Operator: Again if you would like to ask a question, press star followed by the number one on your telephone keypad. Your next question comes from Gianluca Tucci with Haywood Securities. Your line is open.
Gianluca Tucci: Hi, good morning guys, and congrats on a strong quarter. You mentioned that current trading is off to a strong start. I’m just wondering, do you expect normal seasonality this year or, given your state launch plans for 2023, this year might look a bit different?
Yaniv Sherman: By now I don’t really know how to define normality for the last two or three years, but I mean, this year hopefully we’re getting back to a more seasonal, or let’s call it foreseeable calendar with no major sport events in Europe or globally, and also the post-COVID effect is sort of subsiding back into a calendar, so yes, I expect this now to be more driven by the business agenda rather than external events. Yes, the only X-factor here has been travel seasonality has been quite high over the past two years. People have been traveling a lot, so we have seen some of that effect. On the flipside was the higher mobile penetration on gaming products, which traditionally was lower than sport, so that compensated for some of that. But I mean, this calendar, I think we’re looking at something that resembles more of what we used to see up to 2019 than ’22 or ’21.
Gianluca Tucci: Okay, perfect. Thanks Yaniv. On the proprietary content side, it’s hanging around 10% of revenue. When you see that in the low to mid teens, is that also a back half of the year story?
Yaniv Sherman: Yes, I mean, we’re looking to ramp up deployment and that should follow suit, as soon as we get that or soon after. Content at the end of the day, and again I’m stressing the fact that we’re transforming or transitioning the company into that position, other companies it takes years to build the portfolio and gaining ground and distribution and presence. We’re trying to leverage our existing capability–we are leveraging our existing capabilities in distribution to short circuit that, but content is always a persistence game. Once we get more and more content out there with more operators, that will take an effect and expand those. That’s a mathematical blueprint. We’re not inventing anything new here. The only thing that we’re doing is leveraging it, as opposed to establishing this separately, which would require a much different and bigger effort, on existing both capital and resources, so that base would expand if–I mean, if we need to further invest into it and then have it ramp up quicker into next year, that may be the best decision, but generally speaking, that is the direction of travel we are very, very focused on.
Gianluca Tucci: Okay, thanks. Just lastly from my end here, I think you mentioned that you expect to be free cash flow positive, so that’s great. How can we think about capex investments for this year?
Yaniv Sherman: Ronen, you want to take that?
Ronen Kannor: Yes, so good morning, Gianluca, how are you doing? From a free cash perspective, from a capex perspective, let me just give you some kind of how this actually was evolved. In 2021, we invested €2.9 million, this year it was €6.7 million. When I’m mentioning capex, I’m talking about the software development costs, actually taking our team and allocating the cost, which is the creating of new content, and we’re projecting from 2023 around €10 million to €11 million of software development costs in our balance sheet, which is quite prudent. We’re keeping the same ratios, we know what we’re investing, we know we have limited maintenance, all about launching new customers, building games which is the most high investment part of this particular year in the last 2022 and definitely 2023, so that’s roughly it.
As Yaniv mentioned before, we’re ramping our human resources and a majority of the capex, say 90, 95% of the capex is predominantly software development costs. All the rest is IP and trademark protection and investment in those particular items, but that’s–and certification, of course, of games, when you’re launching in those particular markets. If it’s the U.S. market specifically and you’re paying slightly different, you are certifying games that’s also part of your capex, but the lion’s share, as I mentioned, the majority of it, it’s our development team, which is all built in house and by consultants that are fully dedicated and .
Gianluca Tucci: Excellent color. Thank you guys, and again congrats on a strong Q4.