Gaming Innovation Group Inc

OSE:GIG

Earnings Call Transcript 2021-Q3

[Marlon Varnik, Research Analyst]

So let's start. Good morning, everyone, and welcome to Gaming Innovation Group Q3 presentation. My name is Marlon Varnik, I'm the analyst following Gaming Innovation Group here at Pareto Securities. Today, we have CEO, Richard Brown; and CFO, Tore Formo, presenting the Q3 numbers. We will also have a Q&A session after the session, where you can submit your questions in the live Q&A chat on the right-hand side.With that said, I'll leave it to you, Richard, and Tore. Welcome.

[Richard Brown, Chief Executive Officer]

Thank you for the introduction, Marlon. And Good morning to you all. As always a pleasure to welcome you to Game Innovation Group's third quarter results. I'm pleased that we, again, continue with the strong momentum through the quarter, and we take further steps towards our long-term ambitions for the group. As Marlon mentioned, I'm joined today by our group CFO, Tore Formo, who will be available during the Q&A session at the end.As an introduction, GiG is listed in both the Stockholm, Nasdaq and Oslo Bors exchanges. We are currently at around 460 full-time employees through office locations in Malta, Spain, Denmark and Riga. We have a global client base and presence across the business targeting a range of markets within the online game [ space ]. Our platform has a global footprint with 14 local licenses and certifications, and with the initial 7 currently in the development program.Our media business also has primary assets in more than 25 different countries. We split the business into 3 operational units. Firstly, our platform business, which offers state of the art technology as a player account management system and its related services. It's wide-ranging and encompasses a broad range of functionality from a real-time data platform, bonus and gamification layers, omnichannel integrations and services to integrations with a multitude of third-party suppliers from content and live casino studios to payment gateways and compliance services. This product group serves as a technological backbone for operators to provide a first-class and unique online gambling experience.Secondly, our media division, where we create high-quality website portals to guide users towards the best-in-class high gaming offerings with a mixture of user editorial reviews, latest news and honest comparison and offers across industry products.Thirdly, our proprietary Sportsbook with an end-to-end offering covering frontend trading and risk management through to the betting engine, and the product is live in both Europe and U.S. markets. We supplement the technological offering with the provision of managed services across a range of operational functions from customer support through to compliance, player safety, CRM and digital marketing, in order to assist some of our clients and bringing their iGaming offering to market successfully.Looking at the headline figures for the period, I'm very pleased to deliver another quarter of sequential revenue growth, with group revenues reaching EUR 17 million in the quarter, up 20% year-over-year. We've invested to pursue further opportunities across the business, but retained efficiency. Therefore, EBITDA increased to EUR 5.3 million, up 66% versus the same period last year, and the EBIT improved by around EUR 3.4 million or a 212% growth compared to the third quarter of 2020.I will cover off a few key points of the quarter. As we've seen from the previous slide, we continued the trend of positive development across financials. Our media business delivered an all-time high in revenue for the quarter. And our sales team continued its strong momentum in the last 12 months, secured 3 long-term contracts for the platform business. The development continued with additional brand launch and 3 more projects [ in dev ] complete in the period, and we delivered positive cash flow for the quarter.I will now have a brief look at a general strategic update for the 2 primary business units. The platform, as I mentioned, continued to secure future revenue with additional clients wins, bringing the total to 8 so far this year. We target clients on a global basis, and the sales pipeline has a good mixture of geographies from North America through to Latin America and Europe. We continue to work on expanding the number of certifications, which in time increases our sales potential.As we continue that approach as we discuss to have a global client customer base. As you can see from the graph at the bottom right, we have delivered an increasing number of markets this year and focused a little bit more in the coming years. We've seen some recent market launches, such as Romania, Croatia, which is a very positive development, and this helps to direct our path forward.The SaaS contracts continue to build reoccurring revenues and contract terms are more than 4 years from initial go live on average. As clients build revenues over time, so do us, as we can see, demonstrated from the graph at the top right. Therefore, we continue to drive future revenues for this business unit through 3 triggers, the number of clients, the number of active markets and the growth of existing customer bases net gaming revenue.And we do this from a stable OpEx base as you can see from the graph on the next slide, where if we exclude the impact from the discontinued white-label business, the revenue continues to build strongly, while OpEx has remained relatively flat, and we have increased the number of clients on the platform by almost 50% in the last 12 months, while OpEx has remained stable. We continue to pursue growth and new market opportunities to build out towards the long-term value potential of the platform. And we see, however, that the current status points towards the longer-term EBIT and margin expansion of the unit, which is reflected also in our long-term financial targets.Moving over to our media business. As mentioned before, media, the business has continued strong trajectory, as you can see in both revenues and first-time depositors, the progressive ramp over the past 2 years on a rolling 12-month basis. The positive development is driven by both current market expansion by creating better and better products, but also through entrance in new markets such as Latin America, where we see some market have performed above our expectations. This also creates a more diverse revenue portfolio in both geography and the client revenue concentration, where now 10 partners account for 45% of revenue versus 57% in the same period of 2020.We also see a consistent fluctuation over various time periods, of which companies or customer clients sit within that top 10 end, indicating a further healthy revenue distribution. This momentum has continued into October, but with all-time high revenues and player intake during the month. We continue to work in large with revenue share and 95% of the first-time depositors referred have a revenue share component, either in the entirety of the value of the deal or as a hybrid structure. This provides a further mechanical future growth and increases earnings quality and the business continues on its execution strategy of constant improvement of existing market assets and further in entries into new markets. We also continue to invest into our U.S. media and affiliate spaces. [Technical Difficulty] increased 55% year-on-year and up 30% versus the previous quarter.I will now dive a little bit deeper into the business unit's performance during the third quarter. Our platform business increased revenues by 6% year-over-year, totaling EUR 5.7 million. [Technical Difficulty] effective positive EBITDA quarter with EUR 0.6 million. SaaS revenues and new market entries were the underlying growth mechanics in the period. And when excluded the discontinued white-label business, revenues were up 32% year-over-year.We have, as an industry, also been impacted by the German regulations that came into effect in Q4 of last year that had an additional EUR 0.9 million impact on comparables with the period towards 2020. However, we have signed several new clients, specifically for our market, one with the launch over the last couple of months and several upcoming where we believe we can grow that market again.Approximately 76% of operator GGR or gross gaming revenue was from locally regulated or soon to be locally regulated markets. We currently have 22 SaaS brands live on the platform and 15 -- up from 15 in Q3 2020. We've completed 7 new client projects this year, of which 2 were completed in Q3. We have 3 clients now in [indiscernible] complete phases awaiting the client side or regulatory side go-lives. Our remaining integration pipeline continues to build, and we are progressing against respective project plans.Our combined integration and sales pipeline is leading to an attractive and expanding position for the platform [ une ]. Our media division, as I said before, very proud of the results here, where we've delivered another all-time high revenues up 30% year-over-year to EUR 11.2 million. The publishing sector within the media division grew by 32% year-over-year and had 7% quarter-over-quarter growth despite a normally weaker seasonality in Q3 for Casino in particular.Paid media was up 25% over year-over-year. And with its larger exposure to sporting events, we're very happy with that considering that in the Q3 2020, there was a condensed sporting calendar post-COVID. EBITDA was EUR 5.1 million, up from EUR 4 million in 2020 Q3, and we continue to pursue growth opportunities by an increase in both marketing spend and resources and efforts into new markets and our current market positions.First time-deposits were also up 53% and landed at almost 47,000 end users referred to our partners. Revenue share accounted for 62% of revenues within the quarter. And they continue to -- and we continue to work on the website product portfolio, and this has enabled gain into search rankings and visibility. The business also launched into 4 new markets during the period and currently holds 12 media -- local media licenses and is qualified by to operate in 17 of the U.S. states.We have U.S. assets started to gather further momentum as the new season of sports and NFL, in particular, has kicked off and remains a large investment in local area for the business as we look to replicate the success that we've had in the highly competitive European market also in North America. GiG Comply has also signed senior contracts and extended contracts of several more during Q3.Just to move to a few events post Q3, what happened over the last 4, 6 weeks. We have signed an additional contract for a German operator who will migrate their current offering and consume a database over to Kids platform offering during 2022. The sales pipeline remains strong and positive momentum is built both towards the end of the year, but also into next. Several new client launches is a new and go-live, which is also always a rewarding and exciting new phase.And the Dutch market has made an unexpected adjustment to the operating rules there, that it has caused several of our partners to pull out of the market. However, the revenues from Holland accounted only for around 2% of total group revenues. Revenues in October started positively, up 23% versus the same period last year and 41% adjusting for Germany and the white-label discontinuation. Media at first home depositors were also up 85% in October, and the business hit another revenue all-time high for the month.Just to check in on our long-term financial targets that we published earlier this year, we aim to deliver double-digit annual revenue growth over the coming years. And year-to-date, we've achieved revenue growth of 28%. We aim to drive the business towards a plus 30 -- 40% margin -- EBITDA margin, and we currently sit at plus 30%, up from 17% in the same period last year. We also have an objective to pursue growth while reducing our leverage ratio over the longer term, and we have taken the leverage ratio down from 2.9 to just above 2 in the last 12 months. So we remain well on track across our financial targets.In summary, GiG has continued across its strategic objectives, delivered strong growth again in revenue, EBITDA and EBIT. Our media business continues its upward trajectory, once again, reaching all-time highs that followed into October. Our platform's underlying and long-term SaaS business continues to grow and is well-positioned to accelerate further while demonstrating this long-term scalability. The business is well-positioned now to accelerate itself towards its objectives and further global expansion.I thank you for your time this morning. And as always, it's a pleasure to be here, and I will pass you back over to Marlon of Pareto for the Q&A.

[Marlon Varnik, Research Analyst]

Perfect. And thank you very much, Richard, and congratulations for a strong Q3 numbers, but also had a strong start here in Q4. So I'll start with a few questions from my side, and I open up for the Q&A via the chat function. So please free to submit your questions there.But first of all, so I think we should start with the trading of this year. I mean, despite weak trading we have seen in the sector due to extraordinary low Sportsbook margins and in that situation, you were showing a strong start here in the fourth quarter. You're up 23% year-over-year in October. I think it will be great to have some more comments here for the start of Q4. And also, if you can dig into the extraordinarily low Sportsbook margin that impacted as on your rev share accounts here in the start of Q4.

[Richard Brown, Chief Executive Officer]

Yes, certainly, we're very pleased with how October started. Our media business has continued to increase its first-time depositor numbers by -- in a range of markets. I think, obviously, we have 2% of our revenues coming from Holland. So the impact there is relatively marginal. We've been diversifying across the business on a consistent basis over the last couple of years. Obviously, we got impacted by Germany last year in the platform, but now outside of that market, we have a very even distribution.So a lot of new markets that we've entered to across the business have delivered growth. And a lot of the work -- lot of the launches that we've had over this last kind of 12 months are starting to also increase in value. In terms of the Sportsbook margin, I think, as you've seen that the industry has a bit of a struggle in -- or it's some very favorable results towards the consumer. That being said, we've managed to offset that in general by historical generation of FTDs that have balanced out a very broad trend also, not just in the U.K. or some very current core markets, but also in some of the emerging markets where margins essentially have been as impacted as they have in some of the more mature markets.

[Marlon Varnik, Research Analyst]

Perfect, Rich. The follow-up here on the Dutch market. I mean, you said it's 2% of revenues here in Q3. What opportunities you see here in the Dutch market, both in the short and more the medium term, given more operators goes live with their licenses here?

[Richard Brown, Chief Executive Officer]

Yes. I mean, the Dutch, we -- obviously, our media business had some Dutch assets that we actually stopped working with probably coming up to 3 years ago now. So we've kind of seen the opportunity in the Dutch market for our media assets. We still hold them. We've been working on them for the last kind of 12 months quietly to put them in a position to be able to move them into a regulated and start advertising it again.So there is an opportunity there. I think it's a little bit early, and there's only a very handful of operators live as of today. So we are cautiously optimistic for the longer term, I would say. But I think in the short to midterm, we don't see any particular media opportunity there. But we will continue to work and build those assets up for the next kind of 2, 3 years when more and more operators go live in the market.And of course, one of the areas of strength is within -- in paid media, which we haven't been able to do in the Dutch market before, and in particular, in sports betting. So I think hopefully, once a few more operators go live and Google and then their policies around allowing advertising in the coventry post regulation, that we'll be able to hopefully realize the value of that particular market.

[Marlon Varnik, Research Analyst]

Interesting. Question on media services. I mean, the EBITDA margin, it came in at 45% here in the quarter. I assume it's due to the investment made in the U.S. Could you dig into the U.S. opportunity here? And what kind of lessons you've done during the quarter? And how we should see the U.S. growth there in most short to medium, long term?

[Richard Brown, Chief Executive Officer]

Yes. So I think we've been slowly in a quite disciplined way ramping up our efforts within the U.S. I mean, we've increased our investment there kind of gradually over the last 12 months. We've also been investing in a multitude of other markets. So that's why the margin kind of fluctuated just slightly comparatively to the previous one. We see there's a lot of growth opportunity on a global basis, and we continue to try and pursue that.The U.S. for us is a long-term play. We're very happy with how the site is developing in terms of -- I mean, we mentioned there that the traffic was up 55%. We have a nationwide approach. So we have traffic from a lot of states that we anticipate to regulate in the next kind of 18, 24 months as well and trying to position ourselves there. So we continue to invest in that project. So in that market, there is obviously a lot of opportunity there. We think we have a good solid foundation that we've built up organically with some really high-quality assets, but we anticipate to be able to support further investment and focus over the coming 18 months.

[Marlon Varnik, Research Analyst]

Great. So it's another question here before we open for the audience. On the platform services, I mean, you mentioned, once again, we see delays in the onboarding of new clients in Q3, similar to early quarters related to COVID-19 effects and increasing complex licensing procedures. Can you give some light here? And do you expect these delays to persist going forward? What can you say here?

[Richard Brown, Chief Executive Officer]

I'm not sure if we've necessarily been so delayed with certain things. On our side, I mean, we had some delays about some clients, but now we're anticipating go-lives kind of in the near future and such like that. I think COVID obviously played a role in some of the markets with regards to the [ Reg House ] quickly, the regulators themselves are opening up new licensing structures, et cetera.Even the Malta Gaming Authority has increased its license application window from kind of 3 months to 6 months as they continue to enhance the various different processes they follow. So I think we can kind of expect that we've launched some clients within a matter of 6 weeks if they've already got licenses and they're [indiscernible] structures and process. So it can range in terms of the project, especially if there's bespoke development or omnichannel integrations.So there's a broad range of project time lines. But I think what's most important to focus on is that whether it takes 3 months or 6 months or in some cases, in complex sites, 9 months, these contracts are normally 4 or 5 years in length. So the relative time to onboard or go [indiscernible] comparatively to the full term, the contract value is relatively -- well, it's heavily weighted in terms of the actual contract value once go-live is reached. And we're very supportive of our clients while we understand that sometimes things can take a little bit longer than anticipated. And we just support that and work towards the longer-term vision and values of the company and also the trajectory that we know comes from SaaS models.

[Marlon Varnik, Research Analyst]

Perfect. So let's open up to the chat here. So we have a question. Are you confident that you will reach 10-plus platform signs in 2021, meaning that you will have to sign at least 2 more before year-end is signed year-to-date?

[Richard Brown, Chief Executive Officer]

Yes. So I think we were quite -- the sales pipeline has continued to positive momentum. It's building very well both towards, as I mentioned in the presentation, towards the end of this year, but also into the beginning of next. So yes, we still have that as an objective for the business, and we continue to pursue with force the sales. And of course, we've done a multitude of things to in order to support that, including the development of new markets.We've set our regulatory development road map for next year, which is also giving structures to the sales team to be able to focus on, and it also enables us to be able to -- historically, as we've opened up more and more markets, that increases our sales line potential in conjunction with that. So yes, we still have that as a target for the year. But obviously, the most important thing for us is to continue to deliver sales over the longer term as well.

[Marlon Varnik, Research Analyst]

Perfect. A follow-up here on the U.S. as well. So traffic to dsm.com is growing. But is U.S. revenue also growing and do we expect that to improve with larger states like New York soon going live?

[Richard Brown, Chief Executive Officer]

Yes. I mean, revenue is kind of following. It's following through, and we continue to test and work with new partners and new method, but et cetera, as well, although it's still from a relatively low level. So we anticipate that to advance as we continue to advance the assets as well. Of course, states like New York will -- are very some large states and ones that we're trying to work towards in terms of having a position there for the media assets.The only thing I would say that maybe is like the tax rate is exceptionally high. So how much the operators there are going to be spending on CPAs comparatively to some of other states were -- be lower. But I would anticipate that further rollout, not only in New York, but multitude of other states over the coming longer term, mid and long term will also be beneficial, obviously for the asset and its nationwide approach.

[Marlon Varnik, Research Analyst]

So a follow-up question on U.S., what's the revenue -- how much revenue comes from the U.S.?

[Richard Brown, Chief Executive Officer]

We don't disclose revenue breakdowns to the market as of today.

[Marlon Varnik, Research Analyst]

Yes. And a couple of questions here. So more improvement in platform, what is the trajectory from here, OpEx cost base development?

[Richard Brown, Chief Executive Officer]

I mean I think we've seen kind of stable, as you can see from the graph, it's a stable rate there. And we've got a 50% -- 50% more clients on the platform. We've done a lot of work on development in order to be able to enable that kind of scalability structure. And of course, over the longer term, [Technical Difficulty] increase the company's overall EBITDA margin up to 40%, of which that kind of margin gain is all coming on the platform as we anticipate the media business to retain the current or similar currently levels of EBITDA margin.So we would also, of course, that being said, there's a huge amount of potential within the platform business. So we see various different markets opening up at different stages, and we would always want to pursue the opportunity to create full value potential in the long term and do that for long-term shareholder value in order if we need to invest to do so, then we should do that.

[Marlon Varnik, Research Analyst]

Follow up question is on the U.S. [Indiscernible] on plan to your knowledge and how is the U.S. development doing for media?

[Richard Brown, Chief Executive Officer]

I won't comment specifically on this particular client's plans and time lines of entries. I don't think that's fair on them and such like that. But we continue to progress across our various different onboarding programs. We have experience, obviously, in the U.S., we've been live now in New Jersey for 3.5-plus years. Iowa for a couple of years. We're looking forward to entering the market again with a new client.And then also pursuing Pennsylvania as well during 2022. Just I think I've also already mentioned around the U.S. for our media business, but we've continued to invest, continued to pursue work on the assets in order to be able to realize further value-add to that particular market. That being said, as I continue going back the industry is a global industry. And there is a multitude of growth and a multitude of opportunities on a global scale for the whole company. So we continue to pursue those also with a great deal of force.

[Marlon Varnik, Research Analyst]

So we have a couple of questions here for the sporting business. What's your strategy here? And then how should we view this side of the business going forward here?

[Richard Brown, Chief Executive Officer]

Yes. I mean on the Sportsbook side, as we've kind of -- we've talked about previously as well as the first -- the first kind of priority over the last 12, 20 months is to bring that cost base down. We have a couple of more clients going live on the Sportsbook in the near future as well, which we believe then we can start to build up from. We still believe that Sportsbook, [indiscernible] and sports betting is an important -- very important part of the industry.We think we have a good product fit towards Casino is looking to have an additional Sportsbook and also in several of the emerging markets that are coming through, whether that be Latin America, Eastern Europe, et cetera, so that we can continue to include that in our sales portfolio and focus on that to bring out over the coming years.

[Marlon Varnik, Research Analyst]

And then we have, congratulations with your performance with increased sports environment, social and governance. Please comment on the GiG's policy incentives within ESG.

[Richard Brown, Chief Executive Officer]

Yes. I think for us, we have a multitude of different programs that look at our corporate social responsibility. We work obviously, and probably one of the items that's closest to our area of -- or remain within the industry as we've been safe gambling and responsibility around that levels. And we invest a great deal of time and effort ensuring that not only our core company appreciates that and has trading within it. But we also spend a lot of time developing actual data tools and identification tools that would help identify early the -- anyone with responsible gaming issues or anybody so that we can [indiscernible] and structure them.We work very closely with our clients as well in order to educate them about best practices within responsible gaming. And we continue to focus as a focal point. We believe that will win. We will be an important factor for all businesses. We operate largely in regulated markets. And we do -- we try to go above and beyond on a consistent basis as to what we can deliver to our clients in terms of responsible gaming tools. As an example, we can take very beneficial responsible gaming tools that we develop in one market and roll them now into market elsewhere, where it may not be a regulatory requirement, but we actually think they're very strong tools to help in that particular area.

[Marlon Varnik, Research Analyst]

Perfect. So from ESG back to the U.S. Will you hold on to revenue-sharing revenue type and growing in the U.S. market or CPA commonly used as the revenue type in the U.S. within the media service division?

[Richard Brown, Chief Executive Officer]

Yes. In the media services, it's more common to have a CPA structure. That's generally just due to the speed in which your application processes are verified, whereas there's a lower barrier to entry, if you put it that way on CPA. So at the point where we're looking at speed, build time to market, we would pursue CPA and then potentially look at revenue share in the longer term. Within the platform business, however, obviously, we work on revenue share within the U.S. markets and have done historically as well, which includes the full license application, et cetera, or critical supplier license, which enables you to work on revenue share.So we will be able to enable that also, but at least my feeling at the moment is that CPA provides strong value in the U.S. market. And in conjunction with that time to market is probably a little bit more important for the media business in the U.S. as of today as opposed to the more likely revenue share price for these different spaces.

[Marlon Varnik, Research Analyst]

And a question here on the Betsson contract. Could you say anything about the Betsson platform agreement expiring in October 2022? Have you renegotiations started? And how confident are you that agreement will be renewed?

[Richard Brown, Chief Executive Officer]

Yes. So we –- as you mentioned, we have [Technical Difficulty] until that contract expires. We are working very hard, of course, internally, to be able to provide a very strong product and client service offering towards Betsson, but obviously, all of our clients as well. So we continue to work in a very dedicated manner in order to be able to make sure that we have the best chance of success within renegotiation in that contract.

[Marlon Varnik, Research Analyst]

And you mentioned the potential of East Europe. What country specifically do you think they have the most potential?

[Richard Brown, Chief Executive Officer]

Well, I'll give you an examples. We launched in Romania earlier this year and Croatia at the tail end of last year, and both markets -- both of those markets, in particular, performed very well for us. We've also been in Latvia for some years now, and we see that even on a kind of total basis, that market continues to grow in a very healthy manner. So we see also further regulation occurring in places like Ukraine as well, which we think will be -- has the potential to be a strong market as well as others.

[Marlon Varnik, Research Analyst]

And we have a question here also on [ Cade ] regulation. Now how will this affect both media and platform, both positive and negative short-term, long-term on Canada?

[Richard Brown, Chief Executive Officer]

On Canada. Okay. Yes. I mean, Canada is really interesting one and one we're quite excited about. I mean, obviously, European operators have been active in that market for quite some time. So we have a pretty good understanding of that market itself. We're excited. Ontario will probably be the first one that we do. And it's the first one that's actually supporting our gaming or casino regulation, which we think we have the strongest offering within. We have several of our clients interested in their license application already. And we continue to build our sales pipeline towards the Canadian market as well as we see that as being a strong potential market where we have a very good product set for those particular markets as well.

[Marlon Varnik, Research Analyst]

And on the -- one of the targets, can you please remind us where you see the long-term EBITDA margin for the platform business? And is that predictable on cost and acquisition cost to come down? [Indiscernible].

[Richard Brown, Chief Executive Officer]

Yes. So I mean, like we haven't specifically commented on the platform business margin over the long term. However, you can kind of engineer if our long-term target is 40% as a group, we're currently around 45% in media. And so therefore -- and 30% as a group. So you can anticipate the rest of that margin on a group level to have been derived from the platform business over the coming years.In terms of costs for acquisition, I am not sure if that refers to the platform business or the media business, but to kind of cover them both, within the platform business, we continually work on improving our products and the technology and the more regulated markets we do, the easier than it often becomes to replicate some of it into new markets. Therefore, the cost of the development to enter a new market can reduce over time as well. So new project initiatives can, therefore, take the quicker, but also cost less to develop.Then within the media space, the customer acquisition, I think will always fluctuate and remain healthy in some markets and in some markets, it will accelerate. What we do on a consistent basis with our pay media is evaluate the return on investment for anticipated return on investment with a stringent level of precision where we have some very strong marketing technology that make this almost automated for us, but also enables us to be able to be very quick when we see that -- any customer acquisition on the paid media side escalates beyond what we think is acceptable, then we can pull back very, very quickly as well.

[Marlon Varnik, Research Analyst]

And do you expect further growth in the media business come from existing verticals? Or will there be expansions?

[Richard Brown, Chief Executive Officer]

When you say verticals, I mean we're very focused in sports. I think in some markets, we have strong positions within sports and other markets, strong positions within casino and some markets where we think we have potential for both. So I think one of our things is, as I said before, both entering new markets, but also looking at areas where, for instance, we have a strong proposition in casino, but a weaker proposition in sports, then that's obviously an area that we would look to address. And vice versa, on the product verticals.Outside of kind of casino, Sportsbook, or media, I think that's where we have a lot of value and a lot of expertise. We're consistently looking at other verticals as well. However, we believe that we have a large amount of growth still to be achieved within the gambling space, and therefore, that is our primary focus.

[Marlon Varnik, Research Analyst]

And then we have a question on dual listing. Do you plan to continue with the dual listing in Oslo and Stockholm? Or will you delist in Oslo? And have you considered listing on other stock exchanges as well?

[Richard Brown, Chief Executive Officer]

I won't comment on the specifics of where we are, but it's something that the Board -- the Board and I are discussing on a constant basis, whether their current listing structure is the one that we should continue with or if we should adjust there, whether that's moving to a single listing or not. But it's something that we consider on a constant basis.And I think over the last few years, of course, we've been very focused around the business and the operational side of it in order to deliver results like we did today, and we continue to focus very much on that. But of course, now once the business is in this kind of trajectory, we start to also then consider is it potentially the right time to do it. But I have no firm commitments or anything, but definitely something we're consistently looking at as the Board of Directors as well.

[Marlon Varnik, Research Analyst]

Perfect. I think you also touched the M&A. I mean, financial business has continued to improve over the recent years. Have you become more active [Technical Difficulty] looking for M&A opportunities and how much room for M&A do you have? And what are you looking for within M&A?

[Richard Brown, Chief Executive Officer]

I think, right, obviously, the kind of position the company is in, both operationally, but also from a balance sheet perspective, is much improved over the last kind of 18 or 12 -- 12 months as well. And I think that will -- that naturally gives us a position to look more and more mergers and acquisitions. There's a range of areas that could be very beneficial to GiG and its strategic preservation.However, we're consistently always looking to see if the opportunity -- if there's a multitude of opportunities that, of course, across my desk, we just need to identify if one is one that I would like to execute upon. And if it provides value to the business and to the shareholders as well. So we're, of course, now in a position where we can start to look at savings. And if something comes up, then, of course, we will look at it with detail and see if we were able to both execute and also if it really provides the value that the business will drive probably in the longer term.

[Marlon Varnik, Research Analyst]

I think we also should touch the Swedish market. I mean, we are lifting online casino restrictions in 14th of November. I assume the activity will increase due to this also as the bonus cap will be removed and so on. How important is the Swiss market for you? And what short-term effects do you expect from the removal here?

[Richard Brown, Chief Executive Officer]

In media, we have a relatively strong foothold in the Swedish market, one that has been obviously impacted by the restrictions, but also we believe that the channelization, in particular casino, where we obviously have predominant revenues in the business has been impacted. I don't think -- well, it's not -- you see that in the numbers. So there's a multitude of channelization issues in the market.And we think that, obviously, that would be alleviated somewhat further now with the removal of the restrictions. So we see it as a positive. Over what time periods and how quickly those customers would come back if they come back, and -- but of course, it is a benefit to see in that market to be kind of released from the restraints it's had over the last 24 months or so.

[Marlon Varnik, Research Analyst]

Perfect. Thank you, Richard and Tore, and thank you all for listening in. We'll leave it here today, and we'll see you next time again. Thank you.

[Richard Brown, Chief Executive Officer]

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

[Tore Formo, Group Chief Financial Officer]

Bye-bye.