Charles Gillespie: Yeah, I think it’s, you know, I think it’s fair to say that the overall proportion of revenue that is coming from media partnerships we would expect to increase the second half of the year. We’re at this kind of funny point in the year now where you’re pretty close to football season, but football season hasn’t started. You’ve done all this work to prepare for football season and you think it’s going to work. You’re, you don’t have any concerns about anything, but you know, it’s not done until it’s done. So, you know, we kind of joke that this is the point of maximum uncertainty, as you’ve done all this work. And that’s really true of media partnerships. We’ve done a lot of work with USA Today and the rest of the CNET properties and of course our valued partners at McClatchy. And, we think we’re in a really great position for the start of the NFL. But we’ll only rest once we’ve seen the numbers come through.
Clark Lampen: Thank you.
Operator: Our next question is from David Katz with Jefferies. Please proceed.
David Katz: Hi. Morning everyone. Congrats on the quarter. So, what I’m wondering about is as we look at the U.S. and the growth in sports betting here, what have we learned so far about how that correlates, with your specific growth in the U.S. right? Is there a calculus that we can understand a little bit better, and track as we see that grow, and how that ties into you?
Charles Gillespie: I think, if you’re going to try to draw some lines between us and the operators, it’d be far easier to do it on the revenue side, of course, there are a lot of things that affect each individual operator’s profitability, which have nothing to do with us. But broadly speaking, if the operators are doing well and growing, I think you should expect the affiliates from a — at least a revenue perspective to be doing well, and growing as well. But generally, speaking long term, we expect that kind of outpace the operators. We expect the affiliate proportion of the overall sales and marketing expense from the operators to increase over time. And therefore, if the overall online gambling market, in North America is growing at X, we’d expect our essentially North American TAM to be growing at something faster than X.
David Katz: Right. X plus, got it, X plus. And my other question is, when we look at the population of players, and again, I’m a bit more U.S. focused, and we think about the mix of operators out there, conventional wisdom for any business would suggest that the smaller players are smaller-scale and you get to charge more, whereas the bigger players tend to bring scale and get more of an efficiency discount. Is that the case with you and is that something we should be thinking about given the sort of ins and outs that we’ve discussed today over the recent past?
Charles Gillespie: It is and that’s fair. It is our experience that, if you bucket the operators often to kind of Tier 1, Tier 2, or Tier 3 based on market share, it’s the Tier 2 and Tier 3 operators, which are most keen to work with us. They’re the ones that are willing to invest not only the money but the time to put campaigns together that perform that have high conversion rates, that they’ve got more incentive to make the affiliate channel work than the big guys who are already market leaders.
David Katz: Got it. So, the best outcome is a mix of operators and a distribution.
Charles Gillespie: Definitely. And we haven’t — we’re not really seeing this at the moment in North America, but you’ve had a couple of new operators enter the fray. So, you’ve got fanatics coming, you’ve got ESPN back coming, it is our view that there will be many, many more operators that enter the fray in the U.S., especially as more states regulate casinos. On the casino side, it’s not so difficult to set up an online casino. You need a brand, a bit of software, customer service, it’s — but you don’t have — it doesn’t have to be this enormously expensive capital expenditure exercise. We’ve seen for years operators in Europe stand up online casino brands without crazy amounts of investment. And very sharp precision digital marketing, and therefore succeed and have nicely profitable businesses.
So, there will be a point in time in the U.S. market where we finally see this kind of next wave of operators entering, which is bringing more kind of experience on the digital marketing side versus unlimited amounts of capital. And they will have reasonable market share and profitable businesses in our opinion. And again, that’s really an online casino kind of opportunity, more so than sports betting sports betting, of course, lower margin and kind of more expensive, to run properly. But we are of course, still of the opinion that we will get many more online casino states in the US.
David Katz: Perfect. Thank you, very much.
Operator: Our final question is from Chad Beynon with Macquarie. Please proceed.
Chad Beynon : Wanted to ask first, just on the $18 million pound termination fee that you talked about, and I believe also you might have the final payment for Rota wire. So, as we think about some of these cash outflows how does this kind of shape how you guys are thinking about share repurchases leverage? Anything else on the capital allocation? Thanks.
Elias Mark : So, with the early termination of the bonus finder or the uncertainty of future cash outflow from investing activities has been replaced with certainty. What will be paid is $18 million of final consideration of which $5 million was paid in July. So, there is a further $13 million that will be payable at the end of April next year. And we are able to settle up to 50% of that in ordinary shares. So that kind of gives you certainty on the cash outflow side, we continue to generate very strong free cash flow. And we have over $30 million in the bank. So, there is excess capitalization that can be used for either M&A or share purposes. And we remain opportunistic and pragmatic about both of them, and we’ll carefully consider capital allocation depending on the M&A pipeline and other things.
Chad Beynon : Okay, thank you. And then just as we’re now in kind of the post-white paper world in the UK, you continued to show very strong growth. I think most of your partners over there had already adjusted their websites and kind of all the affordability checks ahead of this. So, it doesn’t seem like there was a major change. And you obviously talked about gaining market share as a goal as the market growth has slowed. But can you talk about anything else that you’re seeing kind of near term in the market post white paper, maybe with some of these tier two, tier three operators? What point will the UK and Ireland’s growth start to look more? I don’t know more normal instead of kind of hypergrowth that you’re publishing. Thank you.
