Gaming Innovation Group Inc

OSE:GIG

Earnings Call Transcript 2023-Q1

[Hjalmar Ahlberg, analyst]

Hi, and welcome to Redeye. Today, we are joined by Gaming Innovation Group and CEO, Richard Brown, who will present the Q1 report. This will be followed by a Q&A. And if you have any questions, you can send them through on the web.

With that, I will leave over to word to you, Richard. Please go ahead.

[Richard Brown, executive]

Perfect. Thank you very much, Hjalmar. Good morning, everyone, and thank you for joining me today for Gaming Innovation Group's Q1 2023 report.

The company has had a very strong start to the year, not only financially but also operationally and strategically with a number of steps forward in terms of creating further potential growth for this organization.

To touch on some of those highlights in the first quarter, we reached all-time high and successive all-time highs revenues and EBITDA for the group. The Platform & Sportsbook continued its positive commercial momentum, signing 7 additional contracts during the period. We launched the Enterprise Solution, a new product vertical within the Platform Division.

Our Media business has expanded its initial partnership relationship with News Corp to take that project into international markets. We completed the acquisition of the highly reputable AskGamblers assets and returned those assets to month-on-month growth in a short period of time through a number of small -- short-term initiatives.

To dive deeper now into the financials of the group. Revenues came in at EUR 28.4 million, up 49% year-over-year. Adjusted EBITDA came in at EUR 11.7 million due to the growth of the revenues, but also the margin expansion that we've been focusing on over the last periods and up 75% year-over-year. EBIT also delivered a significant increase with 94% year-over-year, up to EUR 5.6 million in the period.

To move on to some of the more details around the Media business, revenues came in at EUR 18.4 million, up 31% year-over-year. And excluding the acquisition of AskGamblers, revenues grew by 13% year-over-year. The adjusted EBITDA came in up 17% to EUR 8.1 million and EBITDA margin came in at 44%. This was impacted by several one-offs during the quarter related to transaction, spin-off costs and also some investments in proprietary technology during the period.

Publishing reached all-time high revenues of 31%, and we saw continued growth of above 30% in our paid media division, coming off the back of a very strong Q4, where we had the FIFA World Cup.

First-time depositors ended up over 110,000 in the period, a 59% increase year-over-year. 95% of those FTDs had a revenue share -- perpetual revenue share component to them. And we have seen very strong underlying growth in the publishing business in addition with the AskGamblers FTDs, which contributed around 7,000 in the period, and the paid FTDs continued its momentum with also good growth.

In terms of the revenue split and distribution, 65% of the revenue came from revenue share agreements, up 59% in the comparables. This is continuing our trend of focusing on high-value customers and increasing revenue share percentage. U.S. organic traffic also increased by 76% year-over-year, and revenues from the Americas in total increased by 34% year-over-year, a very strong growth in Latin America, in particular, is continuing that momentum.

We've also seen significant growth over the period in what we consider legacy or scaled markets, up 13% year-over-year. And our GiG -- fantastic marketing GiG compliance -- GiG marketing compliance technology, GiG Comply, signed an additional client during the period and renewed with 2 of our larger customers in the period as well.

Just to touch on some more details around the AskGamblers acquisition. The complete -- it was a fantastic asset group, and we saw many -- multitude of opportunities to deliver with that. And the transaction was completed fast and on the 31st of January. The post-merger integration plan is in full swing. And as I mentioned in the highlights, a number of those have resulted in strong month-on-month growth of the assets, growing 25% the run rate compared to when we took over.

We are also executing on the technology migrations with the first website of the group of that asset group migrated during May, and we anticipate to be able to complete the migrations throughout the end of this year with much greater product -- creating much greater product capabilities and potential for growth. The execution of that plan continues. We're very satisfied with the initial progress, and we see a multitude of opportunity with the asset group.

Moving on to the Platform & Sportsbook business, a fantastic group -- quarter for this particular segment. We reached all-time high revenues of EUR 10 million, a 100% increase year-over-year, of which 52% of that growth came organically and 66% organic growth if you exclude the premium fees that we still received during the Q1 in 2022.

As I mentioned earlier, in the highlights of strong commercial momentum continues with 7 new agreements signed during the quarter. That continues to secure and build up future revenue streams for this particular segment. That leads me very nicely into the integration pipeline. One brand went live during the quarter and 4 are awaiting either client or regulated decisions to go live as the projects were completed from our side.

We have a significant delivery pipeline with over 21 brands in the integration pipeline now anticipating being delivered in the next 12-plus months. This secured revenue that is going to continue to build up will not only provide a future potential for growth but also margin expansion as those contracts we anticipate to have a higher contribution margin going forward. Also importantly, more than 10 of those new contracts will also have the Sportsbook & Platform products as we continue to ramp up and expand our Sportsbook verticals offerings and potential clients.

As you can see, this is something I touched on in the Q4 report that underlying momentum the SaaS business is continuing to build as we add new clients as our previous legacy clients continue to grow and is creating good strong momentum. And in Q1 last 12 months basis, we're now up to EUR 31.4 million.

For the first time, I'm also going to talk a little bit more about the operator GGR and the distribution of that from a geographic perspective because I know I had several questions and inputs around that from the investor community in the past.

We would look at this from an operator's GGR perspective, and we've seen a significant increase in diversity there. We've also taken the decision 1 or 2 years ago to expand globally, and that's resulting in that change in distribution of the markets where Europe used to represent 72% of revenues, it's now down to 64% during that period. We've seen a very strong growth in Latin America with now that accounting to 14% of operator GGR and North America, representing around 13% and Rest of World, the remaining 8%.

Another one of our strategic initiatives that we embarked on several years ago was to focus almost inclusively on regulated or soon to be regulated markets. Now 91% of the operator GGR is coming from locally regulated or soon to be locally regulated markets as we continue to push towards being the partner of choice for regulated markets.

I will touch on something that contributed well in the launch that we're very pleased with in the Platform division, which is the Enterprise Solution. We launched this in March and completed the way we see this is a completely complementary to the Software-as-a-Service licensing model. It enables us not only with a new product offering and that can actually match into a demand that's there in the market but also to an additional commercial model for us to build from. This solution actually provides the technological solution and operational autonomy for clients who are wishing to modify, enhance or build upon GiG's own application, therefore, enabling them more freedom and ability to execute on their product road maps.

We've seen this demand in this market building up over the last periods -- over the last 1 or 2 years. So about 18 months ago, we started creating the technology in order to be able to really efficiently and effectively offer this solution towards the market. And we're very pleased to see that, that development work over the last 18 months has then resulted in our first client signing for this type of model.

Just to cover off a few of the events after the end of the quarter and the summary, one of the important steps for us after the completion of the acquisition of Sportnco last year, we've successfully launched and migrated all of the GiG Sportsbook legacy contracts on to the Sportnco solution. It has been a tremendous effort from the teams involved over the last period to complete that flawlessly with no downtime related to the clients -- experience by the clients. It also enables us now to show and demonstrate a fully integrated product solution across Platform & Sportsbook that can continue to drive forward towards new sales and new commercial agreements.

We also, as I mentioned earlier, completed the first technical migration of one of the websites within the AskGamblers Group, and media had a strong trend with FTD acquisition up 30% year-over-year. April has also developed positively with revenues around 30% up compared to the same period last year.

Just to walk through a little bit more on the strategic review that we announced in the Q4 report in February with the intention of spinning off one of the business units, so we have 2 independently publicly listed entities. Planning began well during the first quarter, and we now move into the execution phase of the various different items within that. We do so in a methodical way. We do it in an execution focused way in order to be able to ensure that we apply best practices and ensuring the best possible outcome from the spin offs.

Just to summarize, GiG has delivered once again an all-time high revenues EBITDA for the quarter. We have had a strong and good development in pretax and net -- pretax profit and net profit and our cash conversion ratio is consistently improving with that ratio increasing by 36% year-over-year. GiG is expanding with a diverse geographical footprint supporting the growth opportunities across both the Media and the Platform & Sportsbook businesses.

The continued enhancement of the business is operational position with targeted margin expansion and increasing cash flows. The business remains excited and dedicated towards improving throughout 2023 with a focus on delivering on the company's long-term visions and ultimately, creation of value for shareholders.

With that, I would like to just pass back over to Hjalmar for the Q&A. Thank you very much for your time this morning.

[Hjalmar Ahlberg, analyst]

Okay. Thank you for the presentation. Maybe we can start where we kind of finished, the trading update, 30% growth in April. Can you remind us of what was April last year? What's -- any specific, if you compare the month last year compared this year, looking at the growth?

[Richard Brown, executive]

No, I think I mean just 1 point is we obviously consolidated the Sportnco numbers from the 1st of April. So we're very pleased to being delivering 30% of growth, including that comparison point.

[Hjalmar Ahlberg, analyst]

Right, right. And you mentioned in the Media segment that the year kind of started a bit soft in January, February and then improved a bit in March. Can you explain was there any specific behind that? Or just typical seasonality? And why did it improve in March?

[Richard Brown, executive]

Predominantly typical seasonality. And I think also coming off the back of Q4 where we had a FIFA World Cup, there was probably a little bit of a [indiscernible] event structures and such. We also saw margin in February being below average in Sportsbook for both our Sportsbook but also a number of our customers and given Media's exposure to that segment also played a role, but then we were able to recover well during March in that regard.

[Hjalmar Ahlberg, analyst]

All right. And you also mentioned the Google update in the report. I guess that happens all the time, but it sounds like it was something more of us to impact this time. Can you talk a bit about that?

[Richard Brown, executive]

I think, I mean, Google has been consistently updating the algorithm. So they often make more material changes at various periods. And we saw that this was kind of more material change to the algorithm, and we feel that we benefited well from it in the initial takes. I mean I think we've been consistently focusing on product for quite some time that ultimately will lead to a continual improvement in the rankings. And we've seen that in the development of the business over the last 2 years. So pleased to see that continue.

[Hjalmar Ahlberg, analyst]

And the margin in Media was a bit lower than normal. I mean, despite AskGamblers coming in, but you did mention that you have some positive strategic review there. But maybe just looking at AskGamblers, have you kind of invested more in that asset and kind of which maybe limit margins? Or any specific that kind took down the margin?

[Richard Brown, executive]

There's a couple of investments that we've made, not only with AskGamblers but within the overall segment in some of the marketing technology that we use. That was kind of more of a one-off project in regard. So that obviously impacted the margin during the period. We also then on an overall group level, had around EUR 500,000 of costs related to the spin off project during the quarter. So that obviously impacts the overall margins in both segments as well. So just kind of -- we're very pleased with how we are and we see so much potential if we have a 3% point weak margin for a period -- for a quarter just in order to make sure that we continue to execute on the growth we're very content to do so because we see the value of the cash conversion continually improving as well.

[Hjalmar Ahlberg, analyst]

And looking at the FTD intake in Media, the Publishing part was very strong this quarter. I mean, Paid has been really strong during 2022. Now is your Publishing taking off partly, I guess, because of AskGamblers coming in, but is there anything more that is driving this improvement?

[Richard Brown, executive]

Yes, I mean, the improvements not just from the AskGamblers coming in, there was actually a meaningful improvement in the FTD generation from the kind of historical of Publishing department as well. Again, a lot of the work that's been going on over the last 12, 18 months starts to pay off, both in terms of rankings, but also in terms of product conversion rates, et cetera, that start to drive through. And we also had News Corp, Publishing deal that adds to those numbers, but that underlying business is performing well.

[Hjalmar Ahlberg, analyst]

And mentioning the partnerships, what kind of upsell potential to see? Or do you see more potential partners being in discussions or how big is this market for partnerships?

[Richard Brown, executive]

Yes. I mean one of the things I'm really pleased with is that News Corp one is it's very perfect demographic that they operate with that matches the products that we -- and the solutions that we offer within the Media business. So I think we would like to focus around similar structured deals. We've seen some very positive results. We only launched it in just around the World Cup. So early days, but we're very pleased with the initial results. And we've seen that and obviously expanding with [indiscernible], et cetera, into international markets as well, which is a positive step forward for us. And therefore, we see opportunity in other markets with other potential partners as well.

[Hjalmar Ahlberg, analyst]

And just one more on partnerships. What is the kind of stability in these deals? I mean, do you have like a 3 to 5-year deal? And what's the risk of the them leaving after that going somewhere else or doing it themselves and so on.

[Richard Brown, executive]

Yes. I mean, of course, as always, it's going to be something that you're going to manage in risk within the business, and that's quite specific to that area. We will always focus on the product and the delivery of the partnership because we see the upside for us, and therefore, it has to be mutually beneficial. And we believe that the technology that we're helping to apply to the website portfolios that they own as well as the content is -- should be market leading, and therefore, that will prevent or mitigate that risk.

[Hjalmar Ahlberg, analyst]

Right, right. And one more on AskGamblers acquisition. There were some other assets included in that? Have those progressed as expected and the brands that you see more potential than you expect or less potential?

[Richard Brown, executive]

It was one of those assets was one of the ones we migrated very quickly. I think I'm really proud of the team to be able to execute that. They went in with a plan, they went in with the technological understanding of how to do it. And again, the fact that we've built such a great marketing technology stack behind that Media business, actually enabled us to do that migration of one of their main assets outside of AskGamblers in, what, 2 months basically. So I think we're really pleased with how that developed, and we see potential now to be able to really start working on the product and bringing them back forward.

[Hjalmar Ahlberg, analyst]

I also think you mentioned 5 new websites being launched in Media. I don't know what the kind of rate of new launches is there, but is it more than normal for a quarter? And any specific market or specific products that you're aiming at.

[Richard Brown, executive]

No, I think, again, we just continue to push towards geographical diversification. It's been a key theme of the Media business for the last 3 years and has been a key driver of the growth. So we're launching probably on that run rate, I think if I compare to previous quarters as well, but very pleased with being able to do so, so effectively and efficiently. Again, we've seen a number of new markets being key growth drivers for us across Latin America, and that's demonstrated in the numbers that we presented today and the distribution. So we continue to pursue that strategy. And we believe that the websites we launched today will provide growth opportunities for us the next year and the year after and perpetually going forward.

[Hjalmar Ahlberg, analyst]

Right, right. And you also mentioned the U.S. market, you see a lot of traffic growth. How about the revenue from the U.S. market?

[Richard Brown, executive]

Yes. I mean it's still growing. I mean as a total percentage, it's relatively small comparatively, but we still see a lot of potential in there. We do so -- we do our investments in that market in a disciplined manner and in a manner that we believe will be accretive long term. And while also pursuing a number of opportunities outside of that market, I mean, again, Latin America, several growth markets in Europe as well.

[Hjalmar Ahlberg, analyst]

And moving over to the Platform & Sportsbook business, a few questions here. You saw very strong Q1 here, both in top line and profitability, and specific that drove this in Q1?

[Richard Brown, executive]

Yes. I mean it's not only the fundamentals I talked about in the presentation previously around -- how the Software-as-a-Service model builds and continually drives forward, but also the fact that we've been historically launching new customers to add into that mix. And then importantly, the enterprise solution, which as per the release, also came with a meaningful setup fee as well during the period. And we see that, that particular solution has a demand in the market. So we anticipate being able to pursue those opportunities further of those opportunities as well.

[Hjalmar Ahlberg, analyst]

Or this new enterprise solution, what -- how big is this market compared to regular clients? Or does [indiscernible] today?

[Richard Brown, executive]

I think it's a really good question and one we're trying to kind of map out. I mean one of the things we saw, it was about 2 years ago, and we saw that there's definitely a demand for this kind of solution where -- and this normally tends to be from larger, more sophisticated or more mature potentially operators who have a technological ability themselves and a really clear vision and know exactly how to execute on that, both technically and operationally.

So I think that physical number of those opportunities is probably less than the Software-as-a-Service structure, but obviously the materiality of those contracts tends to be larger as well. And yes, we're really happy to be able to go after that kind of opportunity. And as I said in the presentation, we've seen this developing in this demand kind of arising, but we don't think in the Platform business and then on the Sportsbook side as well that anybody is really addressing it properly, it's kind of more ad hoc. So we really wanted to create a technical solution. So yes, around 2 years ago, we started building a technological solution that would be perfectly catered towards that and enable people to really build on top.

[Hjalmar Ahlberg, analyst]

Yes. And you signed one client new and can you say if you are in discussions with more? Or is it [indiscernible] anything about that?

[Richard Brown, executive]

We continue to look at the various opportunities on a consistent basis and identify and target customers who we think would be appropriate for this kind of solution.

[Hjalmar Ahlberg, analyst]

Right. And I mean on top of this partly impacting a strong growth there. I think if I look at the cost in the Platform or Sportsbook, it's been very stable and the top line is growing. So you see some margin expansion. Is this driven by synergies? And how far have you come on the kind of EUR 6 million to EUR 8 million savings that you targeted?

[Richard Brown, executive]

Yes. I mean we've made some really good progress. I mean obviously, as always, when you kind of optimization programs, sometimes the actions, the cost-related savings follow on in a couple quarter post the actual execution. We've also -- we've always said that we were going to pursue growth as well. So in areas where, for instance, we're launching the Sportsbook in North America, so we've been investing in certain areas, Enterprise Solution, et cetera. But that core kind of more historical business, if you will, we've seen a good run rate decrease, and we're anticipating continuing optimization and realization of synergies over the period.

So we're satisfied where we are. We would obviously -- we continually focus on the business and optimization, balancing that growth opportunities with the cost structures. We feel -- I mean, again, if we look at a broader and a longer-term basis, our cost base has been more or less stable and declining now over the last few quarters. And we've seen that despite the revenue growth. So we really believe in being able to operate from a kind of base that we're at now with a decreasing base over time, and they're scaling up the revenue growth that's going to contribute to that margin expansion and the cash flow conversion improvements, et cetera, that we've already started to demonstrate and therefore, being able to bring that forward and continually improving. It's the entire teams across the group who were entirely focused on making sure that we are doing everything in the most effective manner on a consistent basis.

[Hjalmar Ahlberg, analyst]

And you mentioned that you had migrated the legacy part of Sportsbook fully now, did you -- did we see the kind of synergies from that this quarter? Or will that come in the coming quarters?

[Richard Brown, executive]

That will come in the coming quarters. So as we kind of decommission the historical one that was completed in April, again, we did number of technical integrations, I spoke at the end of last year saying that we completed the technical integration, then we do the migrations. We do operations. And yes, we're rolling out our first combined customer together now as well. So all of these kind of built the momentum, but it's a very big and important lift and we have said at the beginning that we would do it towards flawless execution, not rushing it through time. And we feel we did that, and that was exhibited by the actual largest customer being migrated with 0 downtime, [ for instance. ]We're really, really pleased with how the development went and again, testament to the teams and the technology. And now we can really go ahead and demonstrate that offering on a fully fledged basis.

[Hjalmar Ahlberg, analyst]

Right. And you also mentioned that the U.S. is a market where you're starting to launch in some sense, I guess, [indiscernible] licenses in Pennsylvania, Maryland for the Platform business. Are the clients in the kind of integration phase here or?

[Richard Brown, executive]

Correct. Yes. So we have clients both in the integration phase for both of those markets. So we're anticipating guidelines. Actually, we should be relatively [indiscernible] for one of them and the other one is waiting. We've completed our side of the project, and we're just waiting to go live -- green light from the client.

[Hjalmar Ahlberg, analyst]

And you also had a slide on the revenue share from locally regulated market or soon to be regulated, which was 91%. What was this number? I mean, if you look back a few years and then what's kind of progress been? And then had this been driven by [ exclusion marks ]from you or that markets have been regulating, so to say?

[Richard Brown, executive]

I'll start with -- it's driven by the fact that we've been focused on the growth and entering into regulated markets. A couple of years ago, we had 8, 9 regulated markets, locally regulated markets that were operational and we're now operational in 30, so -- and we have another 7 or 8 in the pipeline as well. So it's been driven by our strategic action to drive into those markets and to acquire -- and to partner with customers in those locally regulated markets. Some of them have been obviously like markets like Holland, et cetera, have turned off over time as well, but the main driver has been our approach to how we operate in that sense. I don't remember exactly what the percentage was a couple of years ago, but I think more around the kind of 65% to 70% range. And we continue to see that grow. I mean, we're anticipating other markets to turn, and that's why they have the soon to be regulated structure in there as well, and we were concisely conscious of that.

[Hjalmar Ahlberg, analyst]

Right. And how are you typically impacted when the regulation happens? Do you see a lot of impact from tax changes, regulatory change, I guess, can vary a lot from the market-to-market [indiscernible]?

[Richard Brown, executive]

I mean we saw historically in Germany, it had a quite big impact that we managed to navigate and mitigate around, I think, from an overall basis because also we have been focused very much on that diversification. We end up protecting ourselves quite significantly from those changes so that we can continue [indiscernible] it also brings with her often quite a lot of opportunity because there are people waiting for that regulation to enter. So with a solution such that we have in the Platform & Sportsbook business actually provides a very strong sales opportunity point -- at that point in time and for regulation.

[Hjalmar Ahlberg, analyst]

Another question on the cost in the Platform business or maybe overall cost, you increased the capitalization cost a bit this quarter. I think you mentioned a just year-over-year, I don't talk about quarter-to-quarter. Is that something that was specific for this quarter? Or is this kind of a new level that will be [indiscernible]?

[Richard Brown, executive]

I think we're actually slightly down on a sequential basis, if I'm not mistaken. So that's actually coming down on the run rate but comparatively last year in Q1, we didn't have Sportnco and also the Media business has been investing in their technology structures over the past period. So that -- it's a year-over-year, but not a like-for-like comparison point. So yes, as we look at the run rate from Q4, it's actually coming down.

[Hjalmar Ahlberg, analyst]

Right, right. And you did have strong cash flow this quarter -- operating cash flow, was there something on the working capital that was -- I mean, a positive benefit this quarter or.

[Richard Brown, executive]

There was some -- some of the movement [indiscernible] little bit of a complicated quarter when you have the movements around the acquisition of AskGamblers because obviously, we had an outflow there. We had inflows from there structurally. But to kind of [indiscernible] back to the operational aspect and the way that we kind of calculate it from a real kind of operational cash perspective, we're pleased with how that's developed. I mean I mentioned in the summary slide there that where actually the ratio of cash conversion from inventory, et cetera, is up by 36% year-over-year, and we continue to focus and keep that as an internal main KPI for us so that we're always seeing that cash conversion margin and therefore, free cash flow is improving over time.

[Hjalmar Ahlberg, analyst]

Right. And regarding the potential split up, I mean you did see a strong progress during the quarter. Can you say anything about what that means, is that you have -- I mean, is it supportive of split up or strong in the sense that you have done a lot of progress here?

[Richard Brown, executive]

Yes, it's a difficult one as well because it's quite -- I suppose you would say that technically, there's a lot of elements that we had to map out before. I mean, as I've always said, the kind of operational -- like the core operational structures are run independently. However, there is a legal financial complexity to any kind of spin off potential -- spin off project that we have to work through. And often that comes with a lot of consultations with various financing and legal experts in order to make sure that we do it in the best way. I mean, this isn't -- we want this to be -- we're doing this because we believe it is the ultimately for the company's long-term aspirations and then for shareholder value as well. So we want to make sure that we execute it in a superb manner as we do with everything.

So therefore, we're making sure that we do the planning in a very methodical way. So then when we move into the execution phase, we can do, we know exactly which companies need to move -- carved out whenever there's an enormous plethora of various different tasks that we need to get through.

[Hjalmar Ahlberg, analyst]

All right, right. [indiscernible] there are any questions from the audience here as well. Also on platform brands, I think it was decreased sequentially. Do you still have some clients that are moving out [indiscernible].

[Richard Brown, executive]

Yes, there was a couple of brands that -- I mean, some of our smaller clients have a handful [indiscernible] Q4 and Q1 have struggled with the macroeconomic environment to receive funding. So we had a couple that fell away due to that. Again, I mean, the results are a testament to the fact that we've been continually securing new revenue streams and continue to do so going forward as well to also protect us against any potential risk [ sides and therein ] and as we develop as a company, we get better as well of being able to identify potential weaknesses and [indiscernible] that.

So yes, there's a small drop off there as well. It did impact the numbers. But as I said before, we're very pleased to be able to kind of continually bring up the diversification both in terms of client concentration, geographic distribution that will enable us to continue to grow the business despite any kind of headwinds that have come through.

[Hjalmar Ahlberg, analyst]

Yes. And this you might partly answered this already, but there's a question about the time frame for the strategic review, any firm time frame there?

[Richard Brown, executive]

We're not going to provide a firm time frame. And again, like the priority here for us is to execute as best as possible and to do so to make sure that we have everything in order and the companies can -- are in the best possible place to thrive post a potential spin-off. So therefore, we're not going to provide a specific time line. And also there's a macro environment that we also need to consider about when I think we would like -- we would be in a place where we're operationally able to spin off the companies and then we can pick our timing as to when to do it on the macro level.

[Hjalmar Ahlberg, analyst]

Right. Also my question on the growth in Media, which was -- I mean, the organic growth is strong, but a bit softer maybe that we saw -- than what we saw in 2022. And the question is, what's the driver here? And do you think Media can accelerate growth looking in the rest of the year and then beyond?

[Richard Brown, executive]

Yes. I think I mean Q1 is normally a bit of a weaker seasonality wise, we came out also at the back of a very, very strong Q4. We see still significant opportunities across the business. As we've also talked about in the past as well as how we control marketing spend and if we see that the ROI isn't there, then we're not going to pursue growth blindly, if the ROI [ is not there, ]so a number of contributing factors to it, but we see an enormous potential. And that's why, again, why we are consistently launching a number of new markets across the group -- Media group.

[Hjalmar Ahlberg, analyst]

Right. And also a quick question on Enterprise Solution. And I guess this will be a difficult to answer, but a question on the average value for Enterprise [ suiting ]customer.

[Richard Brown, executive]

Yes. I was anticipating this. We're not going to go into the specifics. For us, this feels very commercially sensitive because of the design of the solution and therefore, the design of the commercial agreements are also very bespoke to the nature of the different clients that we're approaching with this and how they would like to run this kind of structure as well.

I would just refer back to what we've kind of said in the original press release, where we see that the initial value, both in the [ setup ] fees materially above average as well as the contract value being above average in that initial term period.

[Hjalmar Ahlberg, analyst]

Okay. Great. I think that was all questions we have there. So thank you very much.

[Richard Brown, executive]

Perfect. Thank you very much, Hjalmar. Thank you very much. Thank you, everyone.