Matevz Mazij: Yes, good question. So the Brazilian market is already huge. We won’t be making any further investments into that market other than integrations with selected operators. We’re integrated with the biggest operators in the market already and all we have to do is execute against our strategy to deploy, place and promote content with those operators and deliver custom and exclusive games with those operators and fight for the share of wallet with these operators. We obviously have a great product. We are one of the leading aggregators in the market. Obviously, that is going to be something that is going to be in high demand in Brazil as well. And that is going to allow us to use as a leverage to deploy our proprietary and third-party exclusive games in the most efficient manner and win a share in the market that is going to satisfy our expectations.
Operator: Your next question comes from the line of David McFadgen with Cormark Securities.
David McFadgen: A couple of questions. So you said you launched from a Superbet in Brazil. Are you providing sports betting and online casino content? Maybe you could just give us a few more details there?
Matevz Mazij: No, we are not. We are providing aggregation services as a platform and we are providing Fuze as a platform and obviously providing delivery of third-party content and providing third-party exclusive content and proprietary content to operators that are active in the market.
David McFadgen: And then you talked about the fact that you would be live in two other Canadian markets in 2024. Are you — do you plan to service them well, one, can you tell us what problems is? Two, do you plan to be servicing other operators that are servicing those provinces on a gray market basis? Or are you actually working with the Provincial Lottery Corp and servicing them?
Matevz Mazij: We are planning to go live with operators that are regulated in markets, in these regional markets in Canada. We do not plan to service operators that are providing their services through offshore licenses.
David McFadgen: And can you tell us what provinces you expect to be lining or title and term?
Matevz Mazij: Can’t comment on which promises that those are going to be.
Operator: Your next question comes from the line of Jordan Bender with JMP Securities.
Eric Ross: Hi. This is Eric Ross on for Jordan. Thanks for taking our questions. But first, if the debt pay down will end in the next quarter and outside the strategic review, if we’re sitting here a year from now and the macro environment was in similar or the same place, what would you see as the best usage of free cash flow?
Matevz Mazij: Ronan, you want to take this question?
Ronen Kannor: Yes, sure. Good morning. So from our perspective, currently, we utilize the cash, I think, in the most effective way. We took the loan in Berlin Partners loan in 2022 in September. We repaid over EUR6 million, we’re spending another EUR2.5 million during the next couple of 5 months. The best use of the cash for us is investing in our product, investing in our technology, accelerate market that we want to be put in, deploy our content in the right speed to invest heavily in enhancing our PAM to get to the new customers, especially on the Czech Republic market, Canadian market, etcetera. That’s the best use of our cash. So mainly investment, mainly accelerating investment in particular product that we want to put our foot on and to accelerate our product mix.
As Mat said before, our proprietary content is one of the key. The PAM customers, it’s and the PAM platform is the key. Fuze is the key, so we’re investing heavily on that. That’s our road map for 2024. And that literally answered the question what’s going to be the best use of our cash.
Eric Ross: And within the guidance, can you talk about what you expect for growth in third-party games versus proprietary?
Ronen Kannor: Mat, do you want to take it? Do you want me to take it?
Matevz Mazij: No, no. Just go ahead.
Ronen Kannor: So we’re expecting the growth of both of those particular product mix. As Mat indicated, our key strategic item in our road map is deploying our proprietary content. We see the traction. We see that how that is growing in the European market and also growing on the U.S. market. We are live now with majority of the operators in the U.S. market, and we can see this traction month after month. We also have a very good partnership with exclusive content providers, Mat said, Bluberi and Gamut, which is a long standing supplier. And we believe there’s going to be quite much more acceleration, especially when we are deploying new markets like Brazil, market like we’re enhancing in the Swiss market, LatAm market, Italian market and, of course, in this French market.
So we expect that to grow. I would say everyone have a different starting point. If you look at the product mix slide, I think, slide number 8 in the presentation, there’s a different way to each one of them. We are happy with the progress of proprietary. I believe that’s going to be a very instrumental year 2024 for us. But both of them have also different type of product mix and costs associated to. But the combination of the two and the ability to deploy aggregation platform and the Fuze platform will be able allow us to increase both of them slightly different growth rate. One is coming from a high base, one is coming from a low base. But that’s roughly what we expect in 2024.
