Q2 2026 Allwyn AG Earnings Call
Speaker #1: Ladies and gentlemen, thank you for standing by. I am Gailee, your Chorus Call operator. Welcome, and thank you for joining the L1A Gene investor conference call and live webcast to present and discuss the second quarter 2026 preliminary results.
Speaker #1: All participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by a question-and-answer session. Should anyone need assistance during the conference call, you may signal an operator by pressing star zero on your telephone.
Speaker #1: At this time, I would like to turn the conference over to Mr. Robert Fatal, CEO. Mr. Fatal, you may now proceed.
Speaker #2: Thank you very much. And good morning or good afternoon, everyone, and welcome to Allwyn's Q2 2026 results call. It's good to be speaking with you again after another quarter of strong financial and strategic delivery.
Speaker #2: I am Robert Fatal, Group CEO. Joining me on the call today are Ken Morton, Group CFO, and Keshmir Spich, the CEO of Allwyn Digital.
Speaker #2: And as this may be the first time some of you are hearing from Keshmir, I will briefly pass to him to introduce himself.
Speaker #3: Thank you, Robert. And hi to everyone on the call. My name is Keshmir Spich. I'm CEO of Allwyn Digital. I lead technology and product development across the whole group.
Speaker #3: I joined Allwyn in September of last year. After spending 13 years working in the United States, I have over two decades of international leadership experience across regulated gaming markets.
Speaker #3: And before joining Allwyn, I was CEO of Bad Fred USA, and prior to that, I held senior leadership roles at Great Canadian Entertainment, Hard Rock International, Rush Street Interactive, and several other multinational companies.
Speaker #3: I took this role because I was genuinely excited about the direction where Allwyn is heading. And I wanted to apply everything that I have observed and learned in this industry to lead Allwyn's expansion beyond its lottery roots.
Speaker #3: I believe that our business is well diversified geographically, vertically, and per channel, that we have a clear vision, ambitious goals, and strong team to deliver on it.
Speaker #3: And therefore, I personally believe that we are uniquely positioned to take advantage of the industry changes and new opportunities in the years to come.
Speaker #3: I'll pass it back to Robert.
Speaker #2: Thank you. Thank you, Keshmir. And now, I will start by covering both key business highlights, as well as the strategic update, before handing over to Ken to cover the financials and outlook.
Speaker #2: And we'll then take a Q&A. So, my initial slide highlights key financial indicators, and we are very proud to be presenting them, as we delivered another strong quarter both in terms of financial growth and strategic execution across the group.
Speaker #2: Once again, the momentum and quality of the Allwyn platform was on full display in Q2, starting with the financials. Net revenues increased by 27% year on year, and adjusted EBITDA by 29%.
Speaker #2: adjusted EBITDA minus CapEx grew even more strongly up 43% year on year. And this reflects continued momentum in continental Europe. The consolidation of price picks and a step-up in contribution and cash flow in the UK, as we concluded both retail and digital transitions.
Speaker #2: one of the most comprehensive transitions in the lottery industry history. And against this positive backdrop, I am, pleased to report that the board has confirmed a 20, cent, euro cent per share interim distribution.
Speaker #2: This takes dividends paid this year to €1.00 per share. We have also executed around 60% of our current €150 million share buyback program.
Speaker #2: And this combination of growth, cash generation, and capital returns is Allwyn's undisputed strength, and a clear, clear differentiator. So, turning to the next slide, we set out key examples of strategic execution across all our geographies and strategic pillars.
Speaker #2: We have delivered across all four businesses and across all pillars of the strategy. Looking at continental Europe, we maintained strong momentum in digital growth across the region, with plus 21% year-on-year in the digital space.
Speaker #2: And we also continued to advance our global brand strategy, launching the Allwyn brand also in Austria, and continuing our rebranding program in the Czech Republic and Greece.
Speaker #2: Allwyn became a consumer-facing brand in these markets, and it shows great acceptance and relevance, especially to the younger cohorts of our customer base. By the way, brand awareness climbed to over 70% in just eight months.
Speaker #2: So, we are very pleased with the strong financial performance in those markets since launching our global brand of Allwyn back in, back in January.
Speaker #2: And this, in my view, is the best testament to our One Brand initiative, one of the key cornerstones of Allwyn's strategy going forward. Lastly, on the inorganic side, we agreed to increase our stake in Next Lotto to a controlling position. As a reminder, Next Lotto is an online reseller of lottery games in the large and, as for iLottery, underpenetrated German market.
Speaker #2: And I will leave it to Keshmir to comment on the progress of our PrizePicks line of business. But adding one important note on the North America lottery business: in Illinois, legislation was enacted there enabling a three-year extension of our private management agreement.
Speaker #2: And this week, we initiate discussions on concrete commercial terms for the next three years. So, in summary, we have continued to bring positive news and innovate across our market, which is a key driver of engagement and long-term growth.
Speaker #2: Now, that takes me nicely to slide seven, where we have shown some examples of product development since the first quarter. Looking at the left-hand side of the page first, you can see that we continued to invest in and refresh our lottery proposition across our markets.
Speaker #2: And this included, for example, enhanced Lotto game formats in Austria and the UK. In the UK, we introduced New Lotto, the largest draw-based games there.
Speaker #2: With two draws and two chances to win, positioning firmly the game as the true UK's millionaire maker. And we are actually introducing Eurojackpot online today in Greece.
Speaker #2: Obviously, an important channel that, we could unlock regulation-wise now. and the another example is the launch of new daily lottery in the Czech Republic called 20 Mega, and bringing the US game Powerball to the UK market.
Speaker #2: That happened in July. As a reference, Powerball is one of the world's largest jackpot games, with prizes reaching the billions. And this is literally an order of magnitude larger than the largest jackpots previously available in Europe, even by EuroMillions or EuroJackpot standards.
Speaker #2: So this launch is a real landmark in the lottery space, and we are very proud to be Powerball's first market outside the US.
Speaker #2: On the right-hand side of the page, you can see that we have also been busy in Scratch Cards. An important note is that we cemented our next 12 years of exclusive Scratch Card license in Greece.
Speaker #2: It's very good news. And in iGaming, where the Czechs, the Allwyn Czechs—Czechia—launched a fun park as a trial playground on their website.
Speaker #2: So, it was also a dynamic quarter at PrizePicks, both in terms of their portfolio extension into team picks enabled by the prediction market, and across the business more broadly. For that, I will hand over now to Keshmir.
Speaker #1: Thank you, Robert. Price picks obviously play a key role in Allwyn leveraging new market opportunities and in the growth of our digital business. We continue to be the clear leader in Danny Fantasy sport in the US.
Speaker #1: We have a large, highly engaged, and sizable player base, and, very importantly, we have a strong and loud brand, which is visible both in aided and unaided brand awareness results in our key markets.
Speaker #1: We also have an agile product and player-focus team with a proven track record of innovation. As you may know, we have added prediction markets to our product portfolio in order to expand the total addressable market and to complement the core DFS offering, so our players have more ways to engage with the sports that they love.
Speaker #1: If you look at the right-hand side of the slide, you can see that PrizePicks' Q2 operating performance demonstrates that the prediction market opportunity is beginning to translate into additional growth.
Speaker #1: If you look at the amount staked, which is combined DFS entry fees and prediction market volumes, we grew 35% year-on-year. And if you look solely at the prediction market volumes, we grow significantly quarter-on-quarter, though from a smaller base.
Speaker #1: I think, for me, the most important stat is that average DFS entry fees per player have seen strong double-digit growth, which outlines that we have increased engagement of our players and the lifetime value of our players.
Speaker #1: We have also recognized the value and the opportunity to capitalize on the soccer World Cup in the US, and we decided to increase our marketing spend, both to acquire new players and to deepen engagement with existing players.
Speaker #1: And this is very visible in our results, especially in the 26 million associated lineups in June and July. It's important to note that PricePicks exited the second quarter with a significantly larger active player base than a year ago—approximately 18% year-on-year growth—in what is seasonally a very quiet period. Summer months are a down season in the US.
Speaker #1: And this has proved to be a strong foundation as we approach the NFL season, and later the NHL and NBA seasons, which are the strongest months and quarters in US sports.
Speaker #1: Moving to slide nine, this slide is a good example of one of PricePicks' key strengths: its ability to innovate quickly and continuously deliver experiences that satisfy and exceed players' expectations.
Speaker #1: If you look at the left-hand side of the slides, you can see the progression of the prediction markets and what we have introduced introduced in terms of the products.
Speaker #1: We introduced, in November last year, team and culture picks products. We introduced the blended lineups in May 2026, and we are launching the fully blended lineups just before the start of the NFL season.
Speaker #1: This lift enhancement is important because it will allow customers to seamlessly combine player picks, team picks, and culture picks within a single lineup. If I want to explain this in simple terms, it makes the experience easier, more flexible, and more engaging for players, while bringing the best of both worlds: daily fantasy sports and prediction markets.
Speaker #1: It's important to understand that this is just one of the enhancement examples. There is a long list of other enhancements across player engagement, retention, operations, and the role of user experience that is making us quite confident that we'll continue to be a leader in sports entertainment.
Speaker #1: As you know, the U.S. sports entertainment market continues to evolve rapidly—both from a regulatory perspective and in terms of consumer expectations and the competitive environment.
Speaker #1: I have been in the US market since 2013, starting with regulation of online casino and poker, moving to the importance of DFS in 2015 and 2016, starting with post-party appeal and opening, and legalization of the US sports betting market across the country, and also the surge of many adjacencies like social casinos, civic stakes, and many others.
Speaker #1: Regardless of all of this—regulatory uncertainty and the competitive environment—we are truly convinced that we have the platform, products, brand, talent, and, most importantly, the mindset to capture multiple opportunities and translate them into engaging player experiences and increased profitability in any market scenario.
Speaker #1: Now, I pass back to Robert.
Speaker #2: Thank you. Thank you, Keshmir. And, my next slide is the summary of, strategy, of Allwyn. And, I tried to show examples again, because, you know, the best thing is to show examples of execution under each pillar, of our strategic, framework in, in, in this quarter.
Speaker #2: So, the key message is simple: that we continue to focus on the proven strategic priorities that have underpinned our industry-leading growth over many years. You can—and will—get a clear testament to the success of this strategy when you see our results for the quarter in historical, you know, past five years' context.
Speaker #2: We also have a couple of nice examples on the slide. For example, our commitment to responsible gaming and CSR, which we really place great importance on for the long-term strength of our business.
Speaker #2: This is a regulated business. It's about the business of responsible gaming. And being at the forefront of a "safe place to play" position is absolutely key for us.
Speaker #2: And secondly, the activation of the Allwyn brand in action, shown here in Greece, for example. So that leads me to a wrap-up on slide 11, with an update on our board of directors.
Speaker #2: I am really excited to say that Petra Ehman will be nominated for election as an independent director at the next general meeting. And, speaking to her, I am keen and sure she will bring extensive experience in both digital transformation as well as product innovation and artificial intelligence, AI.
Speaker #2: Most recently, Petra led group-wide innovation, AI, and product initiatives across a portfolio of digital businesses, and is the founder of an AI health tech startup.
Speaker #2: So her appointment would take independent representation to 50%, as we committed to during the business combination with OPAP. So we look forward to welcoming her.
Speaker #2: And with that, I'll hand over to Ken.
Speaker #3: Thank you, Robert. Hello and welcome to everyone on the call. I’ll start with our financial performance, then I’ll cover current trading and the outlook before we move on to Q&A.
Speaker #3: As always, we've aimed to provide the information that our investors need in a clear and convenient way. There are some slides in the appendix with additional details, in particular for our debt investors.
Speaker #3: And I'd also mention our financial data book, which is intended to make it easy to work through the numbers and to build a model.
Speaker #3: As usual, we've published a new version with the quarter's data on our website. Regarding the presentation of the numbers, most of the financial information that we discussed today is presented on a look-through basis.
Speaker #3: Which reflects the underlying performance of the enlarged group. In particular, the comparative numbers for Q2 last year are taken from the reported financials of Allwyn International, so you can see the financial performance of today's Allwyn on a consistent basis.
Speaker #3: Secondly, we acquired Price Picks in January this year. We provided some numbers throughout this section to help you understand growth without that impact, as well as without the impact of a few factors that impact comparability in the short term, but will roll off in the next few quarters.
Speaker #3: In particular, that's higher gaming taxes in Austria from the third quarter last year, and license fee amortization in Italy after the start of the new license in the fourth quarter.
Speaker #3: Those are the same factors that we highlighted in Q1. So, with that, I'll turn to a few highlights, starting with net revenue, which was up 27% year-on-year.
Speaker #3: That reflects good momentum in continental Europe, continuing from Q1. Continued digital growth, as well, and of course the consolidation of Price Picks. If we strip out Price Picks and the Austria tax impact, growth was 5% year on year, which we're pleased with, given that Q2 last year did benefit from some record jackpot cycles in a number of important games.
Speaker #3: Adjusted EBITDA increased even more strongly, by 29%, year on year, with a margin of 37% of net revenue. That's slightly higher year on year, despite the lower share of profit from equity method investees.
Speaker #3: That lower share reflects higher license fee amortization at Lotto Italia, and the phasing of items below EBITDA at Bottano. Stripping out those items for a like-for-like view, adjusted EBITDA was up 9% year-on-year.
Speaker #3: Lastly, on the slide that you can see on the screen, there is a breakdown at the bottom of EBITDA between businesses where we own 100%, businesses where there are minorities, and income from our equity method investees.
Speaker #3: We hope that will be useful for modeling. That analysis is also available in our data book historically. Moving to slide 14, we've provided a bridge of adjusted EBITDA year-on-year to help explain the underlying performance.
Speaker #3: The key takeaway is that organic EBITDA development continues to be strong—up 9% year on year, as I just mentioned. That’s again against a relatively demanding comparative, as I already covered.
Speaker #3: As in Q1, the year-on-year comparison reflects the effects in Austria and Italy, which represented headwinds of €13 million and €9 million, respectively. Factoring in a full quarter of contribution from price picks, overall adjusted EBITDA was up 29% year on year.
Speaker #3: Turning now to slide 15, we summarize performance by business and by product. From the product perspective, sports betting and iGaming were the primary growth drivers, with NGR increasing 12% and 24%, respectively.
Speaker #3: with sports betting also benefiting from the start of the World Cup, of course. Lottery NGR was down 2% year-on-year, reflecting those very large jackpots in the second quarter last year.
Speaker #3: Moving now to slide 16, we recap the split of our business as it stood in the second quarter across geography, product channel, and license type.
Speaker #3: And as you can see, we're very diversified across all those parameters. That's a real benefit in gaming, with our operations under a large number of licenses and fiscal and regulatory regimes.
Speaker #3: Financially, it also helps to smooth volatility in our individual businesses and products between quarters, whether that's caused by sports betting margins, jackpots, or FX.
Speaker #3: And you can see the benefit of that, again, in this quarter's numbers. Strategically, it provides us with a great deal of optionality. Our expertise across verticals and geographies has been a key contributor to the success of our inorganic growth strategy.
Speaker #3: So, we see that high degree of diversification as being a key strength, as well as a key differentiating factor. Now, moving on to slide 17 and Continental Europe.
Speaker #3: Continental Europe, of course, is our largest business, so I'm particularly pleased to say that the good start to the year that we saw in Q1 continued into Q2.
Speaker #3: Net revenue was up 4% year on year, or 6% excluding the Austria tax impact. This continues the good momentum that we saw in Q1, where underlying growth on that same basis was similarly strong at 7% year on year.
Speaker #3: Performance was led by iGaming and sports betting, as I mentioned, with continued strong growth in the digital channel. In lottery, performance reflected the demanding comp.
Speaker #3: Adjusted EBITDA was 3% lower year on year. However, on a comparable basis—again, excluding the impact of the factors on the waterfall—adjusted EBITDA grew by 4% year on year.
Speaker #3: Turning to slide 18, the charts on this slide show North America on a pro forma 100% basis. That means we include PricePicks data for each quarter in 2025, and the whole of the first quarter of 2026.
Speaker #3: So the year-on-year trends are clean. On that basis, North America delivered constant currency net revenue growth of 6% year-on-year, within which Price Picks delivered constant currency net revenue growth of 3%.
Speaker #3: The year-on-year particular picture reflected a combination of really good performance in terms of price picks and key KPIs, as Kashmir mentioned earlier. Those include MAUs and customer activity, and that was partially offset by exceptionally friendly—actually, operator-friendly, I should say—sports outcomes in Q2 last year, which created a significant headwind for the comp.
Speaker #3: The remainder of the North America business continued to perform well, delivering 21% constant currency revenue growth. We were also pleased, as Robert mentioned, to see legislation enacted in Illinois to enable a three-year extension of our private management agreement, subject to agreement on commercial terms.
Speaker #3: EBITDA was €37 million lower year-on-year. That reflects the strategic marketing investment Kashmer mentioned, targeted at maximizing revenue and customer acquisition around the World Cup.
Speaker #3: And it also reflects higher variable costs as a result of the significant increase in player activity levels that we saw during the quarter. I'm pleased to say that the results of the investment in marketing have exceeded our expectations, with record player acquisition, elevated retention, and increased engagement.
Speaker #3: So we carry a strong and engaged player base into the start of the important NFL season, and indeed, the important second half of the year.
Speaker #3: I just finish with this on this slide by reminding you that, in the second half of the year, we’ll have more favorable comparisons for sports outcomes at PrizePicks than we had in the first half of the year, when the comparable period benefited from good, operator-friendly results.
Speaker #3: Moving now on to slide 19 and the UK. The second quarter was a turning point in the UK, as we're now starting to see the profitability and cash flow profile turn around following completion of the technology transition in Q1.
Speaker #3: At the net revenue level, we saw constant currency growth of 3% year-on-year. GGR was notably weaker year-on-year, which reflects a couple of factors.
Speaker #3: First, the favorable EuroMillions jackpot cycles in the comparative quarter indeed record cycles. And secondly, as we flagged at Q1, we've seen some friction related to the digital replatforming, including an impact on player journeys.
Speaker #3: The stronger performance at the net revenue level reflects the start of cost recovery under the UK National Lottery economic model of the license. That allows us to recover a significant proportion of the £450 million investment we've made to transform the technology program.
Speaker #3: That flows through from NGR directly to EBITDA, and drove a step up in profitability of 18 million in euro terms year on year to EBITDA of 23 million.
Speaker #3: We also, if you look at the chart on the bottom left, saw a significant improvement in cash flow as CapEx dropped to a more normalized level.
Speaker #3: And EBITDA adjustments fell away entirely. We're confident in the opportunity in the UK and focused on restoring growth momentum. You may have seen that we recently announced renewed leadership in the UK as we enter the next phase for that business.
Speaker #3: For the rest of 2026, though, we do expect net revenue in the UK to be below the range that we initially anticipated. Although, as I'll come to on la later on our net revenue in aggregate, is our guidance for net revenue in aggregate is unchanged.
Speaker #3: On slide 20, we move on to Bhutan, which delivered yet another very strong quarter. Total revenue increased by 26% year on year, on both a constant currency and as-reported basis.
Speaker #3: This follows growth of 27% last quarter, so a really, really strong start to the year at Bhutan. A nice data point to frame the scale of Bhutan's growth and the scale of the platform is that at the last World Cup, Bhutan was present in three markets whose teams were in the competition.
Speaker #3: This year, that had increased to 12, so you can see that Bhutan has delivered a really phenomenal pace of expansion over the last four years, with Bhutan now being one of the largest, most diversified, and most global online gaming operators.
Speaker #3: That obviously, to a substantial extent, reflects the single brand strategy and the platform, as well as the incredible customer focus of the Bhutan team.
Speaker #3: As you can see, Bhutan also delivered very strong EBITDA growth, broadly in line with revenue at plus 24% year-on-year. At the net income level, our share was down 3%.
Speaker #3: That movement is primarily due to the phasing of below-EBITDA items last year. This relates primarily to taxation, as we've commented previously, and when you're updating a model, it will be very clear when you compare EBITDA with net income in Q2 last year.
Speaker #3: Finally, Bhutan paid another significant dividend in Q2, meaning that dividends for the first half of the year are now up by almost 60% year on year.
Speaker #3: That highlights that Bhutan is not only a platform that is able to deliver very strong growth, but also is very cash flow positive and cash generative.
Speaker #3: Turning now to slide 21, our strong free cash flow generation is supported by the below-structural capital intensity of our business model. Over the last few quarters, as you know, capex has been elevated as we invest in the UK.
Speaker #3: However, that investment is now over, with total capex down 39% year on year at €38 million. That's equivalent to 3% of net revenue.
Speaker #3: In the quarter, which is a more normalized level for the business, EBITDA adjustments similarly stepped down by $10 million compared with Q1. The Q2 adjustments did still include some transaction expenses related to the business combination and the PrizePicks acquisition earlier in the year.
Speaker #3: So, looking forward, we'd expect EBITDA adjustments to fall away further, with the main remaining component being investment in our global brand strategy. Turning now to slide 22, a few words on our capital structure.
Speaker #3: Looking at the bottom of the page, you can see a clear commitment to a conservative leverage over time. As a reminder, during the last several years, we've made significant investments in growth and paid large distributions to shareholders.
Speaker #3: So, the low level of leverage that we've maintained is a testament to the strong natural deleveraging of the business. At the end of the second quarter, leverage was 3.5 times, which is at the high end of our historic range.
Speaker #3: The increase over the last couple of quarters obviously represents the strategic investments that we've made over that period, including in PrizePicks and the renewal of the Lotto Italia and Greek scratch card licenses.
Speaker #3: As well as payments related to the business combination of Allwyn and OPAP, and the payment of the $0.80 per share distribution. All of those amounts were in line with the guidance that we've given previously.
Speaker #3: Looking to the second half of the picture is much simpler, with the only material outflows to highlight being the remainder of the buyback and the interim dividend of $0.20 per share.
Speaker #3: We remain focused on disciplined balance sheet management and are committed to our medium-term leverage target. On that topic, and turning to slide 23, we've summarized for your convenience our capital allocation framework.
Speaker #3: In short, the framework ensures the flexibility to invest in value-accretive growth, as we've done very successfully over many years, but also provides very clear commitments to capital returns and a conservative, efficient balance sheet.
Speaker #3: And on that note, the Board has confirmed the interim distribution of 20 cents a share, which we previously flagged. We've also continued to execute our current buyback program.
Speaker #3: As a reminder, that's a program of up to $150 million, $89 million of which was completed at the end of last week. The buyback reflects our confidence in the long-term growth and cash generation outlook of Allwyn, as well as our view on the attractiveness of our own shares as a capital allocation opportunity.
Speaker #3: Moving to slide 25 and current trading and outlook. Since the start of the year, the business has continued to perform and develop well, and trading is in line with our expectations overall.
Speaker #3: Our group outlook for 2026 is reaffirmed. We continue to expect consolidated net revenue growth in the mid- to high-20s before one-off impacts, and an adjusted EBITDA margin of 37% of net revenue.
Speaker #3: For Q3, the Austria tax headwind will fall away, and we also come up against softer comparatives for sports outcomes in both PricePicks and Bhutan.
Speaker #3: The Lotto Italia headwind will also fall away starting in Q4. And I would also remind you that Q4 is typically our biggest quarter of the year.
Speaker #3: From a macro perspective, we continue to see resilient and growing demand for our products. So, to summarize, we remain confident in our guidance and confident in—and indeed excited about—the long-term growth, profitability, and cash flow generation profile of the business.
Speaker #3: I'd like to end the financial section with one of my favorite slides, which puts the quarter in the context of our group's long-term track record.
Speaker #3: The track record is something that we're immensely proud of, and it's a key proof point for our strategy and a key underpinning of the investment case.
Speaker #3: Since 2019, we've delivered a CAGR in net revenue, adjusted EBITDA, and adjusted EBITDA minus capex of around 20%, more than tripling the size of the business across those metrics.
Speaker #3: That's been achieved without raising any equity and while making large shareholder distributions and maintaining conservative leverage. The combination of scale and diversification with growth, high profitability, cash flow generation, and capital returns that Allwyn has been able to deliver consistently is unique in gaming.
Speaker #3: And in our view, it underpins a differentiated shareholder proposition and a highly attractive shareholder return algorithm. And with that, I'll hand back to Robert to wrap up before we go to Q&A.
Speaker #1: Thank you, Ken. So now let me close and sum up with four takeaways from today. Firstly, the first takeaway is the Q2 results. Q2 results could be characterized as, all in aggregate, another quarter of strong growth, profitability, and cash generation.
Speaker #1: Full stop. Secondly, the second takeaway is about strategic execution — Allwyn strategic execution. And here we are absolutely confident that we continue to execute against our strategic priorities.
Speaker #1: Be it bringing new products or rebranding under one brand, or keep on working on our own tech stack. Thirdly, we reaffirm our 2026 outlook, as Kent already mentioned.
Speaker #1: And finally, this financial performance underpins our commitment to shareholder returns. Together, Q2 was a great indication of what our platform can deliver, and we are excited about the prospects going forward.
Speaker #1: And that also reinforces our very compelling and consistent combination of both growth and shareholder returns. So with that, we can move to Q&A, please.
Speaker #2: Ladies and gentlemen, at this time we will begin the question and answer session. Investors or analysts who wish to ask a question may press star, followed by one, on their telephone.
Speaker #2: If you wish to remove yourself from the question queue, you may press star, then two. Please use your handset when asking your question for better audio quality.
Speaker #2: Anyone who has a question may press star and one at this time. In the interest of time, we also kindly ask you to limit yourself to two questions.
Speaker #2: One moment for the first question, please. The first question is from the line of Ed Young with Morgan Stanley. Please go ahead.
Speaker #3: Hello. I've got two questions, please—one on Bhutano and one on Price Picks. First of all, on Bhutano, revenue growth was very strong in the quarter, particularly compared to peer commentary around Brazil.
Speaker #3: Could you give us some geographical color on Brazil growth versus ex-Brazil, or by existing market versus new market, or somewhere to help understand those trends?
Speaker #3: And just given your comments on tax phasing, should we expect EBITDA to convert to net income more strongly in H2? The second question on PrizePicks: you've flagged the fully blended product launch ahead of the NFL season.
Speaker #3: Do you expect to see a step change in PM revenue? Should we view this as a chance for you to gain incremental customers—materially, those who are interested in predictions as a category—or is this more about better retaining and monetizing the base that you've talked to?
Speaker #3: If I put it simply, how important are prediction markets to your mid-team's guidance frameworks? Thanks.
Speaker #4: Sure. I'm happy to start with the question on Bhutano. so we haven't provided a split of Bhutano's revenues by geography, but I can maybe provide a, a bit of a bit of color that, that will be helpful.
Speaker #4: As you know, Bhutano is the leader in Brazil, and that's a very large market. Bhutano's positioning in that market has continued to go from strength to strength.
Speaker #4: But Bhutano is a very large and internationally diversified business as well. So if you look at the performance in, in, in Q2, it's a reflection of, of the leadership position, strong performance in Brazil, as well as, as well as good performance in, in their other markets.
Speaker #4: In terms of the EBITDA to net income conversion rate, Q2 last year saw a very high conversion rate, and Q2 this year was a little bit under the normalized level.
Speaker #4: so if you look if you if you're looking forward, you could you could expect, a, a, a, a, a similar but slightly, slightly higher rate in, in subsequent quarters.
Speaker #3: question is?
Speaker #1: Yeah, Ken. I'll, I'll, I'll take the, the, the price fix questions. Thanks, Ed, for that question. I think that the answer is we are building a, a sports entertainment platform.
Speaker #1: We are building a product that players demand, players want, and that players will engage with. If I am to answer your questions specifically, we are seeing prediction markets also as a way of further engaging our players because, as you know, prediction markets are better for certain sports.
Speaker #1: And it just makes our offering much larger and more interesting. But we are also seeing a new consumer base coming in because we have expanded our offering to the teams.
Speaker #1: And we also expanded our sports offering into sports which are not as common in DFS.
Speaker #3: If I can if I can, you know, add to, to, the, the very last, sub-question on the prediction markets overall in general and the future, as everybody is able to observe in the US, the whole US market, sports book, prediction markets is in a bit of a flux.
Speaker #3: It's not fully, sort of, regulated or clear how it will be regulated. It remains to be seen. Probably the Supreme Court will judge on that next year.
Speaker #3: But in general, you know, what else, you know, can we do—and we are fully committed to do—to embrace prediction markets as an opportunity.
Speaker #3: And, to, to increase the, the addressable base, to increase the, the, the, the, the share of wallet by combining and, and bundling prediction markets that could also that where the way and gateway to the team picks as Kreshimir was already mentioned.
Speaker #3: That's, I think, important from the player picks to team picks as well. and I think, b-by seeing, you know, these, bundles, you know, the con-cons customers customers that don't really distinguish that much or this is technically prediction markets and this is technically sports book and this is technically daily fantasy sport, they sort of embrace it because they like the sport and they embrace into something which is engaging and entertaining.
Speaker #3: So, closing up, you know, we built up the sports entertainment company with PrizePicks—not technically daily prediction, daily fantasy, or anything like that.
Speaker #3: By the way, on Bhutano, you know, you see that Bhutano in Brazil was, you know, despite— I, you know, it pays off to be a market leader because, you know, it's sort of easier to reconfirm your position.
Speaker #3: And whatever comes, you are able to weather better. I—you know, the headwinds. And that's exactly what happened to, to, to Bhutano. It was good that they were there relatively early.
Speaker #2: Yeah. Thank you very much for a useful update on Brazil. It just appears we're reporting, you know, down 15 or worse. It would just be...
Speaker #2: I was just sort of curious if you were growing in Brazil or anything else.
Speaker #4: No, I c I can say that, you know, the, the performance in Q2 is obviously phenomenal performance. with a with Brazil as, as one of the biggest markets, that's a real, real testament to the to the strength of the Bhutano business in, in Brazil and, and, and globally.
Speaker #3: Perfect. Thank you.
Speaker #5: So, next question is from the line of Maxim Nekrasov with Citi. Please go ahead.
Speaker #6: Good afternoon. Thank you so much for the presentation. A couple of questions on my side. The first one is on the EBITDA adjustments, right?
Speaker #6: So, we saw significant growth in EBITDA adjustments, both in the first quarter and the second quarter, on a year-on-year basis, and already exceeded $200 million in the first half. I wonder if you can provide maybe an updated guidance for the EBITDA adjustments.
Speaker #6: And we also saw that quite a lot of those adjustments come from the corporate adjustments and the Allwyn brand initiative. So, I wonder if there is any timeline for the brand initiative—how long it's expected to last?
Speaker #6: And then that's important because, as I calculated, it's about—adjustments are about 30% of operating EBITDA, right? So any color on that would be very helpful.
Speaker #6: And the second question is a follow-up on price picks and U.S. performance. So we saw EBITDA declining 26% in the second quarter, and you mentioned higher investments into strategic marketing.
Speaker #6: I wonder if this is something that you expect to continue into the second half, or if marketing was more of a one-off.
Speaker #6: And what kind of competition do you see in the US? Yeah. Thank you.
Speaker #3: Yeah.
Speaker #4: Sure. Very happy to take those. So, the guidance that we previously provided, one-offs, is still a good indication of where we expect those to be.
Speaker #4: we've, we've provided as, as usual, pretty detailed breakdown of what they were in, in the press release and in the in, in the appendix.
Speaker #4: to, to, to the presentation. and the key, items that, contributed in, in, in Q2 were, were the brand initiative, which is, is as, as, Robert has mentioned, a big, big, big focus for us.
Speaker #4: But also, we saw a continuation—sorry—that I would say is probably the last material amount of transaction costs related to the combination of Allwyn and OPAP.
Speaker #4: And to the purchase of our interest in PrizePicks. So those were pretty substantial transactions. So that kind of transaction cost is obviously not part of our ongoing structure.
Speaker #4: In, in subsequent quarters, we would expect these brand in, in investment to be the, the key, component of our, our, our, our, adjustments to, to EBITDA.
Speaker #4: the marketing, investment in, in price picks, I'm, I'm happy to provide a, a bit of, of, of context in terms of the numbers and then may-maybe, Kreshimir also, can, can contribute.
Speaker #4: It's worth mentioning that Q2 is typically a relatively light quarter in terms of marketing investments in US sports entertainment and DFS in particular.
Speaker #4: That reflects the timing of the US sports season. So, as the seasons end, you typically see a reduction in investment. And what that typically means is that it's a relatively good period in terms of revenue, but a lighter period in terms of marketing investment.
Speaker #4: So that, that contributes to high margins, as you saw in Q2 last year. then, in, this year, because of, the World Cup and also because of, the, the initiatives that we're, we're, we're launching enabled by prediction markets, we saw an opportunity to invest, in order to retain, sorry, I should say to acquire and continue to engage customers in the, arou around the World Cup and to carry those customers over into the second half, where obviously we have the start, first of all, of the, NFL, then subsequently NHL and NBA later, later in the year.
Speaker #4: So, I would say that the investment in marketing in Q2 is unusual, but a great opportunity for us. And, I'd also mention that, clearly, there is heightened competitive intensity as regards customer acquisition in the US.
Speaker #4: But we're really well positioned in that environment, given that we have a very well-known brand, a very engaged consumer base with typically low, low churn.
Speaker #4: And also, a very disciplined approach to marketing. Sorry, I realized I didn't answer the question about the extent of the rebranding program. We are still progressing the rebranding in Greece, so you can expect that to continue to run for a number of quarters still.
Speaker #4: So, Kreshimir, is there anything you'd like to add on the marketing?
Speaker #5: For sure. Look, I think I saw it as important to note that we really have a very disciplined approach to marketing spend. We look at our CAC, we look at our returns. And as you all know, the World Cup happens every four years, and the World Cup in the USA happens only every two or three decades.
Speaker #5: We just realized that this is a good opportunity to enlarge our database. We've seen a high engagement, and we believe that this engagement is going to carry on in Q3 and Q4, which are traditionally strong quarters for US sports.
Speaker #2: If I can add one quick comment on,
Speaker #3: International brand—because that was also one of the questions. To share and develop one common brand, both operator and consumer brand, offers obvious opportunities.
Speaker #3: And we strongly believe that having an internationally recognized brand can unlock positive spillover synergies and the ability to extract value from being present as one, which we are prepared to extract.
Speaker #3: I know it's a little bit generic, but, you know, we are encouraged by a very swift and natural recognition of Allwyn in our repeat—especially the younger generation, who doesn't care much about, you know, decades-long brands.
Speaker #3: They want to see something that they recognize, even internationally. And it brings the benefit. So that's a bit of the rationale behind these adjusted EBITDA figures and the sort of one-off investment to set it up initially.
Speaker #3: Including Formula One.
Speaker #4: Understood. Thank you.
Speaker #1: The next question is from the line of Ricardo Chinchilla with Deutsche Bank. Please go ahead.
Speaker #4: Hey, thank you so much for taking my questions. I have two, if I may. The first one is regarding price picks. We saw a very nice increase in the amount of, s the amount staked in prediction market volumes and in average, daily fantasy fees.
Speaker #4: Yet the net revenue growth was relatively modest. Can you help us reconcile the disconnect between these engagement indicators and revenue performance? Specifically, what were the key factors that limited the conversion of high player activity into revenue growth?
Speaker #4: And how should we think about conversion rate as we enter the NFL season? Also, could you help us quantify the benefit from more favorable sport outcomes at PrizePicks during the quarter, during the second half of the year?
Speaker #4: And to what extent, you know, we should expect this to normalize going forward? Thank you.
Speaker #5: Yeah, no, I—I can start, and maybe you can complement this. Yeah. Look.
Speaker #4: Okay. Sounds good.
Speaker #5: We are heavily dependent on the sports outcomes. And in comparison with last year, when we had very, very favorable sports outcomes, this year we had what we call regular sports outcomes.
Speaker #5: And this is the difference between the amount of the entries and our net revenues. So that, that's the main reason. as you know, the sports outcomes are volatile, but what it matters that over a period of the time or 12 months or whatever, we have a certain, net gaming revenue expectations, and we, expect Also, it's important to know that the more events you have, the, the more kind of standard, returns you can expect.
Speaker #5: So, if I have to answer directly, most of the NGR is related to very favorable outcomes. Last year, which inflated the net gaming revenue.
Speaker #4: Yeah. Yeah. I, I think that, that, that really, really, answers the question. I would just, just emphasize that the, the comment on the second half is, was it was in relation to the comp, right?
Speaker #4: Because the comp was difficult this quarter, and similarly in Q1, because hold was relatively high during the comparable periods last year. But in Q3 and Q4, it was at a more normal level.
Speaker #4: So the comp is going to be more favorable regardless of the level of the actually achieved margins in Q3 and Q4.
Speaker #1: Got it. For my follow-up, I was hoping you could comment on how you see the promotional environment in the US and if you anticipate to, continue to increase your investment in Q3 and in Q4, just to, you know, kind of keep the momentum going with regards to, you know, your, introduction of, of, price picks in the, you know, prediction market segment and perhaps because some of your competitors are also reportedly increasing their marketing and their generosity, in, you know, some of your com-competing, verticals.
Speaker #1: Thank you.
Speaker #5: as, as, as we have answered previously, we have a very disciplined approach to our marketing spend. Obviously, the Q3 and, and Q4 are some of the most important periods in, in the US sports season.
Speaker #5: And you can expect us to continue investing in marketing activities. But it is also important to know that we are improving our player experiences.
Speaker #5: So the more players we can bring in, and they have a positive user experience, we expect higher conversion and higher engagement from these players.
Speaker #5: And ultimately, quicker return on the capital that we spend on these players.
Speaker #4: I'd also add, Ricardo, that it's probably not really helpful to think about prediction markets as a new product line which needs launch investment in its own markets, as an opportunity to expand the products that we offer to our customers broadly – as Robert was mentioning, customers.
Speaker #4: At the end of the day, they don't care whether they're playing what's legally DFS or whether they're participating in prediction markets. All they want to do is enjoy an engaging sports entertainment experience.
Speaker #4: And prediction markets is an opportunity for us to expand the experience that we offer, but it's not like we're offering a new product.
Speaker #4: So we're starting from scratch. We're talking about the same players, same customer acquisition that we would be doing anyway.
Speaker #1: Thank you so much for taking my questions.
Speaker #4: Thank you.
Speaker #1: The next question is from the line of SumUp. Is there a real risk with your bank equities? Please go ahead.
Speaker #2: I, yeah. H-hello there. And thank you for taking my questions. can I just, follow up on, on, price picks? So given the, you know, the commentary about, you know, the, the, the, the, the marketing phasing, let's say, I'm just wondering, should we expect price picks a bit that to return to year grow year on year growth in, in H2?
Speaker #2: And I guess I'm wondering, what sort of margin you think is sustainable for this business once marketing intensity normalizes? That's the first question.
Speaker #2: And the second one would be for, or, or I can, I can let you respond. Sorry.
Speaker #4: Yeah. Sure. so yeah, I, I, I, I think as, as, as you know, we, we haven't provided specific EBITDA guidance for, for any of our businesses.
Speaker #4: And the reaffirmation of our guidance that we that we just made is for the, the guidance in aggregate. so I think we've commented on some of the factors to, to bear in mind when thinking about the Q2 number, you know, whether that's in terms of the, the stakes, or, or player engagement that the sports margin and, and, and the marketing investment, and also how that can potentially carry into Q3 and Q4.
Speaker #4: But we don't really have anything to add in terms of more specific guidance.
Speaker #2: Okay. Thank you. And, that's another one for you, Ken. just to take you to the cash flow. so there, there was a benefit I think, one, 80 million plus, increase in trade and another payable, payables in, in, in Q2.
Speaker #2: Which drove a positive working capital inflow. Just wondering, what drove the payables build, and how much was timing-related? Should we expect a reversal in...?
Speaker #4: Sure.
Speaker #2: In H2?
Speaker #4: Yeah. So, so I think the, the key, item that can affect our payables, and, and, you know, as a working capital as a whole, is, is, tax payments, which are often quite, quite substantial.
Speaker #4: And, depending on the timing of the actual payment date, it can cause a little bit of volatility between the periods.
Speaker #4: But beyond that, I don't think there's anything specific to call out as being unusual in Q2. I mean, in general, the business has slightly positive net working capital and volatility.
Speaker #4: There is a bit of volatility between periods, but typically not a key driver of that cash flow in the longer term.
Speaker #2: Got it. Thank you.
Speaker #4: Thank you.
Speaker #1: The next question is from the line of Karin Puri with JP Morgan. Please go ahead.
Speaker #3: Hi, good afternoon, everyone. Thank you for taking my questions. I've got three quick ones, if that's okay. The first one's on free cash flow.
Speaker #3: It was significantly better than what we saw in Q1, with meaningful improvements across dividends from JVs, interest, and tax. Is there anything timing-related there?
Speaker #3: Because if you look at the free cash flow conversion, it was basically north of 100%, whereas a more normalized sort of 50-ish percent level.
Speaker #3: So, that's my first question. Second one—sorry, do you want to go ahead with the first question then? Then I can jump to the next two.
Speaker #4: w-w-why not? Yeah. so yeah, I, I think that, there, there's nothing no very large movements to, to, to highlight in, in the quarter. I think if, if you look down the summary cash flow that, that we have in the press release and, the, the, that we have in the data book, you can see that EBITDA was a bit higher adjustments to EBITDA were, were a bit lower.
Speaker #4: We had larger, as you mentioned, dividends from equity method investees. That primarily reflects higher inflow from Lotto Italia, which typically pays a significant part of the annual cash flow generated out in Q2.
Speaker #4: if you, if you wanna get a better sense of how that typically phases throughout the year, we, we have a slide in the appendix with the, the, the dividends from that entity going back over, over some long period.
Speaker #4: Net finance cost—there is sometimes a bit of a swing between periods, just reflecting the timing of interest payments and similar. Similarly for tax.
Speaker #4: So, Q2 is actually a relatively lower number. And I think you can continue to refer to the guidance that we provided for both of those items.
Speaker #4: then, reduction in capex, I think we, we already covered, and when you add these, you know, small improvements in a number of items together, obviously, it does add up and it, it was it was a stronger quarter in terms of cash flow generation.
Speaker #3: Perfect. Thank you so much. That makes sense. The second one I wanted to check.
Speaker #2: Sorry, I should just so if I can mention just one, one, one other thing that is, is, is not,
Speaker #4: You know, part of the normal business profile. We did receive $70 million of cash from Nobibet. That was a repayment of a loan that we made ahead of the expected closing of that transaction.
Speaker #4: That was paid back in Q2, so that did boost cash flow as well.
Speaker #3: Perfect, thank you so much. The second one I wanted to check on is North America margins, especially within OPEX. We saw a material step down in personnel and agent commissions when we compared to Q1.
Speaker #3: can you maybe touch a bit on, on, on that? And my last one is actually on the UK. GGR was down, I think, 16 odd percent, with a net revenue growth basically driven by lower gaming tax and, and good cause contribution.
Speaker #3: So I was wondering if you, you know, look at it on a, on a pure top-line growth perspective. I mean, it was quite weak.
Speaker #3: And, in fact, worsening quarter over quarter. In terms of drivers, is there anything to note there besides DOFCOMS and the tech transition that you flagged?
Speaker #3: That's on my end. Thank you.
Speaker #4: So in the UK, those, those are the, those are the two factors. you know, a-as I mentioned, the performance at the GGR level was, was disappointing.
Speaker #4: NGR, obviously, the picture is better because the benefit from the recovery of the cost flows through above the NGR level, as a reduction in tax.
Speaker #4: So that's the, kind of continued to be the case going going forward. and, in North America, I would say that the, the movement in cost items reflects, the, the, the price picks transition, which was partially adjusted for by the, pr sorry, the, the, the, the acquisition of, of, of price picks in Q1.
Speaker #4: So there were some items which were booked in personnel costs, which we subsequently adjusted out because they were transaction-related items, like transaction bonuses, that kind of thing.
Speaker #3: Got it. And just, just a quick follow-up on, on the UK, please. In terms of the, the cost reversal mechanisms, is it fair to assume that it's sort of phases out at, at some point in 2027 on, on, in terms of the benefit that you might get?
Speaker #4: Oh, no. Sorry, sorry. No, no, that's not the case. So, we recover, effectively, a fixed nominal amount each quarter over the remainder of the license.
Speaker #4: So the contribution basically is flat from Q2 this year until, until the end of the license. I think on the, on the UK, on the UK, it's worth mentioning as well that this tech transformation, in, we believe established solid foundations and platform for future growth.
Speaker #4: That's why we started to bring the innovation, or novelization, of both the existing Lotto business and a completely new game called Powerball, as we indicated.
Speaker #4: There is—we, we believe that one phase is done. But I think we need to double down on fighting, because the UK market also did not stand still.
Speaker #4: And the UK market, as we see now, sees a range of lottery-like or, you know, prize draw-like propositions, which are definitely less regulated.
Speaker #4: But this is not a, you know, excuse. It's just a, you know, you know, statement that this is what it is. And we are prepared also with the new, you know, CEO, Phil Walker, who knows UK market, who knows the digital, landscape, who, we believe is the right leader for the next phase, after we successfully do the both retail and digital cutover, one of the biggest in the industry.
Speaker #4: and that's, that's gonna be our that's gonna be our job. You know, it's not easy. but at the same time, we also are aware that UK, being part of Allwyn brings also, non-non-financial benefits because if we, you know, crack things in such a scale, in transition, you know, there's not much of such an experience in transition.
Speaker #4: So it should be beneficial for Allwyn's future lottery tenders and I overall still believe that, you know, being a com-competent, lottery operator, and combining with other fo you know, gaming, verticals, is, is a is a is a platform, that is definitely worthwhile.
Speaker #4: Keep establishing. Thank you.
Speaker #3: Perfect. Thank you so much, Beyoncé. Thank you.
Speaker #1: And the next question is from the line of Russell Poynton with Edison Group. Please go ahead.
Speaker #5: good afternoon. Thanks for taking my questions. first one is on Illinois. appreciate its early days and potentially quite sensitive about what you can say.
Speaker #5: But I'd just be interested in knowing, or getting a feel for, what is potentially up for grabs with renegotiation. You know, could it be potential scope in the revenue games offered, that type of thing?
Speaker #5: And my second question is on the UK. I'd just be interested in what you're seeing on player behavior post the introduction of the, you know, the larger games versus the, you know, the core core portfolio.
Speaker #5: Thanks.
Speaker #4: Yeah. On the Illinois, as we indicated, we just started this week, so we don't want to publicly speculate, you know, what is gonna be the exact shape.
Speaker #4: It's also up to the lottery, commission in, in the state of Illinois. What we know is that there's clearly awareness, also in Illinois that since the last time, you know, that there was a private management agreement contract in place, and where, where this private management agreement contract, especially under the Allwyn, stewardship, brought, extraordinary better results, compared to the state-run, lotteries, let's, let's make it very clear.
Speaker #4: We are also, and so this new landscape in the state of Illinois, which brought much more forms of gaming and optionality to the consumers, means that, you know, the Illinois lottery, state lottery, has to be competitive in the digital space, has to be competitive in the propositions that are engaging for the customers, and also in the product innovation.
Speaker #4: These are the three areas. And the commercial settlement, you know, has to reflect absolute alignment between the interests of the state and the commission—something that we know well.
Speaker #4: And it was designed actually well in the UK, so we have experience in the design of such a scheme, from the UK into the state of Illinois.
Speaker #4: Last thing I say, Kali Jones, our new CEO, who used to be both the CEO of Virginia Lottery and the regulator, again, and, and knowing Kali't, is absolute is, is a true Allwyner, innovative, hungry, and, and prepared to show that, the lottery, you know, can grow and, and expand.
Speaker #4: So I, I pause here on the UK, and I think it's too early to say. You know, we assumed even certain cannibalization between the three instead of two big jackpot games when introducing Powerball.
Speaker #4: So far, the I mean, we are talking a few weeks experience. So far, these, these, you know, y-you know, shares and, and, and, and, a-and sort of, pro you know, propositions are, are showing according to our expectations.
Speaker #5: Thank you very much.
Speaker #1: And the next question is from the line of Kostas Zuzulas with Axia Alpha. Please go ahead.
Speaker #3: Yeah. Thank you, Professor, for the presentation. Just a clarification regarding the corporate adjustments: should we expect branding initiatives to remain at the Q2 levels, and then the transaction costs and everything else to decline over the next few quarters?
Speaker #4: Yeah, approximately. Yeah.
Speaker #5: Yeah.
Speaker #3: Okay. All right. Thank you very much.
Speaker #4: Thank you.
Speaker #1: Well, ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Mr. Kvatal for any closing comments.
Speaker #1: Thank you.
Speaker #4: Thank you. And thank you for all your questions. At times, it seemed like always Allwyn is all in only about PrizePicks, but it is understood that you like to see the, you know, double-digit developments across many areas, on, on front—front, you know, PrizePicks.
Speaker #4: Understood. I’ll just remind ourselves that, you know, Allwyn is a group—an aggregate, a diversified group. And we consider this our strength.
Speaker #4: This is what Allwyn's story is about: being present geographically in multiple markets and being present in multiple gaming verticals. I would dare to say this is unprecedented.
Speaker #4: we are the second largest gaming listed gaming company in the world, but we are definitely much you know, m-much more diversified. And, with that, I sort of look forward, you know, our continued discussion and, I'm quite certain that, you know, the slide 26, which can showed, of a historical context, is simply continuing.
Speaker #4: And thank you very much, esteemed and numerous audience, for joining our Q2 2026 call of Allwyn. Please stay tuned for the next quarters. Thank you.
