Hello there. Had a nice lunch? Sorry, did you have a nice lunch?
Yes.
That's better. I think food was great, wasn't it? This is actually a totally historical moment. It's the very first capital market day for Kambi. That's cool. Mia, you asked me to say a few words, to say welcome, and you asked me to make a brief introduction of myself, right? I thought I'd tell you about my childhood. How's that? I'm here to show you some slides on my childhood and hopefully try to make a connection of how is my childhood relevant for this company, because no one really knows that. Anyway, my relationship to sports started when I was very young, and I clearly remember being not even a teenager, living in a suburb to Stockholm in Sweden, walking 5 km with my, whatever you call it, ticket lottery on paper.
That was the time when we placed the bets on paper. I had my good friend Thomas and I, we spent all Tuesday picking out Manchester City versus Hull or Leeds versus Chelsea or Arsenal versus Manchester United. I always betted for Manchester United to win, which is true. There I was Wednesday, because all the bets had to be in at the latest three o'clock on Wednesday in Sweden, because the game was already on Saturday. I was in a hurry. I walked forever and ever, it felt like, with my short legs, walking there, rain, snow, whatsoever, went into the tobacco shop, placed my ticket. I know what they did in the tobacco shop. They took all those tickets, put them in bags, and this went on all over Sweden, probably other countries as well, at the same time.
They took all these bags, collected them, put them on lorries, driven on petrol or diesel or whatever, drove these lorries to a central location in Stockholm, which is, by the way, the capital city of Sweden, sorry. There were some people, they were probably just looking at all these tickets and manually calculating, taking care of who was to win. On Saturday was the big game. Me and Thomas, we were waiting eagerly all Saturday. That was the time it was two channels on TV, channel one and channel two, obvious. On channel one, 4:00 P.M., four o'clock, there was this game, Manchester United versus Chelsea or Arsenal versus so on. We were sitting there hoping to get the full score of 13 all correct. One, Chris, what's that? Cross. One cross per second.
That was kind of my childhood. Of course, when you're a young aspiring guy in Stockholm, I kind of dreamt of being a football professional, just like, I don't know, Peter Lorimer or Peter Shilton, then I ran out of talent at the age of 12. That's usually the story, I think. I went for a career in ice hockey. I really wanted to be an NHL star. I ran out of talent at 15, I had to walk in the shoes of my father to become some kind of an engineer. I've been into tech ever since, not 15, but a bit older. Of course, my point is this is where I, and I think a lot of Swedes, at least got a strong relationship to England and to English football because we were watching these games on pretty muddy fields.
As I remember correctly, it was pretty hard games, slippery, snow, and everything, but great memories. Here we are today with Kambi, basically in the same industry, totally different way of producing the odds for the bets and placing the odds. Fast-forward, the millennials. Anyone here remember what the big crisis during the millennium was? Y2K. Y2K. I woke up every morning kind of feared to death that the world is going to stop, the aircrafts are going to come falling down. The trains will suddenly start running the other direction. Just because we're going from 1999 to 2000. Of course, this never happened, which is, I guess us being here is the proof of that.
Every morning, software engineers, good people went up, walked out of bed, walked into office, made a few tweaks, a few changes to algorithms or software or hardware. The world is still carrying on. However, fast-forward, at this point of time, I went to an investor conference because I'm also working with a company called HiQ, which is an IT tech company. We've been listed on the Stockholm Stock Exchange since 1999, so that's been 20 years. As part of that part of my job, I went to New York. In New York, I went for an investor conference. I met a really young, passionate guy. He had a strong passion for sports, horses, football. He came to me walking and said, "Hey, I have this idea. Internet is here in sports.
I think we could combine this." That's the first time, actually, when I met Anders Ström, who was the founder of Unibet. That's the first time when I kind of connected my childhood of placing bad bets on good football teams in England with tech. From that on, I've been working with tech and internet. What else went on? Maybe not interested. I think 2000 was five years before Facebook ever started. The big guys which we read about with fear in the papers were called Clinton and Yeltsin. Now it's Trump and Putin or whoever it is. A trick question down to the right, is there anyone here who knows who that guy was or is? This is one of my big idols. This one, not this guy. That's David Bowie, of course.
In 2000, he was the first artist that ever launched his record. Yeah, he did as well. You were in the financial industry. That's correct. Yeah. No, he also launched his first record, so you can download it instead of buying it on a CD. That was 2000, my connection to the gaming industry. Fast-forward again. What's going on right now? I have another friend. I have a couple of friends. Michael. Michael, he came back just the other month from Barcelona, where there's a big, you look out for what's going on in the tech industry. He came back and he's really fired up. He goes like, "You know what, Lars? The transistors are getting smaller." Okay. "They consume less power." That's great. Right? Now it's really happening. It's 5G. Mobility. It's being rolled out all over the world.
He's really fired up. You know what? You will be able to build in the transistors in the glasses. Even better so, you can connect the glasses to your shoes. Okay. That's good news, that sort of thing, right. You connect everything to the Google Maps, they can direct you by buzzing in your shoes because they also connect everything to the shoes. There you go. He's kind of a tech guy. I'm medium interested in all of that. The only big takeaway I have is that technology is being developed at an even faster pace than ever. Transistors are getting smaller. We're building into everything. Connectivity like 5G, mobile connectivity, is just increasing. I think these are kind of fundamentals for the Kambi business model, isn't it?
It's also affecting us as people and every organization, every people out there in the world. From one perspective, I said, "Well, Mike, now stop, because I think it's really good news you're coming there with." If you came back from Barcelona and said, "Well, the transistors aren't getting any smaller. They will not consume less energy. Computer memories are getting bigger and more expensive," then I would start to worry. This is the context and the world we're living in as individuals, as Kambi, also I think it's important to realize that the clients of Kambi, they live in the same context. Tech is developed so quickly, so no one can really develop their own tech by themselves. They need outsourced partners, of which Kambi is one. It's a very interesting world going on out there. What about the future?
Does it look great? I have one last slide and try to connect all this. This is a distinguished English sir, Arthur C. Clarke. He was a writer. Has anyone heard of him before?
Sure.
Arthur C. Clarke, yeah. He wrote "The Space Odyssey," I think. He was also a futurist. If you check him out on YouTube, in the early 1960s he kind of predicted the internet. He predicted a lot of things which have come true. People ask me, "Okay, Lars, now you're chairman there, you work with HiQ, you should know what's going on in the future." I say, "I have no clue." I really don't have. Coming back to Arthur C. Clarke, he said if a prophet or a scientist would predict the future and you thought it sounded perfect, then he's totally wrong.
On the other hand, if the same scientist or prophet would predict something which would seem totally far off, you can make sure that in 20, 30, or at the most 40 years to come, the reality will out, sorry for my bad English, will outpace the predictions by far. The only thing we can be sure of is that the future will be fantastic. Standing here as introduction to the first ever capital market sale of Kambi, I'm very positive and I'm very sure that the future will be fantastic, not only for the world, for us, but also for Kambi. Thank you so much.
All right. I'm clearly much younger than Lars here, but unfortunately I would say that my career as a gambler started very much the same as his with Stryktipset in Sweden. I also actually had a book on a boxing game when I was maybe 30 years old. Boxing was still a big sport. There was a Swedish boxer called Lillen Eklund , who was boxing an English guy called Frank Bruno in a European championship fight. No one cares about that anymore. At that point, it was a very big thing in Sweden. I actually ran a book on the school for that match, and that was probably my first experience as a bookmaker. I kept on working in the finance industry for a few years over my studies, but in 2000, I started at Unibet.
I think the drive for us has always been just to create the best possible sports book. I think not only me, but a few other guys you'll meet later on, we have been working tirelessly for more than a decade just to create the best possible sports betting experience. That's definitely why Kambi exists today. Working at Unibet, we felt that we had no chance of getting the focus and the resources to create the best possible sports book. Therefore, in 2009, together with a lot of these people that will present later on, and of course, together with Anders Ström as well, created a business plan on how to create a B2B sports betting company to serve Unibet, but also to serve other companies. I think we've come a long way on actually doing very close to a perfect sports book.
It's still much more to do, but just looking on this year, we have won a few awards for creating the best sports book, both in Europe and in U.S. At the moment, we power nine out of the 50 companies on the EGR Power 50 list, which are, especially here in Europe, meant to be the largest gaming operators in Europe. Of course, the sports betting industry are globalization now with U.S. especially. When we started looking at Kambi, one thing that was highly important for us to be able to actually create the best sports book was everything we did had to be scalable. If we want to fight with, especially bet365 back in the days, to create something that a B2C company could do, we had to do exactly the same thing for everyone.
We couldn't really have a solution where we had bespoke development for each and every operator. I think that's a very big part of our mantra to this day. We have added to that we also understand that all operators have to be different and be their own brands. I think when we talk about the product later on today, we will talk quite a lot about what we're doing to be able to differentiate as well. Just some pointers of where we are today. When we started Kambi, we were less than 80 people from Unibet transferring to Kambi. Now we are more than 700 people. I think a lot has happened. I think another really interesting figure is down there in the process. We could count the odds in hundreds of thousands back in 2009 when we did the B2B plan.
Now we're doing roughly 480 million odds changes on a monthly basis. With 700 people, you clearly see that most of it is highly automated. We use the people to add some additional value to all the algorithms, but most of it is highly automated nowadays. We have customers in six continents. The seventh continent, I don't think will ever be regulated, Antarctic. All in all, I would say that we have grown a lot. We're not a small company anymore. I think after my presentation, Cecilia will talk more about that, how we are transforming from a small company to a large company. Little bit more about the industry we are in. You can hear a lot about spectator numbers are falling in sports. Yes, sure. I don't think sports has been more popular ever than it is today.
However, people are changing the way we are consuming sports. I think also broadcasters have problems because more and more of all the sports in the world are consumed on different types of streams. You see big American sports like NFL, they are working with Twitter, for instance, to broadcast their matches. I think you will see more and more change of how people are consuming sports and therefore being even more adaptable to sports betting. Don't for one second worry about that sport is not still massively interest across the globe. It goes, referee points to a penalty spot. Just want to show this. It's actually roughly three years old now. This is a penalty in England, Iceland in Euros, three years ago. I just want to show this because I think this is typically what we're always trying to do. There's the connection.
Just keeps the touch first. Trying to find ways of making sports betting as instant as possible. We never closed the offering for this penalty. With algorithms, it took us less than a second to be up and running with new prices. As you will see, as soon as the goal is scored here, prices are changing, and you can bet again. This was clearly not possible a few years ago. We have gone quite far from what Lars was showing where you had to post your bets four or five days in advance to actually being able to bet on something as instant as a penalty in football. Now I will hand over to Cecilia. Very much of the next bit will be about how we're transforming what we're doing at the moment to fit in to a much larger organization. Thank you.
Thank you, Kristian. Yes. We are on a very exciting journey. I actually joined Kambi as of the 1st of January this year after having, well, 25+ years of career within Ericsson. Mostly within sales, managing sales accounts of EUR 1 billion, around organizational units of up to 1,000 employees. I've also had the privilege of being staged or based in very different locations around the world. Now I've decided to join this fantastic company with all the opportunities that we have in front of us, and it's actually not completely new to me, Kambi. I've been director of the board for the last two years. Now I've taken the opportunity to actually formally join the company and take on an operational role. In a very exciting time also, since we are projecting on this growth journey.
One of the most valuable things I learned during my years in Ericsson was the importance of actually having a structure in place for the company, together with different processes and tools. Because if you're going to encounter growing your company and scaling the business, no matter how boring all these things sound, but it's actually of essence, at least if we want to run a company in a profitable way. What I'm here to contribute with, apart from my long experience within sales, is also to make use of my experience of how to structure a company in order to prepare ourselves for having higher volume of business and to grow the company. I should have switched that before. Why am I saying this?
Well, actually, research also shows that 85% of the challenges and the barriers that companies find when wanting to scale their business are related to internal factors. Such as, do I have the talent that I need in order to grow? Do I have the systems in place in order to grow? And so forth. Do I have the processes to manage higher volume of business in an efficient way? Let's have a look at the journey that Kambi has done so far. In my eyes, very impressive. If we look at the different dimensions here, we see that in most dimensions, for the last nine years, we've been growing with a factor of at least 10 when it comes to number of employees, number of live events, number of end users, and so forth. This, my friends, we believe is only the beginning.
We have a huge hope, we see a huge potential in the sports betting market, which we are set to grab and leverage on. It's really important that we also prepare this company in order to be able to grab that. What do we need to do? What do we need to do in order to secure that we do not end up in these structural growing pains that I was showing that a lot of companies do, that 85% is related to internal factors? Well, I first of all, would like to take it out from the stakeholder dimension. These are what we see as our main stakeholders when we're running this company. End users, customers, shareholders, and also, of course, the employees.
I know I have a crowd of potential shareholders or maybe current shareholders, let me start from the end users and the customers' perspective. Natural for me, since I'm coming from sales, in my book, if we do not have people or end users who want to consume our offering, then we don't have the fundamentals for having a business at all. From the end user's perspective, we believe that we are in the entertainment business. We help our customers to provide a service to our end users, or not a service, but an experience to our end users. If the end users do not find that experience compelling, they will easily move to another sportsbook and put their bets there. That, of course, we want to avoid.
In order to do that, it's extremely important for us that we have a structured way of trying to pick up the trends in the market to understand what the end users are looking for, what they value, and translate that into our development department, and in an efficient manner, develop more functionality and features. From a customer's perspective, of course, that is also highly relevant for direct customers. For our customers, it's extremely important that we can deliver a reliable and smooth service that they can rely on is up and running all the time. A very smooth operational machinery, in essence. As we grow as a company, adding on more customers, it's also important that we fast can integrate our new customers onto our platform.
We have good processes for that now, as we know, what worked before or works now, not necessarily works when we're going forward. We continuously have to further evolve those according to how we develop and how the market develops. Moving on to our shareholders. On top of what I've talked before, which is naturally also important for our shareholders, is to have a return on their investments. One of the absolutely most important tasks for us as a management team is to have a very stringent and sophisticated approach to our capital and resource allocation with the ambition of securing a high return on investments for our shareholders.
I will show you a little bit later, In order to do that, it's really important that we have a solid strategy and business planning process to really maximize our utilization of our resource and capital to deliver high shareholder value. Finally, employees. Employees, we are a software company. We are a competence company, so our biggest and most important asset are our employees. As we're growing, it becomes more and more important, especially for us being in the high-tech software industry, to be able to attract and retain the talents that we need in order to be able to grow and bring this company forward. There, culture is also a very important component in order to secure that we are able to attract talent and retain them, and also get the maximum out of their potential.
My presentation here today is a little bit giving you the comfort that you're going to hear a lot about our product and what we're planning there, and how we're addressing our customers. To give you the confidence that we also recognize the importance of looking internally within the company to be prepared for the predicted growth that we see, so that we don't end up in all these structural growing pains that so many companies do, and that hinder them to actually make profit off the opportunities that we see out there. We need to put a little bit of focus or secure that we are up on the level necessary when it comes to structure, processes, and tools, our talent, as well as our culture.
I'm now going to show you a little bit what we have done so far in order to prepare ourselves for what the future has to bring for us, and also what we're currently working on. When it comes to structure, processes, and tools, and once again, it's not the most exciting subject maybe, but it's damn necessary. Back to the resource and capital allocation, which I think actually is the absolutely most fundamental or most important task for us as management. We do have, and we have further evolved it during the last year, a very established strategy process where we set our long-term strategy on a three years horizon. We break that down to company performance target on a yearly basis, which in turn gets broken down into quarterly key objectives. That gets actually broken down to departmental and team level within the company.
In that way, we're really having the connection between what we want to achieve as a company and what is expected from each and every one of the employees. It's a very solid and thought-through process, and we, as a management, we monitor this on a monthly basis, how the progress is and where we are. On top of that, of course, we're also evaluating and reevaluating our overall strategy on regular basis, taking into account recent event, market trends, or whatever, and ask ourselves, "Is our long-term strategy still valid or do we need to make some smaller adjustments to it?" I usually see a company's major operational processes as develop, sell, and deliver. If you look at those three, in the development, we have our development team divided into value streams in conjunction, who's working in an agile way where we have cross-functional self-organizing teams.
Every second month, these teams get together, take the requirements, discuss the solutions, and come up with how that is going to be solved. The alignment and the coordination is done there on a bi-monthly basis. At that time, we're also every time evaluating the development process. What can we do in order to improve it? Because like I said before, what used to work might not work, and we're growing our development department hugely, as you will see on the next slide. When it comes to sales, we do have an established sales process, which allows us to make very conscious decisions regarding which customers to address, what are the acceptable terms and conditions, but also to identify possible risks and put mitigation plans to that.
I don't know how much you know, we are actually quite selective when it comes to which customers we want to work with or which customers we want. If we really would have liked, we could have probably signed a lot more contracts, we want to stick true to the long-term strategy we have, and once again, getting back to the actual resourcing capital allocation. How do we make the most use or get the most out of the capital and resources that we have? In the development, here we're actually putting some efforts now into our delivery process in terms of last year, you all know we signed quite a lot of new contracts, especially some contracts in the U.S. They tend to be a little bit more complex since we have a huge part of retail included in it.
In order to make this a repetitive self-learning sort of process where we can make use of best practices and so forth, we're establishing a fully dedicated delivery team with highly skilled project managers in order to do this in an even more efficient way. Finally, you know that a company, they both produce and rely on a lot of information. It could be employee records, it could be financial records, it could be regulatory data or whatever. In order to really do that in an efficient way, it's necessary also to make sure that we have an efficient way of handling that data to minimize the inefficiencies in the company. Usually, those investments, they pay off immediately because we lose so much of the inefficiencies.
What we've done lately is we have a lot of good systems in place, we have upgraded them both in terms of HR system, in terms of the learning. We have invested in the learning platform, you will hear a little bit more about that, also in the reporting and budgeting systems. From a development since, you will see on the next slide that we have increased our development capabilities quite a lot. We're also investing in more capacity in IT testing in order to match that so that we can increase our productivity overall. Right. From a talent point of view, yes, I was mentioning that. We are in the software industry. We want to be in the forefront of technology. Usually, those talents are a scarce resource, they are also very highly sought for.
I have to say that I think we've done a really, really good work in attracting the talents and being able to hire. As you can see, we increased our development teams from, it doesn't say there, but from 17 to 34 teams last year in the last 12 months. The reason why, I believe, a big reason to why we managed to do that, despite that we're actually having a large part of our development in Stockholm, which is a really, really difficult area to recruit talent in, is because of the culture and the reputation Kambi has. We have a really, really good reputation in the resource market, and the culture that we represent is highly appreciated among our employees, which you can see here.
We did an employee survey by the end of the year, 87% of our employees say that they would highly recommend Kambi as a great place to work. That naturally helps us to attract new talents. We're actually using this when we're recruiting in terms of lowering our recruitment costs and using a lot of internal referrals to find new competence out in the market. We also see that in our attrition numbers, that it's around 10, 11, which is rather a healthy number than anything worrying. It's actually a quite low attrition level. It's one thing that try to attract new employees and get them into the company, but bringing so many new employees into the company can also jeopardize our productivity because a lot of the existing employees finds themselves in training the new employees all the time.
In order to account for that, we have invested in in-house investment in a very sophisticated onboarding system together with this new learning and development platform, which very quickly provides the newcomers with purposely built training programs in order to quickly get up to speed. But it also provides further capability training for our existing employees also. We have over 200 or 300 courses on this platform, which we can purposely target to different employees. That naturally goes for leadership also. When we're growing in this pace, people who didn't have any direct reports being lifted up to have three, four, five people reporting to them, and all of a sudden they're also managing teams of the size of 15 people. We need to coach them, because being a leader in a company is a profession in itself, and you need support.
We have accounted for that when putting in place this new learning and development platform. Finally, I just want to share with you, we're really, really proud, we have a very good diversity in Kambi as a company. Not only do we have people from 35 different nationalities, but we have 30 different languages spoken within the company. I think we can truly say that we are a really global company. That is also one of the things that I think contributes to the very, very good and appreciated culture we have, which leads me into the culture. What is culture really? Well, culture is the sort of external and internal identity of the company. It is lived on an everyday basis by all employees.
It has a huge impact on how we manage to attract talent, how we manage to retain them, but also directly linked to the performance of the employees. We take a lot of pride in our reputation and in our culture. We hear it from other people when they are joining, that they really appreciate our culture or even before joining because they've heard the rumor on this city or on the town that Kambi has a great culture and work with. As we grow, that naturally, it's very easily that that culture develops to something different or that it falls apart.
That is something that we definitely are going to put some effort on to make sure that despite the high growth that we're in and despite that we're establishing offices in other different parts of the world and growing with X% per year, we need to put focus that we maintain and further evolve the culture in the way that we want it to be as Kambi culture. Right. Now I have a perfect bridge over to Max, our Chief Commercial Officer, who's going to tell you about how we are intending to conquer the sports betting market. Yet before that, let me show yet one more of the feedback that we got from the engagement survey with our employees. 88% of our employees believe that Kambi is in a position to really succeed for the next coming 3 years.
There we can talk about a winning culture in this company. Thank you.
All right. How is everyone feeling? Pumped up a little bit? Hopefully, I can talk you through a little bit of what we're doing in sales and PSD, which is our partner success department. A little bit about myself. I'm the Chief Commercial Officer. My name is Max Meltzer. I've been in this entertainment industry for the last five years. Before that, I spent six years as a football and cricket agent. This is a perfect lineup for this industry, right? Here I am now. Look, I'm very lucky and blessed to be in this position here at this organization. I think within all the sales organization throughout the partner success department, we're very lucky to be part of a company like Kambi, and we know it's recognized for its brand globally. I just want to talk you through a little bit about what we're doing, basically.
Thanks for your time. Basically, there are 3 key elements that I want to just discuss with you all today. One is about how we are set up to grow our customers, another is a little about what kind of customers we attract, and where we go about finding that new business and how we secure them. Before I talk through the slides that represent the final 2 aspects there, I just want to talk to you through a little bit about how we grow customers, because I think that is just as important as to why we align to targeting a certain sector of business. We have implemented here what we call the partner success methodology. It is very much based on other methodologies of customer success that you may have heard of, that other companies use, Adobe, et cetera, around the world are utilizing it.
It is just an evolution of account management, basically. What it is a focus on what are the core objectives that actually we want to achieve as a business, what do others want to achieve from their perspective, and try and align our core objectives and also look to focus on basically how we can make sure they get the revenues in that they are looking for. That means on a day-to-day basis that our partner managers are aligning with the likes of business intelligence, competitive intelligence, our product development roadmap, and trying to ensure that, okay, is there particular network data that we recognize in certain markets that Kambi product works very well? Or there are certain elements of our product that particular partner of ours should actually be utilizing a lot more of. We are not just a technology supplier here.
We are an actual indeed partner to our operators, and that is a fundamental element of what makes Kambi stand out from a service perspective in comparison to others in the marketplace. That is probably why you are seeing many of our partners actually grow a lot faster than others may otherwise think. That is just to give you a bit of background, but I will talk you through here and I will talk you through some of the sales methodology that we use later as well. Look, here is something that is really interesting. You may have heard about BetPlay in Colombia. If you have not, they are an operator partner of ours that launched merely just over 12 months ago, and from a position of zero, have ended up as a key market leader in that country.
I think that goes to show you the strength of our product and our scalability and ability to get to market. Now, do not underestimate this. Think how many times people think when you get a technology organization like ours who go, "Okay, you have not been in Colombia. What do you know about that region? What do you know about the culture? What do you know about the country? What do you have for different sports?" It is quite impressive that an organization like us can just enter into a new market with the right partner to achieve that kind of leverage and that kind of position. I would like that to resonate quite a lot with you guys as we go through what else we have achieved. Look, I will also show you 888.
You'll be hearing a lot about them recently in the news, of course, but you'll recognize here the kind of achievement that we've had in terms of their financial transformation from a sports betting perspective. Let me just highlight as well, when they actually changed to Kambi, there wasn't any huge investment in marketing from them. There wasn't a massive change of employers and new markets they were in at that point. That was a pure technology change. I'd like to emphasize just at that particular instance with 888, that technology change very much aligned to driving their revenues by almost double. That's the kind of power, again, of our product.
Anyone that's paying attention to the U.S., which I hope you all are from a sports betting perspective, will see that we have got 80% market share in Pennsylvania right now with the likes of Parx and Rush Street, who owns Rivers Casino, and also with SugarHouse. Look, you could also say that only a handful of us are in that market at the moment. I would like to emphasize that there are others that launched before us in that market and have just as suitably good locations in Pennsylvania, yet we've been able to obtain because of the quality of our product alongside absolutely fantastic partners in that market.
You can see that gives us a bit of a background to why we're in such a strong position from a selling perspective, and you want a track record like we have to go in and challenge. What do we want from a partner? I think it's, as Cecilia quite correctly said, often we will actually turn down people. In fact, it's a very inverse sales team sometimes when they actually are getting very annoyed with me about us turning down people. They understand why they're doing it. They understand that we're a product-led organization. They know that if we choose the right partners, they will become market leaders. We will generate larger revenues partnering with the right people than not.
That means to be a successful sales team, you have to be even more well-trained and well-versed at being able to challenge CEOs, board members of large organizations as to why they should choose Kambi as a partner. Look, what do they need, what do we want from a Kambi partner, and who are the sort of people that should be selecting us to work with? Number 1 is we are very focused on market leaders. We believe that if you are ambitious enough, you have the expertise yourself, that you actually will be able to utilize Kambi's technology better than someone else, perhaps being a smaller player in a larger market.
Someone in a smaller player in a larger market may be just trying to utilize us as a vertical to cross-sell into different verticals rather than focusing on how do they drive revenue for their whole organization and on a sports betting level. This is what leads to clear experience and ability to succeed. We are selective on who we choose, and a lot of our competitors will do deals that we perhaps wouldn't otherwise do. That just creates a technology debt and backlog that we don't want to have at Kambi. You'll hear a lot later about our product development focus. You'll hear about how we try and remain scalable throughout all of what we say. That's where you've got to be really sharp in who you work with. We only work in regulated markets.
We don't want to be in a situation where we're working with people who are in black markets. Actually, that approach, just to make this very clear, that fundamental approach is the reason why we were able to break into the U.S. so quickly. Regulators trusted us. They still trust us throughout we go in the U.S., and there's a huge power and respect for Kambi on who we stand for. That's the sort of focus that Kristian and the other co-founders of Kambi had from right at the beginning. That long-term perspective is the reason we will continue to be a thriving business going forward. That's something that resonates within our sales team. Look, it has to be scalable. We don't want extensive product requirements.
You've got to remember, this is a solution that's already been built to allow them to be empowered to do what they want. Just because we're saying something scalable and we don't want to build lots of stuff on top doesn't mean that they can't. We have some of the best API functionality there is in this industry. A lot of people that come to work with us recognize, hey, we can still build out a team. We can still build out a front-end team that can totally build something themselves. We can build out whole BI functions that will be able to derive what's best for our customers and push that through to them.
For us, we just want to have people that are capable of utilizing that and getting the best, because then we can help them grow, like I said earlier. So just to give you a bit on the sales-led approach. You can imagine we have one solution. We're not a modularized solution. We aren't trying to find just a quick route into a business so we can try and upsell it later. When we go in for an opportunity, we need to be able to prove to someone that they could outsource their entire sportsbook from the trading and risk management and customer service perspective to us, and build on top of that. That means our sales teams have to be experts.
I think in the last couple of years, if you've gone out and tried to hear and speak to people about, okay, what's Kambi sales team like, or if you've even met any of them, I hope some of you might even get a chance to have a beer with them soon. Naturally, they're always trying to challenge, and this is what we've got. You may have been aware of Challenger sales methodology. If you haven't, take a read of it. It works here. It's not going to work at every business, but it works here. The reason why is because we have that one solution, and what it includes in it is about challenging mindsets. It's about educating. What we focus on is that second point there.
Don't turn up for a meeting with a CEO or a Chairman or a board member or anyone if you haven't got something insightful for them to take away from it. They may not buy from Kambi then, they might not buy in the next three years, but if they come to see Kambi, they're coming to get some information and insight because they know Kambi really understands what they're doing. That's the difference. That opens doors. That's what makes us stand out. We're not there to just try and sell straight from the beginning. They will understand through our insights, do you know what, Kambi knows something that we don't. Even if they've got full trading solutions themselves internally, go, "Hey, I really understand that Kambi could help us here. Maybe we should consider things. Maybe we should take more meetings.
Maybe we should meet the CEO of Kambi. Let's have more conversation." That's what we try and do, challenge, educate, and build some constructive tension. A lot of companies, it's okay to just tell people how things could be done. I want feedback from them as well. We want to hear about what their threats and opportunities that they're seeing in the market. We also have technical experts. I think a fundamental part of what we've seen in the last couple of years is now we've got solution architects that sit in the sales team. Obviously, they provide credibility rather than the sales guys who just go in and maybe try and develop their relationships and try and break through the sales process. These guys are capturing our requirements.
That keeps us more scalable and makes sure that actually we are in a position where, hey, we can communicate our technological expertise. If you don't, we might be in a position where we end up having to feel like we have to build something where we don't, but actually our technology is already flexible enough for them to succeed. Obviously, we've been dealing with a lot of RFPs in the past, particularly in the realm in the U.S. We've obviously built up a team to be able to keep up to speed with that as well. Here's just, again, earlier I was talking about sort of our track record, why it's so impressive about how we can go up and we can talk about BetPlay and we can talk about 888 and we can talk about Rush Street. There's lots of these. We could have gone on.
I don't want to bore you now, if you do want to talk to me and get really bored, I'll be in the pub later and we can talk about this stuff over a beer, all right. There is so much experience of this that we can define and we can show people. Now to launch on the 1st of January with six customers online, I think we took our first bet for ATG just a couple of seconds after midnight. To launch 2,000 retail shops is an incredible feat of scalability and abilities defined by people to work throughout that Christmas period to make that a success. You've got to think at the same time we've been doing that, we've been launching retail locations all across the U.S., more so than anyone else.
We have had, as I say, 80% market share, B2B first to take the post-PASPA bet . I can't tell you what it means to us when we can walk in at G2E last year with everybody coming around to see Kambi and everyone comes to see us and go, "Hey." They trusted us. The DGE in New Jersey, because of our long-term focus, our scalability, our focus, integrity, trusted us. This company originated in Sweden with offices in Malta to select us to take the first bet. They didn't think, "Oh, should we let someone else who's been operating in Nevada first to come in and actually take the bet?" They thought we would be the best place to do that.
That's a real string to our bow, you can trust that this would be the sort of approach that other regulators across the U.S. will take as well. That's something which resonates a lot with our current operators, our current prospects, and it will resonate as was alluded to in Kristian and Cecilia's earlier presentations, that U.S. will strongly push other markets around the world to open up. If they look at things and go, "Hey, Kambi were first there," they may also be thinking about, "Hey, why isn't Kambi a really important player for our market when it comes?" This comes onto markets like Latin America. They're absolutely following and understanding what's happening in the U.S. This is just a certain region at the moment. These are huge opportunities for us right now, and they should be for anyone else.
There's going to be other markets to open up soon. This hopefully will be a very interesting market for us and for others. I just wanted to leave on this one slide and talk you through a little bit, just give you a lot of text to really get you going. In essence, these are two very well-known individuals in the U.S. industry. DraftKings, naturally, incredible brand in the U.S. and a superb partner for us. They both see us as incredibly important partners. We've enabled them to get to market quickly. We've enabled them, as Jason says, to be able to build their own front-ends capabilities themselves.
What you've got here is the combination of scalability, the probity, the flexible solution, all of these elements are very much at the forefront of how we sell and how we develop a good relationship, and how we keep scalable. I think if people like this in the industry are recognizing what we're capable of, and you see with our 20-plus operators across the world right now, you're going to see that we are in a very strong track to continue to grow really successfully from a commercial perspective. We had our greatest year last year. Who knows what the future holds for us going forward. You can see we're in a fantastic spot. That's me, and I appreciate your time. I will now pass you on to exactly all the information you need around probity and integrity. Thank you all for your time anyway.
Thanks very much.
Afternoon, all. My name is Oliver Lamb. I'm the head sports book controller here at Kambi. Unlike Kristian and Lars, I can't remember when I placed my first bet or ran my first book. My grandfather was a bookmaker at Newcastle Racecourse in post-war years. My father also worked with him as well. I can say I'm a third-generation bookmaker. Maybe the key here is I'm a third-generation regulated bookmaker as well. I'm here to talk around corporate probity and integrity and how we apply that to our operations. Now, one thing Kristian mentioned, was that we are founded in a way as a response to his prediction around an increasingly complex world that was facing operators, not just in terms of product and the technical systems that needs to be developed, but also around regulation.
We could see that the world was gonna change from the slightly gray map that we see there, where there were a handful of locally regulated markets, such as the U.K., Italy, or Nevada. That was gonna expand to see a large chunk of the map be locally regulated by individual states and nations. I guess the head-scratcher for operators was how are we gonna take our locally dominant position from the U.K. or Italy and apply that to Denmark and to Latin America and to the U.S., and change our product and get licenses, and scale our organization. Indeed, Kambi, when we first started off our early operations, we had just the two licenses in Alderney and Malta, which was all we needed or could take back then as a company.
If you fast-forward 10 years or so now to 2019, we're slap bang in the middle of that kind of regulatory complexity that was envisioned all those years ago. Right now, we as a company hold licenses in nine jurisdictions and counting, particularly with the U.S., which we need to support our operations. Whenever we can take a local license as a B2B, we will take one. Beyond that, we have a further 13 accreditations in different regulated markets where we'll support our operators by having our systems audited, and the regulators looking at how we are set up so that they trust us. We also have further certifications from industry-recognized organizations such as we hold the ISO 27001 certificates for our technical operations.
These are the kind of accreditations, licenses, and certifications that we need to be able to scale at pace and also to mainly allow our operators to scale at pace and to go into different jurisdictions, different countries, and allow them to succeed. Also, it allows us to show to operators in new jurisdictions who currently aren't with Kambi that we're the right choice for them. Now, we've taken our learnings and experiences from around the world and applied them to the U.S. We've taken a proactive approach over there. I think like a lot of overnight success stories, our progress in the U.S. has been 10 years in the making. We've been there looking at our product early on, even before we launched over there, making sure we were ready in terms of that.
Making sure that our organization was 24/7 and global so that we could supply the U.S. market correctly. We also took a proactive approach in terms of how we looked at regulation. Max was mentioning how we aim to build partnerships, regulators. It was on the 4th of December 2017 when the U.S. Supreme Court heard the oral arguments against PASPA. I'm sure you were all tuned in and realized that it was probably looking good for a potential repeal. That was December. In the first week of January, me and some colleagues we were on the plane, we went over to New Jersey, visited the DG, presented Kambi and who we are. So even a full six months before the online live environment launched, and eight months before we launched our product with DraftKings, we were in there talking to the regulator, building relationships.
Not just to get a license, as I say, to build a long-term lasting partnership so they could learn from us and also we could learn from them. We're open, we're honest. We know it's a new territory for us, we were looking to learn as much as we possibly could. One thing on our side was that we have got the transparent corporate structure, the secure systems, and the market-leading product that we needed to not just obtain the licenses, which is stage 1, but also to make a success in the market when launching our operators. One part of my role is because I work mainly on the trading side of things, but I do wear my lobbyist hat and go and speak to regulators.
I've been over there a few times in the past 12 months and continue to travel talking to regulators, legislators on panels and networking at events. We've spoken at the North American Gaming Regulators Association, NAGRA. You can write that down in your notes to shorten it. Also the National Council of Legislators from Gaming States, NCLGS. Again, much easier to write down. To build the right partners.
Even before we get a license, even in fact, before a state legislates or regulates sports betting, we can be there presenting, sharing our experiences from around the world about what effective regulation is, what a good product is, telling the legislators, the regulators our viewpoint of ultimately what they want to do is they want to succeed, they want to generate tax dollars in their state, and we can tell them what we think is the best way for them to do that. Obviously, we believe that means allowing Kambi into the state. We can share all the experience we've taken from around the world. I can show you now a map of which I'm sure you've all seen variations of this many times over the past few months.
We'll be looking to apply that same proactive strategy over the coming years as regulation rolls out westwards. As I say, we believe that our current approach is working for us in terms of we're successfully getting licenses. We've got four right now. We're in New Jersey, Pennsylvania, West Virginia, and Mississippi. We have the licenses. We've applied for a license in New York. Hopefully ready to go. We've never been rejected for a license in the past. We believe that we'll carry on obtaining these licenses. As I say, we aim to roll our strategy that we've been taking to regulation across the country. Believe that we've got the transparent culture, the product, and the systems to scale across that whole market. Another area I want to talk around, in terms of corporate probity and transparency, is our work on sports integrity.
Cecilia mentioned how there's 700 of us here at Kambi around the world. One thing that maybe wasn't mentioned was that if you want to be one of those 700, you've got to be a sports fan. We're in sports betting after all, we're all passionate about sports. I myself, big football fan. My claim to fame is I'm probably the only person in the world who's held season tickets at Real Madrid and Tranmere Rovers. Definitely anyone challenge me on that, but I don't think there's anyone else who's done that, the double. We take our approach to integrity in a similar way to regulation. We aim to be transparent around it. We aim to cooperate with the various stakeholders in the space. Some examples of the kind of partnerships that we've worked on and nourished over the past few years are here on the screen.
We'll work with regulators, of course, as mentioned. Obviously in the U.S., one of the buzzwords has been integrity in the past few months. Looks like we've all dodged the integrity fees, but we'll see about that. We'll be working with regulators in the U.S. as much as possible. They ask for every integrity alert to be passed on to them, and we'll be doing that. Already in Europe for many years, we've been working with the UK Gambling Commission, for example. We're in almost daily contact with their sports betting intelligence unit, sharing information, also receiving information from them and corroborating it. Likewise, in Spain, we've been advising the DGOJ over there, around their integrity setup, which is going to be launching pretty soon. Where possible, we have MOUs in place as well with sporting federations.
A couple there, a couple of the big ones there, FIFA and the IOC. If we do see something suspicious on events which are controlled by them and organized by them, then we'll be able to pass on that information directly to sports governing bodies. We also take a proactive approach again there. Not just the big organizations like FIFA, we'll also look at assisting the more nascent sports such as esports. We work with the Esports Integrity Commission, looking to keep those kind of new and upcoming sports clean of integrity issues as well. We work with international organizations. Example there is Council of Europe, also with the European Union, for example.
We've taken trips to Brussels and Strasbourg to share best practice of what we've learned over the years in integrity to influence not just the regulators, but also, in a way, legislation, how sports are governed themselves and how we can help out. The betting industry is not an outsider in the integrity discussion. We've got a lot to say and a lot to share. Finally, we're not just interested in the integrity of the sports themselves. We're also looking at taking active interest in the integrity of data. A large part of our sports betting platform, particularly in-play, runs on data provided by official suppliers such as IMG Perform, and we'll be in constant contact with them so that we can aim together to boost the quality of data which is entering our system.
Integrity as well as kind of a more strategic mission of ours as seen previously, it's part of our day-to-day operations. We'll be profiling every event and every bet that we see in our systems, not just from a profitability angle, but from an integrity angle. We believe that a sustainable organization should be doing that. You shouldn't just be focused on revenues. You should have all the things in place, particularly in terms of sports betting, so that you can detect, escalate, and hopefully even, if you can, prevent match fixing from taking place on your platform. We see it as a duty of ours to our operators, the regulators we work with, and even the end users, to keep our platform at least as free as possible from potential integrity issues.
Our risk management team and sports book control teams, who work every day on this, they're handling around about 15 alerts every week, sorry, of potential integrity issues. They can be flagged by our partners that we've seen just before, externally, or they can come from internally from our trading team as well, letting us know that maybe there's been some regular activity on event, and can we look into it. We'll, of course, escalate any kind of suspicious activity we see to those aforementioned partners. One thing is we don't just use that data just on a one-off basis and escalate it and leave it there. We accumulate all the information, and we have our own internal integrity database, and we leverage all that information, all the experience that our traders have, to inform and build our offering with integrity front and center.
We actually block around about 50 plus events every single day because we can't guarantee the integrity of them, and we haven't got sufficient information to say we can fully trust that event. Not to say that they're going to be fixed or anything in our eyes, but we'd rather focus our traders, our operations, and indeed end users on events where we can fully say that we can trust them. Looking forwards, we will continue to invest in integrity. We'll continue taking our proactive approach that we have to it. One thing I can say is also we apply transparency at all possible levels to our integrity setup. One thing is we supported our operator, Kindred. In 2017, they organized to have an integrity audit of their systems done by a company called EFISport. Naturally, we supported them.
With us doing the risk management and trading for Kindred, a large part of the audit was focused on us and how we're set up. We are proud to say that Kindred was given the result that they lead the pack on integrity it was said. We are very proud to give that result to Kindred, and we'll continue to apply those learnings, that sharing of information and cooperation, transparency, to our operations going forwards. We'll always be sure that integrity is front and center so that we can keep the sports that we love free from manipulation. Thank you very much.
Yeah, good afternoon, everyone. My name is Erik Lögdberg. I'm Deputy CEO for Kambi. I head up the product organization of Kambi. I will be joined here by our COO, Jonas Jansson, and our CTO, Andreas, to walk you through, well, the theme we're planning for today is about this, so successfully navigating through conflicting demands. I guess the way I think about our mission at Kambi and the product is really threefold. We're here to meet the demands of the end users and our operators on one hand. On the other hand, we are also here to really help grow Kambi's addressable market so that Max and his team has more opportunities to sell into.
The last part, building a bit on what Lars started with, in this rapidly changing technological landscape to future-proof our products so that we're also relevant in three and five years from now. Interesting in our positions then is that this often is really, it's about conflicting demands to meet all these three needs. We want to talk to you about how we address this at Kambi. Much of the focus will be specifically about our U.S. journey the last two years, because I think it's a quite good showcase to the capabilities that have been built up. Let me start a bit basic. What is it that we actually do? What does any sportsbook do? What do you do when you deliver this end user product called sports betting? You can look at it this way.
Somewhere in the world, 300,000 events per year is played in all various types of sports that may have some relevance to some end users to bet on. We buy data from all these events in real time. This data then streams into our system and our organization. There, we work with a mix of specialist traders and algorithms. We use that data to, for any really type of occurrence of what can happen here, to predict the outcome. I think we heard before, today we do in a month 480 million predictions like that, which is what we call oddstem. That's about 100 predictions per second. We actually don't think that we get this right every time. It is impossible to, at that scale, with a quite small margin, get that probability right every time.
That leads us on to the third part here, which is really a core part of what we do, and that's the risk management. In the life cycle of an odds as we publish it on the site, a lot of new information comes. You have bets being placed, you have market movements, you may have injury news, you may have a really big bet, or you may have a really high accumulated risk for one operator. Our risk management is about really optimizing at all times the price given this new information that we get. At the heart really of risk management for us comes what we call player profiling. This is about for every end user really that does something with our product, we build a profile of future profitability of that player.
In around 98% of the cases here, we don't really act on the information from end users from a risk management perspective. Around 2% of the players, they actually come with new information to us that we use in the trading to adapt the price.Finally, the last part is, of course, is channeling this out to the players. Packaging this big offering in an exciting and intuitive user experience. You have the mobile client, the retail service terminal, the desktop. I think over my years at Kambi here, I think I've learned that it is challenging in itself to optimize and reach perfection in one function. That is a challenge, but it's totally doable. Really the big challenge is making all these parts work really well together, and I think that is one of the key reasons to our success at Kambi.
More specifically what I'm thinking about, we have always looked at this entire chain. Ever since I started in 2005, we have looked at this chain being about one thing, and that's not about margin, that's not about accuracy and probability prediction. In the end, it is about user experience. It is about delivering entertainment. Our quant analysts, for instance, they're not tasked with the theoretical challenge of only predicting probability. They're tasked with the challenge of delivering a fantastic experience. If you think back of Kristian's example of the football penalty. We come from a UX experience. We do want to keep this open at all times. That is a real good experience, and that's where we come to our traders and mathematicians with, "Can you solve it for us?" End to end here, we're really thinking about user experience.
We're as much measuring our traders and algorithms in the type of entertainment value they deliver, that drives turnover, as much as we're measuring on the actual margin that they're predicting. Moving more on to B2B context then. That's about scaling this up. For us, scalability is one thing about scaling to new customers. It's about scaling to new end users, scaling to new continents, like U.S., scaling to new channels. At all time, what we really want to protect is what you saw on the previous slide there. We want to protect that core product. We want to make that better and better and better, and we want to move forward at pace. That's the sort of contradiction here. Handling a massive growth while still maintaining a scalable core for us.
One big, I think, challenge of scalability, and limitation you may say, really, as from a B2B perspective, we discovered around 2014. That is about differentiation. Back in 2010, the one word really to sum up our strategy was scalability. Around 2014, 2015, we had to evolve that, and we had to add really differentiation to it. We still want to stay true to this scalable model, but we needed to try to find ways where we actually can open up this platform and this technology so that each operator can become unique and really drive towards their unique strategy. Today, we think about our this is not product strategy, this is really our entire business strategy. We think about it as scalable differentiation. Differentiation for us then is, it's a very deliberate approach.
We're not really opening up this core that you saw in the beginning. That we believe needs to be done as an end-to-end chain, really, that we have control over. All other areas, most notably the front end, there we invite our operators to come and innovate together with us. I think the biggest change that has happened for us here the last four years is when we really moved over from delivering a service, including a front-end client. We then started also delivering a service where you don't need to take our client. You can work directly on our APIs. You have our full product, either end-to-end with a mobile and web client, or you can work directly on our APIs and create this yourself.
It is only, I will say, the last really one and a half, two years that our operators they have started building up their own organizations. In some cases, like with Unibet, I would say we build half, they build half. In the case of DraftKings, they have more or less built everything themselves. Say something more about this scalable differentiation. I think the easiest way to think about this as a strategy is the desired outcome that we are looking for. We say that we really achieve this if we win significant operators with unique strategies at a premium price point without having to do bigger changes to our roadmap or organization.
I think that is really when we think we have managed to connect all three parts from the core product, to scaling it up, to adding the differentiation, and all the way actually to aligning sales strategy and product strategy. That is what scalable differentiation is about. I think it is important to know that this is not only about product, it is as much, I think, about our sales department really working for us in product and vice versa. Protecting our platform, selling what we are really good at. Moving over to U.S. I think if we become a bit less theoretical, U.S., I think, is really a good use case to look at when we see, I think some of these capabilities in action. That made us manage to launch as number one in New Jersey and now leadership positions in U.S.
I will hand over to Andreas to talk about the first two challenges here about going and scaling into a new continent with multiple new regulations, as well as scaling into a new channel, the retail channel in the casinos. Then Jonas Jansson will talk to you about the new end user, the American end user, serving their needs.
Thank you. My name is Andreas Söneby. I am the CTO of Kambi. I am going to talk about the two first challenges. In order to do that, I will need to spend some time in actually telling you the story of how we came to this capability. Like the slide Oliver showed previously, we started with pretty much a gray canvas. There was dot-com operations pretty much all across the world, in particular within EU boundaries anyway. Regulation started to happen. Italy was first. Back then, we were still part of Unibet. We did not do anything in regards to Italy. We launched, but that was entirely outsourced. Then France happened, and that was quite a significant impact for revenues for Unibet at that time, because the business conditions were quite detrimental versus what they had been during the dot-com regime.
We realized that this is something that we really, really have to be able to deliver on. We started to work on this, and that made us able to launch sort of a regulated solution for Denmark back in 2010. We actually managed to switch Italy from an outsourced solution into in-house as well. Back then, we were maybe five development teams, and this took a significant part of our development capabilities just to be able to deliver a new regulation technically, process-wise, installing servers, setting up APIs to regulators, et cetera. We started to hone these skills, and we were able to launch in Spain pretty much until that market opened up. It was also the first time where we really saw that going into a regulated market is an excellent business lever.
The first customers we signed, apart from Paf, was actually Spanish operators. I think the first three operators were actually Spanish. Fast-forwarding a bit, I might say also that this is regulation from sort of the Kambi standpoint. Northern Territory was regulated way before Kambi was started, so was U.K. During the years from 2013 to 2017, we launched in quite a few different continents and countries across the globe. South Africa was probably where we ended up in a situation that made us able to launch in the U.S. because they have a very difficult regulation in the sense that you have to strike the bets in South Africa. A lot of our business model centers around not being forced to do local deployments.
We want to maintain the core, and sort of not having a separate install base just to trade in South Africa. That would never make any sense from a business point of view. Our entire business is high volume and low margin, so we have to really take care of the sort of the underlying fundamental capability of our company. We had sort of honed our skills, and we were actually able to create a component specifically for South Africa that made sure that the bets were stricken in South Africa. That capability was like the perfect solution for New Jersey, Pennsylvania, and onwards. We started development early 2017. In the end of 2017, maybe Q3, Q4, we realized that the Supreme Court hearing in December, this is probably going to happen.
We always thought that this would someday happen, but it became more or less a very high probability that this would happen in December 2017. We started, as Oliver said, we started to talk to the regulators. We showed the solution we had in order to sort of scale our business into new states, having the capability of actually strike the bets in state. We have the additional complexity with the Wire Act in the U.S. as well, so we were honing our skills a little bit more. This has really put us into pole position for launching anywhere. We did the U.S. pretty much at the same time as we did Sweden and a few other regulations. The scalability of our business now in terms of our ability to launch into new regulation is almost unlimited, actually.
We need to deploy a small level of infrastructure in any new state that has this requirement, but it's kind of a copy-paste operation. We can do this at speed. There might be regulations that have more stringent or quite different regulatory requirements, we have to do some development. For the most part, and so far in the U.S., we've been quite successful with this capability. We're looking forward to the 40 or so states being regulated in the next few years. The second challenge was retail. We've been running retail for quite some time before entering into the U.S. market. Our core strategy has always been to build on our core capability in terms of sports betting and the online experience. We're trying to bring whatever we do online into the retail space as well, with as little adjustments as possible.
In order to do that, we had to be firm about where our service starts and ends. We're not doing any hardware, but we're really good at integrating into the hardware that you need in a retail operation. We do APIs for those who already have a massive install base of over-the-counter, or for retail outlets like ATG in Sweden which is the trotting monopoly. That made us able to actually launch 6 on-property sportsbook in the time span of just a few months in the U.S. New Jersey first, I think 5 or 6 installations in Pennsylvania over the course of 2 months. They're all different, but they're yet the same Kambi underlying core product. At the same time, we launched with ATG 2,000 stores, 6,000 interactive terminals. As said, I'm going to show you a short video of that later.
My main message here is that retail is not something that's kind of just bolt-on to an online service. We're doing retail really well, actually. This is a movie from a launch at Parx Casino outside Philadelphia. One of the things that many U.S. operators, U.S. casinos were quite skeptical about was our take on retail. We have sort of a self-service view. We have the kiosks. That was quite a foreign concept for Americans. They were very sort of till-based. You go to the over-the-counter, you place your bet, you get a paper slip, et cetera. We were emphasizing the ability to scale the sportsbook business with American operators. You can imagine a place like this being absolutely packed when any Philadelphia team is playing.
It's going to be hundreds of people, more than willing to place a bet on anything during that game. It can be quite crowded. Without having the self-service terminals, it's massive queues. I don't know if you've been.
Today I'm going to.
That was a demo. I'm not going to show that. For ATG, which is the horse racing monopoly in Sweden. We launched 2 minutes past midnight for all their online and retail service. They're using this concept of wallpapers, interactive wallpapers, where you can browse their horse racing, which is very own internal. At the same time, you can use the Kambi sports betting, which is powered by Kambi, built on our APIs. It contains all the elements of our online service, but it's brought to the retail channel. In Sweden, you're not allowed to put cash into machines. You have to go to the teller. You go to the teller, you pay your bet. You have a QR code on the bet, it's automatically scanned and being placed.
We're also trying to bridge the gap between retail and online. Obviously, U.S. being a market where retail is kind of going first in most states, it's important for us and for our operators to kind of familiarize the audience with the notion of online betting. Again, it's quite a lot of people at the sports book at large events. We have built this solution where you can actually find your selection. You can place your bet or at least create the bet slip, and that creates a QR code that you can go to the over-the-counter and just show that. It's being scanned, and you pay. There's no sort of selection process taking place at the till, but you're sort of speeding up the process of actually placing the bet quite a bit.
You can also use this capability, obviously, for on-prem mobile betting in the U.S., that usually means that you're at the casino within the casino compound. It's not online in the sense that we think of mobile betting. You can use a solution like this as well. You can have hostesses or hostess to walk around the casino floor. Someone can select their bet and just scan that, hand over the money, and your bet is placed. One of the things that we have done in order to be able to do this is obviously to streamline the launch process for our ability to launch 6 or 7 casinos in a short time. One of the things that we've spent a lot of time on is actually improving the launch process as much as possible. It's quite a large operation, including logistics and configuration, et cetera.
We're at the point right now where we could, for an operator that has sort of already an install base and want to go into new casino, just send them a USB stick, really. For them to just plug it in, it will automatically configure itself, connect to our services, and be up and running within a very short time frame. The latest launch for Parx in Pennsylvania, we were practically not involved with. That's not to say we're sort of leaving our customers to their own luck in terms of installing this, but we want to make this process as seamless and as efficient as possible. We're looking forward to more states regulating and more casino properties opening. Now I'll hand over to Jonas Jansson.
Hi, my name is Jonas Jansson, and I'm COO of Kambi. I going to talk you through what we have done to deliver for the new end users in the U.S., but also what we are continue doing right now and a bit in the future. Of course, I will not dig into everything, but I will take snippets here and there so you get an understanding of what the challenge has been. At the same time, I also hope we can get an understanding of how kind of strategically we are looking into when we develop the product. I want to reiterate one thing that Andreas said around the self-service terminals. I was visiting Parx last week in the U.S., and it was 3:00 P.M. Wednesday, so it wasn't super busy in the casino, but the self-service terminals were busy, and over the counters were totally empty.
The CEO of Parx Resort, he just come to me and smiled, and he thinks it's excellent because, of course, that's increased efficiency for them in the casino, the more people that go to the self-service terminals. Localizing the product. First of all, we have been doing this in the past. We've been localizing products for Colombia. We have been localizing for the U.K. and so on. The U.S.A. is a bigger challenge, first of all, because even though sports betting has been legal only in Nevada, it really have a different look and feel, a localized sports book. From that aspect, it's a little bit more challenging. Also the importance for us because the market will grow and be a big part of our revenues.
What we have done when it comes to the localization before we went live is a lot of things here. We have obviously changed the odds. We have changed how you present the different bet offers. You have the home team after their home team and so on. It's changes to the clock, to the terminology, and bet types. I think one interesting part to look into is what we call teasers. In the U.S., they have the concept of teasers, where on the main line you can add more points. That's built on a table, so it's not really built on the actual odds. For us, either we could have the choice to just copy what was existing in the U.S. market at the time, or try to utilize the handicaps we already had, because today we are already pricing all the handicaps.
Add four points in basketball or six points in American football is nothing new for us. Because of us doing that, it became more of a front-end challenge, and we didn't need to go into the back end and change the actual calculations. Because of that, we were saving time when we built it, and also we could brand the Teaser+ because on average, the end user will get a much better odds with our solution than they get with the table. This is ways around scalability that we need to think about when we build it to do things in a clever way.
This will not be used in Europe maybe, but we utilize the product we already have to do it in a better way in a new region. During the time now, we are doing a lot of UX research, both ourselves and together with our partners. The localization has at no means stopped here. We will continue to build and make our product more and more American for the American users. I think we will go in now to the next slide and look more to what we are doing now around the offering and see what's happening there. Of course, when we went into the U.S., we also had to increase our offer, especially in the American sports. This came at the same time when we saw that we really have to update our trading platform.
The reason to do that is to get a more holistic trading platform, which in between what we call the core sportsbook, in-event combination Bet Builders, and also player specials. I will not go through the player specials in this session, but you think about it as a third one. Strategically, we chose then, as so much is happening in the U.S., to focus mainly on the U.S. sports together with soccer. When we look at the core sportsbook, this is really our trading system. It's now an integrated system pretty much alive. This is, of course, not our first version. It's our fourth version of trading systems. We have, as of now, rolled out baseball and basketball in production. They are not fully finished yet.
We will continue to develop on them to add features all the time, but baseball and basketball is out in production. That's why they are green. American football will be out with a new version before NFL starts in the autumn, and then we will do soccer and ice hockey at the later stage. From a quality perspective, Erik talked about that when we look at the products and the traders, we don't only look at the margins. Important aspect of it is to evaluate the quality of the product. After releasing basketball, we have seen up to 50% improvement in the KPIs we are following from a UX perspective. That's one reason of it. The other reason is for us to be able to increase the number of events that one trader can handle at the same time.
This will also continue to increase the efficiency in the operation we are doing. For next season in U.S., it depends a little bit on what feeds we will have, but we are prepared for college basketball to offer up to 5,000 college basketball events next year. This year, this season, I think available feeds were around 3,000, 3,500. It's also an expectation that the feed providers will cover more events. In college football, we will be able to cover up around 800 events next season. On the professional sports, NFL, MLB, and so on, we of course, cover all events in live betting. When we develop these new trading tools, it's not only about the tools. A huge aspect of it is the modeling.
Same here, it's not the first version or first iteration of the models that we are currently using for the American sports. Last season, we went live with a new American football model, and the ambition is to have a further upgraded American football model before this season start. Baseball, we are just now rolling out a new version iteration of the baseball model. All of this, we are doing, of course, to improve the user experience, but also to be able to offer more markets. The last few years, we also started to look more into machine learning models in order to add predictive capacities into the models. For pretty much, we have been live with certain leagues for up to two years now, where it's really the models who are pricing the markets and the trader is just overviewing what goes out on the site.
We also, to oversee this, have a big team of traders, and I want to cover a little bit about the American office. We're in the process of opening an office in Philadelphia. The long-term aim, what we have is that we should not increase the trading team. That should stay as it is, and long-term, be smaller. Now, when we are opening in the U.S., what we look for a lot is Oliver's team, sports book control, and the risk team to have people in the U.S. to get them closer to our operators, because that will support in the service level we can give to them.
We are also looking for specialist U.S. traders, and that's to complement the U.S. trading team that we have in London and other places. I think it can be interesting as well to talk a bit, when we look at the U.S. trader, what are we looking at hiring? Because that might not be exactly the same as another bookmaker or trader look for. We're signed now, I think, three or four traders or odds compilers who will start when we open the office. The profile of the first trader we hired was, he's just graduated from an Ivy League university. He has been playing baseball on the university team, and he has a high analytical capability. From my opinion, it's fantastic to be able to hire that kind of people into our organization.
That's something we have seen in other locations, especially in London, in the past as well, that it is to be in this industry, you can attract super skilled people from university who are interested to work with sports, and that's the biggest passion. It's a good place to be in. The next part of the trading platform is in-event Bet Builder, is the possibility to combine different outcomes within an event. We have released that for soccer now, and we have these three American sports in train. They will be, in the first step, a little bit more simplified version. It will not include player specials and so on, but it will be the possibility to combine the main bet offers.
I will not go so much into detail into the Bet Builder and exactly how it's built, but I think in the next picture, I will point out a couple of interesting pieces, and here I will reflect on the UX research. Now when we talk with end users in the U.S., they can't understand that this hasn't been possible, because that's the behavior that has been in the U.S. It's partly driven because the offering has been much smaller than it has been in Europe, it's fairly easy to do these kind of combinations. While in Europe, if you look, the offering has increased this much, now we are trying to do this afterwards, and that is not always so easy. I will go into, we can have a look at our Bet Builder and then afterwards look at the challenges. Yeah.
This was supposed to be an animation, but I think it works very good in this way because that's what I need. You can populate here with three different bet offers. Tottenham to win, total goals scored, and both team to score, and then place that combination bet. One thing that the challenge is here is from a technology and a model perspective, the performance needed to ask for this combination. A normal bet offer, you can save down the probabilities in tables, and it's readily available when you want to place the bet. Here, it's so many different combination, and each of them is unique, you run into kind of a performance problem when you're going to ask for this each and every time.
The second one is, here it had been a possibility for us to outsource this part of the product and use that one in conjunction with our core. However, as we see this is now, it is a different tab up here. That is just kind of front end because that's how they are used to present today. This is not necessarily how it's going to be in the future. In the future, Erik talked about the core. This will be the core. If you looked at the U.S. user that we talked about, they are used to combine everything. Why would that not apply to the European user, even though the offering is much bigger? For our core, we need to be able to handle this and build that internally, that's a product development decision that we can't outsource.
It's something we need to be able to build internally. We have talked now quite a bit about what we have been doing and what we are doing. I would also like to just finish off with a video. The product we have today is pretty good. It's a video of NBA playoffs last year, and it's same as NBA playoffs this year, and it is the instant betting product for basketball. If you follow the video, you will be able to see how you can bet on in each kind of possession on next field goal, and you will also have player specials on the most kind of famous players in each teams.
A whistle off the ball. First foul-
There you have the next field goal
Shumpert picks up his first. James getting a rest. What a start. 15 points on seven of eight from the field. Hard screen set on Shumpert. Curry has love on him. Pulls back, fires a three. Knocks it down. Steph Curry with his first field goal. To me, you've been trapping him-
next possession, you can add on next field goal and bet straight again on it.
That's a finals record.
something Kristian showed in the beginning, the penalties. If you go back in time, in tennis, we were the first really to produce the games and the points in the play. For a certain segment of our play end users, this is something they really like. It's also something that pushes us all the time to offer a really good product. I have a quite interesting anecdote. It was Oliver, when he talked earlier, he mentioned that he was traveling around in the U.S. having some presentations as different regulatory events. I'm not sure which one this was, but I think it was early autumn last summer.
The day before Oliver and our legal representative was going to have their presentation, it was a CEO panel in the U.S., on that one, it was one CEO from a company who mentioned that we can't offer live betting on basketball because it's too fast. The day after, Oliver and Tommaso showed this slide, of course, we can offer live betting on basketball. It's just about the setup you have, we promise you that the players in the U.S. will love this product as much as they do in Europe. What we have seen so far is that the proportion of turnover on this market is actually slightly higher in the U.S. than it is in Europe. It works there as well. Thanks a lot.
I will talk through about, I think, our top three really capabilities that we're now focused on building up. Think a bit more, probably three to five years that we want to prepare for. Number 1 for us, it really ties in a lot to what Jonas is talking about. We phrase it as making algorithms and data first-class citizens within Kambi. I think us, like many other companies, we've for some time run around like headless chickens, wondering how AI will change our business and our industry. I think we've stopped with that, and we're not focusing so much about AI. We're really focusing down to the actual data and what that will mean. It becomes, I think, for us in our industry, it becomes quite obvious how this will change.
It comes down to back to our core, the probability prediction and the user experience and the risk management. As the data becomes richer and richer, you and your competitors will be able to make better and better predictions. As the data becomes richer and richer, you and your competitor will be able to offer new, interesting experiences. I think what the video we saw before here is probably cutting edge of what's possible today with the data that is available from an offering perspective and to be able to predict those probabilities. This is changing rapidly. We have some companies now with image recognition, they are able to set the fatigue level in NBA players. Obviously, if you do that right, that can drastically change the odds compared to a human being just watching the match when it gets that rich.
You have several of the leagues now starting to discuss putting a chip in the puck or in the ball. There's probably some political hurdles in that definitely will happen as well. We have looked at an API from one league where they actually give us the XYZ coordinates of the ball or the puck, wherever that may be. They update that, I think, 200 times per second. You get all the players and the rotation of them. I think anyone is quite far away from having the capabilities to utilize this in sports betting, I think for most industries. For us, it's obvious that this change is happening. Technically, process-wise, people, organization, we're really moving towards where the algorithms really becomes, I think, a first priority for Kambi.
This is really paving the way for algorithms to be developed, to be tested, to be enhanced, and really to be using the data that is available. Second 1, large scale agile development. We talked before about more or less doubling the number of development teams over the past 18 months. We're increasing that again this year with another 35%. I guess when you're 10 development teams, what you need to be really good at is asking them to build the right things. When we're getting closer towards 40 and 50 teams, it becomes possibly even more as important to actually how you work with these teams, how you have 50 teams on one product that Kambi really has. We don't have really distinct separated products.
We build one sportsbook, so they're all dependent on each other. We work really hard now on trying to figure out for the future, coming 50 development teams, how will this actually work? Again, from a people, process, and technology perspective. Last capability I wanted to mention is around an ecosystem to help innovation across the industry. We have identified that the enabling technology we have built out for the differentiation we talked about before, the APIs to build your own user experience, the bonus systems, the flexibility our operators have to adjust the prices, still based on our core of trading and risk management. Today, our operators are using this. We think that this can further evolve to become a really powerful ecosystem. We're actually probably back to where Kristian started.
We didn't go into B2B sports betting to be an alternative to cut costs or to help failing sportsbook. We went into this to really, in the end, deliver a model where better user experiences can happen because of the outsourced model, because of more efficiency in the outsourced model. Delivering more end-user value, basically. We think of a bit, the development we have seen in the sportsbook up until now, it's quite linear. It is quite slow. It is smaller adaptations and improvements like the live betting come around 2005. Many regulations open to the end user value. Five years later, you're adding mobile, you're adding cash out, and now probably the most recent one in terms of innovation to the industry is the Bet Builder. It's not a rapid change, and it's not a huge change.
It's still about placing a bet on your team and see if you win, although it's changing with live and mobile, the channel, of course. What we saw already in 2010 was that a big reason that this is not happening so fast is that everyone is doing the same thing for themselves, more or less. You have around 20 or 30 or 40 sportsbook. They're all building this from the bottom up. They all have to go through the heavy lifting of becoming compliant in Italy, and then that next regulation, then adding this to the mobile channel, et cetera. What Kambi was all about was really let us do that heavy lifting, and we open up in the UX, and other areas, open up with the data so that you really can bring something new to your end users in the end.
This is around that ecosystem and this capability that. Again, it's about the process, it's about the collaboration, about the co-creation with operators. It's about inviting more third parties to really utilize the powerful platform that we have built to come innovate together with us to springboard the innovation. Yeah, that's it for us in product. Thank you very much.
Good afternoon. I'm David Kenyon, CFO. I guess today we've heard about people and culture, we've heard about our sales efforts, we've heard about our work with integrity and probity, we've heard about product, we've heard about tech and retail. I guess I'm trying to tie it all together here and see what it's doing for our business model and for our financial prospects moving forward. Let's start with revenues. Our revenue model is predominantly a revenue share. I'd say around 90% of our revenue is coming from a revenue share, and that's us taking commission on the stakes of our operators, less payouts, less gaming tax in regulated markets, and in some contracts, capped deductions for free bets, incentives towards player behavior. We take a commission then on that.
There is then approximately 10% is additional from fixed elements of revenue and some recharges for live events data. Some facts and figures in our most recent quarter, 71% of our revenues were from regulated markets incurring the gaming tax you see there. Operator GGR, gross gaming revenue, was up 46% on the prior year. After all these deductions, growth of 36% for the operator, NGR became 28% for us, so 76% conversion. Just some of the metrics we look at for what's driving our revenue. You may have seen this index we present every quarter. It really shows in blue the revenue growth, or sorry, the turnover growth of our operators. Starting at 100 back in Q1 2014, growing four times to 398 in our most recent quarter. This is an aggregation of all the stakes placed with our operators.
The second part driving the gross gaming revenue is the margin. Here you see the orange line. It fluctuates a bit. I'll come on to that, why it fluctuates and why it's a little bit hard to predict sometimes. Really the main message here is the continued underlying growth of the business. That's our existing operators growing faster than the market. There's new operators are adding on. It's regulatory developments which open up new potential revenues for us. There are seasonal impacts in our business, probably more than many businesses. In particular, football and NFL seasons are important for us. That's very much Q4, Q1 focused and halfway into Q2. Then every second year, we have a major international football tournament, can be very important and can make or break the result for the quarter.
I wanted to give a bit more detail than we have before on this operator's trading margin. It gets a lot of attention when we present the results. We internally have a bit of a different view on it. It can really fluctuate short term. What this graph is showing is a range over the last two years on a rolling weekly, monthly, quarterly, annual basis in that last two years. What's been the highest and lowest trading margin we've seen? Well, on a daily basis, the highest was just under 33%, and we've had a minus 15% day. You can see kind of quite huge fluctuations on a daily basis. As the time period gets longer, the range gets smaller and smaller. Yeah, probably our worst rolling week's been 1.5%, our best 14%, so the range of 12%-12.5%.
That narrows on a quarterly basis, 2.5%, or 3.5% range, and down to under 2% on a full year basis. I think the main message is the way we looked at, we don't worry at all these short-term fluctuations. The real focus is on growing the turnover of the operators through new signings, through growing them, growing the existing ones as fast as we can, and the margin will ultimately be steady. On a long-term basis, over the last 24 months, it's been 8%. There are lots of factors which impact this margin, which can make it, of course, quite hard to predict on a short-term basis. Firstly, different products and betting patterns in the different geographies we operate in. We saw Jonas talking about the Bet Builder product. That's inherently an accumulated product, which will drive higher margins.
There's something where we're offering, which will slightly change behaviors over time. The customer portfolio, you've seen mention of customers in Colombia, U.S., of course, across Europe, we have customers in Mexico and Cambodia. In every location, they have different cultures, different betting cultures, and different betting patterns. As that evolves over time, that's going to change essentially our margin. Price differentiation tools. This is basically us giving our different operators the ability to change the margin based on the probabilities that the odds compilers are giving. That can actually push the margin up or down, depending on whether the operator wants to be aggressive and be able to market a particular event with a high payback, or if they want to be conservative and take a high margin.
Finally, mention to the U.S., just in its own right, could change ultimately the trading margin for the group. Likely to be a slightly lower margin, potentially than Europe and other places where we are currently. Typically due to more singles betting and no draws in the major sports there. Yeah, lots of pushes and pulls on the margin. We're going to have to monitor it. We currently guide on 6.5%-8%. I think some of these, as different parts of this business become more important in that, we'll decide if we change that guidance. One big point to mention is the correlation between the turnover and the margins. If there's a high margin in a given quarter, that can really suppress operator turnover, and vice versa. A low margin can lead to higher turnover.
Yeah, I'd say our main message on all of this is we stick with the guidance for now, and if there is a short-term fluctuation, we don't worry about it and we hope you wouldn't too. If we look back since the start, our revenue's been growing around on average of 21% a year, 23% last year. Like I mentioned before, the same factors are going to apply for future revenue growth. Can we grow our existing operators and how fast? Can we have new operators? What regulatory developments are going to change our outlook? What's the tax rates in those jurisdictions? We do look on regulatory developments as a kind of a double-edged sword. Yes, it comes with a tax, but typically comes with sales opportunities as well. Our costs are going up around 18% since we started.
I'd say that's really a deliberate level of investment that we've had since the start to build the market-leading sportsbook. Without doing that, we wouldn't have been able to sell to the 25 operators we've sold to so far, all the great stuff you've heard about today, that's all driven by that deliberate level of cost growth. We have actually raised our cost guidance slightly going forward, 46% quarterly growth. I'd say that's a continued building of the sportsbook in line with what you've seen historically. Now we have this additional factor of regulation in the U.S., which is, for now at least in the short term, driving additional costs. Very important to say that the majority of our cost base is fixed, we'll come onto the variable parts shortly, but really everything you've heard about today is predominantly a fixed cost element.
There isn't a direct cost link between our costs and our revenues. As we grow revenues, that is not per se what's driving the cost growth. Our cost over half is staff costs and amortization of previously capitalized staff costs. The rest is the office, it's marketing, it's travel, it's data to support the live events. What are the 57% of our costs doing? The largest part is operating a market-leading sportsbook. It's the traders, it's the odds compilers, it's the event settlement, it's the event schedulers, it's all the IT support. You've heard today on all these different areas of the business which are driving additional costs. Expansion of offering for all operators. You've seen all the elements of user experience. Automation is work to make us more efficient internally. Differentiation is the APIs that the other guys talked about.
Retail, you've seen a whole piece on our channel expansion into retail. This is something we didn't do a large part of when we first started, it's really developed a part of our business and of course, that brings costs with it. We expand into new markets. We've seen listed here some of the main ones, the U.S., South Africa, South America. We integrate new customers. As when you're signed, it's a relatively small chunk of variable cost. It's fairly quick and easy. Yeah, part of our resource goes into that. Our scalability is really a critical part of our business model. The variable costs I talked about, the largest part is the live events data. That's additional live events costs when we take on new operators. We do recharge those costs.
With our new operators, we have account managers and technical support and any travel to the site to support those operators. As I mentioned, integration costs are limited and we use existing resource, so it's not new costs for the business. The critical thing here, and this has been the principle that we've had since day one, we provide one service for all operators. We're not building new elements for new operators. That impacts both in terms of product development and the trading side of the business. It's a very scalable model. There's been a lot of focus, of course, on the U.S. Are we also scalable in the U.S.? Yes, we are. The slight cost increase in particular is driven by these upfront costs for new regulations. Due diligence, advisory fees, lawyers' fees, some local technical setup, so servers within state.
Jonas mentioned, we are opening a new office in Philadelphia. That's our kind of local support for our partners out in the U.S. and some deeper expertise on those U.S. sports. But in principle, the cost of setting up a new operator and the scalability I've talked about applies equally in the U.S. as it does in Europe. These are costs that we actually don't mind because as soon as we have a commercial deal in a given state, we'll be generating revenues from day one. I mentioned, we've from the very start had a deliberate strategy of investing and continuing our cost growth and that's really to build some clear water between us and the competitors. We think that the setup we've got is extremely scalable and we're going to carry on with it.
We've got a really strong platform for this in terms of our strong balance sheet. At the end of Q1 we had net assets just under EUR 61 million with cash EUR 33 million. We do capitalize our development costs. We had net intangibles of EUR 13 million at the end of Q1. That's capitalized costs from development projects which we've taken over three years. We're cash generative. We made EUR 8.6 million extra cash in 2018 with a very high conversion from net profit to cash flow. It flows pretty much directly through to cash. One of the reasons why we've been so keen on building a strong balance sheet is for the impact it has on our commercial sales cycles. It's often the first question asked by operators. What's your balance sheet?
Are you going to be around for five, 10 years to support us? Clearly we want to be able to answer yes. That along with our transparency as a listed company are two of the big factors that Max and his team use in the sales cycles. I think overall this strong balance sheet gives us a very high level of flexibility as we look forward, whether it's M&A or other uses of cash. This is our EBIT development. EUR 12 million last year and you can see the revenues been growing at a higher pace than the costs. These growth and profits, that really enables us to build this clear water I've talked about to our competitors.
The cost growth, like I say, has come from the start and it's everything you've heard of today, from the regulation to building out the sales team to the tech and the products and the retail developments you heard about. I think now we're in an extremely strong position to take the business to the next level. A wonderful customer portfolio, a market leading product you've seen examples of today. Oliver talked about the regulation and our approach there. I think we're in a really strong position from a regulatory point and the scalable business model I've described here. I think we're in a fantastic position for the future. Now I think it's a Q&A and we have