Better Collective A/S (BETCO) Earnings Call Transcript & Summary

Hello, everyone, and welcome to Better Collective's Capital Markets Day here in Copenhagen. Thank you to everybody who decided to show up here physically with us. It's great to see so many people and also to everybody behind your screens at home. I know that more than 300 people externally has signed up. So it's -- we are very happy and pleased to see so many people show interest in our company. Better Collective was incorporated exactly 19 years and 5 days ago here in Copenhagen. 5 years ago, we were listed on the NASDAQ, Stockholm Stock Exchange. Today, we're mainly going to be focusing on that latter part of the journey, meaning from the IPO up until now, how we've performed operationally, financially. But we'll, of course, also be focusing about the future. Where we want to go, how we expect to get there and our strategy leading us towards our vision of becoming the leading digital sports media group. My name is Mikkel Munch Jacobsgaard, and I'm the Director of Investor Relations here at Better Collective. And with me on stage, I have Amalie Juel Maglehøj, my colleague, and we will be your go-to people today if you have any questions of any kind, please just reach out. But also tomorrow and the day after tomorrow, if you want to learn more about our company, you set up a meeting, anything like that, please just reach out. But for now, Amalie, would you please take us through the agenda?

Yes. Thank you, Mikkel, and hi, everyone. Today, we have divided the day into 4 sections. The first one being a little introduction to the Better Collective Group. We will focus on the future strategy and the vision for Better Collective. Second part, we will dive into our markets. And the third part, we will hear about other sections of the group such as our esports division and our paid media partnerships. And then the latter part is a Q&A session. That will be live in this room. But for everyone out behind the screens, you have a little question mark you see on your screen, you can tap it, and then you can write in your questions. And you can do that already now. We very much prefer that you do that as they come to mind, your questions. So we are not bombarded here at the end with all of the questions at once. So who will you be hearing from? You will hear from no less than 9 presenters here. I will not go into details with presenting them. They will introduce themselves as they come here to the stage. But the first 2 ones you will hear from is Jesper and Christian, our 2 cofounders. So without further ado, I think we should get the show started. [Presentation]

Thank you so much. It's really good to see all of you. And well, both here in the room and definitely also all of you sitting behind the screens. I think Christian and I are really proud of the interest we're experiencing in Better Collective. The small thing we started many years ago, it's humbling that we now have such interest in the company. The video you just saw is things done in Better Collective. So you saw some snippets of documentaries, some podcasts that we do, features of many of our sports media brands. So it's really a sign of how growth of the group is today and where we are heading. And that's actually what I want to speak a bit about now is that you will -- along the day with all the presenters, you're going to see a lot of very nice graphs that will go, fortunately, most of them from down here and then up to the right. That's the kind of graph we love seeing because we have seen a lot of success since we did the IPO of Better Collective almost 5 years ago. But to me, it's not the most important part. It's not what I really hope you'll take with you from today because that's our new vision. Our vision of becoming the leading digital sports media group because, that's a massive opportunity for our company and one which I'm personally very, very excited about. My name is Jesper Sogaard, and I'm the Co-Founder and CEO of Better Collective. With me on stage is my co-founder, Christian Kirik Rasmussen, who is our COO, in the daily business. And I'll just start out giving you a very quick sense of where Better Collective is today and why we believe we can achieve the vision of becoming the leading digital sports media group. So this is Better Collective of today. I think let's start at the upper left corner. You'll see we have a global audience of more than 150 million monthly visits coming to all our brands. That's a big number, and I'll later on sort of compare that to other businesses out there. If we dive into how that sort of spreads out, you'll see we have more than 30 million monthly visits coming to our different local sports media brand, meaning a site that caters to the Greek market or a site that caters to the Danish market. And here, we have smaller leading media assets. If we go specifically to the U.S., which is a very, very big market opportunity for Better Collective, we're also there in a leading position with the brands we own there. We have Action Network, Vegas Insider and numerous others, a total of more than 20 million monthly visits coming to our brands there. Then we have the global part of our portfolio, meaning English language sites where the audience will come from all over the world. And within this group, we have some very big esports brands, and we have a reach of more than 100 million monthly visits coming to that portfolio of brands. We have done numerous acquisitions since 2018, 28 to be precise, and we own these leading esports communities. So this is a foundation from which we believe we can still continue to grow, and we can aspire to become the leading digital sports media group. And with that, Christian, will you give a brief rundown of the past and what's happening now?

More than happy to, and also a warm welcome from me. Really happy to be here today. It's not so often I get out. So great to see so many faces here and also those of you behind the screen. I'll just try to take you through a little through memory lane. First picture you see here that's just after our high school. Jesper and I, we know each other all the way back to high school. But the -- here, I want to take you back to that already in the 90s. Here, together with my dad, we were big sports fans, and we were also big sports betting fans. You have to imagine it's a normal weekend, my dad and I will go to the local kiosk. We'll fill out this betting slip where you needed to predict 13 games and predict the outcome of these. Then we will go back, we would be in the couch, and we will be watching one of these English Premier League games or whatever that would be. And then at the same time, we would be really excited whenever a sound like "tung" came into the screen because at the same time, they would slowly scroll the team that where something has happened in. So that would be a score. Maybe you would see West Bromwich coming into the screen and you're just sharing, okay, please home game, home game -- goal when that came to the screen. That passion for sports and sports betting started already there. But when we went to high school together, we pretty quickly discovered that we had that same passion together. And we actually made the first website together back in 2002, describing to other people who would like to bet online at that point or gamble online, how they could safely onboard there to operators. That website we made, yes, 22 years ago from now. So if anyone at that point would have told me, hey, Christian in 2 decades, you will be a listed company, you will have all these fancy offices around the globe, I would not have believed you. So let me try to explain you how we got there. And I'd like to describe it as us taking a big elephant and biting it into 3 big bites. The first period I would like to describe, I will call that the start-up phase. That's from the early 0s up until 2008. Then I will introduce the second period in our lifetime of Better Collective. We can call that the organic growth phase, it will be from 2009 until 2016. And the final stage, which we are still in, now that's what I would like to describe as the M&A phase. I'll come back to that in a later slide. For now, let's go back in the years again. So in the last part of the start-up phase. Jesper and I, we're just finishing University back in 2008 and the business starts to boom. That year, we make EUR 800,000 in revenues and an EBITDA of EUR 700,000. We are living together at that point cost at absolute minimum. But that really made us believe, okay, we are on to something here, let's start to invest in. Real employees, real offices, let's go out and invest. And so we do. We built a fantastic organization, I'll come back to that, and would really grow. In 2016, we have really grown a great core team in Better Collective. And we can also sense that because we start to get some quite attractive offers from some of our competitors in the industry who at that point are a lot bigger than us. We don't like the thought of giving up control. We much rather focus on the business and execute because we can see this huge growth opportunity still in front of us. So that basically leaves us with one choice because we're also very aware if we want to have the best deals in this industry, we need to keep on growing. And that's when we start to buy other companies. Before leaving this slide, I'd just like to say that I'm also very proud that we have been profitable all years in business and also with some decent growth rates. So coming to this slide makes me really happy. You see some of the logos here from some of the brands, which is a part of Better Collective today, these brands that you see here on the screen, that's Founders, Co-Founders who are still with us today. Before I come back to that part, I would like to describe just how we, as founders, also built Better Collective. So I think first job that Jesper had that was both front-end and back-end developer. And I think it's fair to say that Jesper's capabilities are probably best spent elsewhere, definitely. I also had many hats on throughout the years. I can remember back in 2010, when the business started to get more serious that I was running daily operations with the websites, but I was also part of the finance, HR and legal. And it was really not a happy moment for me to be honest when -- by the end of each month, for example, when we had to pay out salaries because I would need to be very diligent on subtracting vacation days, adding their monthly bonus and then paying out and it has to be at the right date. I was almost about to puke from this task in the end. But luckily, as many times before, we hired some really competent people to take that for us. And that, I think we have been pretty good at hiring people who are a lot better than us throughout the years. Take a couple of years later, at that point, we had a really successful -- managed in the search engines from an organic part, but the paid part, we had absolutely no clue. But we knew we wanted to be paid. What did we do? At that point, we hired Gavin from who you will also hear from later -- it's good, Gavin is not in the room here. Because Gavin, he had a talent for the paid stuff a lot better than us. And at some point, Gavin also realized, "Oh, we need someone who is really good and paid within Facebook as an example. He would hire someone with a lot better within Facebook marketing than him and so on and so on." This is how we built Better Collective based on so many talented people. I'm really proud of that. When I talk to other founders, I know they built their baby just like that. Step by step, building it up and hiring people who were a lot better than them. At some point in time, you come to a stage in the company life cycle where it's really, okay, wow, you made a good business for yourself. And then what about the next step, could also be exciting just to take that next step. For us, I think -- that happened maybe in year 2017 where we decided to do the IPO. There was a lot paperwork and boring corporate stuff that needed to be done to get there. It's something I never wish to do again. Sorry, Flemming. But that was just had to be done for us to take the next step. And I think many founders will realize at some point that, okay, we've come this far. Now if I want to go to the next stage, I need to make a choice. And this is exactly when many founders, they come and talk to us because we can help them with some of this, what I like to call, boring stuff, and they can focus more on the business. Some businesses, we integrate a lot and some business, they kept more alone, and they can just focus on their business and growing their business. And then we can all drive towards the big goal because we all have that in common, and that is to be the leading digital sports media group. And it's something I'm really proud of. And you will actually hear from 2 brands today, presenting later. You will hear from Patrick from Action Network, and you will hear from Per on HLTV on their journey as well.

Thanks, Christian. And I think the way we run and manage our business, and it has been so right from the start of Better Collective is we want to be a sustainable business, and we want to do things in a proper way. And sort of picking up on the founder part and story, I think that also resonates with a lot of founders that we think long term, and we want to do things right. So I think that has also been a very important part of them joining Better Collective and why I also believe that in the future, we'll be able to be the attractive acquirer of very exciting businesses. Well, touching on the sustainable part of the business. I promise you, I didn't pay this guy to treat what you see here, but it's something that really makes me proud. Because as you can tell, this is a user of our Action Network product, the app, where you have the betting functionality where you can automatically in the states track any bets that you place. Into the app, get a total overview of profit loss, something which the sportsbooks are not going to give you. And the person who tweeted this outright says, "this makes me a more responsible bettor. And it helps me be accountable about the entertainment I get from this." And I think that's exactly the role we want to have in this industry and this ecosystem. We want to add a lot of value, we want to take part in the excitement and fun of sports and sports betting, but we want to make sure that it's in a responsible way. So I'm truly proud of a user not haven't been paid to tweet this. We also have another example on the slide you see here of the product by a company we own, Mindway AI, the Gamalyze product, which we have on our leading brands across the group where you can do a self-test in terms of your relationship with sports betting and whether you are just healthy leisure entertainment of this, or if you should be aware of potential risks related to your engagement with sports betting. And the very neat thing and why this is a powerful product is that it's a game you play. So it's simply just based on your behavior, engaging with the game and you'll get a risk score and be able to truly understand whether you should be aware of your entertainment with sports betting. The normal way of doing this is a survey. And as you can probably guess, and I think many people will know, there is a pretty big bias that you may not be fully honest with yourself when you have to answer questions like, is it -- do you have a healthy relationship with how you bet? Is it affecting your daily life? And in this game, it's just based on behavior. So a really nice product. And apart from this, which is actually the main part of Mindway AI is the AI detection tools that we sell to all the sportsbooks out there in order to help them with their big, big databases of players to determine like which is the healthy part of my player database, which is at risk and which is a problem gambling part of the database. And it's something where we're very proud. We actually work with many of the leading sports books. Mindway AI have done a fantastic job of, firstly, developing the product and secondly, bringing it to market with a lot of success. So sustainability goes into what we do and we care about it. And it's really a 360 exercise for us in the business. Starting out with the foundation of Better Collective, where we incorporated in Denmark. Even though we are at the time didn't have any business at all in Denmark, no revenue, no sort of activities towards the Danish market, we still felt it was the right thing for us to incorporate in Denmark and pay at the time, 25% corporate tax, now 22%, and we're still proud of that. And we also got quite some skepticism and like people really not fully understanding why we would do that when we could just move to Malta and we could have much lower tax. So we could incorporate in many exotic parts of the world, which we did see a lot of our colleagues and competitors do at the time. But that was not for us. And what we have learned over this is that, that has turned in to become a very strong competitive advantage to the business. Because we have also been able to attract a very experienced and skilled Board of Directors with senior business leaders from all over the world. And I remember while we did the IPO, and I went on roadshow and I had so many meetings and meetings with some of you in the room here. I think the most common question I got was how on earth did you get that Board of Directors? I'll say, well, they seem to bind how we do things and how we run the business. And I can proudly say that it has really served as a competitive advantage for us to think like that and act like that. Another part is in terms of financing to the business. We know we are financing cheaper than the competitors because we have access to high-quality banks in Scandinavia, which they don't. And it goes on to today, and we're far from done with being responsible and developing the business. Now it's very much related to actively engage in diversity agenda, equity and inclusion. We have, in our industry, a very strong tendency to see male, both employees in our business, but in general, in the industry. We do our best to bring female talent into the company. We really believe in that diversity. I'm very proud to say that we actually have 43 different nationalities in Better Collective. Again, to me, it's -- thinking back at the 2 of us, and now we have 43 different nationalities in the company, something I'm proud and proud of and a testament to being a truly global business that we run. In the operations and the business that we do, we play an important role for all the regulated markets where we are active because we are the top of the funnel, making sure that all the sports fans who wants to engage with sports betting, they will actually end up with the regulated sportsbooks that has a local license, pay local tax and have protected measures in place for the players. Unfortunately, that's not 100% it will end there. There are unregulated operators which will also take some of these players. But we play in the role of making sure as much as possible and with our reach to funnel the sports fans into the regulated environment where they have a safer and better experience. During the years, we have won numerous industry awards and that's something we always celebrate. And we have both had the pleasure of going to stage, pick up an award, and it feels great each and every time. But I actually want to highlight a specific set of awards where I haven't been the one going to the states, and that's our compliance awards that we several years, in a row, have been winning compliance awards. And I highlight that because that's not just very nice that we are on top of compliance and do things right. But it's also a business enabler for Better Collective because the sportsbooks are business partners. They are simply just pushing more budget towards us because they know they can trust our offerings that all the brands we operate, they will be fully compliant, and they don't have to worry about brand reputation and being compliant in the market they operate. Local initiatives. Within the group, we have, in particular, in our office in Serbia in Niš, which is the biggest office we have in the group with more than 300 employees. We have created academies where we've taken young talent right out of the university. We give them a very tough 6 months where they spend a lot of time learning the ins and outs of search engine optimization, which is a core expertise in Better Collective. And the same we do for search engine marketing, and we are actually expanding the number of academies that we built in order to develop talent that fortunately, very often end up becoming Better Collective employees. And speaking about awards and getting awards, we have also started handing out awards because we believe that in certain markets where we have a leading sports media brand, we're in a great position to benchmark the offerings of sportsbooks. And we know they take it very seriously. So they want to win those categories. It could be customer service. It could be best app product. And when we benchmark that in a given market, based on user data, we can get a very credible result of that market. It helps sportsbooks be ambitious about what they do, and it helps all our users to get the information they're actually looking for. And finally, really the bread and butter of Better Collective is a recurring revenue that we have in the business. So right from the beginning, we have always favored the long-term potential of the revenue stream rather than the here and now, just recognizing immediately. And that you'll hear a lot more about when Gavin enters the stage.

As I said, I just wanted to come back to that last stage -- not last stage because we still far from that. But that M&A third growth stage that we are in right now and that we are executing on. Like to take you back to 2017 when we started to execute on these M&As. We did 8 acquisitions up until the IPO in 2018. At that point, we had been bootstrapping all the way. Our bank facilities in terms of debt, were maxed out. And I really also want to say thank you for the banks here in the room for the trust in us. So we bootstrap all the way to the IPO. And the IPO was all about getting further funding into Better Collective so that we could continue that M&A journey. And so we did. We executed another 20 M&As. So combined 28 acquisitions has been onboarded one by one. Of course, you need to run a tight ship when it comes to finances. Therefore, I'm really excited also to welcome next to the stage our dear CFO, together with Jesper, who will take you through this part of the journey where we really, with a fierce hand have been running the finances and integrations. Please welcome to the stage, Flemming Pedersen.

Very good to have you on the stage also Flemming, especially, it was nice to get an adult in the room during that IPO process. I think Christian described it quite well. So now I'll -- I'll just start out with the operational performance of the IPO or since the IPO until today. And then Flemming will come back in a second and then go through financial developments of Better Collective since the IPO. So we have grown a lot. And I think it's worthwhile just to have a look at like what was actually Better Collective of 2018? And you see it on this slide, we have more than 7 million monthly visits coming to our brands. We had revenue of EUR 40 million in that financial year, and again, high margins of EUR 16 million in EBITDA and almost 250 employees at the time. We -- just on the back of the IPO, we had a market cap of SEK 2.2 billion and roughly 40 million outstanding shares, a little more. We were a European business. So you will notice that we have 3 offices marked on the map you see here and headquartered in Copenhagen, and then, as I mentioned, the big operational office in Niš that has been developing ever since. Fast forward to today, we have 20x the number of monthly visits coming to all our brands. The revenue is up more than 6x, so almost EUR 270 million. We are still a high-margin business, so we have seen EUR 85 million in EBITDA. We are closing in this year to employee number 1,000 in the group and I'm sure we'll be celebrating that sometimes during the year. The market cap of today is SEK 10 billion. And this has been accomplished with limited dilution to the shareholders. Now we're at 55 million shares outstanding. When we look at the offices and the group of people involved, I already mentioned the 43 different nationalities. And you see now a lot of offices all over Europe, we have 3 in North America. And we'll have Petra on stage later on speaking about the LatAm opportunity. There, we now have an office in Rio de Janeiro. So we have become a truly global company and business. We've also developed and expanded the offerings of the business. So in 2018 and prior to that, we were, what is dubbed an affiliate company because all our business evolved around attracting traffic into our site, leading it on, recognizing revenue. But over the years, we have now increased the focus much more on the user loyalty coming to our brands. Taking part in the retention of these users and making sure that our brands are first in mind to these users. And with our vision of becoming the leading digital sports media group, we simply want to build on that because we have learned that when you have such a strong brand, where users go instantly on an almost daily basis to you, it's very powerful. And with the skill set that we have, we can both grow the audience and we can grow the business related to that. So we started out in the bottom of this graph. And again, today, you're going to hear about all these different units of our business. But if we start in 2018, it was the digital sports media part. Unfortunately, it's still growing, and it has been growing nicely since the IPO, and we definitely expect it to continue to grow with the performance of delivering new customers to our business partners, the sportsbooks. But we have also added media collaborations where we team up with the largest media groups globally and we handle sports betting content section and do a full service solution to them, again, giving us much more reach and also very nice co-branding for our leading brands. And lastly, we -- in 2020, with the acquisition of Atemi Group added the Paid Media business. And as I said, you'll hear more about that, but that has sort of been the growth in terms of business units of Better Collective, and all of them are fundamentally an underlying growing. And that is why we have seen a lot of growth and why we believe we'll continue to see a lot of growth. When we did the IPO, you go through that rather unpleasant section where you create the prospectus. And there, you have to list a very large number of risks. So more or less, any risk you can imagine, you're going to feature it there. And what I'm extremely proud of is how we've actually been able to attack each and every one of the risk we listed there. So we've brought down a lot of the exposure we had in the business in 2018 to make it a much more diversified and stable business today. Let's start with the example of how we get traffic. In 2018, it was very much Google dependent. 60% of the traffic would stem from organic search results in Google. That's quite significant. Now we're below 35% of our traffic stemming from Google and that's just for web properties. We now also own very big apps where we are not dependent on Google. So we have really been able to bring down that exposure. There was also a topic of having a large customer at the time. And the good thing is it's still a very, very big customer of ours, much bigger than back then. But it's not as big or nearly as big when we talk about the share of our revenue. It's now below 20% for the largest customer we have in the business. And at IPO time, it was roughly 50%. I think that's a big accomplishment by Better Collective. I also said we were a European business. So almost all revenue came out of the European market. As we did the IPO, it happened to almost have the exact same date as the repeal of the PASPA Act in the U.S., unlocking the market opportunity in the U.S. And I dare to say, we have been able to position ourselves well there. So now we have about 40% of our revenue stemming from the North American market, and we see LatAm with high growth. So essentially, we have diversified also from a geographical perspective. And then the revenue streams, the business models we apply, where we still have our CPA revenue share performance-based models where we have given a KPI. The number of new depositing customers that we sent to our business partners ever since the IPO, every quarter, handing out that number. And that has been growing extremely strongly and have brought a lot of business and will continue to bring a lot of business for us. But we're also adding new ways of monetizing on top of this. We now have a pretty big advertising section in Better Collective. We have subscription on numerous brands. So also here, we are diversifying and finding new ways of driving revenue. And that is now a toolbox we can apply whenever we work with an existing sports brand or when we acquire a new sports brand because really, they would be applying all business models that we do and I also dare to say they won't be as good at it as we are. So that was the operational part of the time since the IPO. And Flemming, I'll now give you the chance to say a bit about the financial development.

Thank you, Jesper. The adult in the room. Thank you, or the man with the boring tie you can choose. I joined Better Collective 6 years ago, and I had a very nice job in a big Danish listed company. And I had 2 rules set out for myself at the time. I would never work in a company where the majority owners were managing the company, and I would never work in the city center. So -- but then I met these 2 guys, and I changed my mind. Spend a lot of time understanding the business, where they were heading with this in the private setting at the time and basically bought into the vision that we are discussing today. But starting out with the IPO, which was the facilitator for accelerating the already decided M&A strategy. And I can see that I'm not the only adult in the room, so likely a lot of M&A experience in this room and running a public company at the same time as acquiring companies is difficult. And it also requires that you basically run a very tight ship. And I would claim that we have done so. We have every year set out financial targets very concretely and we have lived up to them -- all of them in the 5 years that we have been on the stock market. It's our legacy and something that has also been important when discussing to shareholders when we have been discussing to banks that we actually can live up to what we promise, that we can manage and integrate so many companies. I would like -- I would have liked to show many more numbers on this slide, but Mikkel and Amalie said it was ugly. So they are hidden, but I have evidence behind this great thing up here. But it is really our legacy. And it is also in-built in all our employees, incentive schemes and their bonuses. So all know that failure here is not an option. I remember even during COVID, we had to meet our financial targets, of course. And if you go back, there were no activity. And when you're living from sports betting and there were literally only table tennis in Belarus, and there were horseracing without real horses to bet on. That was a tough one. But we asked our employees to step up. And so they did, and we got through it and basically delivered. So when you go back and think now they have put out new long-term guidance and guidance for this year, they will live up to this. Remember this slide, we will -- yes, I should actually say that my employees gave me this one that just said EBITDA because they got so tired of hearing me saying it so I could just wear the cap instead. Anyway, we have been busy bees acquiring 28 companies. We have invested close to EUR 600 million in new businesses that we have onboarded during this time. They have not been equal size. They have not been equal in their direction or their meaning. I'll come back to how we actually grew them and where we would like to head with this going forward. We have financed all of this in different ways. We have gone to the stock market, starting with the IPO. We have also been able to access bank financing as Jesper touched upon. And that's quite unique in this industry that you can actually tap into classic industrial bank financing. And again, as Jesper said -- Christian said, I think it was, our banks have been with us on this journey because we live up to our promises and also because of the values that are in the company. And that's just not words, but when you sit with compliance in a big bank, and they have to nod to your facilities, that's as important as living up to the financials today. As we have grown, we have getting a sizable operational cash flow. So this sort of wheel is starting really to turn for us, that we can buy companies, we can increase the funding that is available for us to buy larger and larger companies. I like this wheel. And we have not just acquired companies. We have also created value. And with half of this shareholding residing with founders, management and Board, we are so focused on capital allocation and how we spend the money, it needs to create value. Otherwise, we don't do M&A. We have increased the revenue by 11-fold, earnings by 10. At the same time, we have doubled the number of shares compared to 2017. I can also summarize it in the mother of all KPIs, earnings per share, that you can see on the screen going up here at the same time as the absolute earnings are growing. So this is really what we are focused on when we acquire long-term value. Sometimes it takes -- sometimes, you can see there is a dip when we acquired a big company in 2021, Action Network, we went deep in the pockets and had to wait a bit for the profit, but we knew it would come. So this is how we think capital allocation all the time. M&A has evolved. In the start of the initial phase, the first 2 years, I think our horizon was to roll up all affiliate companies in the European market. That was what was out there and what was on the radar screen. And we just started acquiring, gaining size, gaining good brands in local markets. But at the same time, as we IPO-ed almost something happened in the U.S., not that we took notice of it because it was not really something that we paid attention to, but federal ban sports betting in U.S. was lifted by the decision of the Supreme Court. The State of New Jersey won the Supreme Court case against the federal state and thereby opening up for each state to regulate online sports betting and also online casino. So now it's a state matter and not a federal matter. At the time, we were not really sure how many states would embark on this -- was it just New Jersey that had this good idea? But our M&A focus was really turning to the U.S. and we acquired a company called RotoGrinders that was embedded in what is called daily fantasy sports. With that, we got an organization. We've got a profitable company knowing about U.S. sports and U.S. sports betting as a start. And then we started to focus on where can we find the big traffic sources. And the next one was one of the big ones, Vegas Insider. You have to excuse me one of my better finance jokes is that there's no voice like an invoice. But today, it's my voice that, that is not really working. Sorry about that. So the U.S. became a big part of our equity story. It was a bit of a bad joke, I know, but -- our focus turned to the U.S., and that has been with us ever since. And now there are many more states that have opened up for sports betting. Just last week, we saw Massachusetts opening, and we will hear much more about that. In 2020, we did what turned out to be a very important acquisition, and you will hear more about that later. The London-based Atemi Group specialized in paid media marketing, we acquired that and turned the business model, and that has really been very successful. I will not dive more into it because you will hear Gavin Moore tell about it. It's really an exciting story also to learn about how the Internet works basically. In 2021, we did our largest acquisition, the Action Network. We dipped our toes some years earlier trying to acquire it, but not for sale. In 2021, we engaged in the first controlled process, and we won it. $250 million we paid for Action Network. At the time, it didn't earn a dime. So it was a big risk for us, but we knew this was the best sport betting asset in the U.S., and we are fully convinced still that is the case. So if we boil all this together, we started off buying iGaming Media, as we call it, affiliate performance marketing companies typically locally focused. Today, our focus is mostly on the 2 blue ones, sports media, that doesn't necessarily earn money on betting, but simply have good sports content. You will likely know some of them, daily users of live scores or whatever, sports sites that you go to find your results or find tips. We have also learned that we can earn money from this through our media partnerships where we, since 2019, have teamed up with Big Classic Media. Also, you will hear more about that, like the Daily Telegraph, like the New York Post, that we are the Swiss plate that can monetize all that digital traffic. So we would likely still buy affiliate companies but it's likely not to be first priority going forward. So the ambition to become the leading digital sports media group, that basically is our aim. And I'll showcase a small one that we acquired in the Netherlands, Soccernews, classic sports media with content, Sports news results, whatever you can imagine, had 10 million monthly visitors, big in a country with 17 million people. But still, we acquired that 1.5 year ago. And before I say any more, I'll save my voice, then we have a small feature on what Soccernews is. [Presentation]

What we did after the acquisition of Soccernews was basically to move it to our own tech stack. We increased our focus on the content, how you actually present content on such an asset. We took over all the commercial deals -- dealmaking that the company had at the time and basically moved it into our commercial team. And a lot of more stuff beneath the face of the product has been done. But the result has been that in 1.5 years, we have multiplied the revenue by 5. So acquiring such assets and applying the skill sets that we have, both in content making, SEO and all the other skills that you will hear more about and not least our commercial teams and engagement with the sportsbooks, we believe makes us the right owners of such sports media. My last slide is that when you do 28 acquisitions in such a short time, you build up a big knowledge base on how to do and also how not to do it because everything is not successful. And sometimes it's sleepless nights and headaches, but I think we have worked through most of it. And in totality, no doubt, it has been very value creating. It has given us scale. And as I said before, it has really given us a lot of value in the company. We have learned, I think, how to integrate companies and also how not to integrate. Because some of the companies and brands, they need to be left alone with the good people that are running them. And there, I think we have tried to balance it. So Better Collective is the umbrella company that can really facilitate all of this, where you get access to the whole machinery but not necessarily destroying the brands. I think also we have learned how to work with founders that have, I can say, gone taking the big step of selling their businesses. Some of them have become quite wealthy in doing that and still want to work with us because it's fun and engaging. And I think that's -- that latter part, that is really a case-by-case thing, you need to work with salaries, incentive structures, should you pay them in shares? How long time should you keep them? And all of that. And I can tell you, it's not all that have founded their own businesses that wants to be in a big corporation. So with those learnings, I'm confident that we can take the next leap and buy more companies because this is an integral part of our agenda and a well-oiled machine, I would say. Jesper will put more meat to that bone now on the vision.

Thanks a lot, Flemming. And I'll now dive into the strategy and the vision. And I think Flemming quite well described the position we have today of really having a lot of expertise and practice with buying exciting businesses and making sure they function also in the Better Collective umbrella. And as I also alluded to earlier on, we feel sense that many founders buy into our vision of becoming the leading digital sports media group. And let me just simply take it word by word. So why sports? [Presentation]

Sport has that very, very unique ability to bring people together. And it's not really related to where you're from, what kind of life you live, people really come together to watch sports, to engage with sports. And the other rare capability of sport is that it's in the moment. So when I tonight will be watching Denmark, Finland, well, for those 90 minutes, please don't disturb me because I'm focused. That's what I want to watch, and I really don't care about much else. And today, not many things actually has that ability to keep us locked in and focused while it's a social venture. So to us, that's really unique about sport. And that's why we love being involved in sports. It's also a very, very big market. To be honest, I was surprised when I saw the numbers you see here or the comparison you have here, this is search intent and interest based on sports, politics, business and travel. And apparently, people don't care about politics. At least sports is much bigger and is bigger than all of the others. And again, I think it's a testament to the global nature of sports and that is relevant to any given individual. So I think we have something really unique here with this unbelievably big market where people engage and are in the moment. And we are then zooming in on the digital online part of all of this. Because what we have learned, starting Better Collective all the years back, is that we have always had a very, very nice tailwind of underlying growth because more and more came online, and it's still happening to this day, it will continue to happen. So it's really supporting the underlying growth and ability to invest in this area and business. And then the media part, let me start with just the revenue of Better Collective. So last year, we had revenue of just about EUR 270 million. What you see here is that even in our legacy market, the bread and butter that sort of created the company, sports betting affiliation, we're the market leader there, and we have a share of 4 -- approximately 4% to 5% market share. That's not a lot, especially considering that we are the market leader in that. If you then take all of the advertising sportsbooks do, then we are down to 1% to 2%. And we think we are extremely relevant for that already now and have been for several years. So, so much growth still to be had just with what I would call really the core and legacy part of our business. And where then it gets really exciting, and I simply don't dare put a number on this, is when you venture into the media part of sports too, all the sports ongoing, the interest shown around that, the brands that advertise and want to get exposure towards sports. That would be brands like Coca-Cola, Red Bull, all of these big global ones, Mastercard including, which is actually already a customer of ours, they want to engage with the audience that has a passion for sport. And if we take a look at the audience of HLTV, which is one of the leading esports, we own the brand, which has similar authority within CS:GO as FIFA has in football. And we want to go esport by esport, country by country to scoop all these leading digital sports media assets. And that is unlocking this really exciting opportunity, which personally excites me and just wanted me to go at it. And I promise you, I would come back on that 150 million number. So what does that mean? What does that say? Well, let's look at some of the peers in the digital sports media landscape. We have a leader ESPN, they have about 700 million monthly visits to their online channels on web. So we're not the market leader in this area. We are roughly 5x from getting to their position. And again, it's a kind of a challenge, which excites me. And at the same time, it feels, well, we can do that, like a vision 10 years out, I truly believe that we can get to that position in terms of the audience that we have. And we are already now on par with Sky Sports, Yahoo! Sports, more or less. In terms of the reach, we have within the digital sports media space. And in terms of 10 years plus potential, again, I think this is a 10x opportunity for Better Collective. And for Christian and me, it has always been about the 10x. So when we hit that first EUR 100,000 or EUR 10,000 even revenue in a month, well, the 10x of that, what's that, how can we achieve that and so forth and so forth. And I now have that similar, okay, 10x we can do with this vision. It's exciting. The question is also quite obvious, so what is the digital sports media group? And it is a lot of things. I'm not going to mention everything you see on this slide. But what I want you to know and understand is that, well, a lot of what we do is already related to that. We have sports data, and we have a lot of it, and we present it in many ways to our audience. We engage with media in our form of our media partnerships, and we have our existing sports betting communities, which is also very related to the entertainment of sports. We also have things where we are, in recent years, have been growing and developing in the past. We -- apps is a much bigger focus of ours now. Social media communities, we still have a lot to do there, but we believe it's an important area to have reached in order to become the leading digital sports media group. And podcast is a completely new universe, and I'm sure most of you in this room, like 5 years ago or maybe 10 years ago, you didn't listen at all to any podcast. Now it's probably part of the everyday routine listening to podcast. So we have been expanding there. And again, there's still a lot to do. And we also want to grow new areas, more local sports media. We want to enter the live score market because, again, I'm sure a lot in this room and out behind the screen, you check that live score at fairly often. I do at least. And these capabilities that we are either already have or we are adding to our business is what we're going to use in the next phase of developing these sports media brands. So we stand on a lot of core strengths related to business model, toolbox of advertising skills, marketing skills and a diverse mix of business models. What we are now venturing into is we -- as an example, we will have a new set of KPIs that we for now use internally, that is direct traffic to our brands. It's a very strong indicator of whether or not you deal with a true brand, do people come there instantly? And to give you a sense of the kind of brands I speak of, you're all familiar with the ones you use. It's the one you go to on a daily basis, you open your laptop or smartphone. And without thinking, you type the URL and so you just go there and you don't even think about it. We own a lot of such brands in niche areas and some niches being bigger than others. As I said, HLTV, FUTBIN within the sport of EA. Those are very, very big communities where you have that behavior. We also have Wettbasis in German for all the geeks really wanting to know all details of the upcoming German Bundesliga. And what we have been able to demonstrate is that we can grow this audience, and we can monetize it well with our diverse business models. And in terms of the content we deliver, it will be deeper. It will be more authority content because that's required to build such brands. And you'll hear a bit from Per about sort of the brand journey of HLTV later on. It's quite impressive. So when you take these different building blocks, and I just described that we own some of these brands, we're even more excited about sort of the opportunity to continue to find these and acquire them because we do believe we are the best owner of digital sports media brands. We know how to grow audience and we know how to monetize them, allowing us to invest even further into the user experience of these brands. So that's the playbook we have in mind. Utilizing the different areas that we have in the business, where we are stacking on top of each other the business potential and thereby growing the overall revenue and earnings of Better Collective. And this thinking, combined with the vision, has led us to present some new financial targets released this morning, where we want to see growth in revenue of a CAGR of more than 20% from 2023 to 2027. We will continue to be a high-margin business, delivering strong cash flows and EBITDA margin before special items of 30% to 40%. And this will be achieved with net debt below 3x EBITDA at the end of the strategy period. And most importantly, at least when I think as a shareholder myself, it's without any form of dilution. We can achieve this with the existing growth and cash flow and the access we have to financing in the business. Thank you very much.

Thank you. That was the first part out of 3. So now we have a small break, 10 minutes. Yes, at home, you can do whatever. And in here, you can go out and enjoy some coffee, and there's some water down here, and I'll make sure that you're all in the room before we start again. Thank you. [Break]

Okay. Welcome back. I can see the last people are finding their seats. So we'll crack on with the second part of today where we will take you through our markets. We'll start with our European and being our legacy market with Christian, our Co-Founder and Karl as well.

Thank you. Welcome back. I hope you all just managed to stretch your legs and maybe get a coffee. We just saw from Jesper big growth number, big revenue number that we need to achieve out in 2027. The remaining part of today will be all about how to get there. We'll start with Europe. And with me on the stage, Karl has joined me who is heading down all Commercials in Better Collective. We'll be talking about Europe. You'll just see a few slides from me. Then you will see some really interesting graphs from Mr. Pugh. After that presentation, you'll hear on North America, you'll hear South America, you'll hear on 3 of our global initiatives, being esports, media partnerships and paid. Hence, we zoom in now on the digital sports media, and you will see a growth here. I'm just referring to North America being up next, South America being up next, esports being up next, all in this bucket of digital sports media. I'm sure you're already thinking, "Oh, yes, North America, South America, esports, that's where the growth is. That's what we are here for. That's what's really exciting." Yes, that's right. I also look forward to hear from Marc and Patrick and Petra, Per on that. But before your mind starts to drift now and just zooms out for the next 20 minutes, I would just like you to pause for a second. Because it's true, yes, to some that Europe might look stable, boring, lots of compliance, but we are seeing strong growth in Europe. And that's what we're going to tell you more about. Europe to us, that's the bread and butter. That's where we come from, and that's where we have expanded from. Let's dive in. You heard from Jesper in the beginning that we have around 30 million monthly visitors to all of our European brands combined. Lets take a few examples. You already saw Soccernews in the Netherlands. On that site, if you're into Soccernews, you can read between 50 to 100 news articles a day on that site. Let's go to Greece. Our flagship in Greece, Betarades, huge sports community. You can go into their chat 24/7 and discuss sports. Here in Denmark, we have our local flagship called SpilXperten. I go to that site every morning with my morning coffee. I read on what's on today, read about what are the experts saying, and then I place my bets. You're probably wondering, okay, so what is he betting on tonight for Denmark, Finland? I'll not reveal that, but I would just say that if Denmark leads in half time and full time, I will be extra happy tonight. So as I told you before, I've been betting online for quite a while. Actually the sportsbook where I placed the bet this morning, I opened up the account 15 years ago. So imagine Karl, if you have signed me up on a Better Collective affiliate link 15 years ago, you would still be making revenue from me day by day today. Here, in Denmark, it's normal to bet online compared to going to the local kiosk, which I used to do back in the days. And more than 50% prefer to bet online compared to betting offline. In many Southern European countries, that's not the case. Here, less than 50% will prefer to bet online. And this is exactly some of the growth that we are tapping into. So there is still so much growth out there that we need to capture. And with our local brands, we are more than happy to safely onboard these users to maybe their first experience online. Now I'll just be showing you a short video of some of the brands we run, and then Karl will take over and show you some really interesting graphs for here in Europe. [Presentation]

Hello, everybody. It's my pleasure to be presenting Better Collective's first Capital Markets Day. My name is Karl Pugh, and I'd like to start introducing myself by rewinding 12 years ago when I first started out in the affiliate industry as an affiliate manager at Bet365. One of the first accounts I was introduced to was bettingexpert run by 2 gentlemen, Jesper and Christian. Internally, I was made aware that this was an account to keep an eye on and a company going places. Fast forward, those same 12 years and entering my fifth year at Better Collective, having relocated my wife and 2 children to New York last summer, I'm here representing BC today as their VP of Business Development and M&A on a group level and their Chief Commercial Officer in North America. And with that, I'm going to guide you through BC's commercial position in the European market. So Europe, the most advanced regulated gaming market in the world. Many of you on this call and here today will be aware of the headwinds it seemingly faces. However, the graph behind me illustrates that the gross gaming revenue has grown from EUR 11 billion in 2016 to EUR 28 billion in 2022. Growth continues in more immature markets like the Netherlands, Italy, Romania, whereas more mature markets like the U.K. and Germany, seemingly challenged. The key conclusion on this slide, though, is the 25 regulated markets in Europe continuing to enjoy growth, representing a 16.5% CAGR in GGR for the period. Before I dive into the details and the underpinning metrics, I want to emphasize the underlying bedrock that our European business has been built on aligning ourselves with the long-term winners. Commercially aligning ourselves in this way is crucial, especially when considering our primary commercial model is revenue share. We pride ourselves on the relationships we've built with our sportsbook partners, coupled with our ability to make a large market feel small with the localization and the local brands that we have. This has resulted in 60% of our European revenue coming from our top 6 customers and bear that in mind because it will be replicated in my U.S. slides later on. Okay. The graphs begin. Time to get into a bit more detail. The graph on the left, you'll recognize, from my previous slide, a more condensed version, reiterating the 16.5% CAGR in the regulated European market. On the right, I am comparing BC's performance revenue growth in contrast at 33%. BC has outperformed the market by 2x. Even in a perceived troubled market, BC finds ways to grow where our competitors are pulling out. In my opinion, there is no better home for sportsbooks marketing spend than Better Collective in Europe. We deliver. When compiling the European narrative, it would be remiss of me not to deep dive into the juggernaut and my birthplace, the U.K. The U.K. continues to lead the way from a GGR perspective in Europe, representing 30% of the market. Since 2021, most of you will be aware of the headwinds with the white paper's imminent release. It was so imminent, it still hasn't come out. Sportsbooks have reacted and reshaped their businesses focusing on player protection and responsible gaming. And that's reflected in the 4% CAGR that you see for the period since 2018. Conversely, BC has shown a unique ability to pave the way as the leading digital sports media group in the U.K., testimony to our paid publishing and media partnership divisions. Our 64% revenue CAGR is only just the beginning, and I'm going to illustrate why on the next few slides. So same graph again. On the left, BC is 64% revenue CAGR. However, what I really want to highlight is that graph on the right. This is conveying our U.K. NDC CAGR. We have seen a 79% CAGR in NDCs since 2018. And most importantly, 80% of those have been delivered on revenue share contracts. Bizarrely, our investment in revenue share is only just beginning in Europe and especially, the U.K. And eventually, our revenue CAGR will catch up with the NDC CAGR and exceed that on the right. I'll leave you on this note for this slide. 75% of our U.K. NDCs for that period were delivered in the last 2 years. Okay? One last recap before I get to the climax, it's definitely going somewhere. This is Europe in totality. On the left, our year-on-year European NDC growth reflecting a 23% NDC CAGR. On the right, all you're seeing there is the roll-up effect year-on-year until we get to 2023. 81% of all of those European NDCs were sent from revenue share contracts and 42%, as the graph highlights of the total NDCs, were sent in the last 2 years. So now we do get to it. One of the most important slides that I will present today, it's one of my more technical slides, and I would encourage everybody in the audience to download and review later. Take this one home, not Flemming's ones, even though he will say differently. The graph on the left is a factual representation of a cohort of European players sent to a Tier 1 operator on revenue share contracts. The blue line illustrates the rate of NDC churn over the last 5 years. As you can see, after year 1, 75% of the NDCs have churned, leaving 25%, which remains extremely flat through until year 5. The green line illustrates the revenue share value that we extract over time. At year 1, we have only realized 25% of the total value of this cohort. Models until year 5, where you can see we obtained 68% of the revenue share value. And extrapolated, if I continued this graph, that would peak at 10 years, the players have churned and we then realized the full 100% volume. To the right, very kind reminder on my side, that in Europe, 42% of the NDCs we delivered came in the last 2 years. 31% of those were delivered last year in 2022. Lastly from me on this slide, we are currently outpacing European NDC growth in 2023 year-to-date versus 2022. And the value we are yet to realize cannot be understated. A beautiful representation of everything I just articulated over the last few slides. We are acquiring new NDCs faster than the existing base can churn. You can see the snowball effect here from 2018 to 2022. And bear in mind, everything I've said about the NDC trajectory in Europe, what is that snowball going to look like in the future? This gives us a fantastic platform to realize our vision in Europe of being the leading digital sports media group. Okay. As alluded to off the top, we're under no illusions to the headwinds some of the more mature markets in Europe face. However, this slide showcasing our biggest European partner on revenue share demonstrates the robust and recreational database metrics that we have. I'm going to guide you through a little bit from the left. But our average deposit value has decreased since 2018 from EUR 32 in average per player to EUR 30. This is the headwind sitting on the top. The responsible gambling measures, the operators and sportsbooks have put into place, the RG measures sitting there on top. It forces the average deposit value down. The average bet size has remained pretty constant over time, moving from EUR 15 to EUR 16, 2018, 2022. That's a very recreational database and is reflected in that average bet size. Conversely, despite those 2, sports wagering has increased 41% since 2018. The sports win margin, 4.5% back in 2018, 3% in 2022. Lots of factors pushing this down, regulation, taxes on the top, all the RG, all the player protections, it does force the sports win margin down. But the last point speaks for itself. We have increased our European revenue share in absolute terms by 210% in that period. Despite all the pressure sitting on the top of that, we can grow revenue share, and we will continue to do so in Europe. Our databases reflect the changing landscape and player profile that is occurring in Europe, and these recreational and sustainable nature of our database is evident, and it bodes well for any other future regulatory changes that come in Europe. Okay. A slight gearshift on my side now. I spent a lot of time discussing the historical legacy performance business, and now I want to pivot a little bit for the last few slides, where we're pacing to achieve our vision. The numbers you see relate to the media spend we are generating from one leading sportsbook. You can see the obvious trajectory, a standing EUR 0 start in 2021, we delivered EUR 4 million in 2022, and we're currently pacing to EUR 11 million in revenue from that single partner. This really is testimony to how we are growing the sports media side of the business, selling local sports content, media, video and audio, as Jesper alluded to at the top. We have recently on-boarded a fully dedicated brand partnerships team, and our plan for 2023 involve growing out that sales team, adding more sportsbooks to the media mix and investing in new media and talent in Europe. Most importantly, without cannibalizing the traditional performance metrics, this is all incremental sitting on top. I remain excited as to how this picture will develop in 2023 and beyond using all the learnings from the U.S. and the assets that we've acquired. The future of Europe remains bright. The graph highlights the expected 8% GGR CAGR from 2023 to 2026. And with our robust rev share databases, I showed you that in the slide, the NDC growth and scale trajectory, again, fully demonstrated and backed up. And the incremental media revenue that we're now folding in on the top, I remain confident that we will continue to execute and deliver to achieve our vision of being the leading digital sports media group. So last but not least, I think our European business and winning formula in Europe has been clear. We built up a performance marketing business anchored in recurring revenue. More recently, we are folding in media revenue on top. The U.S. is a different beast. We had a huge head start on all things, content, media and product with the Action Network. And we're only just beginning our journey in how we extract maximum value from our recurring revenue streams. Marc and Patrick will take to the floor shortly to expand more on this and then you've got me again later on the commercial landscape in the U.S. Thanks very much. [Presentation]

Hello. My name is Marc Pedersen, I'm the CEO of Better Collective North America, and I am also the group SVP of Business Development. Watching this video and looking at all of you out there, we've come a very long way since we started out in North America. Not many of you are probably aware of this, but we actually started out in North America all the way back in 2014. 2014, what -- some of you are thinking, what is going on over there? The truth is not a whole lot. But we did get a license for iGaming in New Jersey. Being a sports media company, iGaming was just our way of dipping the toes in a market with a hope someday, in the future -- we had no idea when, but in the future, hopefully, sports betting will be regulated. So it took a long time of flying forth and back, building relationships and driving almost nothing. But as it has been mentioned earlier, just before the IPO, PASPA was overturned. And sometimes I like to contradict Flemming, and I'll do that here because some of us did pay attention to it. And thankfully, we did have a plan with all of the funding we got in from the IPO. So we are looking at the market. We have none of the traditional affiliates present. There's nothing that we've done in Europe. So what do we then do? How do we become a leading operator in the United States? We had a quite short list of potential M&A targets, and we, over the summer and the autumn of 2018, engaged in conversations with a select few, and I'll run through all of them because they're all on this page. We looked at Vegas Insider that had tremendous audience within sports betting. We looked at Scores and Odds part of the same deal. We looked at this new start-up venture-backed rapid growth Action Network. And to please, Flemming, we also looked at something that was driving profits. So we looked at RotoGrinders from DFS, Daily Fantasy Sports perspective, where we would be able to monetize the entire -- not the entire, but around 40 states in the U.S. through the DFS offering, and at the same time, as it was mentioned, get knowledge about sports betting in the U.S. Patrick, who will join us later, met with me and a few others from Better Collective within his first week as CEO of Action Network. Patrick at the time didn't want to sell or he wanted to sell at the right price. There was some disagreement on what the right price was. And Flemming had his hat with EBITDA. So at the time, timing was not right, it was not a match. But come the early summer of 2019, the acquisitions first of RotoGrinders and then Vegas Insider and Scores and Odds were completed. We had a really strong presence and felt really good about the market at the time. Fast forward a couple of years, Patrick got a little [ soft ] -- maybe not, but we ended up getting Action. Action was always the crown jewel for North America from our perspective. It has the best products and had the best audience. So by the summer of 2021, we managed to acquire Action Network. Half a year later, when Ontario was looking to regulate in Canada, we acquired Canada Sports Betting to secure a leading position in Ontario as well. That led us to a position at the end of the year with a very strong product portfolio, a very, very talented team of around 250 employees. And on the shoulders of that team, we managed to accomplish more than $100 million in revenue, and that's for U.S. alone. So quite an accomplishment and something I'm very proud of, and I think we've done a tremendous job going from 0 and burning quite a lot of cost and flying forth and back to having more than $100 million in revenue within 4 years. I'm sure some of you are thinking, okay, that's great. But what's next? What's coming? If you look at the map, you'll see the gray dots represent all the states where we are currently not live. We are live in 20 states, meaning there are still 30. And if you count DC, 31. 31 states where we are not present at the moment. Either sports betting regulation in those markets does not make it feasible for us to be live or there's simply no regulation. As some of you know, many of us from the company are from [indiscernible]. So we like to be a little bit conservative, and we'd like to hit our targets. So we are not anticipating a rapid growth, and we're not anticipating a very green map in a very short time frame. This year, we've seen 2 states come online, but we have no expectations of further states. We are approaching this very conservatively. But any time a state comes online, we are, by far, the best positioned in the market to capitalize on that. So if we are conservative on states, where will the growth come from? A lot of it actually comes intrastate. This is a snapshot of the handle development in Colorado. And for those of you who does not know what the handle is? When Christian was mentioned, he bet on the game today, he probably placed DKK 20 on some bet. That DKK 20 is the handle. So all of the players and their weight is going in combines into the handle. As you see, the year-on-year growth here is quite significant since Colorado went live in 2020. And we can see future growth in all the states in which we are live. The states are still not mature. Remember, the oldest state, New Jersey, has been live for 5 years. So we are still in a very, very early phase of the adoption of sports betting. But I'm sure some of you are thinking what does handle matter for you guys? Traditional affiliates, they're all on CPAs, meaning the future value doesn't really come into play. Thankfully, Karl took sort of away my point by saying that we are engaging revenue share in U.S., but there's more to it than that. If you look at our revenue mix and our revenue streams in North America, they are very diverse. The CPA revenue share, we already touched upon, but we also monetize our audience through CPM sales. That is basically banner sales for every single visitor coming in. We sell sponsorships to our partners through Mastercards of the world, and we sell subscription products to our users. Maybe it's new to some of you, but around 20% of our revenues in North America is from subscription products of users having recurring subscriptions on our platforms every single day. So we have a very, very diverse and long-term sustainable revenue mix in the U.S. That I'm sure the skeptics around will say, okay, but we're just seeing states coming out and proposing parts of your -- proposing a ban on parts of your revenue mix, namely CPA and revenue share. And you're absolutely right. We have seen that, and we have also dealt with that. A couple of months ago, early February, the state of Massachusetts proposed a ban on the CPA and revenue share model. Subsequently to that, we engaged with some of the sportsbooks with some of our competitors and with the National Council of Problem Gambling to engage in conversations with the Massachusetts Gaming Commission. I'll call them the MGC. But through those very constructive dialogues with the MGC, they realized the value we offer to the market through education, through empowerment. And as we said earlier, through following players into the safe and regulated sportsbooks in the state away from the offshores. Taking all of that feedback into consideration, the MGC totally reverted their stance and allowed for CPA and revenue share in the state. We feel confident that the same argument and the same dialogues will happen in other states, and it is a path where we are very confident in our position to engage with the regulators in other states as well. So now I think we covered most of the external factors in the market toward how we are positioned. I'm sure some of you are thinking, what are you actually doing? Patrick will give a much better picture of what we're actually doing day-to-day. But I'll tell you a little bit about what we've done so far, finding synergies and integrating with our brands. If you look at the box to the left, you'll see that everything we do in North America is powered by a central organization that provides editorial content, a commercial team, tech, HR, finance, SEO, all of this is centrally powered, and you can even add Paid Media to it. All of this is run centrally, meaning we have integrated our products, we are leading the products -- leaving the products to focus on what they do best, and that is to drive the best user and product experience. That's all well and fine and big fancy words, but what does that actually mean in terms of how do we compare against the market? The graph to the right that just popped up will show you that. We have outperformed the market growth, almost double over the last 2 years. So I feel very strongly and very confident about our position in the market and our ability to capture both short and long-term growth in North America. To show you a little bit better about how we do that, the CEO of Action, Patrick Keane will join us on stage now and talk you through Action Network.

Thanks, Marc. Hello, everyone. I'm Patrick Keane. I'm based in Better Collective's North American headquarters in New York. For all of you who haven't been there, we'd love to come see you or for you to come visit us. It's a great office on 23rd Street, close to a lot of our partners like FanDuel and some of the leagues, which are a little further uptown. To tell you a little bit about me, I'm a founding angel investor in Action Network, and that was about 8 years ago. And since in the last 5 years, I've been CEO of Action, and we continue to grow and build and innovate and really exciting. For me, this is my fourth visit to Copenhagen. I love this city. I hope to come back more often. I'm a big fan of milestones. So we've talked a lot about the acquisition of Action Network, and that in a few weeks will be exactly 2 years ago. So incredibly impressive growth for our team. And Flemming, yes, we are very profitable. You said something about not making a dime is a very profitable business, which I'm going to walk through for everyone. One thing that's also really interesting for me, I had the opportunity to work at a large -- a lot of large big media and technology companies, including Google and CBS and start-ups as a CEO and executive. And one great thing about Better Collective is we have the resources of a large company, but also we are nimble and able to execute like a start-up. So that to me is incredibly exciting, and we'll continue to operate in that fashion. So what is Action Network? We're sort of 3 things in equal measure. One, we're a content company. We create content at scale, 50-plus pieces of content a day, all geared toward informing a sports bettor and helping them make decisions on how they bet. On the right there, you'll see, we're also a technology company. One of the things I'm most proud about at Action is the quality of our products and the quality of our technology. And that technology is what gets users to come back, be highly retained, be sticky and that we're ultimately able to monetize. And then in the center there, you see audience. So we, in the U.S., have the largest sports betting intent audience in the millions of users, and we're incredibly excited to continue to grow that platform through award-winning content, incredible technology and products to serve that audience. So a few of our bona fides, if you look here, this is app store data for the Apple App Store, and Action Network is the only media company that's in the top 10 of sports betting apps. So you see a lot of operators, partners of ours like FanDuel and Barstool and Caesars and MGM, and we are the only content asset that's part of that and technology asset, which we're incredibly proud of. And again, that's due to extraordinary content and great products, which really engage users, and it's incredibly exciting to see our place in the rest of the sports betting community in the U.S. So the team has talked a lot about the 5-year anniversary of PASPA, which is May 14, just in 52 days. As I said, I like milestones and dates. And since that overturn, from 2018 to today, we've achieved some incredible metrics just at Action Network alone. So 103 million users, incredible, 3 million app downloads, organic search, SEO is incredibly powerful for us, nearly 120 million searches. And Better Collective has talked a lot about becoming a leading sports digital media company and being in the same breadth of the ESPNs of the world, et cetera. We're approaching over 300-plus million video views, almost -- or more than 35 million podcast downloads. So really trying to increase our creative palette of assets for content that are incredible to monetize for Karl and team and also just really engaging users. Getting back to the product side of the conversation, we've tracked 300 million picks in the action app. So to give you a little context, users are able to select and track their picks through the app. And that's been done manually, again, 300 million times. So an incredible product. App sessions, we're incredibly proud of our app, as I showed before. And then Marc talked a little about what bets -- about what handle is. And BetSync, where we work with partners where you're able to place a bet at an operator that is automatically synced to the Action platform. That's been done to the tune of north of $1 billion. And again, this is just since the passing of PASPA. And we're now at 50-plus percent of the U.S. as an addressable audience and opportunity, and we look forward to that continuing. So again, incredible products and great milestones. So one thing I think a lot about in terms of the opportunity, and you as investors and existing shareholders, I think this is one of our more important slides, is what is the addressable market and the opportunity to reach users in the North American market. So on that far left, I see examples of what I would call the casual sports fan. Maybe you placed a few bets, maybe you're in Massachusetts and Massachusetts became legal in last week, so you want to bet with friends when you go to a Celtics game. So that's those users that maybe look at scores at ESPN, maybe they read content at CBS Sports. That's a huge audience in the hundreds of millions and is one opportunity that I think we can address here. Those far middle and right, I would say, are really the corpus of Action Network users of today. They're slightly more sophisticated. They bet with higher regularity. They bet with higher redeposit rates, and they bet more consistently. So for the LTV track, these are some of our most valuable customers. They use our great products like BetSlip -- or BetSync and QuickSlip , which I'm going to show you shortly. But we have those users, and we're going to continue to retain and monetize them. But for us, we like to talk about sort of ends of the pool, we need to get to the shallow end of the pool, where there's net new users and less sophisticated bettors. And we're creating products and content that really delight those users. So again, we need to grow and monetize them most importantly. So to look at the evolution of Action over the past 6 years, on the far left, you see our original app, which was really product specific and technology specific. So I mentioned being an angel investor in Action 8 years ago, the original app was really pick tracking and a little bit of content and really, again, focusing on very sophisticated bettors. As you move down the time frame, you can see the Action app looking maybe a little bit more like ESPN, if you're a user or Sky or something that has a little bit more content. And again, data is important, but more content driven. And then on the far right, where you see one of my favorite golfers, Rory McIlroy, who's playing this week at the WGC in Austin. I love to bet on golf. I don't know if anybody else here does. But you see an experience here where we have our media center where you can actually engage in videos and content and find our podcasts. And then from a monetization perspective, on the top there, you see that offer from one of our sports books. So we're able to marry technology, incredible content and monetization. So we satisfy our users, we satisfy our partners, and those are incredibly important. So I mentioned QuickSlip, and I'm going to queue a video in a second that will walk you through what I think is one of our most compelling products. And what QuickSlip does, it does a few things in equal measure. It allows you to through our Action platform place a bet where you start the experience at Action and you're seamlessly frictionless, able to place that bet at FanDuel and soon to be other partners, but I'll let the product speak for itself, and it's an incredible one. So if we could queue the video. [Presentation] Pretty cool, right? Again, I'm just incredibly proud of our product teams that are innovating daily. We have over 50 people in our product and technology organization that are doing everything they can, again, to really delight those users, engage them and drive revenue for our partners. So I'm a big fan of data. I mentioned I worked at Google a few years ago, and now it's called this weird name Alphabet, but whatever. But if you look at the sort of 4 horsemen of the lead in the consumer Internet of today, it's Apple, it's Alphabet, it's Amazon and it's Meta-Google. And what do all of those businesses have in common and why are they so powerful? They're the leaders of first-party consumer data. They have you through apps, through commerce, through lots of other engaging products. And at Action Network, I really believe we have this opportunity and exists today as one of the biggest owners of first-party bettor, B-E-T-T-O-R data because of that BetSync, because of QuickSlip, because of the ability to track your picks on our platform. And also, Marc mentioned subscribers. We have over 100,000 subscribers at Action. Those are highly engaged, again, probably that deeper pool user. Again, $1 billion north in BetSync spend through the platform. And again, this is all anonymous. I would not want to scare anyone to think that we're holding user data to a degree that is not inappropriate. We're GDC compliant. We do everything that we can there, but it's really important that, that data is powerful. Our CRM database, that's people that we hit through e-mail and through alerts, through our products is approaching $3 million. And these, again, are avid bettors that we're going to try and expand into a universe of less avid bettors. And then lastly, a marker that we're incredibly proud of is that $300 million fixed track. So as Marc and others have shown the other assets that are part of BC North America, which are important ones that we grow, Action Network is really our largest asset, has driven the most revenue. It's really kind of the anchor product when Karl and team are selling our commercial assets to partners. It's really the talent of our content teams, the quality of our product at Action that really drive a lot of that success. But we also have a number of incredible assets in North America. So we mentioned Vegas Insider, RotoGrinders, Fantasy Labs for the daily fantasy user, Sports Handle, which is really more of an editorially-driven product that is the reference brand for sports betting information and covers the business, which is great. Scores and odds, which is more about kind of live odds. And then lastly, we are a North American business. So Canada sports betting was an incredibly important asset. But when Marc and I and Jesper and team were thinking about North America and the opportunity to really have these brands have a more consistent look and feel and have them feel more like a family as opposed to a number of disparate assets. So you look today and we're recasting and rebranding all the assets they're going to have that same name, but we're changing the look and feel a little bit. Action is going to be at the center of that network, and this will have powerful network effects from driving audience to driving our partner revenue and we're going to benefit from being kind of one family and that family is Action Network with the other brands supporting it. So incredibly excited, great to meet you all. As I mentioned, we'd love to have you in New York at some point, and I think I'll throw it back to my friend, Karl. Thank you.

So thank you to Marc and Patrick for showcasing all of our U.S. assets. You stuck with me with a -- for a little while longer. This time wearing my Chief Commercial Officer hat in North America. Over the next few slides, I'm going to backfill a little bit of the commercial context on how we are investing commercially for the long run in North America. I'm not going to go through this graph and walk you through the sports books. I think everybody is familiar with that. What I am going to repeat is our success story in Europe is that it's crucial we align ourselves early with the long-term winners in the market. Long-term winners in both sports and casino are already beginning to shake out, and we are positioning the commercial framework accordingly. Importantly, iGaming, despite being live in only 4 states online, represents 40% of the GGR. We anticipate further rollout of that in existing states over the next few years and only one commercial model can give us access and benefit from that rollout for the existing players we send revenue share. Our early mover advantage in revenue share has been well documented. And through the course of the next few slides, I'm going to walk you through how we are progressing. Alongside how Better Collective is not restricted from generating revenue from only the new NDCs that we deliver. This slide maps out how we actually align ourselves with the sportsbooks needs and their priorities. And what we do is we meet them where they need the most support. We offer them new customer acquisition at scale across our paid and publishing divisions. With that comes market share for the sports books. In addition, we provide sports books with the highest ROI of any of their marketing spend. Our transition to revenue share supports this even further. Through our unique and innovative products that PK outlined, we're also able to retain those customers for the operator, and that's a big thing to them. They've spent a lot of money acquiring those players. We've seen it all. We've seen the quarterly reports. They need to retain those customers, and we have the audience and the products to do that. And lastly, our ability to drive NDCs across both sports and iGaming, giving our sportsbook partners the access to the most valuable cohort of players is something that differentiates us. But what makes us different to our peers and what is our USP? Patrick walked through a lot of these things. But on the left, you see the traditional sports media, very proficient at driving significant traffic and generic sports content and media. In the middle, our traditional affiliate competitors, very, very good at lead generation. Very good at having high betting intent traffic and very good and efficient marketing spend is paid to play. You send a player, you get paid. Better Collective to the right, combining best of both worlds in the U.S. and North America. We are the one-stop holistic shop for sportsbook marketing dollars in North America. But how do we commercialize it all, I hear you say? Very simple, a 3-pronged approach across acquisition, engagement and retention and media and branding. I'm now going to talk a little about each of those different revenue cohorts and their progression and trajectory over the last few years. The first one, I don't think it needs any introduction. Our NDC acquisition grows at scale. From 2019 to 2022, our NDC CAGR was 170%. Our sportsbook partners know they can rely on BC to deliver market share across our paid publishing and media partnership divisions. With the impact of each state launch comes the opportunity to invest in recurring revenue, and that's what we do. The NDC spike that we drive in those early weeks of a state launch, it's crucial to tap into that recurring revenue and not take the CPA option. My next slide will show how we were making the right investment decisions for the long term. Our revenue share development continues at pace. We now have 6 U.S. sportsbooks on live revenue share contracts. And as the graph illustrates, we have moved from 4% of our total U.S. NDCs being sent on revenue share in January 2022. Fast forward 13 months, 63% of our U.S. NDCs in February 2023 were sent on a revenue share contract in the U.S. As my European slides demonstrated, we know how to align ourselves commercially with the long-term winners in the market. And that's exactly what we're doing in North America. Our journey of recurring revenue really is only just beginning. I remain confident that Better Collective is investing for the long run with the biggest sportsbooks in the U.S. market. My slides wouldn't be complete without the old favorite snowballs, but it's actually true. Akin to Europe and the huge success we've enjoyed, this revenue share snowball will come. We've been such early adopters in revenue share versus our peers and competitors and the likelihood of iGaming being rolled out potentially not imminently, but in the next few years, gets me excited. I remain extremely confident again in our recurring revenue business in the U.S. Before I dive into the media and sponsorship revenue, I would like to thank PK again. He set me up with a lot of these slides showcasing our talent, our quality media that we produce and the content offering that we have as a U.S. group. The graph behind me illustrates the growing demand for our content and media portfolio. We generated $15 million in revenue over the last few years, ramping significantly to represent 15% of our September '22 revenue. Importantly, it's not just endemic sports books that we are selling to. Our media head start in the U.S. versus Europe means we are also able to fold in non-endemic revenue into the mix, as illustrated on the next slide. It's a nice slide this one, and we're really proud of the companies who are continuing to invest and buy our media and audience year after year, whether that be non-endemic beer advertisers like the Athletic Brewing Company or the traditional sports books like Fanjul. Our growth brands remained strong, and we plan to invest even more in key talent and media over the next 12 months to meet the demand from our advertisers. Finally, this is the last cohort that I mentioned and the most nascent channel, and this one really does get me excited is engagement and retention revenue. I tip my hat once more again to PK for showcasing our proprietary products in QuickSlip and BetSync. This highly, highly engaged audience, utilizing these products is exactly what our sportsbook partners want to be in front of. We first started commercializing this during my arrival in the U.S. in July, August of last year. And you can see the trajectory of growth there is extremely impressive. We generated $1 million in revenue in the first 6 months of being live in a testing phase. With over $1 billion in our products flowing through there since the repeal of PASPA, I remain extremely confident that this will become a key growth revenue channel for BC in 2023 as we start to scale this up. Lastly, this final slide is going to highlight why I do remain so encouraged about the direction of commercial travel in the U.S. and North America. Again, a reminder, our peers in the U.S. are restricted to certain revenue streams given the audience and traffic that they drive. You've got the traditional sports media, huge content warehouse, huge media traffic, they engage users, no doubt about it, but they primarily commercialize it on those CPM and sponsorship revenues. The betting intent isn't there, and that's why the sportsbooks come to us. Your traditional affiliate again, qualified traffic, very, very good, refer NDCs and it's CPA that they're utilizing primarily as their commercial model. Better Collective, our offering includes that qualified traffic, it includes the products and integrations and it includes the content and the media and what we're able to do is deliver the NDCs, drive the subscriptions and pick sales, retain the players for the operators. And I can commercialize that whether I sent that player originally or it was one of my competitors, they're now using Better Collective products. And if they're using Better Collective products, I can commercialize that, which gives me access to such a bigger player database versus our competitors. And we also engage the users with the quality media that we produce. And then my sweet shop is below, it's revenue share, it's hybrid, it's CPA, it's subscription, revenue share, fee per bet, percentage of handle, the sponsorship sitting on the top, advertising and CPM. That is the commercial dynamics that go into that $100 million number that we delivered in 2022. So that's it for me. I want to thank everybody for listening to me, taking the time, and hopefully believing that we are developing our journey on being the leading digital sports media group. And it's now my pleasure to introduce Petra who will guide you through the growing opportunity in Latin America. Thank you.

Hi, everyone. Very nice to be here and to see so many of you, and also you guys that are behind the screen. I will be talking about Latin America and a little bit more about the future today. You have heard a lot from Jesper and from all the other speakers about our vision to become the leading digital sports media group. You also heard both Karl, Patrick, Marc speaking about the growth -- our growth in Europe, as well as North America. But if you want to become the leading operator or the leading agency, then we actually had to be beyond Europe and North America. My background is from emerging markets. When I was 15, I had a picture of Machu Picchu in Peru on my wall. I was dancing Salsa, and then dreamt about traveling the world. And I did or maybe I worked myself around it rather. I have worked and lived in China, Central and Eastern Europe, Africa and not least, Latin America. Today, I will be speaking about my favorite region, which is Latin America. So let's dive into it. We have a dual growth strategy. We grow through M&As, and you have heard from many of the speakers, our success -- our successful growth trajectory within that. But we also see, and I think the last presentation also showcase the abilities and the capabilities that we have acquired and that also leads us into having much more power to actually grow organically with what we have acquired and taken that into new geographies. And even if I will be focusing on Latin America today, that doesn't mean that we are not looking at the other regions, both Africa and Asia and the big countries within that are highly relevant for the long term, and they are on our radar. And when we see something of interest, we will take that opportunity. We will plan to see it, and we'll see it growing, focus on it and to see what that will deliver to us in a 10- to 20-year horizon. So LatAm is our growth region 2023, why? It's extremely fast growing, not only from the gambling perspective, but also from the digital advertisement perspective. It is also so that our customers are already there. The main sportsbook have been there for a very long time. Myself, I was over celebrating the 10-year anniversary, playing soccer in Peru for Betson, 2018. That was 10 year. So there are a lot of sportsbook that have been active in this region for a very long time. We have good traction. We've already seen our winning formula working also in this region. We started off in Brazil and in a few selected markets. And with that kind of evidence of that it works, we will continue to build on that. It's part of our global scalability. So let me dive a little bit more into each one of those points. Growth. So this region is outgrowing or outpacing a lot of the others. I know it doesn't mean that Europe is not relevant or U.S. is not relevant. They are highly relevant, but this growth -- this region is growing really, really fast. You have certain markets here at an extreme pace, while others have a little bit lower pace. Argentina is one of those examples that is really, really growing fast right now. On top of that, I would say that if you go into maybe -- let me go into the next slide on that. So on the top of that, you have the digital advertisement spend, which also outgrowing or more -- growing more or less by double. So this is the nonendemic opportunity that we see now with our new vision, more driving into the sport advertisement side, not only the gambling side, we can take the advantage of this. You heard Patrick speaking about the social media. If there is anything that this region is all about, it is social media. 98% of all the users of Facebook, they're only on the mobile, 80% of them discovered new brands through Facebook, another 60% through Instagram, TikTok 15% and so forth. So you get the picture. We need to be where our consumers are, where the sports fans are and not least where the future generations are. And we have seen that, and we have really strong things within the group, and we will continue to invest in ad technologies. We've already spoken about an investment around EUR 10 million in this region, and that will continue and it will also be enhanced by strategic acquisitions within the area. When it comes to this region, it's easy to say Latin America, perfect, easy. No, it's not so easy. And you can also not say that it's Spanish-speaking and Portuguese speaking. What you have to look at is each country as a specific market. They are very different from each other. They do have the soccer passion in common. But except for that, there is a lot of differences. I was speaking about the advertisement market and how that looks like. And if you look at ads in this region, 30% are still only translations from English or from Spanish. They're not at all adapted for this market and the consumers know that. It's small differences sometimes. The words we're using and so forth -- there is -- one example is how we actually call your national team in Ecuador or a Peruvian would call their national team Selección de Perú, while an Ecuadorian will call it El Tricolor. They are not even close to each other. So when the sportsbooks have -- the ones that early went in, they didn't make any distinctions on that. And that was fine 10, 15 years ago. Today, it's not fine any longer. They expect you to use native speakers and to actually adapt to them if you want to be successful. Because if not, they prefer to play with the local sportsbooks that are advancing at a very fast pace. Let me dive a little bit deeper into a few of those markets in the region. I don't know how many of you that have traveled around in the region, but if you had, you will see that there is quite distinction between them. So first, we take Brazil. the biggest market. And I think if you look at that in most sportsbook, they are speaking quite a lot about the market. Since 2018, the marketing budgets in this region has increased massively. Today, if you look at the Brazileiro, the men's League in Brazil, 19 out of the 20 sportsbook have a sponsorship from a sportsbook. On the female side, the same number is 11 out of the 16 teams has the sponsorship there. The sportsbook industry is all over Brazil. There are around 400 to 500 sportsbook active in the region. That's a huge number. Mexico, not growing as fast as Brazil, but still on a decent 13%. However, the advertisement growth is beyond 30%, and that's an attractive number. Mexico is a little bit different. It's a mix between Latin America and the U.S. If you look from a sportsbook perspective, most of the sportsbook use the U.S. product for Mexico. So that's a big distinction between the rest of Latin America and Mexico. All those things, you will only know if you're actually acting within the region, and you take the time to understand what the local sportsbook wants and so forth. The Mexicans, they love the U.S. football, they love MMA, they love baseball, but they also love their Latin soccer. The interesting part with Mexico is that it's not only the Mexicans in Mexico. It's also the 60 million Hispanic population in the U.S. And out of those 60 million, 40 million are Mexicans. So we are not only talking about the Mexicans in Mexico, we're also talking about the Hispanic population in the U.S. and the potential of reaching them because they prefer to consume their media in Spanish, and they still cheer for their local teams. And finally, you have Colombia, it's a little bit smaller. It's 50 million, not so small from a European standard, but small from a Latin American standard. There you have 16 licenses today. I would say 5 of those are of any importance or have reached any significant size. The 2 largest ones coming from the offline world in or being local. And then you have Rush Interactive and Rushbet coming in from the U.S. and just blowing the market away and being extremely successful online despite everyone saying that it can't happen only online, it can. And that is also this trend that we are benefiting from. The growth in just the traditional growth coming online from the off-line world, and all that they have in common is the passion for soccer. And it's not only about male sport, even if it looks like that sometimes, especially if you cover the media. You also have the potential of women. And what we see today is a growing trend of the female soccer not least. This year, we have the FIFA World Cup for women. And I think that -- now we see much more about that being broadcasted and so forth that we've ever done before. And from this region, you have Brazil, Colombia, Argentina, Costa Rica already qualified for it, and it will be covered. On top of that, you have Copa América Femenina, which is the regional tournament for women that is also happening just after FIFA. So I think that we will see also an increasing demand and interest for and coverage of the female soccer. We spoke a little bit about this before that we have a little bit -- we have a lot of different brands within our region, but we also have different -- we can use them for different kind of growth opportunities. So we have the ones that were basically more or less born global, eSport is a good example, and Per, we'll be speaking more about that. Then we have what we call the global brands with a little bit of twist that is basically the Dust 2 powered by HLTV. So it's a local site coming from the HLTV. Our eSports site or CS:GO site, which then goes deeper into and actually adapt itself to the local audiences. We launched the Dust 2 in Brazil in Q2 last year, and we have had a very nice traction from it, and we're going to build on that moving forward. This also enables us to go after not only the betting customers or the sportsbook, but also the big non-endemic brands such as the consumer goods brands. And finally, we have our U.S. brands. And I think you saw how much ad technology and really exciting stuff that we have in the action, and we see that we can take that brand and that technology into more markets, and we will. RotoGrinders, another example. It's a fantasy product. And it's one of those products that is really good to use in the early stages of a developing market. And that is also something that we see as a potential not least in emerging markets, like the ones that I'm focusing on. So what will we then do in Latin America and what is it that we are going to -- what is it that we have in front of us? Well, first and foremost, we're going to apply the winning formula that we've been seeing -- that we have seen working really well in Europe. The key thing is that we have to be in the region. So we established our first office now in Rio. The second one will be in Sao Paulo, and then we're continuing into the Spanish-speaking part of the world. We are going to use what I said, our affiliation foundation, while we are enhancing the social media, which is key for success in this region. And we are also building up new strong media partnerships to help us to grow even further and even faster than we had before. We are building with those native teams and with the local foundation that we are building up. We're also building a very strong understanding of the sports fans that will make us more relevant for all the advertisement -- advertisers, both the local one in the region, as well as the international ones that want to establish themselves or grow in the region. And finally, we are going to complement that with strategic M&As. And that is something that we have on the radar all the time, and we make sure that when someone wants to sell, we would be the most attractive buyer of their assets. I'm super excited about what we have here today. I'm really excited about this region and the potential that it has for us. We have to continue and continuously improve, and we have to force ourselves to always be on top or on our tiptoes when it comes to competition and everything else. But I know that we can do that. So LatAm it is. Vamos.

Thank you. That was the second part of the day, we're done with the markets when you come back from, I think, for all of us well-deserved break, we'll go through our media partnerships, esport and Paid Media. But for now, 20-minute break. You all know where the coffee is. So I'll be out there clapping when we need to go back. Thank you. [Break]

Hello, everyone. Now that we are -- the windows are 90% closed in here. So I think I can start out our third part of today. You heard about how we built Better Collective. You heard about our markets. What you're going to hear about now is in 3 sections, how we leverage all of this outside of our core business being the sports media business. So first, Christian will take you through our media partnerships. Then we have HLTV Founder and now also Senior Director of eSports in Better Collective, Per Lambæk, will take you through the HLTV journey, but also talk about footprint. And then finally, we end with Gavin who will take you through our media partnerships. At the end, we still have the Q&A planned. [Operator Instructions] But for now, I will invite Christian back up to the stage for the last time probably today to showcase and talk about our media partnerships.

Thank you, Mikkel. I also welcome back to all of you. I hope you had a chance to just get a cake or 2. In this part of the presentation, I will start off by going through our first global initiative. And then as Mikkel said, you will hear from Per afterwards on the eSports Global Initiative and finally from Gavin on the Paid initiative. Media partnerships. It's been a massive success for Better Collective. Just thinking back 4, 5 years when we made the decision, Jesper, to execute on media partnerships. It's one of the best decisions we've made. If you recall, Jesper's slide back from 2018, we had around 7 million monthly visitors coming to our owned and operated sites. We had all this great data, tech, content, that we've been working on for 15 years, and we really thought it deserved a bigger audience. So we went out in the market. We packaged all this great content. And we went out 4 years ago, 2019 and at that point, teamed up with 2 strong local media. We already knew that 1 of these media had been trying now to do sports betting content themselves. They hadn't succeeded, maybe due to lack of data, resources, focus, what do I know. But we teamed up with them and we created a win-win. So I think you recall the first number here, 150 million monthly visitors to our owned and operated sites. It took us 2 decades to get there. But if you include the media partnership reach, we're actually now reaching a total audience of 300 million monthly visitors with all the -- if you combine all the media partnerships that we have now teamed up with. So in just 4 years, we have 2x the audience that we are now able to reach. Just think about that number for a while. And then you think what -- how is that possible? What are we doing? Let me show you a short video of how we do media partnerships in Better Collective. [Presentation]

So what we really created here is a win-win with the media partner. They come with a big authority, big audience and huge traffic. We come with great content, great SEO skills, best deals in the industry, and we tie that all together and package a win-win for both the partner and for us, and so we have done. We've teamed up with many traditional media out there who are strong household newspapers around the globe. Probably some of you are familiar with some of these. I'd like to give you just one example. The New York Post. New York Post, it's been around since 1801. That newspaper is more than 200 years old. I think there's a good chance that probably those of you here in the audience at some point in your life, you've had a visit to nypost.com. I've had also before creating a little sports betting section for them. But if you're not familiar with New York Post, I recommend you to go in tonight, go to the menu and then you scroll down and then you see sports betting. That's created by us. A little more than a year ago, there was no sports betting section on the New York Post, we created that section for them, meaning their readers they are now able to read about sports betting. How to safely gamble online. At the same time, it's also ranking really well in Google. So they're also able to get a new audience into their site because they get a lot of traffic in from a source like Google. And maybe that audience, they will consume our sports betting content, but there's also a really good chance that they will also be interested in reading some news. So that's a new audience for New York Post as well. And if you are on that sports betting section tonight, then you'll also see that it's co-branded with Active network. That's a new audience for us. And just coming back to the presentation, Patrick also had, that's exactly the shallow end of the pool, that audience that we would like to attract. New York Post, that's just 1 example, teamed up with many local media that you see here on the screen. And then something really exciting that we just did a couple of weeks ago, that was announcing the goal.com, media partnership. Goal.com is a global soccer news media, and we actually launched immediately in 3 different languages, and are planning to launch in many more languages together with them. So I'm extremely excited about the media partnership opportunity. And so are the media partners because our pipeline for new potential media partners, it has never been stronger than now, and I can't wait to execute. Thank you so much. And now we move on to the next global initiative. Senior Director of eSports, Co-Founder of HLTV, Per Lambæk. Welcome to the stage.

Thank you. Hello, everyone. So it's been a long day, so I'll start out with the video just to set the mood. [Presentation]

Yes. So I created HLTV together with my partner, Martin, and we started nearly 21 years ago. We started because let's face it, we were basically terrible at the game, but we wanted to do something with Counter Strike, right? So we figured let's build something instead. So we sat down to build HLTV. We actually didn't even meet in person for the first year. We just solely met online and organized the development of the company that way. It also means that now we have 42 years of experience in the leadership group for an eSports company. I think that's -- not many other eSports companies can present that many years of experience. And then what for many is considered a very young and upcoming industry; for us, we've been doing this for more than 20 years, right? So we know what we're doing. So I imagine that, of course, everyone here use HLTV all the time. But if there's just 1 or 2 details you maybe don't know, I'll just go through what it is we actually offer. So HLTV is by far the leading Counter Strike media. We feature everything from match coverage, so extensive coverage of the matches before they start; who's playing, when and where. After the matches -- live scores, while the matches are going on, and after they are over, how did the match go, and we have all the statistics as the only ones basically. We feature MVP awards that we hand out after the big tournaments. We decide who was the MVP of a tournament. The tournament organizer will now and then try and organize these awards also. But basically, the community -- it typically goes something like this, that the community is like, oh, so they handed the MVP to this guy. Yes, but who did HLTV choose? So our MVP award carries a lot of inertia and a lot of credibility. So the community has really bought into that it makes more sense for us to consistently hand out the MVP award across the various tournament organizers instead of them maybe selling the award and handing it out to the fan favorite. We also feature our world ranking. Again, we just have a ranking. We update it once a week, but the entire community has bought into that the way we do it, and the quality of this ranking has made it the gold standard and the most quoted ranking there is in all of Counter Strike. So when Astralis, for instance, sends out a press release saying they're #1 in the world. Well, they're saying they're #1 in the world because we said they were #1 in the world. And we also have an entire news crew. We have editors and we have photographers, covering every big Counter Strike event that is there on site. And finally, we have our historical database. Basically, we have every game of Counter Strike that mattered from a competitive standpoint in our database. And we have this going back all the way from when Counter Strike: GO, which the current version was released. And what this basically means is that if there is a match that's not in our database, it might as well not have happened because in 2 days, 2 weeks or 2 years, no one will know that, that match happened if it isn't in our database. All this data is our own. We own this data. We are the primary resource. We don't buy this from anyone. We have a crew of people entering the data. So no one can really touch us on this either. Yes. So what we've been doing is that for the past 20 years, we've just been iterating on this one product. So a lot have happened with screen technology, but in a sense, not a lot have happened with HLTV. It's the same core product. We have, of course, been adding features here and there. But basically, it's been one long evolution of the same idea, and we're laser-focused on Counter Strike. A lot of eSports sites in the past will have decided, hey, we should feature more games. Let's do 3 games, 4 games. Let's grow that way. But we decided, no. This is about Counter Strike. You don't want to go to your football site and read about another sport if you're really into football. So we stayed laser-focused on Counter Strike, and the community really bought into this. They shared this vision with us. And we slowly grew as Counter Strike grew, and when Counter Strike exploded, and went mainstream 5 years ago, well, so did we. Yes, the past 20 years have allowed us to build up a lot of proprietary features, features where no one can really touch us. The HLTV awards is also called the top 20 players of the year, which is basically us naming the best players of the year, every year. Again, the players, they all buy into this. The player who won the #1 place last year even posted a photo on his Instagram by sleeping with this trophy, Messi style like he did with the World Cup trophy right? So that's the credibility that our awards they carry. The MVPs are already mentioned in the world ranking. We also have a fantasy game. So where for other companies, featuring a fantasy game is their entire product. For us, it's just kind of a small byproduct that we use that to entertain our users, right? But having all the building blocks makes it very easy for us to create a product like a fantasy game, and it's currently engaging more than 50,000 users every month, having fun playing fantasy. And our historical database, I also already touched on. But these are all features that cannot really be replicated by anyone. It's ground we have gained over the past 20 years. Of course, you could also look at HLTV say, okay, I have all these features. Where do we go from here? But basically, what we do is that we keep innovating. We keep innovating on the same things. So for instance, our top 20 players of the year. It started out as filler content. Way back in 2010 when we got to the off season, not many matches were going on. So what do we do? We still want the traffic on the site. So we decided, hey, why don't we just name the best players of last year. We did a 20-day article series of 1 article a day, celebrating the best 20 players of the past year. In 2017, we then started handing out medals. And it turned out that these players in a team game like Counter Strike, they really, really appreciate getting a personal award that they personally are recognized for their effort. And it even got to the point that we had to produce all the medals way back -- all the way back to 2010 to hand out to the players because all the old winners came and asked us, "Hey, why don't we get a medal?" In '22, we took this feature even further with a studio -- live studio shows. So we had invited a couple of guests. It was kind of tough because of COVID, but we had the studio show. And in '23, we did our first real award show. So we had past legends of the game, the current top players there, just for a day of celebrating Counter Strike. So [Indiscernible] of Counter Strike. And the entire community has bought into this idea. And what this has enabled us is to take something that was created as filler content which is now -- has now turned into a highly monetizable product, driving double-digit revenue -- double digits of the revenue we did last year. And that's just one example of how we keep working on what is a kind of a mature product. HLTV is unavoidable in Counter Strike. Everywhere you go, if you consume Counter Strike content, even if you don't go to HLTV, you will run into us because you'll see a photo that has a watermark because our photographers are at all the events and our photos are by far the most used by anyone, by players, by teams, everyone. You will run into our news articles being linked on Twitter and Reddit. You will have players mentioning winning our awards. You will have all this chatter about HLTV. So even if we don't drive people directly to our site, the brand is constantly being built anyways. And at the end, it means that people will start going to the primary source of all this content that they're consuming anyways. And it's even gotten to the point that the game developer, Valve, creates Counter Strike. They came to us because they wanted to feature Pro Match data inside the game, and they didn't actually have all this data. So they came to us and asked, hey, could we help them with this data. And sure, we could. So now if you open Counter Strike, there's even a tab you go there. It says all this data is provided by HLTV. It just further cements the brand we have and the presence we have in the Counter Strike world. And lastly, only a couple of months ago, Valve even came to us and asked for data on the team, so they could actually invite teams for the world championship, right? So the invites for world championship in Counter Strike is driven on HLTV data. I think that kind of just hammers down that we are very much intertwined with all of Counter Strike. Besides HLTV, we also have us Dust 2, Petra mentioned it briefly earlier. So what Dust 2 is, it's a different brand. And Dust 2 is actually the name of the most iconic Counter Strike map, and we kind of stole it, but Valve weren't too angry. So what this is, this is an entire platform for doing local sites. So currently, we have 3 sites. We have 1 in Denmark, 1 in Brazil and 1 for the U.S. But basically, when Petra comes and says, "Hey, we need 1 in Colombia, too." From a tech perspective, we can roll out a site like this in 1 or 2 days. Basically, doing the translation is the toughest part. Then we have a site ready to go. It will have live scores. It will have all the data from HLTV. It will have our state-of-the-art new system. It will have photos ready to be integrated. So basically, everything you need to create a fully functioning Counter Strike site ready to go in mere days. What these sites afford us is because while HLTV addresses basically everyone who cares about Counter Strike in the entire world, these sites allow us to address the same user twice actually because the user will go to HLTV to read not only what happened, but also to see, okay, so Denmark -- so Astralis, a Danish team, maybe beat a Swedish team. So they want to go and see how are the Swedes feeling about this loss. They'll go to HLTV for that. But HLTV has to remain objective, right? We cannot say, "Oh, my god, Astralis, they won. It's amazing." But Dust 2, the Danish Dust 2, they can cheer for Astralis. They can communicate with the same user in a different way. This enables us to advertise differently to these users, but it also engages them in a different way. So they don't see that they are consuming basically much of the same content twice, but we save the money only creating the content at once. Dust 2 also features grassroots sentiment. So basically, what we do is we run lower tier tournaments. So these aren't the top teams in the world, but these are the local smaller semiprofessional teams in Denmark and Brazil, currently, and they will go and they will play. And this is a way for them to have matches to be featured in our database. They will actually accumulate points for the world ranking if they play in one of our tournaments. And this just helps build Counter Strike on the very, very long -- with a very long horizon, time horizon, right? And for us, this is a giant advantage because since we address basically everyone who is interested in Counter Strike, we just need Counter Strike to grow. Basically for us to grow, we need Counter Strike to grow. We cannot outrun the game in that sense. So we're doing what we can to help the game grow also. The future for HLTV very much includes our 3 core pillars. So we need to keep innovating. I already showed an example of this, but this is what we do every day. We keep doing this. Combined with our credibility, and the consistency that we've been doing this over the past 20 years is really the winning formula for us. And the good thing for us is that even the game developer buys into doing things this way. So just yesterday, they announced that Counter Strike 2 is coming out this summer. And basically, what this will do is, this rebranding of Counter Strike is creating a ton of buzz and will surely lift all of Counter Strike further. And as I just said, when Counter Strike grows, we grow. So this was a lot about Counter Strike and HLTV. We also have FUTBIN, the newcomer in the esports portfolio. Basically, what we've been doing in the past year is looking into, okay, how can we start using what we know from HLTV on FUTBIN. And what we first dug into was the tech side of things. So all of HLTV is developed in-house. So we know it to our fingertips, and the entire -- pretty much the entire original development team is still with us. So we're using the experience we have building a product like HLTV and applying this to FUTBIN. This has allowed us a 95% cost reduction in the tech cost of running FUTBIN. And that is just one example of us leveraging what it is we do well. And we haven't even gotten to the product side of things yet. Yes. And with that, I think I will turn it over to Gavin, who will talk about Paid Media.

Thanks, Per. So today, I'm going to talk about delayed gratification. For those of you who have kids, you've probably heard the Stanford University marshmallow experiment, where they test 5-year-old kids and then they've done this over a period of 50 years and a professor walking to the room of a 5-year-old child and then put one marshmallow on the table right in front of him. The professor would then say, "You've got 15 minutes. I'll come back in. And if you've not eaten that marshmallow, I'll give you another one." Nice opportunity to do your earnings, right? But it's not that simple, is it, because you're 5? There's a marshmallow in front of you, you're probably a little bit hungry, you don't know if he is coming back. So I think it goes about saying human nature wants instant ratification, right? And yes, there's no big surprises that most people have eaten that marshmallow in under 1 minute basically. I have a 4-year-old and a 7-year at home, and I know that they are squirming in their seats desperately trying not to eat that marshmallow. But the point is the handful of people, the few that can actually go the full distance, the full 15 minutes to double their earnings has been proven over this 50-year period, that they go on and they're more successful at school, but they're also more successful in their careers afterwards. It's a very nice story. What's it got to do what I'm talking about? Good question, we'll see if I know in a minute. So building a strong competitive moat at Better Collective is also very much about delayed gratification. We spend a lot of money on paid advertising. Last year alone, in fact we spent EUR 65 million on paid advertising alone. That's quite a lot of money, that's quite a lot of cost of sale. I can see Flemming sweating at the back somewhere. But ultimately, if we have the data that supports, if we hang on a little bit more, we know that we can get that second marshmallow. But not only that, we can three, four, fivefold our potential earnings. And at Better Collective in the Paid Media division, we're going to take the long-term decision every day of the week, and that's how we're also going to separate ourselves from our so-called peers in the industry because we're making these barriers to entry ever higher. So my name is Gavin Moore, I'm VP of Group Acquisition Marketing. And today, I'm going to take you through how paid media increases our addressable audience. So a quick definition of paid media. It's where you pay upfront media costs in exchange for an advantageous position on the Internet basically, right? And that can be done in a few ways. So you have your pull marketing. So this is paid search, it's keyword-driven. This is our bread and butter in the Paid Media division at Better Collective. But then you also have the push marking. That is audience-driven. And that is basically, yes, your display advertising, so with the likes of Meta, TikTok for the new ones and so forth. So just to be sure everyone knows what we're talking about, I'm inviting my mate, Jeff, to come and take us through what our paid search is all about basically. So I'll just put a video on now, and I'll take you through what we do. There's Jeff. He is ready to bet. So Jeff has been -- oh, he is from the U.K., thanks for reminding me. It's very scalable. So this is just the U.K. example. But he's heard from his friends on a TV a football matches of all these different betting operators. And I was a little bit confused and was finally ready to make the final decision. So Jeff, like many people do, they will go to Google to find an aggregated place where they get an overview of the market before making the final decision. So off he goes and then he puts something which we would call a generic search term. This example is going to be "best betting sites." He wants the overview, and we want to advertise in front of him for exactly this. This is advertising in the key moments. So off Jeff goes. And why do we like this keyword? It's high volume. Lots of people are making these searches. Google confirmed that this is outgoing branded searches at the moment in this industry. High value. He's not looking for free bets. He's not looking for no deposit betting. So it's going to be good to share revenue on and on high intent. Just got his hand in his pocket, his next session is going to be a transaction, we want to be there and we are there. Top of the tree, but ultimately, I've highlighted in green all the places where Paid Media actually takes off in the ecosystem. So no surprises, it's absolutely top of the value chain and takes over 50% of click share from these really key searches. And when you do get down to the organic rankings, I think you've heard we're pretty good at SEO as well, right? We're also top of that one. But Jeff's clever, he scrolls straight back up. He goes up on to the Paid Media site. He saw the first ad. He liked it, he got us more of the confirmation he was looking for. So like many of us, he clicks in. Top of the value chain. And then when he comes into our site, we make sure it looks very nice and fast. We give a great comparison because it's not very trustworthy if one operator says, obviously, we're the best, because it's not very credible, right? So we add value to Jeff at the point of comparison. And we also add value to our sportsbook operators by sending high numbers of premium NDCs that way. For the sake of this example, Jeff, he went to Bet365. And this is where our in-house tracking software starts to pull key data. So we will match the keyword with the session ID, which will then go through to our partner's website, and we'll be able to see ultimately on the data side of things a lot of value insights which is very interesting for us. Did this person become a new depositing player? Yes, great value signal. How much was his first deposit? Was it in the high cohort or low cohort? Great value signal. We know which one we want to optimize towards. And ultimately, what it does, it allows us, over a long period of time to cohort this data and find the most attractive keywords which is going to keep us at the very top of the value chain for our sportsbook partners, but also tells us where we should be invested in our advertising spend so we can maximize these marshmallows because it's all revenue share. I'm going to take you back to Karl's favorite slide and these snow balls. And the synergies don't really stop there because this great data, it's not just something that we can use in Paid Media alone, even though of course we do use it, so we make sure we apply the right advertising spend in the right places. We also share it with the rest of the company and the rest of the group. And like I said, we're global. We have activity. We're not kind of just in the U.K. or anything like that. And you see on the numbers soon that we're global. So not only that, it was no coincidence that the Telegraph was #1. They know that's a great place to get high-value customers at scale. So ultimately, they know that like we put our ad pressure in a certain place, they put their content investments in a certain place. And that's why we are at the top of the search -- search engine results pages, sorry, for every single search that matters. So how have we been performing? So I think when we first started the Paid Media division, there were some people who started scratching their heads thinking, what are you doing that for? It's a drag on the margin. And then I think 2 weeks later we sent another release out saying that we actually want to make that drag on the margin even bigger in the short term and this is why. So as you can see, CPA NDCs is this bottom line. It stayed flat if not declining slightly, and that's on purpose. It's lovely to have CPA as a mix of the revenue. We've managed to invest in all our revenue NDCs profitably by keeping a 10% margin as I promised Flemming, no surprise, he walked in the room at that exact moment. And then what you'll also see is the revenue NDCs, which is the dark blue line, which is looking like a really nice trend basically, right? And again, I'm just going to cast your mind back to Karl's presentation. This is the past 27 months where we've sent a huge scale of revenues through our NDCs. And we paid for it already. Our cost of sales has been booked and the revenue potential earnings that we've seen from this so far is tiny. In the future, it's going to be building our moat. And on the revenue side of things, you can see CPA revenue, and this is Europe and rest of the world data by the way, I'll go into the U.S. just afterwards. The dot blue bars is CPA revenue, and that follows the trend of the NDCs because it's instant gratification, right? It's here and now. And most paid media companies work on CPA, right, because it's a cash flow thing. If you're paying, I said, EUR 65 million, right, you need to see some of that back so you can even be active next month. So the fact that we've been able to do this, and you can see the revenue share trajectory, it's following that lovely curve up and to the far right, but it's lagging behind, and it's exactly because of what Karl was saying. We've only realized a very small percentage of the revenue that we'll see on all of these users that we send a huge scale. Look at the net increase of NDCs and the most of them on revenue share. That's difficult to replicate or impossible. And now I'm going to talk about scale in a couple of slides. So this slide is the U.S. A new market, it's not a bad new market, it's pretty big. So in Q4 2020, we had 0 activity. Q4 '21, a little bit more but not that much. And in Q4 2022, we saw 40% of the revenue in the Paid Media division coming from the United States. And you saw Marc's slide earlier on, the gray states and the green states, just a lot more to come here. And not only that. And the reason why the revenue is so strong here is because it is an instant gratification market mainly, right? It's CPA. But I'm also happy to say that we've also made our first investments in the Paid Media division in the U.S. into revenue share as well with some of the leading sportsbooks out there, actually 7 digits deep into that. So we expect a lot more to come from this. Scale again. So let's look at the cost. At the bottom here, this gray bar, that's our fixed costs. That's OpEx, salaries, you name it. It stayed very, very flat. And that's quite impressive considering the top line growth we've seen in Paid Media and also the bottom line growth, which you can see the EBITDA margin at the top here. We've done it on flat fixed costs. And then in the blue part here, the bigger part is our cost of sales. So these are variable costs. So when the market is good and we have a buy price on new deposit and customers at a certain level and we like it, we'll double down and we'll will spend as much as we can as long as we hold that 10% margin, of course. And if for whatever reason, which it hasn't, but if the market does decide to change or the landscape changes and it becomes less attractive to buy players, we can hold back and make the right long-term decisions for Better Collective because we have this revenue share buffer. We don't need to be there if it doesn't make sense to be there. But at the moment, we only see opportunities. So I'm going to cast your mind back to October 2020. We acquired the Atemi Group, EUR 44 million. Cash flow we realized to date, EUR 14.3 million. And then with all these players, you've seen certain revenue share, we, of course, have an estimated pool of future value from those NDCs, and that is the light blue bar here. We've already paid for them, remember, it's paid for. So this is going to be bottom line. So ultimately, what I'm really proud to say here is that after 27 months only, we've realized a return on investment on that acquisition and the value creation process of that is only just starting, we're just getting started. Still sending more NDCs than before, the going looks good. And what we see at the moment is opportunities to attack in 2023 and going forwards. So let's now look at last year. I said our bread and butter was pull marketing, search ads. It's grown nicely. No complaints. It will grow more. American states opening it up, there's always more opportunities. But what we're working on strategically are these push marketing channels, these new ones for us. And what you'll also see here is a big scale in NDCs that we're sending in net new channels and this really excites us because our tracking platform still works just the same. We can still find the value insights and we can still optimize towards sending great value to our sportsbook partners, but we just opened a whole new pool to play in of our platforms. So yes, we're just scratching the surface at the moment, and we see huge opportunities ahead. So this is my last slide. So I'll cast your mind back to my first slide, not the marshmallows, but the moat. And what we do is leverage our size, scale and strategy or the financial framework of maximizing investments into revenue share with strategic partners, obviously, the ones where we see the good value, in a market that makes sense for us and the verticals that make sense for us. I want to tell you why this acts as our competitive moat. To do paid media, you need cash flow, you need to be cash-rich, costs a lot of money. And if you're spending all that money, and as a new entrant coming into the market, you're also going to make mistakes because you need industry experience, you need people who know the operators. You need people who know how to run media buying and it's going to cost you a lot of money. And then you've got scale. We're not just in 1 market or global, we're in many markets, working with over 200 sportsbook partners, and we deliver them quality, highest quality players for years. And we've grown their budgets because they trust us. It's not the kind of trust that you're able to build in 1 year, 2 years. So they can't compete with us on scale either. And then you have the most important point, which is optimizing the yield of each and every NDC that we send. Again, revenue share NDCs was far outpacing CPA NDCs. So our future revenue is snowballing. So when you do paid media, you talk about buy price, how much can you buy the NDC for and the sell price. Our so-called peers will have a sell price like this, a small margin, maybe 5%, 10%, if they're lucky. But because we're willing to delay the gratification and we're sending more players in there and they're more valuable under our own revenue share. So on that note, I would just thank you very much for your time, and I'll pass it over to Jesper who will round up today.

Thanks a lot, Gavin. All right. We are now, more than 3.5 hours in and you're still around, so that's pleasing to see. I want to thank all the presenters. And I really hope you, both behind the screens and here in the room, got the impression that I have and which is something I'm proud of and excited by, the brilliant people working in Better Collective. Because we have incredible talent, and this is just the tip of the iceberg, because the entire organization consists of dedicated people that share our values and are passionate about success and what they do. So it's a pleasure working with the entire group of people in Better Collective. And we are standing on a very, very strong foundation. We have seen the European formula, the winning formula there, which we are applying across the globe right now. I also showed the slide where you see even in our legacy core markets, there's so much room for growth. So even there, we have just begun, and we are now venturing further into the media space. We've set out some ambitious financial targets for 2027. But with the vision of becoming the leading digital sports media group, I'm sure we can accomplish that. Thank you.

Thank you. And we just did a little dance, me and Jesper, but I will actually invite Jesper and Flemming back up to the stage now because we're now entering our Q&A phase where, luckily, we get to interact with you guys now. So it's not just someone speaking from up here. So please join me on stage. So the way we will go about it is that Amelia has a mic. You only speak when you have the mic, otherwise, nobody can hear you online. Other than that, I think we start with some questions here in the room, and then I have some online as well. I would urge you to maybe keep your questions about our journey, our vision. And then if you have any questions to Q4 or something very, very specific, we're very happy to answer them, but maybe in a different setting. But for now, I think if any questions in the room, you can raise your hand, and Amelia will hand over the mic.

Oscar Ronnkvist from ABG here. So first of all, I just want to -- maybe for you, Flemming, a question on the targets. You have a 10 percentage point margin span. So if you -- could you just expand on what types of different journeys making you arrive at the top end or lower end of that one?

Yes. I think we have a 5-year horizon here. And let me just use Action Network as an example. Now we have acquired a lot of businesses. When we acquired Action Network, it was a 0 profit business. Now it's a different beast a few years after. But clearly, the type of businesses we are buying can impact the margin short term. In this case, we acquired an amazing brand with -- in a new market with a bright future. So they have just begun, if we are talking more mature markets that can -- or mature assets, that can, of course, bring up the margin immediately. So that's how we look at it and also why we have given that span.

Yes. It's essentially about investments because, as you know, most investments are being expensed in our business. So with this spread, we allow ourselves the maneuverability to be aggressive if we feel the need. But obviously, historically, looking at our business, it's a high-margin business. We will achieve scale. So I think that spread gives us a lot of maneuverability.

The next one, just on the 20% plus growth. Do you have any assumptions for organic growth and also what assumptions you have in the growth target in terms of new markets, state launches and casino contribution.

We have given that growth targets, including M&A, but financed solely with the own cash flow and what we can basically debt finance with on that leverage. So no assumptions of new share issues. And thereby, you can say the mix of organic and M&A, to me, becomes a bit of irrelevant. As you know, because you follow us, we always report on organic growth. And also in the coming year, we have guided on organic growth. But for long term, 5 years out, I actually think it doesn't really matter. So that's how we look at it.

All right. And then just the casino contribution and U.S. state launches, any assumptions?

We don't have any detailed assumptions. We work also on casino because it's embedded in the operators' and our customers' product portfolio. So we also have that. It's not a specific theme for us. So that's embedded in the growth, but not in detail. And with state launches, yes, they come now and then as we have seen. It's not something, again, we have modeled in detail. When California hopefully will open within this 5-year period, crossed fingers. So let's see.

All right. Then just on M&A targets. Is it any specific types of targets that you are looking at? Is it gambling or non-gambling? And just are we looking at profitable companies solely?

I actually on a slide sort of gave some specifics as to what we really care about, signals of what is a brand that was like the direct traffic. So a high proportion of traffic coming directly to the brand. Secondly, it's time on page so that they engage with it. And then obviously, size. So is it a big audience? When we can tick those boxes and it relates in any shape or form to sports, we're interested. Because that's the kind of brands where we believe we, as owners, will be able to monetize them better and grow that audience, enabling further investments into the business. And there are quite a lot of businesses out there with such characteristics owned by private individuals, even PE and various forms of ownership. But there definitely are some and we have highlighted local sports media as something very concrete. And in terms of probability, yes, I think most of those brands will be profitable, but we believe that we should lift the margin of those over time.

Okay. I just have one last question. You talked about delayed gratification. So I assume you're talking about the rev share contracts instead of CPA. Can you just elaborate on the net present value difference? Because I assume that is higher, the net present value of rev share customer than it is on a CPA customer. Do you have any data on that?

Yes. We do have cohort data going many years back. But first of all, we do see that as very, very sensitive from a competitive perspective. And it also varies quite a lot based on geo, product offering. Gavin mentioned specific generic keywords. So even on a keyword level, it will vary. So there are so many levels going into this equation. So we won't and we can't give sort of an exact figure. But obviously, why we believe so much in the delayed gratification model is that we have seen and we believe in the future, it will be of much more value than just realizing the CPA immediately.

Yes, I think you can hand it the other way. Yes.

Hjalmar Ahlberg from Redeye. Maybe first question on the '27 target for 20% growth. Does that imply that you kind of succeed with this new vision and then see a lot of new revenue from these new revenue streams? Or how should you view that target?

Yes. It's part of seeing success with adding new revenue verticals or at least expanding the ones we have because we are doing most of it already. But yes, we want to see success with that and that you can attribute to the goal. But again, the legacy business is also expected to grow, as I showed in the slides. That would be a significant part. My personal hope is that when we look at the share of total revenue, the new revenue lines should grow slightly faster than the other ones. But all should grow in absolute terms.

Right, right. And then maybe more of a detailed question. You talked a bit about NDC and the cohorts there, and I think you said something like 5 years in, you have almost 70% of the total profit. And then 10 years out, you almost have all the profits. So after 10 years, is that the kind of lifetime value of a typical sports betting customer?

No. Lifetime means lifetime. So we have cohorts where there will be players that are post the 10 years, still active, generating revenue for us. So it's more -- you don't have that many, but they do exist, Christian being one of them, myself included. So it's more in terms of when we look at the cohorts, we round things off, but there are still players active in our data business that are more than 10 years old.

And in direct relation to the example you saw, that was also one outtake of a cohort database, of several thousands of players, but it's one outtake, and I believe it was also in one region, right? So yes, we haven't given it out and we are not going to give out like on a global scale, but yes.

Right. Another question on the European market, you seem to have been able to grow pretty good here, as you talked about. And you also showed specifically U.K. where growth was very strong. I mean, can you talk a bit more about this? Did you take market share? Or how could you achieve this?

Yes. We definitely have taken market share because the market growth does not achieve the same level. It relates to both our owned and operated brands, also our media partnerships and the Paid Media. So it's really the blend of all 3 where we have seen success, and that has more or less driven that great performance that we've seen in the U.K. And it has also been a decision we made that we wanted to improve our position in the U.K. back then. So we did a media partnership with Telegraph as one of the first ones. Again, quite obvious because we wanted to have a better position in the U.K.

Right. And on LatAm, which is kind of a new growth opportunity here, you have seemed to dip your toes here. What do you think will be the key to succeed there? Will it be the right acquisition you find? Or will you be able to do that pure organically? Or what are the keys to succeed in that market?

We want to do both. So we are established. We have brands live already. But I think we have actually said that many times in the -- after our Q report that LatAm, as a region, is of big interest to us in terms of M&A. So we continue to look there. And again, reminding sort of the features of the sports media brands we're looking for, direct traffic, time on page, big audience. It's more or less like how we are scouting that market.

Yes. I think maybe while may Amalie finds the next one in the room, I can ask a question here. And Flemming, I think it's one for you, also in relation to our new targets. Is it your intention not to issue new shares when making acquisitions during the next 5 years?

Our new targets assume no share issues, but that doesn't mean that if we find big targets where we feel that the value of doing that means that we need to issue shares. We have shown in the past that, that is something that the shareholders are willing to do at the right terms and conditions. But what we have given a framework for the next 5 years is without any new share issue. So you have a framework to consider. Otherwise, I think, it would be very confusing.

And adding to that to you, you have probably also noticed that we have had share buyback programs ongoing actually for a couple of years, because we want to use the share whenever we bring founders into the team, so we incentivize them also on behalf of the group. So we do use the share, but in terms of dilution with that financial target, no dilution.

I don't see any raised hands, so I will continue online. Again, I think it's maybe a Flemming question here. The adult in the room. That was me, not the question. How much do you focus on return on invested capital medium to long term? And then the question is quite long, but it also relates to this in terms of acquiring Action Network. We saw your mother of all slides in terms of earnings per share and also Atemi.

I actually think I have had it on Slide 123, if I recall correctly, that we actually work actively with return on investment. What is difficult from the outside, it's not something we report on, yes, there you go. It was 123, yes. It's -- it is something we don't report on externally because Gavin's marshmallows are not reported externally. You cannot see the database of players, the value of the players in our account because it's future value. So they are sitting off account, off balance, out there. We have some of the analysts trying to estimate the value of all our future revenue streams coming in. So it's difficult to see from the outside what the return of an investment in this case, the Atemi Group is. What Gavin provided here was a return on investment positive after 27 months. So this is something we work with in all our investments internally and try to assess also the marshmallows. So that's I think the best way we can answer. But just looking from outside in, it's a difficult metric to assess. Was that good enough?

I think it was good. I think we -- I continue online. What are the main operational risks you see in terms of your long-term financial targets? And then a follow-up on that is, do you see any risk in a trend towards sportsbooks not allowing to restrict specific players from playing at a sportsbook if they are winning too much?

So operational risks and sort of overall risks to the new financial targets and our business as a whole, I think at IPO, the question we always got related to also the data protection law coming into effect at the time. What we are seeing now is that there will be changes to cookies and what is allowed in terms of cookies. And it essentially means that the importance and value of first-party data, which Patrick mentioned a bit in his presentation, will go up. And from our perspective, we are very much aware about that. Again, why we want to own these big loyal audiences because we can then learn about them and we have first-party data. It also relates to how we track the traffic in the legacy part of our business with the affiliation. There, we use cookies today. So we prepare for that. But in terms of mentioning risks and what we are focused on and know we have to manage and deal with, that sort of a change in the market coming in the future which we are preparing for, which will sort of pose a risk if not managed well by us. The other part was related to sportsbooks not allowed to limit winning customers, that's right. Yes. Yes. And we did see that in Spain where we, specifically for that market, saw very low sportsbook margin because some large betting syndicates were utilizing that the sportsbook couldn't limit winning players. It's quite important to distinguish in the regulated market between the casual players, which these Bet365, the Unibets, the Ladbrokes, they cater to that audience. And fundamentally, over time, these players are not winning players. And they do limit if the professional starts betting with them. It's something where for the sportsbook market fundamentally, it's about entertainment. And ultimately, from a regulatory perspective, if you were to sort of disallow that functionality, it would be hard for the sportsbooks to operate, and that's why you have betting exchanges where it's peer-to-peer effect between these players. So ultimately, what we saw in Spain is that the market simply returned to a normal cadence where the bookmakers are allowed to limit if a player is a winning player.

Yes. We continue online. We had a question in terms of the revenue split, you already answered it a bit in terms of revenue stream, but there's also a question from -- in terms of geos. So we've obviously seen the U.S. expanding quickly and becoming a big part of our revenue last year. So for 2027, if we can give any indication on what we would expect in terms of geo split.

Yes, basically, you can look at the growth rates we have seen presented today. So LatAm is really a high growth region. We expect that to continue. The same for North America. We are not putting out percentages to this. But sort of just sharing my gut feeling is that I'd expect this region to grow more compared to Europe, but it's not sort of something we have sliced up in those financial targets.

Yes. I think we have one question all the way down the line. And while you get the mic, I will just ask another question here. Is there any difference from U.S. sports fans to European sports fans? And what are your learnings since you entered the market there? And are they more difficult to convert?

Yes. Let me start by giving that a shot, and then I think we should actually hear from U.S. team, who either Patrick or Marc, could potentially join for that one. But what we've seen is, and it's actually pretty obvious when you look at the CPA levels, so the onetime payments paid for delivering a new customer to a sportsbook, is that they are more or less double in the U.S. compared to Europe. And even though the U.S., on average, has a higher BNP than the European average per capita, it's not the full explanation. So my personal view of this, and then let's hear from them afterwards, is that the integration of sports in the American society is just much bigger than what we see in Europe. And you probably noticed it, if you go to the states, go into a restaurant, there will be televisions everywhere. So it's simply integrated in all parts of your everyday life, that you view sports, you engage with sports, and that is what I believe is reflected in those values of the sports fans. Then we have Marc Pedersen, our CEO of our North American operations back to the stage.

Thanks. One thing that's pretty clear from my perspective is that U.S. is still a very novice market. It's only been regulated for 5 years. So one of the trends we expect the U.S. to adopt from Europe is the in-game activity. In Europe, it's between 60% and 70% of the wagers that happens during a game, so after the ball has been kicked off. In U.S., it's closer to 30% at the moment. So there's a big difference in terms of the live engagement. Many of you might know, but in live, the margins on the books are higher as well. So they're more profitable during live. I expect that trend to be adopted in the U.S. It's not for all sports in the U.S. Basketball is a very fast-moving sport. You don't have many windows to place your wagers. American Football is much better at it. Baseball is much better at it. So it depends a little bit on sports. Jesper said it earlier, but the engagement with sport in general is much higher in U.S. You don't just follow your local soccer team, you follow your local baseball team. You follow your local hockey team. You follow your college team. They are way more ingrained in individual teams and individual players than we are here. So there is a big difference, but I think the live element will come more on par with Europe over time.

Thank you, Marc. And we have a question from the audience?

Yes, [indiscernible]. First of all, to the whole team, thank you very much for a fantastic presentation and a good Capital Markets Day. It's a fantastic initiative. Two questions. One, maybe mostly for you, Jesper. You presented a lot of opportunities, a lot of new markets and a lot of new potential, new capabilities within the toolbox where you can grow. So maybe if you could talk a bit about the strategic priorities, because it can maybe be depending on the people and the money that can be some elements on what you can do. So what do think you should prioritize? What do you present to the organization? And maybe for Flemming and Jesper, Flemming, maybe you can elaborate a bit on the criterias when do M&A? Because what we have, for us, as a long-term investor, we have seen many companies that will grow themselves to death, more or less, but making a lot of acquisitions that is not -- do not have the right value creation behind it. So what maybe more -- if you could give us more financial guidance on the criteria you have for doing investments on the financial side?

I'll go first. And so the vision percent of becoming the leading digital sports media group, it's actually something we work very actively internally. So it's drilled down to strategic objectives for the year. And just to mention some, so we have like then a 12-month focus. And one of those strategic objectives for this year is LatAm. So that's -- like we have set aside investment to build up the offices there, give us the capabilities to win that market. And alluding to the ambition with these big audiences, being a digital sports media group, we also invest in the technology behind the ad tech platform, simply enabling us to serve more relevant ads to the audience. And over time, it's really our ambition to understand our users better and better in order to segment and show even more relevant ads. So those are 2 of our strategic objectives for this year. Then another one is consolidation of our American position. And then the fourth is related to stronger group, that we want to make sure we harvest the synergies across the group of almost 1,000 employees coming some from acquisitions. We make sure we sort of get the best practices shared internally. So those 4 initiatives are our strategic objectives for this year.

And then back to the tight ship. That was why I started with that slide, because we are painfully aware that you can just do a lot of acquisitions and they don't really turn out to be nothing at the end or you can do that for some time. So you can say, first off, I think we are in the same boat. We have -- we have deeply invested, some of us more than others, in the company. So capital allocation disciplined approach is really something that we work on. And every day, Christian has 10 new ideas, and we try to bring it down to 0.5 perhaps. When it comes to M&A, we have a cycle where we have an M&A board. We have a pipeline that we work on continuously. Management engage every 2 weeks, so basically prioritizing what to go for. And that will be a mix of you can say how is the current business growing? Are the targets, how much capital will they bring in? Can we actually leverage our debt on that, but most importantly is the ROI that we look at when we do a decision on buying, even an asset that might not be profitable, do we believe in the long-term business case and the net present value that we look at? So every case is prioritized that way. And I hope that my tight ship slide sort of was at least the first 5-year proof of that. So that's how we go about it.

Yes. Back to Hjalmar.

Yes, a question on your esports and monetization there. You report it separately, but I guess you're much more profitable than a typical esports company because a lot of the companies might not be good at the monetization there. Can you talk about more monetization in your esports business? How it is now? And what opportunities do you see here? And also do you use Paid Media in a sense for HLTV or footprint?

So to start with the latter, it's no, not Paid Media right now, but it's again -- it's a toolbox we have. And over time, likely there will be opportunities arising and then we know how to go about with it. For the monetization, we have acquired those very big audiences and the businesses were profitable when we acquire them. So again, we are just applying gradually more of our existing business models to the business and also having the focus on growing the audience. So it's more incremental in like a radical shift of how we monetize these businesses. But we do care about like how is the financial performance when we buy it. So there are a lot of esport businesses out there and, as you rightfully say, not all of them are profitable. And they may not fit into what we do necessarily if we don't see sort of a solid and on its own well-performing business.

Thank you. I have one more question online. And then if there are no more in here, then I guess we can close it down after that. It's been a long day for all of us. I think it's a question that relates a bit to what Petra already talked about in terms of LatAm, but it's a question around how we are utilizing our brands globally, because I think we've been speaking a lot about -- Christian also spoke about how we have local brands everywhere in Europe, and now we've acquired some pretty big brands in the U.S. as well. So I think, yes, maybe if we start there.

Yes. So how we utilize the brands across markets and what's the potential...

Or if we do it.

Yes, yes. So I think the Dust 2 example is a pretty good one because when we launched that in the Brazilian market, within, as I recall, 48 hours, the Twitter handle of that brand in Brazil had 23,000 followers. And if you're not sort of too familiar with Twitter, that's a lot in such a short period of time, a testament to riding on the back of HLTV is extremely helpful for a local brand. So we do see that there will be other large markets where launching Dust 2 will make a lot of sense for us. Then if you take action and the product quality and content quality there, it's something we are definitely also considering for a Spanish-speaking market, that it would be relevant there. It's more about like when to launch that and how to go about it because we also want to make sure we localize in the right manner. But we have several brands that will be relevant in other markets when we localize them. So it's not, you can say, sort of a main part of the strategy, but it's opportunistically driven, that when see a nice fit, we will go and do it.

There was a last chance in the room.

Concerning the U.S. market, it's my impression that most states only allow up to 10 betting firms in the state, correct me if I'm wrong. But how do you see it from your perspective? Is it an advantage or disadvantage?

Yes, so in general, we prefer competition. So we would like to have many market participants. And the -- so it will vary state by state. So some states have more than 10, and others less than 10. Coming back to Karl's point, what we care about is having strong and established relationships with the biggest sportsbooks. And fortunately, we're in a position where we are -- we have such a big audience and our products there cater so well to this industry. So we're more or less and must have, and we collaborate closely with them. I think it's, honestly, a bigger issue if you're a smaller player in this market because then it will be hard to get the right partnerships with all of these players, coming back to why size and scale really matters and why M&A has served us so well, because it has brought us to the position where we're at eyesight with a lot of the business partners we have. But fundamentally, we like competition. We would like many brands out there, sportsbooks that we can compare and work with.

Perfect. Thank you very much, everyone, for joining us here again. Before you all get up, we are inviting you for a small networking session outside. I hope Gavin has fixed some marshmallows because we're all craving them at this point in time. But thank you very much for joining us and spending your afternoon with us here. We hope you learned something new and, maybe to some extent, got a bit excited about our new vision of becoming the leading digital sports media group. Thank you.

Thanks.