Operator: Your next question comes from the line of Adhir Kadve with Eight Capital. Your line is open.
Adhir Kadve: Thanks guys, good morning, and congrats on the quarter. Lots of new content in New Jersey and Michigan. I’m just wondering, can you give us early feedback on how this content is being received by the players and by the market?
Yaniv Sherman: Yes, so we’ve had a good initial experience. Just a small group of these games have gone live in these markets, still a subset of obviously games since November through today, and we’re looking to redeploy a few more batches inside Q1 and then Q2. The initial results are encouraging in the sense that every game that we’ve put out there has made an impact, and specifically with the leading gaming operators that we deployed them with – I’m talking mostly in GGR and activity levels, and it’s now about two other factors that we need to make sure that we consistently improve. One is positioning these games because we are well accepted, but then we need to make sure that they are promoted and positioned in a way that will keep activity high, and that’s something that we’re working with the operator towards.
The second is cadence, making sure that we release those on a steady and well-communicated plan. That saying is also very relevant to Europe with the larger operators, so creating that visibility and road map into the second half of the year is very important, and I think that would create a long-lasting effect. But the initial signs show that the games are working and they’re gaining traction, and also gaining appropriate attention from the operators, and that’s what we’re looking to build as we scale up.
Adhir Kadve: Okay, thanks for that color. Then just on the back of that, are the games that you have, for example in New Jersey and Michigan, are they easily transferrable into markets like Connecticut, so if you see very good results in New Jersey, do you require a lot of investment into the games to launch them into a new state or potentially a new country?
Yaniv Sherman: New state, no. Because the games are consistently across the U.S., the only thing–the main thing is certification, which means each state requires a slightly certification process and with the operators, so once the game is live in one state and certified in another, it’s pretty streamlined or–I wouldn’t say easy, but it’s more transferrable. Other markets, games from the U.S. into Europe and vice versa, it’s not as trivial as people initially thought – that’s the reason why we’ve structured this market specific or, let’s call it, continent specific. Some U.S. games are accepted well – we’ve seen some Atomic Slot Lab games received well in the U.K. and other territories, but generally speaking, we’re trying to cater for each market, and if we get the benefit of transferability, that’s great, but we assume that the players in each market sort of have their own tastes, especially when you talk about central Europe versus the U.S.
Adhir Kadve: Okay, excellent. Maybe one last one from me and then I’ll pass the line. GGR generated on the platform was fairly high this quarter at €5.1 billion. I assume a lot of that is on the back of transactional activities from the World Cup, but can you give us a second order of benefit of that – when you see these people coming on the platform transacting, playing games, how do you kind of leverage that into the future, and how does that help you guys as a group?
Yaniv Sherman: Well, a lot of it is with the operator. We provide them with the tools, but at the end, it’s always a game. The World Cup generally is a big acquisition event, but as I said, we were pleasantly surprised at the gaming activity, and most of this is still gaming activity, not necessarily sport, but we do provide sport in some key markets like the Dutch market. But this is predominantly gaming activity, and if you see an increase in that, it means the players are playing. The one thing that you want to make sure that–in terms of engagement that players keep on playing, is the levels of activity or the number of actives keeps increasing, to increase that wagering activity. Once the bets are increasing, then you are able to acquire and retain players.
Again, this is a lot to do with the operators’ CRM and acquisition, mostly retention and engagement efforts. We do offer them an increasing number of tools with greater depth so they can retain those players and increase activity, like that has seen some great initial success, and making the games and events more sticky. But so far, that increase–as I said, the momentum persisted into the first quarter, which suggests that the players stay with both the content and the platform, which seems to be sticky in that regard, but wagering is a good parameter of activity generally speaking.
Adhir Kadve: Excellent. Thanks a lot, guys. Appreciate the color, and good luck for the quarter.
Yaniv Sherman: Thanks Adhir.
Operator: Your next question is from the line of Mike Hickey with The Benchmark Company. Your line is open.
Mike Hickey: , good morning guys. Good morning Bragg team. Congratulations on your fourth quarter and year and your strong guidance here. I guess the first question, I realize fourth quarter was strong. Your current trading activity seems to have, I guess, carried a lot of that momentum. I’m wondering how you factor in the macro environment into your thinking for ’23, obviously a lot of pressure on the consumer, the player. Curious how that’s impacting your business in key markets.
Yaniv Sherman: Thanks Mike. I think the major factor behind it is diversification. You’re absolutely right that in a recession prone or–I don’t want to call it recession mania-riddled environment, and consumers are generally more conscious of expenditures and free cash flow. But generally speaking when we diversify revenue flow and our revenue sources, then especially across different markets but also through different product verticals, we create sort of a safety net around that. I have to say that some of the growth that we were seeing is sort of on a broader level, so more entertainment and consumer driven spending on some of the content, also well received on the entertaining or entertainment side. But generally speaking, the way we think about this, the macro environment, is definitely something that we need to keep an eye, but it’s mostly on the side of the operators and markets themselves, so our customers, our partners are directly impacted and in that regard, we’re very focused on creating long term partnerships that have two-way incentives, so both parties can demonstrate margin and control if it’s a regulated environment.
But this is the long game and that’s the way we’re building it, but diversity and the right types of deals is the right–will be the right strategy as we sort of go through this challenging period until it eventually ends.