Verve Group SE (ETR:VRV)

CMD 2021

← View all transcripts

Aug 19, 2021

A warm welcome to Media and Games Capital Market Day here in Stockholm. It's great to see everyone back after summer. And I mean, this day is both online and also here at Uprat Erasa. So my name is Jan Rospel, Ruppa, and I support MDI here on the ground in Stockholm. So I will facilitate today's session. And today's session is on the back of a very strong Q2 report released yesterday, where the company outperforms the already strong comparison quarter last year, right? And the management had been very active during the pandemic, doing deals and also financing the deals. So today, we'll be all about getting to know the people behind the deals and also the growth strategy going forward. As usual, on Capital Markets Day, we will have lots of slides in the presentations. But we will also have Q and A sessions in between. So if we check the agenda, We will have a Q and A session after the deep dive in the games segment. So please engage All of those who are online and prep your questions, send them in and also here in the room. So we really get a live session here today. We will also have a Q and A session for the media deep dive. And then at the end, we will also open up the phone lines so you can dial in. And we will show the dial in numbers on the screen. So I think actually without further ado, I would like to welcome you up on stage, Remco. Great to have you here in Stockholm. And with that, I would also like to hand over this one. Thank you. Yes. Thank you, Jenny. Yes, welcome everybody, and thanks for coming here and thanks for zooming in or how do you say it, interneting in. Great to be back in a live event. Yesterday, we had some live interviews, and that's really, really cool to see people Moving again instead of on a Zoom conference, but really live and also here. So really happy that you're here and sorry for those that couldn't make it. And that's the reason you have a Hybrid, how do you say it, conference, where also people can, of course, go in get in via Internet. I would like to get you through, yes, A bit of the more general things. And then after me, the people that are really doing the work will show what they're doing, what is happening, what has been happening in the last quarter. And altogether, I can say we are really happy with the second quarter and looking forward to some more good quarters So let me go through the presentation. As Jennie warned already, it's a lot of slides, but here we start. What is the aim of the Capital Markets Day? Basically, to give a bit of an update, to share deeper insights and also give you the possibility to ask questions Because I know we are really asking a lot from our investors doing gaming, which is already not that easy, and then also doing media, which is even a bit more complex, [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] And I'm even trying to or not trying, even combining the 2, which is even making it more challenging to understand. Then I'll provide an overview of the financials, Of course, actuals, outlook and getting to know the team. Let's say part of the people are here of the team, and of course, we have many more, but I think that's a good opportunity. At a glance, for those yes, there we are. You all and most people here in the room know us, but for those that don't, maybe looking back a bit. It's always amazing how fast time goes. We started this in 2012. Gamigo was owned by Axel Springer, was a distressed media company and an M and A adviser calling, do you want to buy the company? They want to get rid of it. Original idea was just restructured, sell it And do something else. But it was the start of where we are here today. It would really have been a great ride. We have now combination of gaming and media. In both segments, we focus on sustainable revenue streams. So games that have long player lifetimes, every players are really in for a long time. And also on the media side, customers that stay with us for a long time in mostly SaaS models. That makes life a lot easier because if you have Business model where you have to acquire the customer all the time again. It's much more much less steady and much more expensive, of course, for a customer acquisition point. Then a bit of history. Yes, we started, and that was really very well thought of in the beginning only to build critical mass. If you want to be successful in gaming, you need to have a certain size. If you're a small gaming company, and that was what Gamigo was when I came in, They had 2 games that they were preparing for launch and said, okay, today the company sucks, but after this we will be the kings. And then there are 2 failures. And that's really what's happening a lot in gaming. Gaming, you need a portfolio approach. There's over 2,000 game launches each month. And if you can only bet on 2 games to launch, you shouldn't get into gaming. So that's the reason that we said we need to build critical mass. And that's the easiest way was to just buy companies, integrate them and by that build it. So that's also the reason that the 1st 4 years after we started, we didn't Any organic growth, we didn't even focus on it. After that, we started to focus on it because of course investors are asking, yes, it's nice to buy, everybody can do that. But you need to show organic growth. And I think we have really been showing that we were able since 2018 to have more and more organic growth each year. Then step 3 was really, yes, next to content, the second success factor for gaming is Users, getting new users in the game, launching games, we also need users for, which is media. And that's the reason that we said, yes, we want to get stronger on the media side, on the user [SPEAKER CARLOS GOMES DA SILVA:] Acquisition site also selling ads. And that was when we started to build up the media arm. And now, let's say, the step 4 where we are is really an integrated gaming and media company where there's still much more potential in further integrating and further working together. Some financials, Paul will go through that much more later. 40% year on year growth since 2014, Over 70% year on year growth since 2018. Yes, NOK 109,000,000 revenues in the first half year, almost doubled versus the first half year last year. So we're really happy with the numbers. And it's not only about revenues, of course. It's also about EBITDA and also having been able to increase the EBITDA margin. Listed since 2018 in Germany, that was a difficult right to really convince German investors that gaming is cool and that the micro cap is worth [SPEAKER STEPHEN ROBERT BINNIE:] It was not easy, or let's say we were also not so successful in it, whatever way you look at it. So we're really happy that in October 2020, we did a listing in Sweden At the NASDAQ here, and yes, we're really very welcomed. And that's also the reason that we're doing our Capital Markets Day today in Stockholm. We're really extremely happy to be on the stock market here. And also 3 quarters of our trading volume now is in Stockholm and only 1 quarter in Germany. Yes. It's you often see me or you see Paul, but there's many more people in this company. We have over 900 employees in over 25 locations. And I want to give a little bit of guidance already. And of course, what's next? We're growing fast, but we would like to get to an Kind of €500,000,000 revenue within the next 3 years. If you look at our speed of growth, that should be possible. Latest in 3 years, we would like to be there, but we're working on it. So going into Detail. A bit of who's this company, the board. Quickly introducing colleagues. Antonius, on the right, Our latest addition is a board member at Freenet, a mobile company. Marketing background, he's really strong on the marketing side, Independent Director. Elizabeth Parra, a Canadian national living in London sorry, Antonio is living in Germany. Elizabeth's Background in fund management, so very strong on the financial side. And Tobias living in Germany, Dusseldorf, Also independent board member and having a background mostly in company communication, governance. And as such, we have a really nice team where I'm then the 4th person, but also the executive part. A bit deeper into the organization where the work is done. Yes, our C team, our top team, Jens over there, Paul, over there. Jens Christian Fritz, who just joined the company, but he has to work because we're working some M and A, so he wasn't able to join. Then Marijn Fischer, our Head of Legal Sabrina Grundemann, taking care of all the operations, all the offices Esther being here of Investor Relations and also ESG and also being here, Investor Relations. Then we have, let's say, broader company. We are integrating what we buy, but we have 2 units. The one is gaming and the other one is media. And on the gaming side, Jens is heading the part with Andreas, Miguel, Mervyn, Thomas and Ulrike. Ulrike joining HR. And on the media side, we have Samir, Chief Revenue Officer Jonnat, Chief Product Officer and Stefanie van den Berg, Heading our sales based in the U. S. And Gosha Margozator officially heading HR part. So that's basically the top team managing the company and let's say many more than that. A bit about the owner structure. Yes. It's not very polite, but I'm still holding quite a bit of the shares of this company with also colleagues and also board members. So that's really nice to have ownership also here. There's a lot of aligned interest, I think. But we're really, really happy that companies like Oaktree, Janus Henderson, Avanza, but also now BlackRock and even Fidelity are, let's say, willing to invest in our company and are trusting us to make more out of their money. So also thank you for that. And we are, of course, working on further increasing our investor structure. Fact sheet, yes, this is boring, so I don't go through this too much. I mean this will be on the Internet, but office is In Malta, that's a point that I would like to emphasize. We are going to change that. That's something that we announced already. We want to get out of Malta because Of the image of Malta and also we see that they're not that quick if something needs to happen on the more, I'd say, formal side. So relocation is a high priority for us. We wanted to move to Luxembourg, but then Euroclear has kind of Killed that initiative because they have announced that they don't take any new countries that they will accept. [SPEAKER LARS FRUERGAARD AND WE DON'T WANT OUR INVESTORS TO GET CDRs INSTEAD OF SHARES, BECAUSE THAT WOULD HAVE BE THE ONLY ALTERNATIVE. SO WHAT WE ARE DOING NOW WE HAVE CHOICE OUT OF 5 COUNTRIES. [SPEAKER STEPHEN ROBERT BINNIE:] And at the moment, we are with lawyers, with tax specialists, with governance specialists looking at what country it will be. But it will be, let's say, a more clean country than Malta, if I may say. So that's what we're working on. That's really a high priority for us. [SPEAKER STEPHEN ROBERT BINNIE:] Ideally, we would like to do it by the year end because then we don't have to have different accountants during the book year, but that's a high, high priority. Then we have A shares, that's the only shares that are listed. We have B shares as a kind of reserve that we can use for M and A or for Stock option programs, these kind of things, they were just allowed or let's say also got into the books this year. Market segments, Frankfurt and Stockholm. We have a German bond, NOK 25,000,000. Also a few words about debt. That's an unsecured bond. We want to buy it back in October this year, [SPEAKER STEPHEN ROBERT BINNIE:] So we can buy back prematurely, and we would like to make the structure a bit easier with only having bond in a secured bond in Sweden, which is the Nordic bond up to NOK 350,000,000 where we announced yesterday that we want to tap it. We now have, let's say, Issued EUR 270,000,000 and want to go to EUR 350,000,000 Research coverage, yes, quite a lot. In the beginning, we had to pay for it. Now we get it for free, it's also better. And also the banks have come up, so yes, happy with that. And also thank you, analysts, And thank you, banks, for supporting us and covering us. And indexes, yes, we are I'm not going to read it. So speakers today, maybe very quickly, Paul, 2 words, 3 words about yourself. Paul, CFO of Million Games Invest, worked in a start up company, then investment banking, and since 2017, CFO of Million Games Invest And leading the financing, controlling and the Investor Relations part. Jens? Yes, Jens Novak, COO of MGI and CEO of Gamigo Group. I joined Gamigo MGI back in 2012. I'm taking care of the whole game segment, Bloom in Hamburg, and I like it here, the weather is Comparable to where I come from. So yes, happy to be here. Jonnat? Hi, everyone. Jonnat Cebotaro. I run Product and Engineering for the VIRGOO, Which is our media side. I joined 2 years ago through the acquisition of my startup, which was a mobile SSP based in Berlin. And I'm based in Berlin and have been in Adtech for, I know over a decade or more. And Samir? Yes. Hi. My name is Samir, and I am the CRO for the Media Group, Verve Group. And I think one of the best decisions of my life that at crazy times, I joined the MGI Workgroup last year, And I am really proud of that. I run the commercials, the marketing and the operations for the Verve Group, and we are on a roll. And then the people that are mostly in the background and we therefore always forget to mention, but it's Esther First, Investor Relations and Soren also. Then business update. I'll go through this much faster because they gave me 20 minutes for 30 slides, which is of course not enough, but I'll go through. So over 35 M and A transactions, Market cap has gone up substantially since we are listed in Sweden, so we're really happy with it. But we now have the problem that in some portfolios, [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] We have become such a big part that they even had to sell our shares because they were not allowed to have this. But that's luxury problem, I would say. And please, I mentioned the 2 segments. Yes, games, over 10 so called massive multiplayer games, people in there for a very long time really tied to the game, [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] But we need to treat them very well, of course, and to give them always new content and to be really interacting with our gamers. Casual games, mostly [SPEAKER STEPHANIE ROBERTSON:] Triptions are advertising based and all over 100,000,000 registered gamers. On the media segment, yes, the number is really huge. 166,000,000,000 ads delivered in the last 12 months, working for over 5,000 advertisers. We're talking about computers, electronics. So this is not manual stuff. I mean, otherwise, this would, of course, not be possible. Revenue, I talked about EBITDA also. Paul is going to go more into detail. And we are at the moment almost exactly fifty-fifty media and games. If you look at the Q2 segment and we have almost become a U. S. Company with [SPEAKER JACQUES VAN DEN BROEK:] 63% of our revenues in North America, where we really see that it's a huge market, where scaling is much easier than, for example, Europe, where you have all the different languages, all the boundaries and everything. [SPEAKER STEPHEN ROBERT BINNIE:] But still 24% in Europe and also Rest of the World, we are getting stronger. And in the end, we grow where we see good possibilities grow, of course. Yes. A bit of the history. We started in 2012, 8 years ago. Bot Camigo restructured it. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] And then instead of selling it, we decided to further grow it. Important points were, for example, in 2015, where we did quite some gaming acquisitions. In 2016, we acquired Area Games, Which was on the Prosim, Adopek Media House in Germany, was burning €1,000,000 a month. So it was really a bit of a not really that risky because we knew that we could restructure it, but it was exactly Hitting our EBITDA a little bit when we bought it, but it was, let's say, cash flow positive within 3 months. But that was a really bigger step where we made a bigger A step forward. Then we got a bond, although we got an early bond already. 1st year, as I said, only building critical mass, doing acquisitions, over 20 acquisitions in the first 5 years. Then we decided to bring everything under a listed company, which is Media and Games Investor. We did basically backdoor listing. That's so Gamigo was the majority of Gamigo was brought in, and the rest was acquired later. And yes, and we saw first organic growth. [SPEAKER TROND ODEGARD WESTLIE:] So in 2018, we really 2017, we started focusing on it. And we have more and more organic growth initiatives, and that's also what we see now with 36 Organic growth in the last quarter. We're really happy because Q2 last year was very strong already because of corona. [SPEAKER STEPHEN ROBERT BINNIE:] So that we really were able to grow so fast is really very nice. A lot of things in between, not going into detail. Otherwise, I will not make my time slot. Last 12 months, I think that's more important to talk about some acquisitions, Platform 161, But the listing in Sweden, very important, of course. Acquisition of Liquid, acquisition of Kingsisle, [SPEAKER STEPHEN ROBERT BINNIE:] Acquisition of Bimray, acquisition of SMARTO, which is not yet closed, but we just got the okay from the Chinese government. So we are now doing the last steps, and we hope that we can even close it by 1st September, latest by 1st October. So that's what we're working on. But really nice acquisitions. Our acquisitions also the kind of acquisition changed a bit. We did a lot of distressed when we started. Now with our higher valuation, it's easier to get well, let's say, it's less dilutive to get access to capital, And it really makes sense also to buy EBITDA positive companies, which, of course, makes growth faster. That's what we're also seeing. A lot happened also on the capital market side. The bond issue, taps of the bond issue, so bringing that forward. And not to forget also the ESG side, our governance report will be published most likely next week, And sustainability report has already been published. So also there, we are working on becoming a more mature company, actually. And I mean, that's also [SPEAKER STEPHEN ROBERT BINNIE:] What we see starting with the distressed company, if I see what professionalization we have done, how the company really has been growing with many more shoulders that the management has shared on. Really great to go forward. So strategy, yes, nothing changed here. We still Buy, integrate, build and improve. That's what I'm telling, I think, for the last 6 years, at least. Yes. What do we do? We look at markets. Markets are consolidating. Gaming market is consolidating. The media market is consolidating. There's many companies that are just subscale, too small. Lots of targets in those markets, but of course, you need to look what you buy, then it makes sense. Then we integrate the companies. That's something that we have said also from the beginning. Because if you do so many acquisitions and each company would be stand alone, you get all kind of kingdoms and you don't get the real synergies out of it. And then build and improve with what has been Brought together has been integrated. It's about organic growth and going forward. Why do we integrate? Yes, technology is one of the big things where we really get big savings from individual data centers per company towards bring, how to say, services into cloud. And we see that on the gaming side as well as on the media side that we are able to really get big savings on that. Trine World is an example of a distressed case that we acquired. Here you see really, yes, company was burning 500,000 a month when we took over, but we only roughly 50 people out of 300. We stopped all the whisky projects. We concentrated on only a few games, but we invested in those games. [SPEAKER LARS FRUERGAARD:] So we were able to really get the burn rate out very quickly, make the company profitable very quickly and also even bring it to organic growth in a very fast time. Yes. M and A, I mentioned already. We have so called ticked the box slides to show a bit what we are focusing on. We still should be realistic. I mean gaming is $170,000,000,000 worldwide market. We're not going to conquer the world, [SPEAKER JACQUES VAN DEN BROEK:] So we need to also focus on segments that really make sense. So on the gaming side, we go more for core games, For free to play games because you have less customer acquisition cost. Also a bit of buy to play, also advertising base that has Become more important since we have the media part as well because we can sell the ads better. And also some subscription So basically, on the business model, we are having a combination between different ways of earning money because you don't want people to spend too much money in a game, But you can also make additional money with advertising or even give some extra perks if you give a subscription, VIP club and things like that. Own IP and license, what we typically do is if you launch new games, we don't develop new games because that's still too risky. We think we're still too small for that. So we'd rather have 3rd party developers who develop the game. But if a game is successful, we like to have it in house. So then we like to buy the IP. So that's what we also have done in the past. Also when we did acquisitions, we first buy the publishing rights. And then when the game is successful, we Also like to have the development rights because then we can tweak the game more in the direction where we want it. Mobile, to mention, but Jens will also say a bit more about that. We will focus more on mobile games as well. We want to go deeper in there. Historically, I'd say the valuations for mobile game companies were extremely high. That's the reason that in our M and A, we concentrated mostly on online companies and also console companies. But now with IDFA and a lot of spook in the market and people afraid, etcetera, we have seen that valuations for mobile companies are coming down substantially. And that's also the reason that you will see in our M and A list that we have quite a bit of mobile targets. On the media side, a bit different tick to box slide. Here, we're working on a full vertical integrated media house, digital programmatic, which means it starts from creative. And then let's say you have brand and performance marketing, so 2 different ways of marketing. [SPEAKER STEPHEN ROBERT BINNIE:] And then the technology stack, which is DSP, DMP and SSP basically, with the exchange network in between. And that's let's say, Jonnat and Samir will tell much more about it before I go into detail and We double. And here also, we do that not only for in app, but we also do it for web mobile web, for CTV, OTT and for digital out of phone. [SPEAKER STEPHEN ROBERT BINNIE:] Where you see, by the way, the green hooks, that's where we are already. Where you see the Lila parts, we would like to be also. And where, let's say, there's a lot available, we, of course, don't want to go. And there are certain things like in gaming where we also decided not to go, like virtual reality. There's a lot of talking about it, But the market is still extremely small. User loyalty is not that big in the market. So at the moment, it's not a segment that we look at, for example. Yes. Our M and A pipeline, the top five targets, they have changed since our last presentation. Normally, we see a 6 to 9 months period. If in that period, we are not closing a deal, the company is mostly gone or we're not interested anymore and it's off. From our last list of 5 companies, there was a big sorry, game company, online game company on top became a mobile company. We decided not to buy it because their performance was not as we expected in the beginning. The second one, Smato, we acquired. So that's and the other ones were smaller, one of them we're still talking to. But we have a new list here. Our current top targets are And mobile MMO publisher, euros 90,000,000 to € 110,000,000 revenues, a bit larger than what we normally look at With always the risk and valuations go up, but here we are not in competition with others. So that would be very nice addition. Then the demand side platform for the media side with €6,000,000 to €8,000,000 revenues. Supply side platform also for the media side, euros 20,000,000 to €30,000,000 revenues. Both media companies based in Europe, both only covering Limited number of European markets and therefore extremely scalable for us with nice technology both. And then to a bit smaller game companies, Mobile game companies also, and that's what you see. There's all 3 game companies on this list are mobile game companies. So that's what we are [SPEAKER LARS FRUERGAARD THOMAS:] Working on and as always, word of warning, I mean, what's on this list is what we'd like to buy, but there might be things in due diligence that we find out [SPEAKER STEPHEN ROBERT BINNIE:] There might also be other people that pay much more for the company in the end, and then we don't do a deal. We still want to stick to our very, [SPEAKER JACQUES VAN DEN BROEK:] I would say conservative multiples where we buy companies. Combining games and media, yes, also already Since a while in the presentation, we are extending the value chain. The value chain of gaming is user acquisition playing the user playing and then making money with item sale And advertising. And then we have the media for the user acquisition on the one side and also selling the ads, which is only part of the income, of course, of a game because there's also items On the other side. Yes, we were not that happy with the media house that worked for us. And also we know that a lot of other gaming companies [SPEAKER STEPHEN ROBERT BINNIE:] That's the reason we decided to do it ourselves. Big advantage is on the cost side. A stand alone game company pays more for its ads and Gets less for its ads than an integrated company. There's just still good very good margins on the media side. And the other thing is that and that's even more important, which is data optimization, to make a real good match between an advertiser and a publisher. So the one that has that wants to buy ads and the one that offers the ads, [SPEAKER STEPHEN ROBERT BINNIE:] You need data to optimize. You need to buy much less ads if you can optimize better. And having a lot of data from our gaming side, having a lot of data from our media side, And because of having a full stack on the media side, also having full transparency there, it's much easier to target and much more effective and efficient to target. And then using that to further grow. So both segments, Gamigo and Verve, that's those are the brands that we unify Our activities under on the Gamigo side, it's adding critical mass when we do M and A, so buying further game companies' games, Always focusing on sustainable games for PC, console and for mobile, I said already. On the media side, we want [SPEAKER STEPHANIE ROBERTSON:] To further complete our tick the box slide, so there were still some things missing. And yes, also adding critical mass. Smartdoor was adding critical mass, of course, also. And then organic growth, yes, on the gaming side, for the current game portfolio, making sure that we have updates, small updates, large updates, DLCs, But also internationalization, player acquisition and new game launches, but not on game development. And then on the Verve side, cross selling, when we buy a new company, their customers take only part of the service that we have available in the group, so we can easily scale that. That's happening by connecting the platforms, product innovation and adding new customers. And the synergies, of course, cheaper media, full transparency, Better fill rate, data, unique ad inventory, additional revenues, overhead synergies and know how sharing. And one of the things that we haven't talked so much about is all the know how that we built, of course, on the gaming side. We're doing M and A and integrating companies. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] We could use that copy paste on the media side. That's also one of the things, of course, that was really practical when we started the media side. Yes. Altogether, 36 percent organic growth in the quarter, 90% total growth, overall growth. I'm always saying a word of warning, the 36 It's really great, and we're really happy with it, and we're not promising that we will do this every quarter because this is the result of many growth initiatives. So not one game that we launched and that is suddenly driving all the growth. It's joined from the media and from the gaming side. Roughly 10% of the growth comes from the gaming side, [SPEAKER STEPHEN ROBERT BINNIE:] 26% from the media side. Gaming was extremely strong last year, the second quarter because of COVID. Media was weaker last year, the second quarter [SPEAKER STEPHEN ROBERT BINNIE:] Because of COVID, so there's also compensation in there. In the Q1, we were more equal in the growth, in the organic growth. And also in the Q3, we expect to be more equal again. Yes, and the market is growing slower than we do, but that's, of course, very nice. And we're still very small compared to the total market. ESG, Last part of my presentation, I'm taking them. A lot of things happening [SPEAKER STEPHAN ROBERT BINNIE:] On the ESG side, a lot of things have happened been happening in the past already, but we not always communicated that much about it. [SPEAKER STEPHEN ROBERT BINNIE:] But we are going to publish our governance report next week, latest the week after. Sustainability report already has been published. This week, we announced that we are carbon neutral for 2020. And yes, part of it is really focusing on using data centers with Low, how to say it, emissions or no emissions or even negative emissions, like Google is working on at the moment. But the other thing is, of course, like a bit with the churches, [SPEAKER STEPHEN ROBERT BINNIE:] If you have any way done emissions, you can buy it off or you can pay for it, which we also did in a bit different way. There are a lot of good projects in the world, And we had our employees elect the projects that they wanted to really invest in. And those are projects that are really offsetting carbon. [SPEAKER STEPHEN ROBERT BINNIE:] And as such, we thought that's a good way of doing this. So happy with that. Then on the sustainability side, GDPR, of course, an extremely important topic for us as a media and gaming company. It's About letting the customer know what is done with his data. It's not about not using data, but it's about using them properly. Then, of course, also involving our community. So we have the Eden reforestation project, so where people can plant virtual trees in the games. And for each virtual tree planted, a real tree is planted. We are doing now we're starting now the same thing with water, but Jens can say a bit more about it. There's at least a test running in one of the games. And yes, then other points, code of conduct, of course, gender diversification. So with our new hires, we were getting closer to fifty-fifty, But it is as all the companies are trying to hire more female employees, it is, of course, a fight for the good talent And not always easy to get it, but we are doing pretty well on that, I think. And then on the governance side, yes, we have a lot of things That are there already. Sustainability Committee is there for quite a while already. But also corruption, 0 tolerance, it's logical. It's normal, I would say. But we have a new whistle blowing software, which has just been implemented for employees, but also for our customers. Yes, of course, management conversation, independent board members and lots more than we can put on this slide. [SPEAKER STEPHAN ROBERT BINNIE:] In the games, very important, youth and child protection, safe environment. So a lot of preventive measures, [SPEAKER STEPHEN ROBERT BINNIE:] And I'm not going to read it all. It's all in the Internet. Available later as a presentation. A lot of controls and sanctions because it's nice to have rules and preventive measures, [SPEAKER STEPHEN ROBERT BINNIE:] But there is still, of course, we're working with human beings, and there's always a lot of creativity there. So we really yes, there's consequences for bad behavior. So also in our Games, we have a kind of our community managers, which are partly event managers, but also partly police and also, of course, seeing that there is Positive behavior in the games. And then we have, of course, improvement targets where we are further working on improvements there. Yes, a lot of initiatives we are doing also on the sustainability side. EdTechCare is a very good initiative where, let's say, ad spots that are not sold are being used for good causes, in this case, for Sample for making sure that people get COVID injections and also against misinformation about COVID. Also Black Lives Matters was one of the big topics they did. That's really important. Then yes, Planetly, a company we work with for, let's say, evaluating the carbon footprint of things. A lot of things going on there. And we have, yes, our targets defined environmental, social and governance. Carbon neutral, I said already, we beat the target a bit, which is really good. And even going into more detail, but I'm not going through this slide now in detail, but there's a lot of initiatives that are going on in the company. The green ones is where we're actively working on the piece of projects that we just started, where we're also working on. And it's we try to spread it throughout the whole companies because it's also an awareness thing to do these things. That was my part. I've not looked at the clock, but I guess I've beaten my 20 minutes a little bit. I think you better, Jens, thanks a lot. Yes. To avoid that, I will turn around the laptop a little bit because there's a clock on it, which tells me what's the time and how much time I have. I will guide you today a little bit through the game segment, show you what happened in the past, give you a little bit an overview about the game segment and also give you a little bit an outlook what will happen in the future. I'm going to start with an overview of Gamigo. Yes, as Remco already mentioned, has started in 12, the headquarter is based in Hamburg. We also have a big office in Berlin and also have a big office in Austin, where we mainly do development for our current games portfolio. This came with the Twine acquisition. And it's still the case that in U. S, you get quite professional game developers. And therefore, we decided to keep and build that up in Austin. We have done since 2012, 25 M and A transactions or more than 25 actually. There has also been some asset deals in there where we did not We started 2012 with 80 employees and only based in Hamburg. Yeah, nowadays, it's Over 500, round about 500. So quite impressive increase over there. We have found about 10 plus top MMOs, 5,000 casual games. So casual Games is the more smaller games like hidden object games or Match 3 games. And we have by now more than SEK 100,000,000, which is that users. We have revenue split. So we are still quite strong in the European Union. So in EU, also in Germany, especially, But with the Kingsisle acquisition beginning of the year, North America and U. S. Became our strongest market with 66% of the revenues. EU still very strong with 28%. Revenues by type, client games are still very strong on our side with 83% of total revenues, followed by mobile with 9% and then browser games and console games with 3%. 12% is our main game on consoles. Some of the major acquisition you see on the bottom with Aria Games, Wild Tension, Twion, Vina Digital, King's Eye, But I don't need to read all of them. We have in games, we have quite some different monetization strategies. 1 is free to play. Free to play is the most common thing in online MMOs. It's the game access basically is for free and the game monetizes By selling virtual items, virtual goods, and you can purchase them via in game currency. So you go to the website, you charge in game currency. And with in game currency, then you can buy weapons, boosters, these kind of things. Buy to play, which Just a more traditional way of monetizing games. So you buy the game, you have access to the game, you can play it until you are done with it, and then you switch the game. But also as all the monetization strategies are evolving, it's possible nowadays, and we also have that in some of our games, that you combine free to play and buy to play. We call it a hybrid model. This means you buy the access to the game, but then within the game, you still can buy in game items and other stuff. With an hybrid model, it's important to say that we usually we don't sell then some stuff which makes people stronger. It's then more that people are can individualize their self. So other costumes, other haircuts, these kind of things. Then also getting more and more important these days is Advertisement based, especially in mobile, but also in the casual PC. So yes, I think it says you show advertisement in the games. So the game basically is for free, and the game monetizes just by showing ads. Subscription based, also a very interesting way of monetizing a game because you have Very high lifetime revenues also, and you have very recurring revenues, where you can really plan very good because you know how many subscribers you have. It's basically monthly subscription. I think World of Warcraft was the first one who did it at, yes, really, really excellent. But there are also now new methods how to do it, giving subscriptions only for specific parts of the game or for specific boosters so that you get the beginning of the month Always a package delivered. Yeah. Gamigo is very Attractively positioned in the games industry. I think we are different from just being a publisher or just being a developer, Which you can see on the slide, I think portfolio diversification is to mention we have a very wide portfolio from casual to MMO To RPGs, to browser client consoles, I think that's very unique in the market. Technology edge, We have a technology platform, which allows users to download the games, where we connect all our platforms Together, so that's also much, much easier for users to jump from one game or to the other. If they are bought in one game, they can try out another one. We are an M and A company, also parts of so we also have an M and A platform. We are very good and very fast in integrating companies If we have acquired 1, I think that's also very not very not super unique, but it's we are very good in it. And worth to mention is user acquisition. Now with the media segment we have in place, that's something which really leveraging the games because we have access to our own user acquisition in house. And I think Samir and Jonnat will give a Presentation later on, and I also will mention that a little bit later in my slides. We have extensive catalog of game. As I said already, we have a very diverse Portfolio, 80% of our total game revenues are coming from our own IPs. That is what Remco mentioned a little Earlier that if we have launched the game successfully, we also try to get the development in house. And now also our Austin based development studio, we feel very, very confident to further prolong the strategy. As you can see on the left, 8 of our 10 top games are currently maintained in house. And Our Kingdom and Twin Fantasia, which are with the Taiwanese developer X Legend, is a licensing approach. 5,000 casual games. Casual is a total different approach. We upload per week 2 to 3 casual games in our platform. Casual game usually, as I said, match 3, hidden object games, very small games, works with a subscription model or you or the buy to play model. You buy the game, you play it. The game takes around about 6 to 12 hours to play through. And then you play 1 or 2 per week. That's why we're uploading 2 to 3 per week. Also important to say here, the IP rights are on our side. So that's work for hire. The development studios deliver the games. We buy the games from them. We upload them to the portal. To show how MMO basically works, I'll give you an example of Wizard101 called by the press, not by ourselves, by the press, The Harry Potter of online games, I think the name fits very well. It's an MMORPG in the, we have world of wizards. You play your wizard, you train your wizard, you have an open world. It's very family Friendly, also the graphic style, anime style, very timeless style community. You collaborate with the other wizards To get stronger and build lasting relationships, some of our people players play the game over a decade, so quite over 10 years And still stick with the game. This also shows how stickiness these kind of games are. And We hope and we do everything that they plan in another decade. Thousands of hours of diverse and engaging game content, that's also key to success For bigger MMOs, you need to have that. And as you can see in the recurring revenues, 55% of the revenues of that game are coming from players who are with us Since more than 5 years already. I don't know the exact number of people who were with us longer than 8 or 10 years, but it's also quite impressive. 50% of new players are converting to paying users. That's what you also see here. Only 1 year in the game, 21% of the revenues are generated by these users. This is also an effect of having WERF on board, who is enabling a much more effective user acquisition. That's the challenge nowadays to get effective user acquisition in your games. And I think with these numbers, we can prove that we are able to do so. Substantial revenues, the game has generated already USD 430,000,000 since it's launched And 55,000,000 user accounts created since it's launched. But not only, Wizard101 shows these Numbers, although you see here, a rarity of our games, desert operations, 85% revenue comes from players older than 5 years in the game, Pirate 101, 53, Fiesta 62. But what you also see, parts of our initiative the last 12 months, last 6 to 9 months was To concentrate on getting new players in the game in combination with Firth, and that's what you see here too. Last Chaos 22 And Fiesta Online, 80%, Pirate, 24%, with a 21%. Next, I want to show you some initiatives about organic growth and what we have done in the past and how we reach organic growth. So first, We need to talk about our portfolio approach. Part of our growth strategy is that we have a very diversified portfolio approach, too. So we are acquiring game IPs where we know the games are successful. Said it again, 80% to 81% are coming from these kinds of games. We still are licensing games. That's also part of our core business. 19% are coming from it. And as you can see on the bottom, our licensing department is very, very busy with screening these games. We get per year 2,000 More than 2,000 games on the table to evaluate. 1,000 of these games are, Yes. Proceeding the first check, so the first check is really you start the game, you have a first look and then already half of the games are out. So even there are sometimes 50 to 100 games we got on the table, they even don't start, which is sometimes really a little bit crazy. Then 53 business cases we create. So if a game is really, really of our interest, we start to create a business case, and we start to do focus groups With bigger groups and also with some externals to get a better feeling if not only our internal people like the games or also external people like it. And then we have Signed out of these more than 2,000 games, we have signed 4 contracts. So and, I remember the year before, we had similar numbers and we signed one contract. So it's really there are so many games available in the market, but only a little piece of these games are really worth to publish. Then when we have decided to launch a game or that we acquire IP, then that's where WERF again comes into the game. What to say about that? Yes, 50% cost saving for user acquisition because we use our internal user segment. I think that's a very impressive number. And we can increase our return of invest by doing this internal user acquisition. Some growth highlights. We are not only licensing and launching games, we are only working on our current game portfolio. So second half of twenty twenty and first half of 2021. I also don't go through all of them. I just highlight a few. One really, really big update was 12 launch we launched Delves on 12, which was a huge expansion, also with our internal team in Austin. Gamigo celebrated its 20th anniversary, which was we celebrated 1 month, so beginning until the end with different events, Not only sales events, also a lot of events in game. We even developed events for that. Also, the 12th update was a big one, which was very requested by the players. So the team put a lot of effort in it to build that online. And also Fiesta Online celebrated its 14th birthday, so also quite long on the market, but also anime style, very timeless, very loyal community, Was a big party, I can tell you. In first half twenty twenty one, major spring update for Wizard101, where we are really proud of Because Wizard101 comes from King's Isle, which we just recently acquired in January. So it's also important for us to see that we further can develop bigger content updates For that game, it went live, was a huge success. Players were very happy about it, really good. Then a big one for us was 12 coming to Nintendo Switch. Also what Wenco mentioned, we have a platform strategy that we know our proven games do also work on different platforms. That's why we worked with an external studio to develop 12 for Nintendo Switch. We have launched 6 or 8 weeks ago. Servers are full. Players are happy. So really success, and we are now evaluating what kind of our which games from our games portfolio would be next For Switch, but maybe also other platforms like next gen platforms from Sony and Microsoft. Cosplay event, we only do some we also do some cool stuff with the players in their, let's say, real life. So we hosted a cosplay contest. We asked them to dress as characters from our games. I think everyone has seen cosplay already. Then we asked them to send in pictures Our videos, how they created the costumes and when they wear it, and then we gave an award out of it. It was also quite nice. I need to check the time a little. Outlook 2021, strongest organic growth pipeline in history. We're going to launch a mobile game called Heroes of Twilight. It's announced already, free to play mobile, Android, iOS. Also referring to what Remco said, we are concentrating more on mobile this year and also next year, for sure, We have the worldwide license. That's important to say. That's also a big step for us when it comes to internationalization and geographic extension, we have a golf champion, Swing of Chloe. It's a working title. The game is almost finished. It was built by a AAA studio called Behavior Under Active. We took over the game, and we're going to launch By the end of the year, the Q4 is now the target where we want to launch. 12 available on Switch, I talked about that. Skydome, it's an MMO, 4 versus 4, so called tower defense battle arena A game is launched since yesterday. So let's cross finger that the game will be successful. One further MMO game we just signed 2 weeks ago. It's an innovative open world sandbox MMORPG. Yes. It has already a constantly growing community. I cannot announce the name yet because we have not announced it officially, but the game was already in an early access, Has shown really great results. After that, we signed. It's a young, very motivated team. We are really, really happy to have that signed. One further mobile game signed, also not announced yet, so I also cannot tell the name here, but it's a casual town management simulation mobile game With a strong social network approach, in app products and in game advertisement and has already been successfully launched in Asia. We believe The graphic style and also the kind they monetize the game also fits very well for European and North American market. So we are also very happy to launch that in the Q1 of next Yes. We have more than 10 other projects in the pipeline. It's sequels of our games. It's new platform launches of existing games. Yes. With total development cost of more than €10,000,000, we have in licensing deals. So we have really huge presentation with many, many games, [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Which we could in license if possible. We are working on out licensing deals. This means that we will further bring our games towards Asia and other territories where they are not live yet, Russia, for example, and other numerous other organic growth initiatives. Synergies with media segment, here's a good example, how we do that. So on the left, you see the advertisers. Advertisers want to advertise their products. On the right, you see Wild Tension, which is our casual unit. What usually happens is that you have DSP P data supply side platform, you have 2 or 3 external companies who deliver. They all take their margins. With an external company, the relationship is not always as good as with an internal. And what happens here is that We own the full funnel. So the advertisers says, I want to show advertisement in your games, and we deliver the full funnel until the Publisher consumers. Next one is reaching new audience across the open web. Here it's important. We have been Trying to acquire new users outside the wallet gardens, it was very challenging. With WERF on the table, this is also much, much more easier. Some impressive numbers, 10% to 15% conversion rate, which is very unusual for that 200 ks users reached already, And we have 100% to 200% return of advertisement spend. So really impressive and really happy to have the media segment. M and A, I need to watch a little bit, I believe. M and A leading North American Kingsisle at a glance. Yes. We were very happy to acquire King's Eye. It also did that's the more important slide about King's Eye. We also developed our plan. We are trading $35,000,000 plus $35,000,000 revenues for 2021. That's the estimate numbers. Here, in game revenues are 61%. That's the free to play monetization. Subscription revenues, 33% and other, which is advertisement basically and some other minor stuff is 7%. Adjusted EBITDA of more than SEK 21,000,000 we will do this year. That's sure, game is very stable, so we expect also very successful next year and the years after. EBITDA margin, 66%. Yes, purchased by is NOK 126,000,000. Also, King's Isle has included one game called Pirate 101. This is also showing organic growth, Very nice not only with that one on one. So we acquired the company in January. Since then, we were growing the game quite well, 27 And year on year, we have now put more resources on the game. Also, we'll internationalize the game currently. It's only live in the U. S. We will move the game also to Launched the game also in Europe and other territories. We have developed the 1st content update after, I believe, 5 years. So you see there's a peak now. And yes, game does quite good and hopefully will do quite good in the future. With King's Eye, we have nice growth opportunities. We will expand the games in new territories, extend language versions. We are looking into the possibility to go to mobile with the game, which is quite a nice opportunity. We will We are looking in the opportunity to port to console, most likely first switch and then Sony and Microsoft after that. And with, again, MGI's media expertise, we can leverage the users in the game. Kingsisle also was Super fitting in our strategy. It's a core game. It's free to play, advertisement based, subscription based, own IP. So it was really adding a lot of our ticked already ticked boxes, but just was adding a lot to that. This has been my last slide. I was in time, more or less. Thank you. And Speed it up at the end and Thank you for that, right? So Remco, would you like to join on stage. And I mean, you have had time to think about questions, right? So raise your hand, and you will be supported with the microphone here in the room. And I think I will shoot the first questions just to get you going, guys, right? So there are so many game segments. So why are you so focused on MNOs? Good question. MMOS have a very loyal customer base, and MMOS have a very, very high lifetime of customers and players. That's you have seen in the presentation, so revenues coming from customers longer in the game since 5 years. That's why we concentrate on MMOs. It's also online. So you have this community building. Community building is always leading to very high stickiness in the game. That's the reason why we concentrate on MNOs. Okay. And another thing I'm curious to hear more about is really in comparison some of your competitors, you are integrating your acquisitions, right? So I would actually like to hear a little bit more about that from the inside. So I mean, how do you actually do it? And also right now? I mean, what are the short term prioritizations within the organization? Yes. This would maybe fill the whole day if I now would talk about how we integrate them fully. But basically, we have a very strong M and A knowledge, and we have a very strong management on the first and second level management team. So what we do, We have a technical integration, which means we are connecting the platforms. We are moving everything into our infrastructure, which makes it much more efficient to manage. And the other thing, we also integrate the teams into our infrastructure. This means we don't have, like other companies, 5 different marketing companies or 5 different customer support companies. We have centralized companies. We integrate everything in there. This also gives you the flexibility. If you have a peak in one game, you can easily move resources there. And if you have a pig in another game, you can easily move resources there. And usually, it takes us just a couple of weeks, 1 to 2 months to integrate the company fully into our organization. Yes. And what's also important is know how sharing. So role play games with different genres go in the same team. Strategy and build teams go in the same team. So you have a lot of know how in how you optimize the games. You can get things from one game, let's say, Ported to the other game. So that's also, I think, a very important aspect. Okay. So you managed to deliver organic growth here. And also curious to better understand what are really the key 3 drivers behind this quarter organic growth? Yes. The 3 main drivers, one of it is What I mentioned, the development approach, so that we really maintain our games with new content updates with our Austin studio, where we had put a lot of effort the last 12 years To build that really, and I'm really, really very happy with that studio. 2nd approach is that we get the user acquisition via WERF. So we are able to get on very nice our IT users in our games. And I would say the third one is That we also have spent a lot of effort over the past 12 months on in game ads. This was a field where we are lacking a little bit the past years, [SPEAKER STEPHEN ROBERT BINNIE:] But we have spent a lot of time, a lot of resources in that and that was also a field where we have seen a lot of organic growth. Yes. And I think if I may add to that, that's number 4 then. It's also spreading the number of initiatives. Organic growth to just bet on 1 horse in gaming doesn't work. So what we've been able to do since we are talking about organic growth is really For each game, we have multiple initiatives, but also multiple new games to come to be launched. So we're talking about, let's say, 2,030, and The number is increasing initiatives. And also to say a word of warning here, not all of them are successful. I mean, we're talking really about portfolio approach. And just to give a negative example, when we launched Trove in Korea, we were really extremely bullish, optimistic, But it didn't work that well. I mean, there's hardly any revenues coming from it. On the other hand, and it's still a bit young, but a drove on switch, We had also very good expectation otherwise. We wouldn't do it in organic growth part, of course, if you wouldn't expect, but that is working extremely well. That's only, let's say, 2 weeks into the last into the second quarter, so we will see more of that in Q3. But gaming is really an if you want to do organic growth in gaming, [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] It's about a portfolio approach. You need to have many projects, many different angles to grow your games. And the more you have you will always have a certain percentage that fills. And that's part of the game? Yes. Over here. Jamie here from Carnegie. First of all, thank you very much. It's been really informative so far. Rasmus, you quickly touched on the ESG side of things, and I'm wondering just how High level overview how you are able to ensure that the younger users are not seeing inappropriate advertisements or ensuring that they're not playing the maybe more violent games? Can I pass this to you? Yes. So first of all, we have a well trained team of community managers, which is Controlling all the chats and everything to look for bad language, these kind of stuff. We have 8 ratings for the game for the majority of our games. So we can make sure that also parents can control if they play these kind of games or not. We also have Specific mechanics in place, where we can filter out if people play inappropriate games or not. And we also have tools in place makes sure that we don't get any inappropriate traffic into the games or advertisement shown into the games. So we have really specific, it's a wide range of initiatives and also a [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] And also a wide range of tools and technical solutions and then also the human component of our trained community managers who take care of that. Here we have another one. So You mentioned or Remco mentioned that you're still too small to create your own games from scratch. So it sounds it's on the agenda. So what's needed here to get there? And when can we expect you to build from scratch? It's a matter of, let's say, looking at the total size compared to the company size. Just to make a very simple calculation, we talk about massive multiplayer games. I mean, not talking about small games, but a massive multiplayer game to develop it, €5,000,000 at least, rather €10,000,000 or more. If you really want to have a certain likelihood of success, you should launch at least 10 games a year, which means you need to develop let's say, you need to put 10x10, it's €100,000,000 in development. And does it take 3 years to develop an MMO, a rough number? You need basically do that times 3. So we're talking about the €300,000,000 invest If you really want to go into game development, and it's rather more on the low side than on the high side, I would say, to do this seriously. And looking at, let's say, our EBITDA and our size of the company, we at the moment think that taking a NOK 300,000,000 invest risk in doing that is still a bit on the high side, but it might change. I mean, if you continue to grow like this, it would make sense probably to start this in 2 to 5 years To give a bit of a horizon there. But only to have the money to develop 2 or 3 games or to have one studio that's doing it, that's like going into the casino or like playing lottery, [SPEAKER JACQUES VAN DEN BROEK:] That's what we don't want. And just to add here, we have seen in several M and A cases we did in the past Exactly that approach that companies used their money to develop the next World of Warcraft or the next Clash of Clans or you call it. And then in the end, it didn't work out. And then is it okay? We now we do it, and it didn't work out, and it didn't work out. And I think the risk is just too high at the current stage for the given reasons Remco mentioned. But as I said, you need a portfolio approach in gaming and especially in game development. And now we have a nicer world because there's a lot of independent studios, a lot of game developers also in Asia that publish themselves in Asia, but then look for somebody To publish the game in Europe or North America. So they take the development risk, they take the €10,000,000 or €20,000,000 or even more. And let's say, we give them a certain Guarantee on marketing if certain KPIs are met, but that's of course a lot lower risk for us than if you would do the full game development because it's The risk of the game development and then of course the launch risk also because you spend you have to spend a certain marketing budget and all those things. So that's the reason that at the moment we just say we don't do game development from scratch. We let other studios do that. From scratch, we let other studios do that. But then when the game is successful, we try to buy the IP, and then we're also willing to pay a bit more. But then it's much less risk. Okay. We have an online question coming in. Can you discuss cross marketing of players' games, moving players from perhaps declining games to new games or new casual mobile games? And the question coming in is from Ken Ramf, MSM. Yes, we call it customer retention. That's exactly what we do. So we do cross marketing on games. But on the other side, it also makes no sense if you have an active player in a game That you cross market him to another game because then he may stop the one game and he doesn't like the other game and then you lost him basically. But what we see, if player gets getting inactive or playing less and less, then we try, 1st of all, to Retain the player in the game. If we recognize this is not possible, then we try to convert him into another game. It's not always possible, but we also see good results in that. Okay, Good. I think time to wrap up, right? Time for coffee or have a more coffee? Yes, one more question. Yes, let's go. Hi, this is Oskar from UniCredit. Just congratulations on a fantastic quarter, and thank you for having us here. My question is about the mobile Games valuations, where you clearly do not believe that the blip in the market from the data protection event is something that worries you because you are looking at acquiring it. I just without spilling any trade secrets why you think the market is wrong, If you could elaborate on why you are looking at it? Is it just for diversification? Or is the market wrong in Calling the multiple slower. Yes, shall I? First of all, why are we looking into mobile? It is because we believe that if you have a good IP, It makes sense to publish it in as many platforms as possible. Same as with the movie, movie goes, video on demand, TV, wherever and also with a game it makes sense. With a game it's a bit more complicated because there's much more technology involved. You cannot just put a game on another platform. So that's the reason that we really like mobile. And looking at the total overall market, mobile is roughly half or even a bit more than half of the total SEK 170,000,000,000 that is spent on games worldwide. As with M and A, you can build critical mass. It's much easier to first Do some M and A cases in a certain than to go fully greenfield in there. We here do a combination, so we have new mobile games that we launched. We have already some that run. But on top of it, we like to do acquisitions. In the past, we were talking about really extremely high prices for mobile games. And always the story like, yes, we have a new mobile game, and that's going to change everything. So one point is that there has become some, I would say, Normalization in the market that people see that mobile game is also a game with a high risk factor basically or become a mobile game company. So that already helped bring the prices down a bit. [SPEAKER LARS FRUERGAARD AND SECONDLY, IDFA and also other cookies going out of the market is the point that is driving also is putting more risk on the mobile game company. And IDFA will impact mobile games or is already impacting, look at the Facebook revenues, look at, let's say, also some game companies' revenues. On the other hand, with our media part, we have so many good tools that we are not afraid of, let's say, not working with IDFA. And therefore, we see that the cost of acquisitions or the multiples for companies go down, while on the other hand, we don't estimate a risk for us as high As for standalone mobile game company. So that's the background. Thank you very much. Okay. We wrap it up, right? So thanks a lot. So one final question to you, Jens, what's your favorite game? First of all, all of our games are great games. 1 was evil and 1. That's what I can say. Personal one game, maybe not of our portfolio, I think Almost everyone who's a guy played it is FIFA, but one game of our portfolio, which I've played quite a lot, is Fiesta Online. And just check it out, it's really Okay. So let's grab a cup of coffee, and we will actually kick off within a minute with the media deep dive. So yes. Thanks. See you later. See you soon. So Samir? All right. No, Dave, we count you down. That was the count now. I thought the media session is after lunch. The energy levels are going to go down, but I'll get started, guys. Let me give a glance at the World Group that's a media section within MGI. As we are connecting the advertising publishers to people in real time. The group was started in 2016. We are headquarters based out of Berlin. We have done 10 plus acquisitions in the history so far, almost 400 employees now with SMARTO as a recent addition. And we've talked about 166,000,000,000 ads that we've delivered in the last 12 months, which is going on and on. And the 5,000 plus advertisers in the system, every day the advertiser base is actually increasing. We are a complete platform by which is a full stack and self-service offerings. And the marketplace is active in 20 countries with SmartHo now, the reach is going to go further up. Again, key revenue splits, 166,000,000,000 ads delivered. One of the most important part that we're proud of is We have a 95% retention rate of customers who are more than $100,000 as a SaaS accounts. This is a great asset that we have. 21% increase in SaaS accounts in Q2 of 2021. And some of the major acquisitions, the biggest one, recent one is SMARTO. We bought LKQD, Beamray is a DMP that we recently acquired based out of Finland, App Monet, of course, PubNative and Platform 161. Full stack transparent advertising technology infrastructure. This is what this is who we are. And in some of the media segments highlights with the AdTech value chain, which was recently covered, on the system where the advertisers who are willing to participate and work with us, they get a full demand side platform and data is so important for optimizations For the KPIs and the goals that we define, and they are very different for brand advertisers versus performance versus different kind of ROIs. And then the SSP feature, which eventually plays a big role. Eventually, we are reaching the end consumer, which is coming through a publisher. So all the blue chip customer base that you can see, huge base of advertisers and on the most premium working well publishers, That's the full stack transparent offerings that the platform is providing. Monetization strategy. Now again, one key factor is our monetization strategies are divided in 2 segments. 1 is SaaS based revenue and the other one is non SaaS revenues. Subscription based platform fee is 10% of our current outstandings and then we have revenue share platform has 75% of contributors. And the remaining 15% is basically guaranteed or flat CPM as we have we often across Hit across these customers when they're coming from CTV or OTT stack. The value chain, as we Covered in past as well, right. The if and this is just an example and anecdote here about we are with the DSP, the DMP and the SSP now a Part of the Verve Group and within the Gamigo Group as an example, if we were spending $3, 3 euros half of it, 50% of it is actually gone to other platforms in the mix. But now this is all in house with that we have. Verve Group, at a glance, I think the biggest asset guys that we have is our people. And we it's a very experienced leadership. As we are acquiring more and more companies, we are always looking to strengthen the management and executive level. But it's a very experienced global executive team. The number of engineers are 150, Yonath wants 200 more and proud we are proud members of IAB, MMA, pre bid organizations. The industry excellence comes as we have all almost the top Fortune 500 advertisers working with us. We have there are just a few ones which are left, but we have the topmost performance direct performance demand, which is also a part of us. A lot is done in the proprietary algorithms and optimization means in 5,000 plus direct publishers And sky is the limit here now. Some major integrations with big platforms is going on. So this number is going to go further up. And we have we are proud to own and operate a lot of gaming supply, which is improving in our end to end stack. Who we are is a global omni channel ad platform. So the complete stack definition is right there. So the complete stack definition is right there, managed service platform, mobile RTB ad exchanges, SSPs, etcetera. An open source SDK. We are the 2nd company officially to talk more about it, but we have an open source SDK, which through which we earn a lot of trust out there for the from the developers and the competition. And in app mobile web desktop, CTV OTT is an extension that we are always working on. This is a Tension that we're always working on. This is a very important slide where it describes MGI in the completeness. Remco did cover about the vertical completion, so which puts us in a comparison of some great companies out there competing against us in some of the other form. But when you talk about transparency in open standards, open source projects, DSP, now we have a DMP. And course, with SMARTO, our SSP capabilities have further gone up. We have a full stack offering. We are 100% into mobile. Web is expanding CTV, OTT And owned and operated through our gaming portfolio. So you can see a lot of checks with MGI as a group has, and this gives a clear glimpse of where the competition is where we stand in. I was right on time. I'll be back. So I'll give a quick glimpse of what's under the hood on the media side, how do we We cover this value chain and what end to end actually means for a full stack platform. So we start from the advertiser side, And we have a few ways to let advertisers into our platform. The first one is managed. That's how we call it, means direct campaigns. They basically sign an IO and then we deliver the creative, let's say, gaming creative and then we deliver it in 1 tangent games, right? That was the example from Yes. So that's one way. The other way is they already own a DSP. Either they own it in house or they use a DSP like The Trade Desk, right? In that case, they plug into our exchange or exchanges because we have a few and then they can execute and deliver the campaigns on our own inventory or compete with the other advertisers. The last way but not least is actually the exchange waves, meaning that not only do we let advertisers directly all through their DSPs, but if They have an SSP of choice, let's say Magnite or Pubmatik. We let them compete. Those are marketplaces, right? Pubmatik is a marketplace, Magnite is a marketplace. We let those marketplaces compete with ours in real time to maximize the yield of the publisher, but at the same time extend the reach for the advertisers, making sure that they can access our supply as well. So that's the demand side, right? Then we move into our bread and butter, what I would call, basically our technology platform, has a few layers. I want to see this in all of the layers, but happy to answer afterwards. See, one of the more important ones is the controls layers, basically where we push the buttons. We by we, I mean the 200 people, 300 now people strong that we have, selecting demand, selecting supply, checking for ad quality, for example, if the ads are inappropriate and things like this, looking for flags, CCPA, GDPR and things like this and then optimizing basically the ad delivery and the flow throughout the marketplace. But of course, controls are not enough, right? So we're talking about automation, and we're talking machine learning to automate all of that decision making In real time, 2,000,000 tonnes per second at scale, right, at the scale of the open web. So that's the automation there. So we have algorithms at almost Every layer that you see on the demand side, on the supply side, optimizing which eventually is valuable, at which price, To whom to sell it and things along those lines. And we're constantly iterating on that part. Now last but not least, we are integrating with publishers. Samir already mentioned the open source SDK, which we're very proud of, but we also work with any other means of integrations, right? The way we reached 5,000 publishers and actually many more is that we integrate with other platforms such as Amazon, such as Google and a few others are coming soon through APIs or JavaScript tags in order to be wherever the publisher is. So whatever software stack they have, an ad serving stack, we're going to be there to serve their needs. So while Tangent, just an example, on the web, they will be on mobile, on mopubTwitter, we will be able to service them, right, because that's basically our job, Finding the right users for the right ads. And talking about the users and ads, our flywheel, It's actually rather simple, right? It's a marketplace play. We add more publishers, which add real estate, right? They have banners or videos that then we can sell to advertisers. The moment we optimize that through data of course And advertisers manage to buy the right users that they want and we bring more and more advertisers, then we have more budgets to expand into new publishers. And we've been doing this for years, and now you see the growth. The flywheel just gets bigger and bigger, right, almost like a snowball effect. And now we're able to organically add publishers like Zynga, like Activision and a few larger ones, right, while at the same time adding more and more advertisers to the marketplace. Of course, this doesn't happen all organically. We're also doing it unorganically. For example, we got Trade Desk, I think we had liquid connection, which is a DSP on the other side, right? So we I would say, we doubled the acceleration pedal with these two types, Organic sales and inorganic connecting the dots, so to speak. So that's one part. Then the other part is, of course, levering synergies, I think we talked about integration. In gaming, in media, it's a bit different. We actually can integrate commercially Almost immediately, sometimes even before we acquire the companies and generate revenues by again connecting the dots and filling in the gaps each of the companies we acquire have. So that's very, very important in how this flywheel actually moves. And that's not least, we have the other part, Which are innovations as we get, let's say, closer and closer to our partners, either on the advertiser side or the demand side, we understand better their needs. As we understand their needs, we can develop products to fit within those needs or fill in those gaps. And that's another part of the story on the organic growth. One of those products is called the hybrid cloud. What does it do? It basically takes most of the software that we've built And we give it to the publishers. This is a publisher product, so it fits at the bottom of the flagrant and let them manage their own demand and their own advertising stack, Including with full transparency, open source SDK, troubleshooting tools, reporting, audience creation and activation. So a Full stack that we can give, for example, our competitors in the gaming space, if we saw desire, which we actually do, by the way. So that's just one way in how we innovate. That's on the supply side. And there's more coming there, but that's early stages. And this product is already live, generating revenues, but we haven't publicly launched it as of yet. Now before I move to the advertiser side and maybe a way to connect the dots, Ios 14, there are some questions around and It did have an impact, right, on the media side, and we've seen that impact. But to our surprise, and this is data from our marketplaces, I think in the last couple of months, we've actually seen constant. Of course, it went down, right? It was 60%, 70% before And now it's around 30%, 40%. But I would say that's a win because it means the users or half of them, close to half of them understand the value exchange Between getting free products and getting advertising, right? And our job is to make that advertising as personalized, as relevant as possible and not creepy and Any other way, right? So it seems to be working and the impact to be lower than initially anticipated. Still, There is an impact. It's around 35% between the CPMs on pre iOS 14.5%, which was more or less The imitator of post and pre IDFA and the versions before. But there's a caveat to this number, right? Because a lot of the advertisers started buying much more on the pre iOS 14.5 versions, right, because they haven't identified and they know the user and they know how to optimize. But at the same time, on the previous versions, they started understanding how they can optimize. There are certain, Let's say technologies and frameworks that Apple put made available. So the optimization is slowly starting. The gap remains because there's still quite an increase in the previous versions, right? But we estimate we're going to be back at around 70%, 80% Efficiency in a couple of quarters versus what it was before as the whole ecosystem adapts to what we call the privacy first Iran in advertising or almost in a digital industry, if I may add. All right. Now what are we doing about it? And this I think we presented before. And we've been working on this for A year, actually at least a year. And actually, we had a hackathon on running audiences on device 2 years ago. So what's super interesting here and fits with our end story is that we combined our SDK development Know how. So we have one of the best mobile developers that I've seen or worked with and I've built a few SDKs in my career. And some of the best data science is building audiences in the cloud, behavior audiences. It's not that unsimilar to what Facebook and Google are doing. And putting those 2 together in a room, virtual room because it was COVID times, and working mostly nights because some people were in Europe, some people were in the U. S. Over, yes, a couple of months, I would say 9 months, and we're still working and iterating on it. So there's a lot of blood, sweat and tears to make this work. Actually, our first version was launched Internally in September when Apple was supposed to cut down IDFA. So we were ready, arguably, but at least we had a product then, an MVP. And now we're ready to rating on the 2nd version. And hopefully, we'll share the results soon. They look quite promising. But let's see as it scales How good they really are. So that's how we try to bridge the gap for our advertisers, right? Because They also they want to continue finding the right audiences for their games or other products, and we need to deliver a way for them to continue to do that In the lack of an identifier and what's super important here is that we don't store any PII. There's no PII on this device. We use Device information, the app information and maybe the advertising that's being shown. And then we generate a segment, Basically a random number you could say, that could say if it's a male or a female or whatever interest we find. And we aggregate that as well, so you can never identified back a user, but at the same time make sure that we know, hey, it's a 35 year old auto intender, right, things along those lines. Still driving the goals, but I would say maximizing privacy and doing everything on device, if I didn't mention that. All right. Now one of my favorite slides, something that we're doing with our gaming unit. So traditionally, Running ads on TV, it's a bit hard. You need to pay upfront. You will not know what's being served when and where. You need to measure it after the fact. It's a bit of interest bearing in a black box, Also very similar to how you would do it on YouTube or with influencers, right? So it's a bit of a manual process, Not as optimized as it could be, right? But programmatic is coming to Connected TV and we've seen it while in Trade Desk Investor Report and we've seen it on our platform. So what we're doing now, and I think Jens mentioned slightly, we are actually reactivating users Before we send them to our other games, we are reactive and getting users on our connected TV platform, which is a supply side platform. So we actually own, let's say, have access to 25% to 40% of the connected TV houses in the U. S, which It's a huge number. And we are able to figure out, hey, where our users are on that connected TV, show them a video, I don't see, for example, and bring them back to the game. That's rather unique. The case study is coming Hopefully in a couple of months as it took quite a bit of work to put these things together. But I would say it's rather unique and rather high impact. Also goes to show the other part that most of the media spend from our gaming side flows through our pipes, The Verve Group part. And we ideally want to continue that and actually expand that, both from the retargeting part, UA part was already mentioned And then of course monetization, which was also mentioned. So with that being said, I think I will hand it over to Samir once again. All right, guys, I'm back. So very quickly talking about why Smarter was a very it was a perfect strategic fit Into the MGI M and A strategy. The investment rational is very clear to us that it will help us in increasing our EBITDA. Of course, we get a ton of long term client relationships within the family to represent. It brings a critical mass to existing MGI Segments via additional demand and supply globally. And of course, there were substantial revenue synergies for the MGI Games And the portfolios and the set of publisher base or the advertiser base that SMARTO actually brings in. And there is a very strong SaaS IP. SMARTO as a platform, it's a very heavy SSP focused supply based solution, and it comes with a strong The SaaS IP solutions, which we will be now further navigating into the market. There are these I won't give names. There are some top notch publishers and verticals that we actually get them along with it in all gaming and news and media and Utility and Entertainment segments. The SMARTO Financials at a glance, again, it added €39,000,000 As revenues, there is a strong EBITDA that is listed out there, comes with 20% organic growth At an enterprise value of €140,000,000 and the current €10.7x times, and we are I mean, it's Going forward, it's going to be further beneficial to us at a 6.8x. There are many other internal optimization that we're doing in order for us to actually get to that number. One simple example is, you know, when we talk about synergies is we are immediately working on reducing like $200,000 to $250,000 We are cutting the costs on AWS usage. So there are tons of other tracks which are already identified. It's just been like 3 weeks or 4 weeks of integration process that we have started. Revenue distribution, as Remco mentioned, we are now further strong. We jointly are seen as a very reputed Marketplace that brings makes existing worker of this matter. Now there are 5 Very important dimensions, which are future growth levers that brings that comes to us. See, we offer a platform, and the platform is It has I mean, the complete food chain is or the value chain is serving the publishers, advertisers across various segments. So publishers are getting more and more controls. And I'll tell you, in my 20s of ad tech experience, publishers always wants to make more, Right. They want to make sure the users are happy. There are platforms which has limitations which cannot get all the tools necessary for publishers to really optimize. So this bring this helps us to put us into that position and that competition. Advertisers, we extend the global reach of advertisers. Preferred buying relationships, PMPs is something that we are really proud of. It's private marketplace. We have grown the business from 0 to like $25,000 a day, And sky is the limit now with the SSP tools that we actually get from Smartho. Video and CTT is integral to our growth. SMARTO comes with a CTV OTT stack. And in the coming few months, we'll be sharing more public information. There are some exclusives also that we really, really amazed of what has been built. Product technology and scale, see again, Mato has been one group which has been out there for 15 years or 15 years plus. It brings a lot of product and technology and scale value addition to our family. Efficiencies are, again, extremely important, not just the operating expenses, but one thing which we are proud as a group is On the synergies and we do as Janard mentioned, we do integrations even before we actually acquire a company. So these are the 5 important dimensions that brings up. User base is so important. And this is the global reach of the NGI Group was 1,400,000,000. Smarter was 1.3. I wish combined was 2.7. But still, this still gets us anywhere in the range of 1,800,000,000 to 2,000,000,000 users. Global reach increases for us, and it benefits our gaming business, and it puts us as a group in a very substantial position of actually doing a global business. I will quickly wrap this one. The sales pipeline is extremely good. It's extremely strong. We it just gives a glimpse of who are we negotiating with, what are qualifying, what are the prospective clients. The qualification process is very well met, And we have standards and processes around it. But you can see some top names, some very fancy logos, which we will be serving or which we are already serving. So we are proud of actually being able to just about to be closed, but yes, SMARTO brings a lot of value add to our portfolio of companies. And you would have seen this tick multiple boxes Slide from Jens and Remco. This is so important for us guys. Again, in terms of the vertical integration completeness, You can see where Smarter is it all right technical glitch. You can see where Smarter is a check, But that doesn't necessarily means that we did not had it. Some of the checks are actually real complements and it doubles down of the open exchange network or the SSP capabilities that we've had. But this we wish that we are actually close towards where we have a lot of checks around this everywhere. But SmartO really helps in a lot more ticks in the multiple boxes that we aspire to have. So time for some Q and As, right? Yes, great. Come on up. So yes, here we go. There we go. So I had a quick question about the publishers. Correct me if I'm wrong. You mentioned that You use other publishers as well as Game and Go for the advertisers. What's the percentage of advertisers that use Gamigo versus the other publishing agencies? And also what is The kind of future strategy for, is it to shift more towards increasing it for Gamigo or is it Now trying to maintain current figures or what's the strategy? I can maybe say something about the first part. We started the media part really to support Gamigo. But same as with other companies that we see, if you only do it for your own company, it's Much less efficient than if you also work for other companies. So that's basically what we've seen with AWS, which was the technology for Amazon and then was sold out, etcetera. So that's the same that we have on the media side. So and as a result, the percentage so there's some echo here. Going off to the side. The percentage that Gamigo does is relatively small, and that's actually the numbers that we show is only external revenues. So we consolidate out the internal part, and I think Paul will also cover that later in the presentation to give a bit of what we do internally on synergies. 2nd part of your question, I would hand over to See, the diversification, because we the way we have grown, right, In every company and organization that we actually acquire, there is often chances that the publishers are already working with both, right? So that basically puts us in a better position because the power of the marketplace, right, if there was one company doing X $1,000,000 limitations, not having the reach For the global reach for the publisher, right? So probably, we want to continue our efforts and investments into diversified set of portfolio publishers across the world. That's what we believe. And we also That's if a publisher is selling his ads, that they normally want a selected number of people that are selling the ads. So if you talk about a mobile ad, for example, in an how do you say in an app, then there is an SDK integration often. Correct me guys if I'm saying something wrong. And there is maybe 5 sellers of those ads or people that are bidding for the ads are integrated. And in certain cases, we have duplications that a Verve platform already bought and that also smarter platform is integrated there now. And then we have Two parts bidding on it with 3 others maybe. And so as such, it makes sense to really get critical mass. And then Development we see already in the market and we further expect is that publishers and advertisers, they don't want to work with too many parties. So therefore, having a full offering that you have makes it extremely attractive for certain advertisers and publishers to just work with us because we can offer them a kind of one stop shop instead of that they have to work with several partners. And that's what we see in general in the market. Trade Desk Coming from the demand side, they're also starting to integrate more and more into supply side. So what we expect in the end that there will be few large parties that are doing this And that the market is, because of that, consolidating pretty quickly. I will add just one part to it. Having although the percentage might not be the highest, It is growing. And the other part is that with having gaming in house allows us to iterate and learn. So basically whatever we develop for our gaming unit, than we can offer to any other game developer out there, right? That's kind of the idea. And we can iterate much faster. With an external game developer, Of course, we have a meeting, it takes 2 weeks, we have maps, it takes a year, right. Internally, we just put our hands on the call, we say, hey, we need to do Tomorrow, Jens says okay, then in a couple of weeks, it's already moving, right. So allows us to move much faster to solve those problems. So I'd say that's Again, the flywheel, like development aspect, yes. Okay. We have more questions coming in. Yes. Hi. This At technical solution or the innovation you have, maybe you can try to elaborate a little bit more How it can play out for MGI in terms of the business opportunity? Will it mainly be an internal solution? Or it even be a possibility to license the technology to others going forward? That's a very good question. Yes, that's a very good question. In terms of what does ATOM address? Well, it address At least for now half of the iOS ecosystem, right, which is pretty big, I think $50,000,000,000 market in the U. S. Just in advertising, right. So pretty large market. And we're the first ones to be there. Of course, Facebook just announced they're coming to the anonymized on device place. And Google, of course, they were there and Apple is also there. But I would say that's a good company to be in, one of the first to take that market share. Now if we are planning to license it, Yes, we did discuss. It's not yet we need to, I would say, develop a few more audiences. Right now we have, I don't know, 10, even a bit below that. We would expand it probably to 2020 and then continue to test and make sure it works. I don't think we have anything against, yeah, licensing it to other players out there. We did discuss internally. We haven't made a decision on that yet. But could it even be better to keep it in house so you get Because you will be able to attract more advertiser and more publisher? Well, I would say yes and no. There we are playing in the open echo Right. And in the open ecosystem, we are actually, let's say, fighting against the bigger walled gardens, right. So we need to arm ourselves. I do think we have a very strong USP because of how we do things and how we iterate, right. We're already planning the next innovations of ATOM, right. So We might offer some things and some things keep in house, right. Being 1 year ahead of the market allows us also to have a time horizon already 1 year in front of us, right. So that's how we look at it. So some parts, as technology advances do become commoditized or some other people develop it, we just need to stay ahead. That's I would say how AdTeq in any case works. The speed of rollout on the one hand, where it makes sense to slice it out and to get out because it's a temporary advantage, Although we also are working on a patent or let's say we have applied for a patent for it. But it's let's see how fast we can roll it out ourselves. We're growing fast. But I'm not against also using a selective number of sub licenses to get it out, but it would bring us closer to those and maybe also create other and A possibilities and things like that. I'll just add. So we are protecting our IP as we have a pending patent. Right now, it's a beta. My sales team are talking to every damn possible agency holding company, the largest of advertisers. And the first review, we have done like 50 plus discussions. It was like a phenomenal wow factor because these Large brands, they do take time to really embrace the product. So we will evaluate the response, and we can always make decisions depending on what the market wants. We are open to it. But it's still It wants. We are open to it. But it's still early stage, but with a lot of potential. Thank you. Okay. Great. I think checking the room, any more questions here? Time for some lunch. So I mean we will be back here at quarter past One, and we will have Paul up on stage with the financial update. So yes, for those of you online, welcome back, quarter past 1. Yes. And we will have some lunch. A warm welcome back, everyone. And we will get started immediately, And we will have the financial update from Paul, and then we will have the outlook and the Q and A session. And that's the Q and A session where we will also open up the phone lines. So a warm welcome up to the stage. Paul? Hello, everyone. Now we come to the 2nd quarter financial highlights And actually starting right away here with a strong revenue increase of 90%, where we actually have been achieved 36% organic growth, which is really outstanding, especially given the hard comps of the previous year, [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Where we will go a little bit more into the detail later on. And what we see here as well is that EBITA increased even stronger by 127%, [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] That is because we realized a lot of economy of scale. So especially the fixed costs like personal costs, office costs, these kind of things were relatively stable compared to the revenue increase. And therefore, we increased the EBITA margin by 5 percentage points. And also the EBITA increased, therefore, much, much stronger than the revenues. Adjusted EBIT increased by 164%, and therefore, even stronger than the adjusted EBITDA. That's because the depreciation are also relatively stable compared to the revenues, and therefore, we're trading now into much, much higher profitability. And also the adjusted EBIT is really growing quite strongly. Operating cash flow, also very strong, 134% increase. That's before a change in working capital. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Because of the very strong increase, especially also on the media side, we had a strong working capital effect of SEK 8,700,000 in the second quarter. We would see that later on the And that's something where we also changed the reporting. So we will now every quarter also report very in detail the change in working capital to give full visibility on that. Coming now to the summary of the annual financial performance. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] And here we see that on a last 12 month basis, we reached now €193,000,000 revenues and €45,000,000 EBITA and have grown in the last 3 years with a revenue CAGR of 78%, and that has been achieved actually, while we have increased organic growth quite substantially From 5% in 2018, where we, for the first time, showed organic growth to now 36% on a combined basis for our segments. And therefore, the total growth has also increased, so 90% in the second quarter. If we compare that also to the previous years, we have outperformed also our growth. And the major driver now here or the differentiator is really the strong organic growth. Coming now to the Q2 revenue and EBITDA development. And here we see on the left side that the revenue has increased by 90% now to 57,000,000 Driven by strong growth of both segments. And the adjusted EBITDA has increased by 127% to now €15,000,000 per quarter. So we saw all time highs in terms of revenue and in terms of EBITA in the Q2. And that despite the fact that we had a very strong second quarter already last year And already also very strong Q1. Going into the details now of our segments. And here we see on the left side The game segment, which has been increased by 49% to 28,000,000 revenues, 10% of that has been coming from organic. What we also see here is actually that game segment revenues have not as much increased than media side. That's also what Remco mentioned at the beginning. On the Games segment, we had a very strong spike last year, so we had a bit more hard comps. But despite the fact, we showed strong organic growth and also A strong total growth of 49%, while on the media side, we had the opposite effect last year. Some advertisers paused some campaigns, and therefore, the revenue in the Q2 were Trading down on the media side, and therefore, we had more easy comps this year, and therefore, the revenue increased by 159% to 29,000,000 What we see on both segments, actually, and that's also what we see in the group, is that the EBITDA margin is increasing substantially. So on the Games segment, from 29% to 38%. That's driven by the King's Eye acquisition, but it's also driven by very large content updates. And also Nintendo Switch from Trove already had a pretty Good impact on the Q2 despite the fact it was just 2 weeks in the Q2. On the media segment, we were really scaling revenues. CTV, for example, had a share of the revenues of the €29,000,000 of €1,500,000, so roughly 5%. And it's also growing quite strongly on the organic [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] And we have been able now to increase the EBITA margin already from 11% to 16%, and that has been actually planned for the second half year. But as revenue, Revenues were scaling much faster than we expected. Actually, we were able due to economy of scale really in personnel cost relatively stable fixed cost relatively stable to increase the EBITA margin already to 60%. And therefore, we are well within the target of 15% to 20%, and that's actually not even including Smart. So Smart, due to the scale and the strong software as a service character, they even have a stronger EBITDA margin of 30%. And with the first time consolidation expected for Q4, we will most likely even push the 15% to 20% to a bit higher EBITDA margin for the overall media segment. Game segment, there we have reached the 38% and have a target of 35% to 40%, which we also want to maintain in the long run, But also want to invest further in organic growth projects, while we're keeping a very high profitability. Coming now to the revenue diversification, and that has actually evolved and changed quite a bit over the last years. So what we see here is on the left side And purple, the gaming revenues. So the MMOs, that's in game item sales, has a share of 28%. That also includes the full King's Isle and Gamigo games. 14% is already coming from in game advertisements, And that's also very large chance, for example, coming from the mobile tangent portfolio, while 8% is coming from PC and mobile casual games, And that's mainly subscription based. But all the segments we currently see strong organic growth and especially the advertisement is a part which we focus really on. And therefore, yes, MGIs through the synergies can really show strong organic growth in both segments and even have been able, this is the hard comes of last year, to really Yes, accelerate and show 36% year on year. 51% of the group revenues is coming from the media segment. And here, it's very important to focus also on the supply side platform and the demand side platform because that is what Jonnat and Samir were talking about, that's a software as a service business, which is scaling quite heavily and where we have this high retention rate of 59%, Well, we're also adding constantly new clients with 20% increase in software as a service accounts in the Q2. So we're adding new clients, we're scaling the existing clients and therefore, Showing the strong growth of 159%, while the performance platform and influencer platform where we entered Quite early already in 2017 with the MediaCrusher acquisition, for example, is something which is not as scalable, especially the influencer business. There's a lot of manual work included, etcetera. The margins are not so high. So that will most likely not be a focus area in the future and be rather focused on the automated software as a service full transparent business. And therefore, we might let run it out over the time. Coming now on Page 88 and to the operating cash flow and CapEx development. And we have received over the last A lot of questions, how is the free cash flow evolving, etcetera. And therefore, I think last quarter, we started with it, also showed in detail the free cash flow generation, maintenance [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] CapEx and these kind of things. And this is what we see here on the left side. So the operating cash flow has increased actually over the last years from 0 in 2014. That's We are more or less the story started after the start in 2012, has increased year on year quite substantially. So we reached now SEK 33,000,000 on a last 12 month basis. But as mentioned earlier, we also had a working capital effect of SEK 8,700,000 and that actually then also and deducted a little bit the operating cash flow where we still saw a strong increase, but without that it would even have been better with 41,000,000. Looking at the free cash flow generation of $26,000,000 we also see that it has grown over the last years quite a bit. And that's achieved because we have a very limited maintenance CapEx. Maintenance CapEx and MGI sensors in the end, the further investments into our IP on games to sort of keep the revenue stable or to let them grow organically By a very low percentage point. And so that's 7,000,000 and that's because we have we don't do the 5,000,000 to 50,000,000 Into a fully new game, which means we have limited maintenance CapEx and rather than invest into expansion, which means, for example, also Nintendo Switch Also on the media side, on hybrid cloud or the Atom product. Expansion CapEx has increased quite a bit to €113,000,000 now On a last 12 months basis, it includes also the purchase price payments for the Kingstown acquisition. So that's the majority actually of the expansion CapEx, [SPEAKER JACQUES VAN DEN BROEK:] But it also includes the investments, as mentioned, into new game IPs, new media products. And we still, therefore, have a very strong free cash flow due to the [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Limited maintenance CapEx. Going a bit more into the detail of the balance sheet. And here we see on the left side actually the intangible assets, which is the majority of the assets, which is normal, I would say, for gaming and media company. And €437,000,000 we have on the intangible side. Important to mention here that on an annual regular basis, actually, we do it twice per year with them. Deloitte is testing all the impairments and all the intangibles, Which is also super important for us that we have a really big force standard on that. And then on top, also the M and A transactions, which we do 3 to 5 per year. So it's really a material Thing which we have on the balance sheet is then valued also by Ernst and Young. So all the purchase price allocations we're doing with them. And therefore, we have a pretty good setup, I would say, And very professional for the main asset, which is the intangible assets on our balance sheet. Then the trade and other receivables, If you look quarter on quarter, they have also increased quite a bit, also causing the working capital effect. But here, it's important to mention that especially also on the media side, The majority of the receivables are towards listed companies, which have a multi billion cash position. So there's a very, very low credit risk on our trade receivables. Then the cash and cash equivalents, dollars 246,000,000 quite a strong cash position, I would say. But we have used part of the cash already for the Smartwa acquisition to be in detail. So SEK 101,000,000 on a net cash out basis have been paid for SMARTO. And after the SmartWay acquisition, we still have €145,000,000 cash on our bank account, plus the €30,000,000 RCF From UniCredit Bank, which is currently undrawn. So there's quite a lot of cash position for further investments in the future. And then on the total liabilities and equity side, €292,000,000 equity, a 38% equity ratio, also very healthy from my point of view. And out of the long term liabilities, That's also important point. €293,000,000 is interest bearing debt, while we actually also have made here Very transparent. So I split out the King's Isle default purchase price payments, which are currently €21,000,000 in the long term liabilities €11,000,000 in the short term liabilities, which needs to be paid over the next 12 months. Exactly. Leverage ratio is currently at 1.0 And interest coverage ratio is at 4.3. But after the SmartWay acquisition, obviously, after the cash out, also the leverage increases a bit. So 1.9 is it now on a pro form a basis, but there we also take the last 12 months SmartRO EBITDA into account And the last 12 months, kings out into account. Leverage has decreased over time quite a bit. So we started with 7X in 2014. That's after the company was restructured, then we also increased the EBITDA and free cash flow. So leverage was decreasing, and then we traded between 23 in the last 5 years. That's also what we have set as our financial target, to be very transparent and to also make sure that we don't overdo it in terms of leverage. 1.9 is, I think, is a pretty decent number. And what we have announced yesterday morning together with the 2nd quarter release is that we're also looking into Now the TEP issue raising up to 80,000,000 bonds, especially also here under our Nordic bond format, But €25,000,000 out of it, we also want to use to refinance our unsecured German bond with a quite high interest of 7%, So also decreasing financing cost over time. And the debt profile we see On the slide as well. And after the bond issue, if it is successful, which we expect obviously, €145,000,000 will be the cash on bank, plus the €55,000,000 which we'll put on an escrow for further M and A transaction, so which means €200,000,000 cash for further investments, plus €30,000,000 RCF, while we again also want to make sure that our net leverage stays over the years between 2/23. Coming now a little bit more into the valuation part, And that is something also how we position MGI. So on the left side, we actually see the pure attack players. We have standalone what to compare with this. Here we see quite a lot of companies which Recently also IPOed like Pubmedic, Vind, all of them has been IPO has made an IPO in the United States. And we can also see that the valuations has gone up Quite a bit. While on the pure gaming side, that's more the Gamigo business standalone business model. We see, for example, Embraiser, Steelfront, Zynga and Skilled, which have more comparable multiples with us. And Zynga and Skilled, for example, they're now also entering more the vertical part. So, Zynga, for example, acquired Chartboost Skills, acquired ARKi, and therefore, they go on vertical, but I would say they're not as far as we yet. And therefore, we're positioning ourselves more as an owned and operated EdTech player. There's a very strong own content from the games, and that's more the MGI business model, I would say. And what we can see here also [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] As in a comparison with U. S. Players, Eblavin and Iron Source have also recently just have done the IPOs that the valuation gap is quite high and that there's much more work which we also need to do and put this story into the market. That's also the reason why for example, Samir and Jonnat are here to really explain what we do, how the synergies work and how the overall MGI business model comes together, together with a [SPEAKER CHRISTOPHER ROBERTSON:] Very strong gaming part. Coming now to the financial outlook of MGI after M. G. U. Will then give more the commercial outlook. So the 2020 numbers were already quite strong, I would say. And then we issued an initial financial guidance of 220,000,000 €140,000,000 with a strong EBITDA of €60,000,000 to €65,000,000 And I just recently updated this guidance [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Because smart, we expect to be first time consolidated in the last quarter. And here we now expect a €234,000,000 revenues and 254 Up to $254,000,000 and a $65,000,000 to $70,000,000 EBITA, which means a revenue growth actually of 67% to 81% And an EBITDA growth of 123% to 141%, which we see here as well is that the EBITDA is increasing much, much faster than the revenues, which means we're really scaling into a much higher profitability over time now. And that also the EBIT, for example, will increase quite a bit in 2021. That brings us actually to the last part of the presentation of at least of the financial part. So the midterm financial targets, We have put them in place already 2 years ago and have not changed them yet and also don't want to change them Because we want to grow sustainable with a 25% to 30% CAGR over the coming years, while we actually have achieved now 36% organic growth in the 2nd quarter, 38% in the Q1. So outperformed already that target standalone just with organic growth, while the target was set as a combined basis M and A and organic. Nevertheless, we also want to achieve that in the coming years and rather being conservative and don't overdo it because we don't want to be forced also do further M and A to show our growth numbers. Adjusted EBITA margin, 25% to 30%. There, we had 27% in the 2nd quarter. EBIT margin, 15% to 20%, 19% achieved in the 2nd quarter. Net leverage of 2% to 3%, 1.9% now on a pro form a basis after the SmartWay acquisition And taking also the last 12 months EBITDA into account, so we can really tick the box for all the financial targets here and also want to achieve them in the midterm basis. That brings me to an end already of the financial parts. And then I would like to hand over to Remco for an outlook. Thank you. Yes. Thanks, Paul. And I promised to keep it a bit shorter this time. Yes, coming to the outlook. And Paul has shown the financial outlook already, but it needs to be done, of course. It needs to be realized. And therefore, we have just Split it a bit in one slide, but I'll highlight the different parts of it. First to get into gaming, yes, what we further do is further drive organic growth with multiple initiatives. Many are on the way, the new ones started all the time. So targeting 3 DLCs per game per year, per large MMO, I have To say here, due expansion of the existing portfolio, King's Isle, for example, we'll see Those things. That's actually one thing. KingsIsle growth this year is, of course, not in our current organic growth numbers because it was just acquired this year, so it will only come in next year, But it is growing. That's the good news. Then increase efficient marketing, new users, and we will launch 3 new games still this year. Then on the M and A side, yes, we're targeting 3 to 5 transactions per year. Within the Gaming segment, we have done one transaction so far. So there's still hopefully a bit more to come, but we will not let us force to exactly stick to the 3% to 5%. I mean the one acquisition Kingshall was a big one. And we rather don't do more acquisitions than bad acquisitions, but we like to do a few more. And as you saw on the target list, there are a few more lined up. Important here that we further stick to our conservative multiples and that it is really The same kind of synergetic business, so sustainable games and that with that we can further grow. Folks on mobile, I mentioned already before and Further, when we buy something consequent integration. On the media side, yes, we need to still close Malteaux. Interesting story there. The previous owner of, let's say, let go the former CEO. And there's now an interim CEO in Matto, after signing, which is one of our people already, met Judith. So we are already managing the company before it's closed, is really pretty unique. It's also a lot of trust, of course, of the sellers. But we hope to close the transaction soon. Then what we're Really working on we have a great platform, we have great services, but great services also need to be sold. So Stephanie from the back just Joined us really stepping up the whole sales in the U. S. So we are really investing also a lot in adding extra salespeople, Very important. The rollout of Adcloud and Atom, very important as products and with a lot of possibilities opportunity. Implement pot structure. We've grown so large in the media side that we really want to organize ourselves a bit different. Jon and Samir each had 20 direct reports kind of, bit overdoing it. And so we have now really said, okay, we make more business unit structure. So we are there Also building up team wise, also hiring some extra managers. Important, of course, because with further M and A also, it needs all to be managed. And with each M and A case, we get good management on board, good new people, but still sometimes it makes sense to add also some external people. Then, yes, optimizing innovation, very important. Further international expansion also here, focus on Asia also. And for next year, further increasing sales force, further increasing the technology, the product innovation, etcetera. Also here, [SPEAKER STEPHEN ROBERT BINNIE:] On the M and A side, 3 to 5 targets per year that we typically would like to do also here with conservative multiples, which in the U. S. Is getting a little bit more difficult because a lot of companies are trying to buy a game buying to trying to buy media companies, sorry. And yes, further targeting scale here or missing parts. Focus on Asia is a point. It has a bit to do with also the multiples. We see very nice opportunities there. And having a tech platform, it makes sense to go international. And for example, in Indonesia, we have With the Smarter deal and a joint venture already with 1 of the telcos, that's a nice way to also build that further out. And Saudi to Asia especially is giving us a good opportunity there. Yes, in consequent integration and optimization also on the media part. In general, or more on the synergy part, actively driving forward the synergies. And that's what Paul also showed, our EBITDA [SPEAKER KARL HENRIK SUNDSTROM:] Getting as a percentage of revenue is getting better and better and this has to do with all these synergies and we further will continue to drive that. And it's a combination of saving costs, But also more scale, of course. Then filling in the missing parts, also further working on the synergies between media and gaming, Strengthening game launches by the media part and improving the data optimization part, especially on the data part, we think we can do a lot more than we're doing today. On the corporate side, relocation, mentioned that before. So that's one of our high focus points there. We want to get out of Malta. It's a nice island to go on holiday, but we want to be somewhere else. We're working on that. ESG, further professionalization of the organization. M and A department, we have just done some steps. Jens Christian Fritz, who was on one of my first slides, Joined us as the Chief Investment Officer. Yes, he has a big career in, let's say, Moonfair, and several other companies that you worked, so a lot of experience on M and A front. Will he will build up a team of up to 10 people [SPEAKER LARS FRUERGAARD THOMSEN:] Because so far, we've been doing M and A, either Jens or myself or somebody else out of the organization was doing it and grabbing some people and doing the M and A case. We want to professionalize there also to be able to do those 3 to 5 cases in both of the segments per year. And Capital Markets, of course, extremely important to do presentations like this, to talk to our investors, to thank them for their trust [SPEAKER LARS FRUERGAARD AND TO GIVE THEM AS MUCH INFORMATION AS WE CAN TO ALSO HELP YOU TAKING YOUR DECISIONS, ALSO TO THE ENDLESS, OF COURSE. AND THE LAST POINT, REFINANCING THE GERMANOND, Which I already talked about. This brings me to the last slide and this is a slide just summarizing. Clear road map. We're doing this now for a bit over 8 years. In October, it will be 9. Yes, low business risk focus. I think that's one of the things that really makes us a bit outstanding in the gaming segment. We try not to go into big launch risk, all these kind of things, development risks, so really keep it low and concentrating on games with steady revenue streams. Strong organic growth, many, Many projects that we're working on for the organic growth, not all will be successful, but the mix does it. Utilizing synergies between media and gaming, synergetic M and A and integrating the acquired targets. That brings us to the end of the presentations and time for questions. Time for questions. So I think we start with asking the team to step up on the stage together with you, right, Remco? Okay. So and now we also have the phone Line open, so we're going to check that one. So let's start to see if we have yes. Over here, we have the first question coming in. And please introduce you with name and representation. So Marla Warnick here, Perito. Just a question on the organic growth, 36%, it's pretty impressive, 26,000,000,000, Tanja Gaming. Can you just comment a bit more here what reopening effects you see? And also IDFA potential impacts and so on, if you can dig into more of this number. Yes. You want to take it, Paolo, Chedra? I can start. So we actually made much more large content updates, which means the existing games Showed a pretty strong growth even year on year. And looking on the play activity and these kind of things, especially in the last Year 2nd quarter, we saw a strong increase in players. But what we have been able actually is to maintain that player base. Even the play activity has gone down already in Q3 2020 quite a bit after some lockdowns were vanished during the summer season. Afterwards, we saw more normal playing behavior. And therefore, since the Q3 last year actually, it's more or less back to a normal playing behavior while we have been kept The players and therefore have maintained a much, much higher revenue base. And all the content updates, especially which we have patched through the games, have been then received by a much higher player base, and that has been made us able to also show strong organic growth. And I think the difference, especially on the Gamigo portfolio, is also that we have a lot of Sustainable long term games, which means the players also intend to stay in the games, while if you have more casual games, Players intend also after a strong spike might to drop out after a few quarters. And therefore, yes, we're in a pretty strong position. And yes, the mobile part, I mean, the IDFA change doesn't really hit us hard on the gaming. It doesn't really had any impact As we were still there was a very strong focus on the PC and in house client games. Yes. But even if we would have mobile games, and I mean, it's also the reason that we're looking at mobile game acquisitions with the tools that we have [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] On the media side, with Atum, with the other things, we're also not afraid of IDFA. Rather, we see it as an opportunity for us as a company to further drive revenues. Thank you. Okay. I put in one of mine while It's a soft one. I think it's for you, Remco. There is a saying, right, that culture beats strategy. And I know it's a challenge in fast growing companies. So maybe can you share some light on how you work with it? Yes. Company culture, important thing. That's one nice anecdote. When we acquired Area Games, we found meters of books about company culture and all kind of phrases for company culture. So company culture is really An important issue, but you cannot only read it in books. And we are a company that did, let's say, a lot of acquisition cases. We have people It's from different companies, different nationalities in different locations. And for that, it's really important to drive a similarity. Now with corona, with COVID, people not being in the offices, it's even more difficult because you need to do this now over a Zoom conference or over Teams conference. And as such, it's really putting a lot of, let's say, focus of us as management on it and also below. I think the most important point that is driving and that's making it easy for us is success. People are really seeing that they are part of a company that's going forward, And that's much more fun than a party that's under distress or that's suffering. So what a lot of our team members have seen before. The second point is really a no nonsense integrity culture, where we really if there's problems, yes, raise them, solve them, Take your own responsibility. I think we are pretty also here for the management talking. Feet on the ground, no nonsense team, No politics. That's very important. We don't want politics in this company. It's really about being successful, but also enjoying being successful. But yes, company culture is important, and it's something that's part of our daily jobs to make sure that we motivate our teams And also that everybody has the MDI feeling. Okay. I have one coming in from online, and it's from James Edward Berenberg. And the first goes like this, IDEO game question. The tick box chart showed that MDI is looking to expand into hyper casual games. Could you discuss how the synergies from the hyper casual games are friend to other mobile games given their ad only monetization and large audience. That was the first one, and here comes the So first about the monetization and large audience. And then as a follow-up, hyper casual games are naturally very short lifetime games, and therefore, developers need to churn out new titles at a rapid rate, which seems against your core strategy and long life time cycle gains. So who's picking up that one? I can take it and share it with you, not a little bit. The second question answers already a little bit the first You have a much lower lifetime with hyper casual games, which means the synergies between games and media is getting even more important because Hyper casual works the way that you buy a user, acquire a user much, much cheaper. Then you show him a few ads because the lifetime of Hyper casual game is 1 or 2 weeks for a customer. You show him 5 to 10 ads, he's turning off. This means you have a high need of constant user acquisition in the game. So very short lifetime requires a very high need of acquiring users. To answer the second question, yes, indeed. You need to push live many games to have some hit. But on the other side, the games are also not comparable with PC or core gaming, the games are much, much smaller. They are built for people to play 5 to 10 times. So it's really clicking, clicking 1 or 2 weeks, games out. This means the development cycle of developing a hyper casual game is much, much smaller. We have we are working with some external studios over there who do that and they push out they develop a game in a couple of days, 2 or 3 days. And that's also We are not talking about development cost of €5,000,000 to €10,000,000 We are talking about development cost of a game €20,000 to €50,000 each. I think that answers, at least from the gaming side, the 2 questions already. Okay. I can add from the media side, maybe slightly. Actually, most of the ads within those games, which have high reach but low retention, it's actually mid core and the IAP kind of games, the guys Actually build the game for, I don't know, 100 of 1,000 or 1,000,000 and then monetize to IAP, right, which is a bit more of our bread and butter. So that's one part. The other part is how fast The iteration and the synergies actually work for hyper casual. You need to show ads, monetize as fast as you can with the ads, so gain the users through ads, monetize through ads and so on. So that learning curve actually accelerates all of our other flywheels in terms of both monetization and user acquisition, right, with the creative part playing a huge role at the top of the, That's a value chain. It's nice to see that Jens answered this question first because I would almost say as a Gaming standalone company, we would never have started Hyper Casual Games. But as an integrated media and gaming company, it makes sense because it's more a media product Then a gaming product actually, even though it's a game, which will help us with collecting a lot of data and a lot of ad spaces, etcetera, and therefore it makes sense. Nevertheless, we need the game now, of course. Okay. Good. And then we continue with the media The Media division has exceptional underlying growth and, thanks to recent M and A, is now positioned to compete head to head within many of the largest ad tech businesses globally, as you have shown. The question is, what are the growth constraints or hurdles to maintain this level of growth for the next 5 to 6 years? Sameer? I can take that. See, I love to use the word sky is the limit. Our expansion strategy is Where we go and buy the next set of companies or how we utilize, how we integrate, how we focus on the synergies, right? As a group, I think we do a very decent job in identifying the synergies first. And then we have some master plans of integrating and what integration for us for the full platform actually means, right. We are not going to disrupt the existing way and means of how the revenues are generated, right. So synergies, integration plans And the fitment into our complete platform story is are those some of the core tenets that we really focus on. Otherwise, yes, it's a nightmare. If I may add something here. We have plenty of M and A candidates. We have plenty of organic growth possibilities. And our main constraining factor at the moment is basically the team. [SPEAKER STEPHEN ROBERT BINNIE:] And we see that we've been growing so fast that we need to hire extra people, that we need to build other management structures, and that's what I had also on the slide With the pot structure, pot or business unit structure, whatever you call it. So we are organizing ourselves in a way that we can do the next wave of growth [SPEAKER CARLOS GOMES DA SILVA:] On the media side, it's people at the moment. That's, I would say, the limiting factor. Okay. Okay. Edvard, I hope that And the question goes like, can you break down the organic growth by segment and give us the absolute figures? I'm looking at you, Paul. So yes, 10% on the gaming side means roughly 2,000,000 Organic growth there. And on the media side, 26% of the SEK 29,000,000 So that's the numbers. That's the numbers. So okay, we take the next question coming in online. It's from Sven Sauer from Kepler Cheuvreux. Question goes like, could you elaborate a little bit more why you are not planning to update your medium term guidance? On the one hand, you are presenting all the planned synergies you will presumably achieve with both segments. And in addition, you have already partially reached the guidance excluding SMARTO. Does this mean you are expecting lower growth and lower margin expansion going forward? That one might be for you, Remco, right? I'll take this one. Yes, the only answer the right answer to this is we are conservative company Even though we grow so fast, and we don't want to overpromise. It's much easier to afterwards say we were better than what we and our target is already pretty fast growth actually altogether. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] But we rather don't want to overpromise, but over exceed. So okay, from the room, yes, here we go. We have Carnegie coming in with questions. Hello? Hello? There we go. Yes, Jamie from Carnegie again. So just quickly on the synergies between the media and the gaming side. On the slides, it mentioned there were some missing parts that you're working on in the outlook. Can you kind of touch on what those would be, what a couple of those things you're working on? The biggest one is on the data side. There are so many more optimizations that we can do between the two segments. A lot of it is really also trial and error, Like Jonet and Samir both showed an example in the slides, the Wild Tangent where we're selling the ads now via Verve, Which is a pretty simple one, just easy to understand, but also the retargeting of the Trove customers that we are now testing with Connected TV. And there's a whole list of projects that we're working on. And it's not only the project. In many cases, we need data engineers, Artificial intelligence, because in the beginning you have human beings basically working out how the concept works and then we want to automate it or we automate it because then only then we can scale it. But there is still tons of opportunities that we go forward. [SPEAKER STEPHANIE ROBERTSON:] And also with now adding, for example, SMARTO, SMARTO has brought in a lot more web capacity or, let's say, media capacity on the web part, which will also open up new synergy possibilities with the games. So there is still tons of projects that we would like to do and cannot do all at the same time. Okay. More questions from the room? Yes, here we go. Parietta Marlon here again here. Remco gave us, I Because 5 year revenue figure for MGI earlier today or something. A bit earlier, I think. 3 year maybe. Either way, is it possible if you can Dig into how it would look like, I mean, more longer term MGI in terms of gaming and media and so on, what margins and so on, if you may more Digim to comment on the long term, MGI? Yes. We have our long term targets, which Paul showed on the slide, which is in what is 25%, 30% growth per year, which looks like moderate compared to our 70 plus percent that we had in the last few years. But we also need to take into account that we get larger. And as such, I would say it also absolute growth numbers will be much higher if you're 25%, 30% if you're much larger yourself. We see ourselves as a really integrated, oh no, EdTech was on the slide of Paul, but an integrated gaming and media company. And if this is now exactly fifty-fifty or sixty-forty at a certain point, that will depend a bit on organic growth and also on M and A, of course. But we will further see the advantages of the 2. We have seen how we can even bring the parts closer. I mean, that's the projects that I was just mentioning. And as such, we see there's so much further organic growth potential. And we see now already that Organic growth, it's not yet bypassing non organic growth, but I think it will be bypassing the non organic part. And that's also, of course, making us even stronger. So the possibility still in both of the models, if you have a good IP or if you have a good technology that you can scale like on the media side, The more volume you bring on, the more efficient you get. And we are still weak on the EBITDA percentage on the media part. [SPEAKER STEPHEN ROBERT BINNIE:] So gaming, we have said we want to get to a 30% to 40% EBITDA where we are now really on the higher side. And on the gaming Sorry, on the media side, we have now passed or let's say realized 16% EBITDA already in Q2 where we had to forecast of 15% to 20% in the second half. So we will be better there. But SMARTO is showing 30% EBITDA. So we expect also on the media side to get more towards the 25%, 30% EBITDA, Which would in the mix also, of course, make it better. So this is giving a bit of guidance on the numbers. And it's not growth at any price. [SPEAKER STEPHEN ROBERT BINNIE:] We want to have profitable growth, but I think that it's also what we're proving that our EBITDA percentages go is increasing faster than our growth percentage, But that's also not indefinite, of course. I hope it answers your question. Okay. So let's check for final questions. Anything from the room? I see no questions in the room. So what about the phone line? No. So then it's It's time to wrap up. So Remco actually some final remarks from you before we close, right? Yes. I would like to thank all people online, all people later also looking to the video, all people who took the effort to come here to see us, All investors who trust us, all the analysts that do a lot of work of trying to understand what we're doing. And yes, also my colleagues, of course, For the joy I'm having and also I hope they are having working together building this company and yes, we are extremely happy with these quarterly results And second good quarter this year and yes, there's 2 more quarters to come. So looking forward to see you again and really great to see people live again Yes. Instead of only having Zoom and this kind of thing. And great having you in Stockholm. Yes. And thanks to Jenny, of course, for So I think with that, thank you, everyone, and let's close for today.

• Press Release
• Slides