Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of approximately $18.5 million for the first quarter, representing a growth of nearly 20% year-over-year despite some unexpected challenges [3][4] - The company successfully negotiated refinancing of existing bonds, which is expected to provide greater flexibility going forward [5][6] Business Line Data and Key Metrics Changes - The interactive business experienced significant growth, with revenue and EBITDA increasing by 497% and 979% respectively compared to Q1 2024, and margins expanded from 54% to 64% [7][8] - The leisure business was impacted by the timing of the UK Easter holiday, which shifted from Q1 to Q2, affecting performance metrics [4][21] Market Data and Key Metrics Changes - The U.S. market for the company grew by 90% in Q1 against an underlying market growth of about 20%, indicating strong performance driven by content quality and account management [8][11] - The virtual sports business showed a year-over-year decline in EBITDA but is expected to stabilize and return to growth by the second half of the year [9][10] Company Strategy and Development Direction - The company aims to reduce capital intensity by divesting the Holiday Park business and restructuring the pub business to focus on capital-light operations [6][7] - The strategy includes increasing annual CapEx to around $25 million, primarily for content-related expenses, while focusing on the rapidly growing digital business [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the need for new state revenue sources in the U.S. and the company's positioning to benefit from this trend [8][9] - The management is cautiously optimistic about achieving EBITDA margins comfortably over 40% following the sale of the Holiday Park business [30][31] Other Important Information - The company is actively expanding its digital offerings, including launching new games and entering new markets such as West Virginia and South Africa [12][19] - The company is also focusing on the lottery space, with plans to launch a lottery game in Virginia [19] Q&A Session Summary Question: Impact of tariffs in the U.S. - Management indicated that tariffs are not a significant issue, with potential benefits from selling into Canadian markets [25][26] Question: Path to achieving 40% EBITDA margin - Management believes the sale of the Holiday Park business will guarantee EBITDA margins comfortably over 40% [30][31] Question: Stabilization of virtual sports business - Management acknowledged volatility but noted stabilization trends and expressed confidence in returning to growth [36][39] Question: Details on debt refinancing terms - The new debt deal aims for flexibility and a lower interest rate, with expectations of reduced interest expenses as leverage decreases [41][42] Question: Adoption rate of virtual sports in Brazil - Management is optimistic about the Brazilian market, noting strong early performance from localized content [48][52] Question: Trends outside the U.S. - The UK market is experiencing some softness, while iGaming continues to grow; Greece and Italy markets are relatively flat [56][60] Question: Contribution of digital to EBITDA - Management expects digital contributions to be at least at previous levels or higher by year-end, driven by strong performance in the interactive segment [64][66]