in the wrong direction. We are in combination getting good traction of what we are doing, but essentially we are still flat in revenue and we hope to change that of course.

Speaker Change: Okay. Okay.

Speaker Change: Just final question on Asia. So you you shut down some some of your aggregates or sort of a distribution partners here.

Speaker Change: Could you comment on the growth excluding the aggregates receptor shops are shut down.

Speaker Change: It is a combined measure there there is.

Speaker Change: A lot of things going on.

Speaker Change: And I don't want to go into detail.

Speaker Change: It will only lead us in the wrong direction.

Speaker Change: We are in.

Speaker Change: In combination getting good traction on what we're doing but essentially we are still flat in revenue and we hope to change it up of course.

Georg Atling: Okay, that's all I have. Thanks. Thank you very much.

Speaker Change: Okay.

Speaker Change: That's all I have thanks.

Speaker Change: Thank you very much.

Speaker Change: Yes.

Okay.

Pravin Gondhale: So for the next speakers, please introduce yourself with the name and company. Thank you. Please go ahead.

Speaker Change: So for this next next speakers please introduce yourself with the name and company. Thank you.

Speaker Change: Yeah.

Speaker Change: Please go ahead.

Pravin Gondhale: Hi, I'm Pravin Gondhale from Barclays. Morning Martin, morning Joachim, thanks for taking my questions. So, firstly on Europe, the growth was notably softer in Europe, but B2C reporting, B2C operators reporting that we have seen so far, and then the regulator's data in Italy suggests that in the large markets like UK and Italy, the growth was positive and robust.

Speaker Change: Hi, I'm, probably going to Lee from Barclays.

Speaker Change: Morning, walking wanting conjecture and thanks for taking good morning questions.

Speaker Change: So firstly on Europe, the growth was notably softer in Europe, but <unk> reporting.

Speaker Change: The operators reporting that we have seen so far and then how do you.

Speaker Change: <unk> Street in Italy.

Speaker Change: Uh huh.

In the large market like U K and then.

Speaker Change: Actually that we'll look towards positive and robust. So can you share some more colors on vehicle sports in Europe. I know you are you wouldn't be talking about.

Pravin Gondhale: So can you share some more colors on non-vehicle spots in Europe? I know you won't be talking about specific countries here, but sort of what are the areas where you think Evo can improve the performance in coming quarters? And then when can we expect to see Europe returning to positive growth? How can we expect this ring fencing to be locked up and then... The proactive measure that we are taking now is to see that we are creating a really good fundament and a little bit ahead of that, and I've been meeting all the regulators all over the last period, and we're working with them.

Speaker Change: Specific countries here, but but sort of what are the areas, where you think eagle can improve the performance in coming quarters.

Speaker Change: And then when can we expect to see Europe, returning to positive growth.

Speaker Change: When can we expect this ring fencing to be locked up and then.

Speaker Change: Behind us this year.

Speaker Change: The proactive measures that we're taking those two to seafood that we are.

Speaker Change: Creating a really good partner and a little bit ahead.

Speaker Change: And I've been meeting all the regulators all over.

Speaker Change: Last part of it.

Speaker Change: We're working with them we.

Pravin Gondhale: We don't comment on specific countries, just as you know, and as you stated, but I gave you an idea that where the channelization, of course, was low, the impact of ring fencing is high. And where the channelization is high, the impact is low. So, essentially, the countries that have a very stringent regulation and where they lost a lot of players to unlicensed operators, there we have a larger impact. So that gives you a little bit of the flavor. Then, as you understand, we have taken measures and then, of course, in the UK a little bit earlier, but for the rest in the...

Speaker Change: We don't comment on specific countries, just as you know in a state that but but I gave you an idea that where the Shanghai fashion of course was low the impact of ring fencing is high and where the centralization is high the impact is low so essentially the countries that have a very stringent regulation.

Speaker Change: Were they lost a lot of players to unlicensed.

Speaker Change: Operators that will have a larger impact.

Speaker Change: So that gives you a little bit of flavor there.

Speaker Change: As you understand we have taken measures in <unk> and then of course in the U.

Speaker Change: UK Elizabeth or thereabout, the rest in the.

Pravin Gondhale: in the beginning of February. So coming out into Q2, we have this now, the new fundament, the new level. And from that, of course, we expect to be able to have a good development. Thanks, that's helpful.

Speaker Change: In the beginning of February so so coming out into Q2, we have this now the new fundamental new the new level up from that.

Speaker Change: Of course, we expect to be able to have a good development.

Speaker Change: Oh. Thanks, that's helpful and then quickly on on <unk>.

Pravin Gondhale: And then quickly on the current trading, can you please share some color on Q2 trading so far, and then how should we be thinking about the top-line growth trajectory for the remainder of the year? I'm sorry, but we do not guide on quarters. I stated that I expect the second half to be a little bit stronger as a result of the full effect of the ring fencing in Q2 and that's what we state when it comes to a little bit favoritism guiding. Thank you very much, that's really helpful.

Speaker Change: Current trading can you. Please share some color on Q2 trading so far and then how should we how should we be thinking about the top line growth trajectory for them on their own.

Speaker Change: Oh, I'm, sorry, but we do not guide on quarters.

Speaker Change: We say that.

I stated that I expect the second half to be a little bit stronger as a result of the full effect of the ring fencing in Q2.

Speaker Change: And that's what we state when it comes to Elizabeth favorite that guiding.

Speaker Change: Thank you very much that's really helpful.

Speaker Change: Thank you.

Martin Arnell: Please introduce yourself with name and company. Please go ahead. Hi guys, this is Martin Arnell with D&B in Stockholm. Can you hear me? I can hear you very well. Thank you. Good morning. Great.

Speaker Change: Please introduce yourself with name and company. Please go ahead.

Martin Carlson: Hi, guys. This is martin on with.

Speaker Change: With D&B and stock comp can you hear me.

Speaker Change: I can hear you very well. Thank you good morning, great.

Martin Arnell: So I want to ask you on the UK Gaming Commission review. When do you expect more clarity on that and are you in constant dialogue with them and do you know anything about the outcome? Have you taken all the necessary actions or is there more to be done? We have taken all actions that they asked us for. We have provided all the information. It's a process, of course, driven like any regulated process by their agenda and their timeline. We have a good cooperation and talks a lot to them and I expect it, we're moving forward.

Speaker Change: So what I want to ask you on the on the UK Gaming Commission review when do you expect more clarity on that.

Speaker Change: Are you in constant dialog with them and do you know anything about the outcome have you taken all the necessary actions or is there more to be done.

Speaker Change: Uh huh.

Speaker Change: We have taken on all actions that we are that they asked before we have provided all the information.

Speaker Change: It's.

It's a process of portrayed in life like any regulatory process by their jumped down their timeline.

Speaker Change: We have a good cooperation on top so lots of them and I expect that moving forward.

Martin Arnell: Exactly when it's closing, I... I can't state that because it's not simply... Up to me. Do you know anything on the outcome so far? No, I do not. Okay.

Speaker Change: Q1 is closing.

Speaker Change: I can't state that because its not simply.

Speaker Change: Up to me.

Speaker Change: Do you know anything on the outcome so far.

Speaker Change: No I do not.

Martin Arnell: Can you just help us understand a bit more on the ring fencing? I mean, how temporary of an effect is it? A regulated operator that offers your games should just be a click away, right, if the player is out for your games. So why is this a negative effect at all in a medium-term perspective?

Speaker Change: Okay.

Speaker Change: I don't want to speculate.

Speaker Change: Yes, okay.

Speaker Change: Help us understand that a bit more on the on the ring fencing I mean.

Speaker Change: Temporary also an effect if it because irregular.

Speaker Change: Our regulated operator that off for sure games should just be a click away right.

Speaker Change: The parents out for your games. So so why is this a negative effect stepped on in a in a medium term perspective.

Martin Arnell: That's a very good question. And let me elaborate slightly on that not to be too lengthy, but We are a supplier, technical supplier of games, so we are not really affecting the generalization in the country. The generalization in the country is dependent on the parameters that the regulators set up. So if you put a high tax, 35, 38, or tax, or if you put limitations to what the players can do, or deposit rules, or other things that actually is an obstruction for the player and against the player's will, then the generalization will go down, equal to any other regulation of whatever that might be.

Speaker Change: That's a very good question.

Let me elaborate slightly on the not so be too lengthy but.

Speaker Change: We are a supplier technical supplier of games. So so we are not really affecting the churn.

Speaker Change: Utilization in the country the shunned legislation in the countries dependent on the Paramount that the Reg.

Speaker Change: Relate to set it up so if you put a high tax 35 38.

Speaker Change: Or if you.

Speaker Change: You put limitations to what the players can do or deposit rules or other things that actually has an obstruction for the player and against the players wind down.

Speaker Change: The standardization would go down equal to any other regulation or whatever that might be so so it pushed the market to heart the market will find its way too.

Martin Arnell: So if you push the market too hard, the market will find its way to... to its product in another way. So the regulators, when they push it like that down and the generalization goes down, it's because the players are not comfortable playing on the regulated side. Then the regulators in some cases now move to repressive measurements, so they want to restrict it even further. They want to invest money in the customs, in the parts supporting, and that's where we are now. So the players, they need to want to play on the regulated sides. We can't do much about that.

Speaker Change: Its product in another way so the regulators when they push it like that down under <unk> goes down it's the cost players almost comfortable playing on the regulated side.

Speaker Change: Then the regulators in some cases now moved to a repressive measurements. So they want to restrict it even further they want to invest money in the customs in the knit tops supporting them and that's where we are now so the players there.

Speaker Change: They need to want to play on the regulated side, we can't do much about that so that's why even though it's a click away. That's it it's a bit slow to get back the license side.

Martin Arnell: So that's why, even though it's a click away, that it's a bit slow to get back to the licensed side. Okay, thanks for clarifying that.

Speaker Change: Okay. Thanks for clarifying that.

Martin Arnell: And in your actions from February, you know, how much is this a proactive action from yourself or how much is it that other regulators have picked up the situation in the UK and actually asking you for changes? I personally met... Almost all major regulators in Europe during this period, and it's close to 100% proactive measure. So, sorry. That's what it is. We want to see to that we stand firm and avoid similar situations. And don't forget that We've been regulated for some 20 years, and we have been acting in the same way and been lenient and following through, but the regulators now are moving a little bit, and now we're trying to be a little bit ahead of that.

Speaker Change: Oh in Europe.

Speaker Change: Actions from February you know how much is this a proactive.

Speaker Change: Action from yourself or how much is it that other regulators have picked up.

Speaker Change: Sufficient in the UK I'm actually asking you for Sanchez.

Speaker Change: Yeah.

Speaker Change: I personally met.

Speaker Change: Almost all of them.

The major regulators in Europe during this period.

Speaker Change: It's.

Speaker Change: Close to 100% proactive measure.

Speaker Change: So it's.

Speaker Change: That's what it is.

Speaker Change: We want to see to that we are not.

Speaker Change: Stand firm.

Speaker Change: Avoid similar situations.

Speaker Change: Don't forget that we.

We've been regulated pursuing 20 years and.

Speaker Change: We have been acting in the same way.

Lenient in following through but the regulators now are moving a little bit and now we're trying to be a little bit to half of that so it's a proactive measure.

Martin Arnell: So it's a practice. Perfect.

Martin Arnell: My final question. You repeated the EBITDA guidance. How do you reason behind that? Because, I mean, wouldn't it have been more prudent to take a little bit more cautious approach given that you're in the early phase of the changes in Europe? Thank you. When you make a guidance, you need to make it the best estimate you have for what the year will give or what the ABT margin will give. And you need to have a good reason for if you're going to lower it or increase it. Right now, this is the best. way that we see it.

Speaker Change: Perfect. My My final question you you repeated the EBIT to EBITDA guidance and the reason behind that because I mean wouldn't it have been more prudent to take a little bit more cautious approach given that you're in the early phase of the census in Europe. Thank you.

Speaker Change:

Speaker Change: Why did you make a guidance you need to make it the best estimate you have for what the.

Speaker Change: For the year will get or what the what the EBITDA margin, we gave them and you need to have a good reason for if you're going to lower it or increase it right. Now this is the best.

Speaker Change: That we see and this is our guidance, we think that we will lease between 666% to 8% constant five so we cant we shouldnt changes.

Martin Arnell: This is our guidance. We think that we will reach between 66-68% 2025. So we can't, we shouldn't change.

Martin Arnell: All right, thank you guys, that's all for me.

Speaker Change: Alright, Thank you guys that's ultimate.

Monique Pollard: Please introduce yourself with the name and company, please go ahead. Hi, good morning everybody. It's Monique here from Citi. I had three questions if I can. The first one, Martin, just coming back to this idea of the geo-blocking that you've been doing in Europe, I'm trying to understand how much of the impact is straight, you know, blocking of unregulated operators in the region, and whether there's a subsequent impact, which is, you know, on those unregulated sites, for instance. Maybe your games were being played at faster spin speeds with no deposit limit, and that has all been removed because now you're just on the regulated sites, and therefore the games are being played in line with the regulation.

Speaker Change: Please introduce yourself with the name and company. Please go ahead.

Hi.

Speaker Change: Money.

Speaker Change: From tissue.

Speaker Change: I have three questions if I can.

Speaker Change: First one market just coming back to the site there that ti blocking that you've been doing in Europe I'm trying to understand how much of the impact just straight you Nate.

Speaker Change: King unregulated operators in the region and why that whether there's a subsequent impart which is.

Speaker Change: On the unregulated side maybe.

Speaker Change: Maybe youll games were being paid.

Speaker Change: It's been the deposit they met.

Speaker Change: And that will do for me.

Speaker Change: Because now you just on the regulated side and that's the game to being quite in line with the regulation.

Monique Pollard: As in, in the regulated markets you were in, where you were offering the games to unregulated players, were the games, did they still have the sort of parameters of the regulatory backdrop attached to them or not? That's the first question.

Speaker Change: In the regulated market.

Speaker Change: Offering.

Speaker Change: Regulated players the game did they still have the two different paths.

Speaker Change: The regulatory backdrop attached to them or not that's the last question. The second question is just on the R&D.

Monique Pollard: The second question is just on the RNG momentum, that slowed materially to 3% this quarter versus 7% last quarter. I just wanted to understand what you think you can be doing to get back portfolio performing better? Is it a matter of releasing more games? Is it, I don't know, or is it something else that you feel you've got a handle on now?

Speaker Change: Slide materially to 3% this quarter at 7% last quarter.

Speaker Change: I just wanted to understand what you think you can be doing to get that.

Speaker Change: That's it isn't a matter of releasing them okay is it.

Speaker Change: I'm not worried that something else that you see and you've got a handle on now.

Monique Pollard: And then the final question is just a clarification. I'm just trying to make sure there's no material changes, for instance, in commission rates in any part of your business in this quarter. So all the slowdown that we're seeing is to do with either the one-offs, the cyberattacks, the geo-blocking, or it's to do with the slowdown in player volumes. There's no change in commission rates. Thank you. Okay, yes. First question is an intelligent question. I understand what you're asking. I wouldn't say that... it's because of that the games are slower and that they don't want to play it so so the players when they are ring fans they they don't return because of the they don't return if they can continue play on other providers outside the license.

Speaker Change: And then the final question is just a clarification I'm just trying to make sure. There's no material changes for instance, and commission rates in any part of your business in this quarter. So it will be slow down, but let's see and it's to do with either the one off tax.

Speaker Change: Tax that you had blockade.

Speaker Change: It has to do with the slowdown in platform.

Speaker Change: Change in commission rates.

Speaker Change: [laughter].

Speaker Change: Okay, Yes.

Speaker Change: First question is an intelligent question I understand what you were.

Speaker Change: What you're asking.

Speaker Change: I wouldn't say that.

Speaker Change: It's the cost of that.

Speaker Change: That the games are slower, but they don't want to play it.

Speaker Change: Players when they are ring fenced they they don't return in the course of it. They don't return if they can continue play on other providers.

Monique Pollard: So there is a bit of stiffness. I don't I wouldn't assume it has to do with with the way that the games are played inside the regulated market. That's the answer to the first question. That's not material, as I said. When it comes to the RNG development, I would say that that is also as much affected by the ring fencing. We don't quantify exactly where the growth is coming from, but it's also affected by that. So that is part of the softness. Quarter on quarter, Q4 is also seasonality strong and Q1 is not so much.

Speaker Change: Outside the lifestyle.

Speaker Change: There's a bit of stiffness I don't I wouldn't assume it has to do with.

Speaker Change: With the way that the games are played inside the regulated markets.

Speaker Change: That's the answer to the first question.

Speaker Change: But that's not material as I see it.

Speaker Change: When it comes to the R&D development.

Speaker Change: I would say that that is also.

Speaker Change: Much.

Speaker Change: The effected by the ring fencing, it we don't quantify exactly where the growth is coming from Buck, but it's also affected by that so that is part of the softness.

Speaker Change: Yeah.

Speaker Change: On quarter U K.

Speaker Change: Q4 is also seasonally strong in Q1, that's not so much. So that's also part of the effect and they understood effect on the R&D is that we have.

Monique Pollard: So that's also part of the effect. And the third effect on the R&D is that we are still working our way to get to a good level in North America. I think that the underlying The underlying part of RNG is actually stronger in Q1 than it was in Q4 and in Q3, but the growth comes out at 3.1%, so that's what it is. Pricing? No. I don't see any structural changes in the pricing or the player mix or in other, there is no such funnel. Thank you.

Speaker Change: We are still working our way to get to a good level in in.

Speaker Change: North America, I think that the underlying.

Speaker Change: Yeah.

Speaker Change: The underlying cost of LNG is actually stronger in Q1 than it was in Q4 and in Q3, but the growth comes out the $3 lump sum so.

Speaker Change: That's what it is.

Speaker Change: <unk> no.

Speaker Change: Don't see any structural changes in the pricing or the player mix or there's no such Panama.

Monique Pollard: And just, sorry, coming back to the first question. So as it was before, pre the geo-blocking, where you were offering your games on an unregulated side, They didn't have the regulatory changes attached to them. So, you know, you could play at whatever spin speed, etc. But you're just saying that doesn't have a big impact. I don't say, I don't, I say that an over-regulated market or a too stringent market will get low channelization. But I don't see that that is a light switch happening that shows in Q1 that that is the effect that the players are playing, but they're playing on lower speed or other.

Speaker Change: Thank you and just started coming back to the first question.

I think what's before prebuilt ad blocking.

Speaker Change: We're offering the games on the unregulated side. They didn't have the regulatory changes attached to them and say you know you could play out what happens.

Speaker Change: But you just think that doesn't have a big impact.

Speaker Change: Yeah.

Speaker Change: I don't say I say that it is older regulated mark yet or it's too stringent market when he got low chaptalization, but I don't see that that is the <unk>.

Speaker Change: Light switch happening that shows in Q1.

Speaker Change: That is the effect.

Speaker Change: Yeah.

Speaker Change: The players are playing but theyre, playing on lower speed or other.

Monique Pollard: That's not, that's not it. So, in terms of the ring fencing, we are stricter. That means that now anyone playing on our product have to have a license where such license. on it. Okay.

Speaker Change: That's not that's not that so in terms of the ring fencing, we have strict there that means that now anyone playing on our products have to have a license where such license et cetera.

Speaker Change: Got it okay. Thank you.

Monique Pollard: Thank you.

Speaker Change: Thank you.

Speaker Change: Yeah.

Speaker Change: Okay.

Virendra: Please introduce yourself with the name and company. Please go ahead. Hello? Yeah, hi, this is Virendra here from AlphaValue. Sorry, I couldn't hear you. Yeah, hi, can you hear me now? Yeah. Yeah, okay, Virendra from Alpha Value.

Speaker Change: Please introduce yourself with the name and company. Please go ahead.

Speaker Change: Yeah.

Dan: Hello, Yeah, Hi, this is Dan.

Speaker Change: Uh huh.

Speaker Change: I couldn't hear you.

Speaker Change: Yeah, Hi can you hear me now.

Speaker Change: Yes.

Speaker Change: Yeah, Okay. They ended up coming in I felt that you.

Virendra: And I have three questions. So the first is particularly regarding Asia. So how far along are you with respect to the actions you wanted to take in Asia to fix these cyber fraud issues that you've been having for the past couple of quarters? and any success so far you are noticing as a result of these actions that you would have taken probably a couple of quarters ago. We are having good traction with the actions that we are taking, the actions are still leveling out, so we are, as I stated, removing a number of customers and a number of traffic, and at the same time, of course, we're growing, and that equals out.

Speaker Change: And I have two questions. So the first is particularly if you got an issue.

Speaker Change: So how far along are you with respect to the action. If you wanted to take in Asia, two fixes the cyber fraud issues that you've been having for the past couple of quarters.

Speaker Change: And any thoughts so far you are noticing as a result of these actions that you would have taken probably a couple of quarters that go.

Speaker Change: Yeah.

Speaker Change: We are having good traction with the actions that we're taking.

Speaker Change: The actions are still leveling out so we are as I stated.

Speaker Change: Removing the number of customers.

Speaker Change: And the number of traffic and at the same time of course, we are going.

Virendra: I don't have any exact timeline to relate that to. We are on track with what we are doing, and we hope to see, of course, as we move forward, traction revenue-wise as well.

Speaker Change: That equals out.

Speaker Change: I don't have any.

Speaker Change: The exact timeline to relate that to we are on track with what we are doing and we hope to see of course as we move forward traction revenue wise as well.

Virendra: Okay, perfect.

Speaker Change: Okay perfect second one.

Virendra: Second one was, do you expect any more of these proactive actions that you've been taking in other markets in Europe? And at least, is that on the horizon or do you see that? No, I don't expect that. But we are now following the regulation and the regulation is moving in Europe. And now we come to this baseline. And of course, we need to be lenient and follow through also in the future. But right now, I don't expect any other action.

Do you expect any more of these proactive actions that you've been taking in other markets in Europe and the at least is that on the horizon or do you see that.

Speaker Change: No I don't expect that but we are now following the regulation and the regulation is moving in Europe.

Speaker Change: Now we come to this baseline them and of course, we need to be linear and some follow through also in the future, but right now I don't expect any other auctions.

Virendra: Okay, and just one on your comment regarding the business growth, you said that there was a lot more growth in the light casino side was driven by more commissions per customer rather than new customers. So does that in any way imply that your win margins have gone up or are you just seeing more business? I'm not 100% sure I understood what you meant, but... is essentially we are working with The majority of the market already since a number of years, so the growth will come from that the large customers get larger rather than from small new customers are added.

Speaker Change: Okay.

Speaker Change: And just one on Europe.

Speaker Change: A comment regarding the business school, you said that there was a lot more growth in the like if you don't find what you want to buy more commission per customer rather than new customers.

Speaker Change: Does that imply that there's been like in fact gone up or are you just seeing both businesses.

Speaker Change: Customers.

Speaker Change: I'm not so.

Speaker Change: Sure I understood what you meant.

Speaker Change: Yeah.

Speaker Change: Essentially we are working with.

Speaker Change: The majority of the market already since a number of years. So the growth will come from from the large customers gets larger rather than from small new customers are added.

Virendra: Okay, yeah, my question was, is that win margin going up or is that just more business? I think that We have been in that situation over time. I don't think that that is the driving point of the margin in itself. There are a lot of other aspects that drive the margin, such as the resource mix or other things, more than exactly which customer that have what GDR. Perfect.

Speaker Change: Okay. Yeah. My question wasn't that didn't budget is going up or is that just more of the business.

Speaker Change: Yeah.

Speaker Change: I think that.

Speaker Change: Yes.

Speaker Change: We have been in that situation over time, I don't think that that is the.

Speaker Change: The driving point of the margin in itself there are a lot of other aspects.

The margins I was just a resource mix or other things.

Speaker Change: More than exactly which customer that have bought TCR.

Virendra: And just one last one. Sorry for one too many. The question is regarding your EBITDA margin guidance, what would take you to the higher end versus the lower end in your assumptions or expectations that you kind of want? If we get good traction and do what we think that we can do, of course we will reach the higher end. Okay, a little bit more cautious, we'll be on the lower end.

Speaker Change: Okay, perfect and just one last one the Saudi for one too many.

Speaker Change: The question is regarding your EBITDA margin guidance.

Speaker Change: What would take you to the higher than what it doesn't do what it ignored assumptions or expectations that you'd think walking.

Speaker Change: Yeah.

Speaker Change: If we get good traction undo what we what we think that we can do of course, we will reach the higher end.

Speaker Change: Okay.

Speaker Change: More cautious would be on the lower end.

Virendra: Okay, good day. Thank you.

Speaker Change: Okay got it thank you.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Thank you. Thank you. Thank you please introduce yourself with the name and company. Please go ahead.

Ed Young: Please introduce yourself with the name and company. Please go ahead. Hello, it's Ed Young from Morgan Stanley. Can you hear me? Good morning. I've got three questions, please.

Yeah.

Ed Young: Hello, It's Ed Young from Morgan Stanley can you hear me.

Speaker Change: Oh, yes, good morning, good morning.

Speaker Change: Good morning, I've got three questions. Please.

Ed Young: The first is on ring fencing. You've talked about in detail this morning about the ring fencing in the timeline, but you've also talked about this being regulated markets in Europe. Could you just clarify for us if there are any regulated markets in Europe you've not chosen to ring fence? And then more broadly, why wouldn't this be applied to all regulated markets, including outside of Europe? So I want to understand the framework you've used for the decision you've made around the ring fencing.

Speaker Change: The first is on ring fencing them, you've talked about in detail. This morning about the the ring fencing in the timeline, but you've also talked about this being <unk>.

Speaker Change: Related markets in Europe could you just clarify for us if there were any regulated markets in Europe.

Speaker Change: Not chosen to ring fence, and then more broadly why wouldn't this be applied to all regulated markets, including outside of Europe. So just want to understand.

Speaker Change: The framework, if you used but the decisions you've made around the ring fencing.

Ed Young: The second is FX. You've helpfully given a sort of XFX number in the statement. I just wondered if you could help us. Is that just on the basis of the translation of where you've earned commission revenue in dollars or whatever it might be? Or is this also applying a player purchasing power effect, which you've sometimes referred to in the past? So if you could perhaps just clarify on that and any thoughts on purchasing power.

Speaker Change: The second is FX, you've helpfully, given a sort of ex FX number in the statement I was just wondering if you could help us is that just on the basis of the translation of what you've.

Speaker Change: Commission revenue in dollars or whatever it might be or was this also applying a play out purchasing power effect, which is sometimes referred to in the past if you could perhaps just clarify on that and any thoughts on purchasing power on the list.

Martin Carlesund: And then the third, Joachim, obviously newly in the role. I just wondered if you could talk through whether there's anything you think needs to be done differently from how it's been done in the past from your seat as CFO in your role. And if you could expand a little bit on what you what you think you bring as a as a new face to the evolution management team. Yeah, okay. We work with the ones where there is a local license and then we apply ring fencing where those ones exist. So that's the remit. And we have implemented it in practically all where that exists.

Speaker Change: Okay.

Speaker Change: I'm new to the role I, just wonder if you could.

Speaker Change: Talk through whether it's the other thing you.

Speaker Change: Do you think needs to be done differently from how its being done in the pulse from your seat to see if I'm in your role and if you could expand a little bit on what you. What you think you bring as a as a new face to the reputation management team. Thank you.

Speaker Change: Yeah.

Speaker Change: Yeah, Yeah, okay.

Speaker Change: We worked with the once where there was a local license and then we apply ring fencing, where those fall and successes.

Speaker Change: That's the that's the remit and we have implemented it.

Speaker Change: Practically all without access so that's where we are.

Martin Carlesund: So that's where we are. When it comes to the second question. what was that Ed? Purchasing power and ethics. The ethics effect that we are, that's the bookkeeping currency effect. The purchasing power, we don't quantify that in any way. But of course the purchasing power effect, and it will always be there. We haven't quantified that in any way. So that's the bookkeeping part of it.

Speaker Change: When it comes to the <unk>.

Speaker Change: Second question.

Speaker Change: What was that.

Speaker Change: Puts us purchasing power and epic the FX effects that we are that that's the that's the bookkeeping currency effect the purchasing power we have not.

Speaker Change: Quantify that.

Speaker Change: Anyway, but of course, the purchasing power effect.

Speaker Change: And it will always.

Speaker Change: It would be that we haven't quantified that.

Speaker Change: In any way.

Speaker Change: So that's the book keeping part of it but youll see.

Joachim Andersen: And the last one was to Joakim regarding his entry of a new role. Welcome, Joakim. Thank you very much. Thank you for the question. I mean, I've been on board for a couple of months. I'm still new here. I'm learning. I get a lot of impressions, a lot of information to digest. But yeah, I mean, to try to still say something about my first impressions, I think it's a fantastic company. I'm super eager to learn more. I've done great in the past and we have a lot of interesting things on the table. The team is good.

Speaker Change: Uh huh.

Speaker Change: For most of your work in regarding his entry of a new road won't come to him. Thank you very much. Thank you for the question.

Speaker Change: I mean I've been on board for couple of months.

Speaker Change: Some new here.

Speaker Change: Running.

Speaker Change: I get a lot of impressions a lot of information to digest.

Speaker Change: Yeah, I'll try to stay let's say something about my first impressions I think it's a fantastic company.

Speaker Change: <unk> eager to learn more.

Speaker Change: Great in the past and got a lot of interesting things on the table.

Joachim Andersen: I'm quite impressed with the background. We have solid processes. It's a high quality of the output. So I have a great boss. So yeah, that's probably the first impression. What can I bring? I mean, this is not a revolution in evolution, but evolution, I think. Jacob, who was my predecessor, a great guy, I knew a lot, so I'm trying to fill his shoes, start with. Obviously, I have a slightly different background. I have quite a long experience from public companies. As a person, I'm structured and process-oriented. I think we can improve everything a little bit.

Speaker Change: The team is good quite impressed with background, we have solid processes.

Speaker Change: High quality.

Speaker Change: Outputs.

Speaker Change: So I have a great boss.

For me the first impressions, what can I bring him.

Speaker Change: This is not a revolution in evolution, but evolution I think J Goff, who was my predecessor, great Guy and you're not trying to fill his shoes start with.

Speaker Change: Obviously, I have a stack of different background.

Speaker Change: Long experience from public companies.

Speaker Change: Person in structured process oriented I think I mean, I think we can improve everything.

Speaker Change: Elizabeth.

Joachim Andersen: So I'm working my way into it, trying to change some things, trying to improve a little bit every day. But nothing revolutionizing.

Speaker Change: So.

Speaker Change: I'm working my way into it trying to change some things trying to improve a little bit everyday but nothing nothing revolutionizing.

Speaker Change: Yeah.

Joachim Andersen: Thank you.

Ed Young: I wonder if I could follow up on the first question. You said practically, so maybe there are one or two you haven't. So could I ask again, what's the framework you've decided whether to do it or not? And can I repeat the global question, so you've talked about Europe, but why wouldn't you approach it globally? Okay, thanks. I won't go into detail, country by country, what actions we take, but in general, whether it's a local license, we have ring-fans in Europe. All worlds are different. If you look at, for example, United States, we are not obliged to ring-fans at all, because that's the operators' obligation.

Speaker Change: Thank you I wonder if I could follow up on the.

Speaker Change: First question you.

Speaker Change: You said.

Speaker Change: Particularly so maybe there were one or two you haven't so could I ask again.

Speaker Change: The framework, you've decided whether to do it don't know them can I repeat the global question. So you've you've talked about why don't you why it wouldn't be a problem.

Speaker Change: Slightly.

Speaker Change: Okay. Thanks.

Speaker Change: I won't go into detail country by country, what actions would take but in general on whether it's a local license we have ring fenced in Europe.

Speaker Change: All wells are different if you look at for example, the United States, we are not obliged to ring fence at all because that's the operators.

Martin Carlesund: We help the operators, but that falls on them. So the regulators have a little bit different approach in different jurisdictions. Right now, the European community is moving a little bit towards the B2Bs. ring fencing or even being the customs of the of the borders. And we are trying to be a little bit proactive there following. So that's the situation in Europe. And it's different from other European countries. All jurisdictions are different, of course.

Speaker Change: Obligation, we have built bridges, but that's forced on them. So the regulators have a little bit different approach in different jurisdictions right now the European community is moving a little bit towards to B to b to B b.

Speaker Change: Ring fencing or even being the customs of the of the borders.

Speaker Change: We're trying to be proactive there following so that's the situation in Europe.

Speaker Change: It's a different from from other jurisdictions all jurisdictions are.

Speaker Change: Different of course.

Martin Carlesund: Okay, useful. Thank you.

Speaker Change: Okay useful thank you.

Speaker Change: Thank you. Thank you.

Speaker Change: Yeah.

Speaker Change: Yeah.

Operator: No more questions at this time, so I hand the conference back to the speakers for any closing comments. Thank you very much for listening, a pleasure to talk to you, answer your questions. Look forward to the next quarter and some of you I will meet soon, so have a nice day. Thank you.

Speaker Change: No more questions at this time, so I hand, the conference back to the speakers for any closing comments.

Speaker Change: Yes.

Speaker Change: Thank you very much for listening.

Speaker Change: Especially to talk to answer your questions the call with the next quarter.

Speaker Change: Some of them will be able to meet soon so have a nice day. Thank you.

Speaker Change: Yeah.

Operator: The host has ended this call. Goodbye.

Speaker Change: The highest attended this call goodbye.