Matevz Mazij: We are integrated with most of the clients that are operating across these markets. So the heavy lifting has been done in the past. And what we need to do now is we need to use our data and build local custom content that is going to fit the requirements of these markets and effectively place the content, position the content and promote the content with these operators and use our engagement tools that will allow us to create certain unique and specific categories within the content portfolio to be able to compete with existing content providers in these markets. I’m very positive about the progress that we have made over the last 12 months. And I believe that we have a great future ahead of us with the two proprietary studios and road maps that have been put in place with these two proprietary studios and Powered by Bragg Studios that are developing content for these local markets in Europe.
Adhir Kadve: Excellent. Thanks guys.
Matevz Mazij: Thank you.
Ronen Kannor: Thanks, Adhir.
Operator: [Operator Instructions] And our next question comes from the line of Daniel Rosenberg. Daniel, please go ahead.
Daniel Rosenberg: Hi, Matevz, Ronen. My first question comes around cost controls and automation. So we’re seeing some of the benefits take place here in the quarter, but just wondering how much more leverage do you have in terms of implementing other automations into your operations that could keep yielding strong results.
Matevz Mazij: Ronen, why don’t to take this?
Ronen Kannor: Sure. Dan, good morning. Good morning, everyone. So we implemented at the beginning of last year, we implemented at the beginning of this year. So we implemented quite a lot of cost control. Some of the areas that only focus on growth and what we actually need to grow and to diversify in different markets to different products and of course, the new content we’re producing. There’s – of course, there’s a lot of room for optimization. It’s from every single department. But I would have to say for our business perspective today, the majority of the work is automated. The majority of the process is automated. We are becoming more efficient in the way we’re operating, the way we actually build in games, we’re investing in our technology.
We actually have, at this stage, I would say we’re very well positioned to further growth with the same team and the same operation we have today. So yes, there’s a lot of growth. There’s a lot of opportunities for optimization. But I think we’re already there. I think what we’re seeing right now, what we will be seeing right now is more commercial and more revenue coming from the same team from the same functionality and infrastructure we have right now.
Daniel Rosenberg: Thanks for that context. My second question is around the BetCity contract. I was just wondering it’s nice to see the risk contained here. Is the final outcome in line with what you were expecting as you started negotiations? And are there any other opportunities to work with BetCity that came out of those negotiations?
Matevz Mazij: Yes. So our original agreement had a 5-year term with a 12-month termination notice. So we’re happy that we managed to secure the extension of the deal and it’s obviously in line with our expectation. BetCity and Entain as a group are a key partner of ours, and we’re proud of what we have achieved together. We’ve been having a very constructive dialogue over the recent past, and we hope to be able to power the BetCity brand and Entain Group as a global powerhouse going forward. We are, right now, very focused on making sure that BetCity continues to effectively utilize our products and continues to grow. And I think it’s positive that that we have secured the longevity of the deal, and we have now a clear path where we have continued support of Entain strategic initiatives in the market.
Entain as a, like I said, a global operator presents a large opportunity for us as a content provider for us as an aggregation solution provider and for us as an engagement solution provider. So we will work together with Entain BetCity to implement these solutions into their B2C network across all different jurisdictions in 2024 and obviously, 2025 and hopefully achieve similar success as with BetCity.
Daniel Rosenberg: Okay. Thanks for that. Lastly, just a quick one for Ron. On the working capital, free cash flow, you guys are expecting to do – continue to improve and grow. Just wondering if there’s any color you could give in terms of how working capital ebbs and flows in the coming quarters if you require capital to scale just from a working capital perspective?
Ronen Kannor: Yes. So as you’ve seen in the last 9 months of operation, the working capital relatively remained the same, 6.3 million, about 6.6, dropped to 6.3 of course, with high adjusted EBITDA compared to previous year. So we believe that in the next couple of – I would say, the next 9 months, we’ll be able to generate relatively the same type of profit. We are definitely funding our investment in our software development cost, which I think is going to be relatively the same. I don’t think there’s a big expectation to be much higher than that. We can serve the debt. That’s what we’re doing. And I think, excluding the changes in working capital in the last 9-month period, we definitely conserve that and the working capital would probably will improve with everything we’re doing right now.
So I’m quite confident that it will be slightly higher than what we think right now compared to compared to what we did so far. And we will improve that the €3 million, €4 million in the next couple of months on time. That’s on the basis that we’re going to secure the debt and we’re paying on a regular basis to avoid any dilution to the shareholders.
Daniel Rosenberg: Thanks for taking my questions. I will pass it on.
Operator: And our final question today comes from the line of Sid Dilawari with Cormark Securities. Sid, please go ahead.
Sid Dilawari: Hey, good morning, guys. Thanks for taking my questions. Firstly, just on the Ontario market, maybe if we can speak about the general landscape in Q3. You’re now live with Bet365, Rush Interactive and maybe a couple of others. It seems like there was a minimal sequential growth on the number of live operators. And just given that dynamic, do you see your future growth in Ontario from penetrating further with current operators or from new operators coming back to the market.
Matevz Mazij: So we are seeing future growth coming from existing operators. Like I said, we are going to grow our wallet share with these existing content-only operators. And I believe they present a revenue growth opportunity as well as new operators coming into the market. Ontario has been a market that is growing slower than expected, but I believe that we are going to be able to increase our presence in the market through existing and new operators like I said.
