And we came to the conclusion that we can deliver what we just announced with this workforce. And then, I think it is responsible from us for the workforce but also for our stakeholders to install these measurements. So, that’s how we see it. I think a 10% is not something totally out of the line if I’m looking to many other businesses in the tech base.
David Katz: I apologize for the word choice…
Carsten Koerl: No problem.
David Katz: …refinement is probably a better choice. For my follow-up, what I wanted to ask about is – all of us, just industry wide, are so focused on product because, you know, at least at the operator level, product is what’s winning. If you could just share some insights in terms of how you might be, you know, positioning yourselves to enable operators for that next big thing, right – the past year, it’s been so much same game parlays and the like – talk about what’s next to the degree that you can, and how you’re positioned there.
Carsten Koerl: If you look now to our cash cow, it’s – I think we all agree that’s the global betting business. That’s a €112 million revenues and it delivers 50% profitability in this quarter. That’s done by upselling and cross-selling, lifting the clients up the value chain. So, meaning, we are going from a data into a product stage with the Live Odds, or the trading services, or finally, then the platform services which you see now is the Taiwanese Lottery deal. And yes, partly, also a little bit with some overbookings on data content, but that’s not the bigger proportion. Where is that going? It’s going very clearly into the products. It’s going very clearly into the platform direction. So, directionally, you will see now after the risk management that goes more into the platform.
We acquired a company called VAIX a year ago, which is working with the users and trying to optimize the user journey, trying to optimize the churn of the users, trying to understand what can you push on platform to use to motivate them to cross-sell this into different channels but also to optimize the growth in the sports betting performance. And that gives a variety of options in the platforms. Look to the U.S. tribes in the future, what kind of solutions might they want to have – is it more a solution which is managed by a provider with the platform and with all the elements, which is in there; or is it more a big platform business what they wanted to – knowing that it’s 350 tribes I think – it is more the thing which I mentioned first.
So, that’s a good opportunity. There are good opportunities with major broadcast businesses around the world going into this direction. So, it’s consistently what we are telling from the beginning. We start with the content, but we’re putting into products and that’s the clear journey. And that’s a clear mission and vision what we have.
Operator: Thank you. And our final question comes from the line of Ryan Sigdahl with Craig-Hallum Capital Group. Your line is now open.
Ryan Sigdahl: Hi, guys, just one quick follow-up that I think might help us – some kind of next year and the years forward. But can you quantify how much rights costs will be up year-over-year next year with those two new deals that, you know, the and how they’ll be accounted for? And then, kind of what, assuming the similar offset from the operational efficiencies?
Gerard Griffin: Yes. Ryan, I’ll characterize it in the operating leverage. We look at – we believe that we’re going to unlock somewhere between 4 and 5 points of operating leverage in 2024 and that will be offsetting the growth in the Sports Rights. So, if you can work into the back – if you work into – reverse into that, you’re talking about somewhere between 37% and 42% growth in Sports Rights.
Ryan Sigdahl: Excellent. Thank you.
Operator: Thank you. This concludes today’s conference call. Thank you for your participation. You may now disconnect. Everyone have a wonderful day.
