Acroud AB

STO:ACROUD

Earnings Call Transcript 2018-Q3

[Operator]

Ladies and gentlemen welcome to the Net Gaming Europe Q3 Report 2018. Today, I'm pleased to present CEO, Marcus Teilman. [Operator Instructions]Speakers, please begin.

[Marcus Teilman, President, CEO & Director]

Thanks very much, and good morning, everyone, both on the web and on the phone. My name is Marcus Teilman. I'm the CEO. And I'm happy to present this Q3 report with 21% organic growth, primarily driven by the U.S. market. Looking at the agenda today, I will start off with giving you some highlights on the third quarter 2018. Then I will guide you briefly through the company and speak about the company, what we do and how we do it. Then I will hand over to our CFO, Gustav Vadenbring, who will guide you through the financials for the third quarter. Then I will speak about the growth strategy and then -- to sum it up and speak about the outlook. And then we'll round this call off by having a Q&A session. If we move on to the next slide on the Q3 highlights, Q3 highlights 2018. We saw an increase in affiliate revenues of 33%, up to SEK 51.1 million, with an organic growth of 21%, which was an improvement by 6%. EBITDA came in at SEK 32.3 million, which was up 26% from the same period last year. EBITDA margin remained strong with 63%, down slightly. And our earnings per share was at SEK 0.27 for the third quarter 2018. And we remain at a strong cash conversion of 101%. Gustav will speak more about the financial aspects later on in his presentation. During the quarter, we launched new financial targets with an improved focus on organic growth. We will speak more about that later on in the presentation and how we will drive the organic growth. With that said, I'm also happy to see an increased organic growth of 21%. We saw that the organic growth in the U.S. market was 108%, and in the U.S. market, North America now accounts for 23% of our total revenues. And I'm very happy to see that development in North America continues. I'm also very happy to see that the underlying growth in new depositing customers is still continuing to grow. We saw Casino NDC growth of 52% in the third quarter, while the total NDC growth was up 35%. So 35% underlying growth in NDC numbers in comparison to 33% total revenue growth. That was also impacted by strong tailwind in the SEK. I'm also happy to see that the organic growth was also driven by the European casino market, and the European casino grew 17% organically during the third quarter. Like I said, we continue to show strong margin and a high cash conversion. And during the quarter, we have also made some key recruitments to execute on our growth plan, one being our CFO, Gustav Vadenbring; but also CTO, Clinton Cutajar. And we will continue to recruit more people with core competence in the areas that we see that can give us further growth in accordance with the growth trends. Let's move on to the next chapter, Net Gaming in brief. If we look at our markets, we are in the affiliate industry. We have other large players in the affiliate industry like Booking.com, Expedia Inc., Hotels.com and TripAdvisor that are comparing different services or products. But we are in the iGaming affiliate industry like Catena Media and Better Collective that are both listed on the Stockholm main market. So what we do, we don't operate our own casino brands or sports betting operation. But we refer end customers or end users to the operator, being our partners. Let's move on to the next slide and speak more about what we do. What we actually do, we own and develop strong digital brands within iGaming affiliation. And you see here, you see our core brands. CasinoTop10, Pokerlistings, these are 2 brands that we have had in our portfolio for a very long time. Pokerlistings, we founded in 2003, and CasinoTop10 was founded in 2004, and CasinoGuide was acquired in 2005. But the domain name itself was launched in 1995. On top of this, we also have CasinoToplists and MrLive. MrLive is a niche site in the live casino segment. So what we do is that we will continue to develop these strong digital brands in the iGaming affiliation, but we will also add more -- they have actually -- in fact, they have more than 130 different sites. So what we do? We guide and inspire users to find the right operator and that we do with strong different brands in different geographies, and we also have local brands for each geography. In Germany, for example, we have casinospielen.de. In U.K., we have casinoguide.co.uk. So we will work with global brands but also with the more local brands for different geographies. As we move on to the next slide, Net Gaming at a glance. As you can see, we have offices both in Malta and in Stockholm. We have approximately 90 employees. We have more than 130 websites that we're monetizing from and also more than 200 partners that are active and partners being the iGaming operator. Active, I mean, operators that we have gained revenues so that we have directed paying end customers and new depositing customers. Revenues for the last 12 months amounted to SEK 189 million, with an EBITDA for the last 12 months of SEK 173 million. And this is constantly growing, as you might understand since the EBITDA during this quarter was SEK 32.3 million and affiliate revenues were SEK 51.1 million. We have 89% of our revenues are coming from casino, the casino vertical, and 10% of our revenues are coming from poker. 1% is other verticals like sports betting, finance and also some smaller verticals like bingo and e-sports. Our SG&A is that -- first of all, we are a true quality player when it comes to some of the high-quality leads in the affiliate industry in iGaming. We are working a lot with high-quality content in order to lower the risk and also to follow building guidelines from when we are developing our different brands. We're working a lot with a profit-driven approach. We have our own developed or proprietary business intelligence platform and a scalable core digital platform in order to scale our business up, to launch new brands, to launch new updates and especially things we are seeing and increasing or trending in more markets going towards regulation. In Sweden, for example, Sweden is being regulated from the 1st of January 2019 and it's easy for us to adapt the business and to scale of the business when different markets are regulating. We have been public since 2009, but we have been on the First North Premier Stockholm listing end of June this year. Before that, we were on Spotlight Stock Market. Our ticker name is NETG and our market net cap is of approximately SEK 750 million. Let's move on to the next slide. We are a true reliable growth partner for operators to grow. If you are an operator and you want to grow your business further, we believe that Net Gaming is the right partner for you. We are a true generator of high-value leads and we are doing that by always developing our core competencies further. We have been in this industry for more than 15 years and we have built up a strong and a fantastic structure capital during these 15 years of operation. Like I said, we have our scalable platform, and recently, we recruited our new CTO, Clinton Cutajar. Him and his team, they are constantly developing this -- our core platform in order to scale our business further. I'm happy to see the underlying development in that aspect, and we will see more digital brands that will be launched later on this year and also during 2019. We are working a lot with data-driven analysis and we can do so by continuing to develop our own business intelligence platform. We have been collecting data for almost 15 years and that means that we can optimize our operations every day and we take it to the next steps all the time. Our core competence also lies in the SEO team and in the content team who work a lot with search engine optimization, but also with adding high-quality content and a lot of content to our different digital brands. By that, we are increasing the value of the leads that we are generating. High-value leads that the operators can gain from when they want to grow their own business. It's a very scalable company, scalable business, and we are active in more than 30 countries. And it's easy to scale a business then and move into -- enter a new market all the time with this foundation and the structure that we have in the company. We have also a legal and compliance organization in place, meaning that when we see updates in regulations, let's take U.K. for example. When we see updates in that specific market, it's easy for us to adapt that in our core platform and then to launch that across the board for all brands that are active in that specific market. With that -- that increase is also the barriers to entry in the market, so it's growing all the time and we like actually that more and more markets are going towards regulation. With that, I would like to hand over to our CFO, Gustav Vadenbring, to go through the financials for the third quarter 2019.

[Gustav Vadenbring, Chief Financial Officer]

Thank you, Marcus. Thank you for that. Let's turn to the slide with the financials, please, and we'll kick off with the financial part before we -- Marcus take over again and we'll go through our growth strategy. So like Marcus said, it was a successful Q3 quarter. And I'll touch base on a few points I think is important to keep in mind when reading the interim report and also looking on the financials. The financials as such shows that we have a strong third quarter, which we're proud of. But if we look first on the first slide showing the revenue growth, EBITDA and the margins and earnings per share, which we think are important, like highlighting on the net revenues, it shows the growth of 28%, but that it's showing the total revenues. So if you look on the interim report, you'll see this bit between operator business and affiliate business. And the underlying affiliate business is growing more than the total and we're winding down the last part of the operating business. So the underlying growth is stronger and it's also mainly driven by organic growth. So from this quarter, we're also disclosing interim report our organic growth on constant currency basis, which is the main driver in our equity case as well. So the revenues are driven by organic growth and we also have one part that is impacting, which is the split between CPA and revenue share. We'll come back to that later on in the slides, but it's important to keep in mind that it's slowing down the growth on short-term basis since we have a shift in CPA to rev share. On the EBITDA development in the middle graph, see we have a strong EBITDA development with high margins. It's important to keep in mind that in Q1 '18, the high margin is 69%. You see it's impacted by divestment of Battle of Malta. So adjusted for that, it's around 65%. So we are operating with the margins, which are sustainable around 63% to 65% in average as it is now. Then you need to keep in mind as well that this is a scalable platform and that's unique with this business model as well, that some of our costs are semi-variable. We'll come back to that later as well. That means the more we grow, there will be a positive impact on the margin. At the same time, there will be other contradicted costs that will balance. Sustainable margin were around 63% to 65%. Also in Q2, there was an impact by the listing at First North and that total impact has been around SEK 900,000, so SEK 0.9 million in total impact in Q2 and Q3. Going to the earnings per share. Also need to keep in mind that the ratios in 2017, we had a big refinancing that decreased our finance costs. And we'll come back to that later as well. But the finance net in the company has decreased significantly in 2018. And the negative result in EPS in Q3 '17 is totally related to one-off costs related to the refinancing. Those amounted to around SEK 39.4 million if you look on the interim report '17. And the trend in -- that is decrease in costs, 0.3 to 0.27 in Q1 '18 to Q3 '18, also you need to keep in mind that as you probably read in the earlier reports, that we've been converting -- the convertibles has been transformed to shares, which is impacting. So now we don't have any convertibles left. And so we have acquired clean financing, which we'll come back to later. And that is -- also will decrease our financing costs on the either one. And we -- turn to the next slide, please. That shows our revenue split in Q3. Marcus touched base on that earlier. I think the highlight on this page is that our share in U.S. is increasing significantly. So we are up to 23% in U.S. and 73% in Europe. And we're very happy to this and we'll see our continued increase in U.S. otherwise, which also is good for our diversification. As Marcus said as well, the casino is growing strong and the poker is stabilizing. So around 10% of the revenues is poker. And we can see, on the continuous pages, that we see development also is positive within poker. We will turn to the next page, please, showing NDC development, which is an underlying driver in our business. We see a very strong development where poker is stabilizing and the casino is performing very strong. The betting and finance verticals are still small. Marcus will come back to that in the strategy section. But they're growing and showing positive trends and will develop over time. So it's one of our growth pillars within the betting that Marcus will come back to. So we see very strong positive trends in NDC, which is one of our most important KPIs. If we go to the next page to the revenue split, it shows our relation between CPA and revenue. And we have been changing the last months from past quarters from CPA to revenue share. Marcus, could you take over 1 second?

[Marcus Teilman, President, CEO & Director]

Sure. So we have made the strategic shift from CPA to revenue share because we believe that this is to optimize our revenues in a long-term sustainable way. And we have been doing so constantly and we will continue to do so over time without giving any exact numbers on how to -- where we will end from between -- in the split in CPA and rev share. However, when we are shifting from CPA to revenue sharing, keep in mind also that this will short term negatively impact the top line growth in revenues because you will see a timing effect because when you have a CPA, you get the revenues up from. But on a rev share, you will get perpetual revenues for the coming quarters. We can move on to the next slide on the P&L and Gustav will continue.

[Gustav Vadenbring, Chief Financial Officer]

Yes. Thank you, Marcus. So we look at the P&L on the next slide. What we like to highlight, a few points. If we look at our cost base, it's -- you can see that in our interim report as well. It's directly related, and of course, our EBITDA development, which is stable, that our cost base is mainly 2 things that we are working with recently. One is the winding down the operating business, which will improve our margins onwards. And the other one is like what we mentioned at the interim report, is the paid media costs that are also being wound down and that will be positive factors improving EBITDA onwards together with the scalable platform. Also, I would like to highlight on the financial net, is that it's, to some extent, high in Q3. And that's related to the -- that we are releasing the convertible -- the loss convertibles to shares. And that has impacted around SEK 1.1 million on the finance net, which is a one-off cost. So our -- in yellow, our financial cost is around SEK 8 million amount. If you calculate backward, and you know our interest rates on our bond of SEK 375 million, our interest cost is around SEK 7 million amount and then -- a quarter. And then we have also our -- for accounting purposes, we have commitment fees related to the financing and also around SEK 0.8 million a quarter. So you will see in the financial net onwards, where we now have a quite clean financing, is around SEK 8 million a quarter on a run rate basis. If you compare the financial net to Q3 '17, it's hard to compare since we have significant one-off costs with refinancing 2017. And also in total, if you look on the page, we say SEK 50 million but that's including the recurring costs as well during 2017. So the one-off cost is around SEK 39.4 million. Also, I'd like to pinpoint then the margin. As you saw the trend, it's somewhat impacted by the listing costs in the -- I mean, in Q3 at around SEK 200,000. And year-to-date, that it's relatively high. It's impacted by the Battle of Malta around SEK 3 million in Q1. So the trend is relatively stable. If we go to the next page, please, to the balance sheet. Also related to the business model Marcus talked about, it's a relatively simple balance sheet, if I can express that myself as the CFO. We have -- it's mainly comprising variable assets related to the Net Gaming acquisition of HLM in 2016. That's the absolute main part. There are also some minor parts in intangible assets from previous acquisitions from our first 3 business combinations, but they are very limited. So takeaways. The main part of the balance sheet is the goodwill from HLM. And if you look on the working capital part, Net Gaming is operating with a slightly positive working capital, around 10% of sales. We are not building up much working capital when expanding. It's mainly accounts receivable. So [ debtors ] to our operators and customers. So I think if you look onwards, our net working capital will probably remain around 10% as it is now and it will, in absolute terms, increase [ much ] as our business is growing. And the other part to the balance sheet is the cash. We're building cash very fast. We'll come to the cash flow statement in the next page, but we are building cash very fast and the debt in the balance sheet is mainly related to the bonds. So let's go to the next page. It's important when you compare this -- the cash flow to the interim report. In Q3 '17, we have adjusted to show the working capital more accurate and operating cash flow. So if you compare to interim report, there will be a deviation from Q3 '17. This page shows one of the key strengths of this company and also by the business model. It has a very high cash conversion. A lot of the EBITDA is transforming into cash quarterly and that's why we're delivering it very fast, which you will see on the coming pages as well. So from out of our SEK 32.3 million EBITDA, we have very limited CapEx investments, that's mainly in domains that we're buying and capitalizing. And then we have our financing costs that are eating up some of the EBITDA that we're generating. So if we look on the cash conversion, which we calculate which is operating cash flow minus the investments, we have a high, very high transformation of cash. And it's only a small part which is going out from the -- in the free cash flow related to working capital since we're not very working capital intense either. Also to highlight in the year-to-date '18, it's mainly related to the investment activities that's related to the clearance of the additional purchase price of HLM. And also, the acquisitions of Webwiser. So on a run rate basis, very limited cash flow from investments in yellow. Can we turn to the next page? See our net debt-to-EBITDA, our leverage in the company as we're delivering very fast due to the both the high cash conversion and our high EBITDA growth now. So we're down to 2.3 in relation between debt and EBITDA. And our goal is to be more or less debt-free in 2020 when our bonds mature. They mature in September 2020 and the pace we're holding now. So then we'll end on being debt-free. Then of course, our financing costs will be much lower, which are around SEK 8 million then in the P&L as you can see. I think that was the financial section and what we want to highlight. I will leave over to Marcus for the growth strategy.

[Marcus Teilman, President, CEO & Director]

Thanks very much, Gustav, and we can turn to the next slide in the presentation, which is my favorite part of the presentation, our growth strategy with a clear focus on organic growth. And that's in accordance with our new financial targets that we recently launched. If we turn over to the next slide, you'll see our 3 growth pillars. First of all, earlier on this year, we paid a final on our payment to the sellers of HLM Malta Limited. That means that now we can operate the company exactly the way we want it without no limitation on operations, how to do it or what we can do. And I'm very happy to show you our growth plan and our 3 growth pillars. The first growth pillar is the European online casino affiliation market. We have a significant growth potential in this market. Our market share is approximately 1% of the total casino affiliate market in Europe. So we have just got started in this market, I mean, this aspect. This is our core competence. That's realized within, first of all, in the casino vertical but also in the European markets. We saw an organic growth in Europe for the casino vertical of 17% during the third quarter of 2018. I'm very happy to see that development and we also saw a strong underlying growth in the NDC numbers of 52% for casino totally. Second growth pillar is the U.S. iGaming affiliate market. And I would say that we are very well positioned for the U.S. iGaming market going forward. We have really strong brands in this market, both global but also local brands, and I'll come back to that later. You see there our 3 core brands in the U.S. market, Pokerlistings for the poker market; that has been active since 2003. We also see CasinoGuide.com, a domain name that has been active since 1995. And also SportsBettingGuide.com, which is a domain that we have recently just purchased and we will develop our sports betting product for the U.S. market on this domain and be -- to become a really strong digital brand. We are well prepared for continued rapid growth across all main verticals in the U.S. market and I'm happy to say that we will continue to execute on our growth plan in the U.S. affiliate market going forward. And our growth pillar is the sports betting affiliate market in Europe. We are building up our operations and our brands in this new vertical; for us it's a very large vertical. We see a lot of opportunities in the European sportsbook market. So we are well prepared for that. And we are building long-term sustainable growth by adding this new vertical to our existing operations. Let's move on to the next slide, which is the European online casino affiliate market. As you can see, at the moment, our market share of the European casino market is over approximately 1%. So we have a lot to do on this market. Total online casino affiliate market accounts -- is over approximately EUR 1.2 billion. It's a market that is growing somewhere between 7% and 9% on a yearly basis. But like I said, I'm very happy to show our organic growth in the online casino market within Europe of 17%. So we are growing faster than the average player in this region. Our revenue growth on casino in total was 48% in the third quarter. So we are really strong in this vertical and we will continue to make investments in strategic markets, but in Europe we see -- U.K., for example, that is an important and interesting market for us, but obviously lots of other opportunities now in that region, but also other countries as well in Europe. Let's move on to the next slide and that is the U.S. iGaming affiliate market. Total affiliate market in the U.S. accounts for approximately EUR 0.6 billion in comparison to EUR 2.8 billion for Europe. That's only for casino and betting though. So EUR 0.6 billion is what we believe is the total affiliate market in Europe -- in U.S. for casino and betting. It's expected to grow of -- have a compound annual growth rate between 2017 and 2023 of 9.5%. However, we are growing really rapidly at the moment. We had an -- we saw an organic growth in the U.S. market of 108%. So we are continuing to grow rapidly and our total revenues from North America is almost 1 -- is almost -- is 23% of our total revenues. We are investing in both existing and new assets in the U.S. market, and we aim to becoming a long-term major player within the iGaming affiliation market in Europe. We estimate our market share for casino and poker online in affiliation at approximately 1%. And we want to be proactive on this fantastic market with great opportunities going forward. So let's move on to the next slide, where you see different states. And the green -- the states that are -- that have been marked in green, those are states that have already been regulated, that we are already active. You see one state that is more yellowish, which is Pennsylvania. We are active in that market. We have 2 partners in that market with domains. So that's when Pennsylvania opens up, hopefully around Q1 2019, we will be prepared. But we also have a lot of domains that we are building up in several states. So approximately -- or slightly over 20 states we are prepared for further growth when these states will open up. First of all, you need to keep in mind that the states need to regulate so that they can bring online operators that we can send traffic to. But we need to be prepared [indiscernible] start building up the price so they can start banking in Google [indiscernible]. And once that they have opened up, we can then also add on the link to that -- to the operators, our partners. And when we are referring a player that is paying for on the operator, then we will get paid as well. So let's move on to that next slide, please. So 3 states are open today and we have a year-on-year growth of over 100%, which I'm very happy to see. But we know that more states are likely to open up. And once more states have opened up, we have more partners to send traffic to. You see our core brands in the U.S. affiliate market. To the right, you have Pokerlistings. You have CasinoGuide.com, but you also have CasinoTop10 and CasinoTopLists. But we also have upcoming U.S. brands. Like I said before, we have SportsBettingGuide.com that we recently purchased [indiscernible]. But we also have local brands. I'm giving you a few examples there by showing you CaliforniaCasino.com, NewYorkBetting.com and CaliforniaPoker.com. So we have a really strong domain portfolio that we will continue to develop and develop these assets to become really strong digital brands within all the selected states which we believe will see great growth potential going forward. So I think we are well positioned today with our existing and the new U.S. brands portfolio that will be launched going forward. And yes, we will continue to make investments in this very interesting market. As we move on to the next slide, sports betting affiliation in Europe. Sports betting is not only happening in the U.S. For us, it's a very interesting market in Europe. The European sports betting market for affiliates accounts for approximately EUR 1.6 billion and we have hardly even touched this very interesting market and this very interesting vertical. We are, at the moment, laying the foundation for betting and we have continued to build up and invest in new assets within our new investing vertical. We will continue to do so going forward with methodological and structured work. And we believe that growth opportunities and the time are very good in this interesting market in Europe, but also in this very interesting vertical. However, I want to point out -- I wanted to point out that we need to have some patience. We are building up the brands and the organization and so on now, but it takes time before we actually can see the revenues, large revenues coming in. We have already seen revenues and the fee growth, but from lower levels now in the third quarter 2018. So we are building. We are doing this investment to add on a long-term sustainable growth to add on to the European casino affiliation market but also to the U.S. iGaming affiliation market. So these are our 3 main growth pillars for further organic growth in Net Gaming. And I'm confident that investing is -- will become an important vertical for us on a long-term basis. Let's move on to the next slide, please. Like I said, the focus remains the same. We will continue to invest heavily in our organic growth and to increase our organic growth further from our current 21% that we showed now in the third quarter. However, we have a flexibility and we have an opportunity to add on new acquisition if we find acquisition prospects that are perfectly -- a perfect match for us. We haven't announced M&A except that we have executed on 5 successful acquisitions recently, over the past 2 years. If you look at the right, you'll see that we have a very fragmented market that we are active on at the moment. We have approximately 20 to 30 large affiliate players, affiliate companies like us. That accounts for EUR 0.6 billion of the total affiliate market in Europe and the rest which we are talking about thousands of smaller affiliate companies. They account for EUR 2.2 billion. So there is a consolidation going on in this market and we want to take part in this consolidation. However, we will only do so if there's a perfect fit and the prospects will match our quite hard investment criteria, if I would say. We will be very disciplined when we are evaluating potential additional acquisitions. And we will only acquire when we see that all criteria are fit. We look at strategic match. We look at low risk, low underlying risk in the acquired business; higher quality target and attractive valuation multiple. Those are just a few of our many investment criteria. So like I said, our strategy remains the same. We will continue to focus on our organic growth. But if there is a fit that is a match for M&A, we will execute on that strategy to add on to our existing operations. So let's move on in the presentation and go to summary and outlook. And next slide, summary and outlook. Like I said, 33% growth in the affiliate business with an organic growth of 21%. I'm very happy to show that, that we have improved our organic growth. And we will continue to work hard to improve it even further. I'm also very happy to see growth in North America, an organic growth in North America of 108%, and the strong casino and the fee growth of 52%. Cash conversion was 101%. Still very, very strong in this scalable business. And we are working hard to show high margins and high cash conversion. Let's move on to the next slide and our financial targets that we launched during the third quarter this year. Growth in earnings per share, according to the financial target, should over time be at least over 20%. Since we have a negative net profit or a negative earnings per share in Q3 2017, you can't really compare that. And now, however, we are having a growth in earnings per share of over 20% at the moment. Financial target for organic revenue growth should be between 15% and 25% over time. Now in the third quarter, we showed an organic growth of 21% and organic growth in -- and also earnings per share -- growth in earnings per share are 2 very important financial targets that we are looking -- constantly looking at. Capital structure, net debt-to-EBITDA should be of maximum 2.0. Like Gustav showed you for the net debt-to-EBITDA graph, you see that we are constantly deleveraging our net debt-to-EBITDA ratio. And now we are down to 2.3. Dividend policy, we will prioritize our internal growth projects in order to increase the organic growth further. We will also prioritize our capital structure and acquisitive growth before we make any dividends during the next 3 years. Let's move on to the next slide, please. So why should you invest in Net Gaming? First of all, we own and operate and develop strong digital brands within iGaming affiliation in 30 countries. It's a very fragmented market that are -- constantly have been growing heavily for a couple of years now and it is expected to grow further for many years going forward. Global and online gambling amounts to approximately 12% of overall total gambling. So online gambling is only still 12% if you look at this from a global perspective. In Europe, we're talking about slightly over 20% online gambling, but in U.S., you just see a few percentages that are online compared to land-based gambling. So the foundation is there for iGaming and we are -- we have a really strong position in the affiliate market. We -- that is -- that has an expected CAGR of 7.5% for the -- between 2019 to 2024. We have state-of-the-art operations with 15 years of experience from SEO and high-quality content work. We are investing resources now in scaling the business further and investing in our core competence and in our core brands, but also have the new brands. We are doing so to increase our organic growth. We have high margins and we have really strong cash conversion like we have presented earlier in this presentation. I would say that we are in pole position in the fast-growing U.S. market at the moment. And we have digital core brands in the U.S. market like Pokerlistings and CasinoGuide.com. We will be adding SportsBettingGuide.com as a global brand for the U.S. betting market, but we also have a very strong portfolio when it comes to local domains for each and every state when -- whether it will open up regulation. And finally, we have a strong management and Board of Directors with a solid background in the iGaming industry that will add our core competencies to the company and to grow the company further. With that, I'm happy to hand over to the operator to start off the Q&A session.

[Operator]

[Operator Instructions] And as we do not have any questions registered, I now hand back to our speakers for any closing comments.

[Marcus Teilman, President, CEO & Director]

Thank you very much for that [indiscernible]. I'm happy to show continued improved organic growth. We have fantastic opportunities when it comes to improve our organic growth further now, both in the European casino affiliate market, also in the U.S. iGaming market in total, both in casino betting and poker. And also, we have added sports betting as a new vertical. So with that, we will continue to work hard to improve our organic growth further and to have -- to show long-term sustainable growth going forward over time. I hope you will all join us for the year-end report as we will be presenting on the 23rd -- 21st of February 2019. Thanks very much for listening today.

[Operator]

This now concludes our conference call. Thank you all for attending. You may now disconnect your lines.