Michael Graham: Okay. Thank you.
Operator: Our next question comes from Sean Kelly with Bank of America. Your line is open.
Sean Kelly: Hi, everyone. Thank you for taking my question. I just wanted to ask about the sort of cadence for the rest of world margins. So, I think you have kind of called out some of the adverse market conditions that I think €“ and some of the drivers for the margins this quarter. Can you just help us think going forward, as we start to let I think probably particularly issues in the Ukraine should in €˜23, should rest of world growth rates and margins start to look a little at €“ start to look a little bit more in line with revenue growth, as we kind of move past some of the headwinds, kind of these one-time headwinds that you are probably experiencing right now. Is that the right way to think about it?
Carsten Koerl: Ulrich, can you go on this? It’s a number question on the projections to see the perfect place for?
Ulrich Harmuth: Happy to do that, Sean, and very nice meeting you. So, the current numbers for 2022, obviously, completely reflect all adverse market conditions. And therefore going forward, we do not expect that there is anything additional hitting our margin. And therefore, I would agree that going forward, you will see revenues grow in line with our €“ adjusted EBITDA grow in line with our revenue growth. Even, we should actually be able to see also some operational leverage in our rest of world betting business.
Sean Kelly: Okay. Great. Thank you. Understood. And then maybe just, can we just talk maybe big picture about sort of the longer term margin outlook in the U.S.? And then Carsten, you have been very clear on adoption of in-play being particularly important to that. But is there any kind of reason or change in your thinking around sort of the progress of U.S. margins eventually approaching sort of your international levels? What are some of the puts and takes there, particularly thinking about kind of NBA contract coming on in €˜23 and beyond and what that could mean for rights costs over here as well?
Carsten Koerl: That’s more mid to long-term projects, and it’s always a bit tricky to give from. But look, you see the strong growth 144% in the betting core business in the U.S. at 110%, audio-visual 87%. There is still a lot of runway. If we get more audio-visual content, of course, that will boost our products. And we are actively speaking here with sports and leagues about this. Looking now from a growth perspective, we have 10 years deals with two of the big four was the NBA, and the NHL. And the challenge here is how can we create value for our clients, but not blindly up-selling data. How can we embed ourselves into the value chain, into the products that we generate this revenue for our clients. We are super confident that we can deliver this and the FanDuel deal is showing you in which direction this is going.
So, I think we did clever decisions by having long-term deals with two of the big four properties. And we are working very closely with MLB on the same direction. So, it’s about how can you create a product, which is generating profitability for the clients, and not only blindly up-selling the data which they have to integrate by themselves. So, it’s a kind of combined action between us, the leagues, and the betting operators to and the ambition always is to create this value. Yes, there was a price uplift with the NBA contract. I recall how much critics I got when I announced this in September, last year that this is a landmark deal for us. And now we demonstrate that we get the biggest operator in the United States on a 10 years commitment for this deal, which comes with all this creation of new services.
So, we are pretty confident that this will scale and follow the blueprint, which we have in the rest of the world business. We see no reason why that should not be the case.
Sean Kelly: Thank you very much.
Operator: Our next question comes from Bernie McTernan with Needham & Company. Your line is open.
Bernie McTernan: Great. Thank you for taking the questions. Maybe to start, Carsten, you just mentioned that the FanDuel deal, would just love more color on the deal. Especially there was some mention of supplementary betting services that are included. I was wondering if that include maybe a minimum commitment on the ads product. And then also I think you mentioned that there were U.S. AV rights for the NBA as well. So, just wondering if there is any color in terms of what games you would have access to if that’s true?
Carsten Koerl: Good. Can you repeat the second question, please, I had
Bernie McTernan: Yes. If there is €“ I believe you said on this call that there was AV rights or streaming rights associated with the NBA deal. So, interested in just what games you would have access to?
Carsten Koerl: Okay. No AV and streaming rights are associated for the U.S. piece of the deal. Internationally, we have the NBA streaming and AV rights and we are selling this to clients not only to FanDuel. So, it’s nothing specific. For FanDuel, there are four, I think remarkable points. First, it’s the largest customer and we managed to get the largest U.S. sports book into a 10 years relationship on this property. Second, we are uplifting them on the value chain of our products. So, we are not only the preferred data supplier, we are integrating into the products of FanDuel with various ways that will give you the details on this. Third, big piece is tracking and the live channels. So, first time ever, we can use tracking data to create attractive play proposition bets, hoping and helping the clients that they can have more and running, which is consistent with our strategy that we are convert pre-match into live.
