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Exclusive Interview: Jonathan Power, Founder and MD of Voxbet

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Reading Time: 9 minutes

 

European Gaming talks to Jonathan Power, Founder and MD of Voxbet, about the company’s rise to prominence in the sports betting space and making waves in genuine innovation with its latest betting microphone for sportsbooks.

What was your industry background before you started Voxbet as Onionsack in 2006?

My background was in fintech. My co-founders and I had a background in modernising banking tech for the big UK and Irish banks in the 1990s. We did that until the mid-2000s, and I was always very keen to have my own gig. I wanted to enable something that would enable people to conduct value transactions by text message. This was before the smartphone, but we built a platform that could prove it was you who sent the message. We came up with a number of applications for that technology, but the target was fintech and person-to-person payments.

What I knew from my experience with fintech was that the banks won’t touch anything that hasn’t been proven in another industry. We did a few things. We had person-to-person payments, share trading, we offered the buying of concert tickets, but we chose sports betting. You could make a bet by writing what you would write on a betting slip and sending it in a text message. We would read the text message and know who you are. If it was a high-value transaction, we would prove it was you that sent it by calling you back and taking a print of your voice.

I took a punt that the betting industry would try something like that. I went to a trade show in November, and we went live with the Tote in the UK the following June. It was a time when you could get things done. I never left the industry, and even though I say I’m from a fintech background, I’m actually more from a sports betting background now, in terms of years served.

Did yourself and your partners know much about the sports betting space going into it?

I did as a punter, but I didn’t know who to talk to. I took a stand at a trade show and we did well out of it. From there, we did deals with William Hill and Paddy Power, so we built a nice little business out of that. Smartphones then made text betting quite niche quite quickly, but people who bet with us via text in 2006 still do that with us now. We made a massive pivot (in branding terms, more so than technologically) to move into voice betting about a year-and-a-half ago, and we’ve been Voxbet ever since.

With text betting, what would a supplier offer as opposed to an operator saying “text us on this number”?

We would have read the message and understood it. Everybody is uniquely identifiable by their phone number, so we would know it was you, we would know you had the device in your hand, and what it is you wanted. There was about an 80% chance we could read the message and place the bet automatically, before sending you back confirmation, and there was about a 20% chance we wouldn’t understand it with 100% certainty; in which case we needed a call centre agent to bring some human intelligence to the interaction. That’s the platform which is up and running and it’s still used in a number of places, but it’s not what we’re presenting to everyone now. Everything now is all about voice.

When it came to the voice tech, what did your research tell you about what was missing in that space and were many other suppliers offering it at the time?

There were two things we noticed. The first is that tens of billions of dollars are being spent on voice by big tech companies. Google, Microsoft, Apple, Amazon and IBM all have massive products in the voice space and have spent tens of billions acquiring companies in that space. They have made a huge bet on the future of interacting digitally being voice.

The other factor is an awareness that there’s so much content on the sports betting side now. When sports betting sites first went online, it was more or less taking the shop coupon and putting it on a web page; it was that simple. When Google launched in 1997, there were two million websites in the world; there are now two billion. One sports betting site now offers more than two million things you can bet on, but there was still a way of navigating things before Google entered the scene, where you would go through layers and layers of menus. That’s a poor user experience and it’s not an experience for people other than existing gamblers who have had no choice but to use that system. Young people won’t use it like that. If Spotify was laid out the way a sports betting site is laid out, nobody would use it; it would be unusable. People are used to getting what they want everywhere else online.

This wasn’t something sports betting suppliers had tried before, and it actually turned out to be much more difficult than we expected. We thought we could plug into the existing engines like Google and IBM. They work really well to about 90%, but then they apply artificial intelligence which can change what a customer is saying to something that they didn’t say. Sporting parlance is quite unique. If I said to Google that I wanted a £20 treble on Liverpool, Leeds and Coventry, it will say you want £20 travel to those places! That’s actually a benign example and there are some brand-damaging examples. It’s not the sort of thing you could launch with the kind of mistakes those engines can make, so we’ve had to adapt to that and come up with something specific to sport.

How did you go about creating the technology that could iron out those issues you mention?

We knew an awful lot about sports betting language from our text betting days. We started out on the assumption that if you could understand a bet which is expressed in words, you could understand a spoken bet. But as I say, it did turn out to be more of a challenge than we thought it would be.

The way we have fixed that problem is by creating a dictionary where the only thing that dictionary understands is sporting terms, and we recompile that dictionary every hour, based on which events are on. We’re working on the assumption you won’t bet on something today that starts in a week’s time, and the universe of what you’re trying to understand becomes too complex if you look too far ahead. I’d say 99% of our traffic is for events happening soon. If it’s not accessible by voice, it’s still accessible the old way. You can make the problem much smaller if you say people are betting in this space right now, and then you recompile the language to be relevant to sports betting in this moment. If you keep recompiling it, it will then be phenomenally fast and accurate.

Does this work just as well then if I want to bet on a complex Betbuilder as much as a single match?

It’s working on racing at the moment, and it will do anything up to the most complicated place bot in one hit. You can say ‘£5, place bot,’ and call out all your horses. The target is to eventually include Betbuilders. Once we can do that on horse racing, we will know we can do it on other sports as well.

So how many sports can it work for right now and what sports are you planning to expand to?

In English, the rollout will be in three phases. The first is for horse racing, which is ready to go. The second is for football, which we’re working on, and the third phase is everything else.

How significant could this be for operators, in terms of the percentage of bets that could be placed this way?

That’s something we will begin to understand after we launch. We’re working on an integration in Asia, and in the UK, it will launch before Cheltenham. We don’t know yet, but what we do know from our text betting metrics is that the people who want the easiest way of betting are the people who bet a lot. The average user of a betting app might bet 12-15 times per month. The average user of text betting in France for example bets 160 times per month. Simplicity appeals to those who interact a lot with sportsbooks, and they’re very important customers who are currently poorly served by having to do a lot of digging.

Are you particularly looking at younger demographics within the serious bettor demographic?

We’re after two key demographics. The first is more important in value terms rather than volume terms, so for those who know what they want, we want to give them an easier journey. The second cohort is younger people who engage digitally with their voice every day already. They use interfaces like Spotify and TikTok, and have never had to navigate something like a sportsbook, so that’s a key market for us as well.

Would I need to be logged into the app to use the voice technology?

The intention with our bet mic is that you’re inside the app. We give operators a widget that they can put on their homepage. You press and hold the microphone, say what you want and let go. That then brings you to the betslip.

How compatible would that be then with something like Alexa?

Alexa won’t work for this. It was something we looked into. We did demos on it and it looked impressive when it worked, but the problem at the moment is that Amazon will translate what a customer said to Alexa, and it just gives you the transcript. Amazon has to do that without any context of what you said, so it’s actually phenomenally impressive that it comes even close, but most of the time, it doesn’t come close enough. You can get it to work, but it doesn’t work at a high enough level of accuracy. At the moment, I would say ours will work 99% of the time and produce exactly what you said. It becomes much simpler when you have context, but that means you can’t use tools like Siri and Alexa, because they work without context.

How challenging will it be to get across to people that this is a different way to bet from what people are used to? How will you change people’s mindset and make this the first thing they think to do with a betting app?

People of my age learn from younger people. I see my children do something and then I start doing it. It’s partially going to be down to operators to get it across to their customers that there’s an easier way of doing things. When you see a microphone, you tend to know what it’s for. If you see a microphone on the homepage of a sportsbook, you will wonder if you can just speak your bet.

The likes of Waterhouse VC  have invested in your business. What has that investment been used for specifically and are you still looking for further investment?

Industry heavyweights open doors and their evangelism is transformative to us as a company, because people really listen to them. We use the word ‘ubiquity’ 10 times a day, and that’s our target. We know that when the right innovation hits the industry, everybody wants it. That’s what happened with in-play betting, cashout and in-game multiples, and we think this is in the same category. Those investors can change this from being a niche product which a few people think is cool to something that will become ubiquitous. We’re not looking for further investment. We have a trading business with our text betting, and that’s something we will look at, but not right now.

What is their equity in the business?                                                        

A lot of deals like that these days are structured with underlying options. They’ve bought a small piece but they’ve got an option for a bigger piece. I’d advise any innovator to look at offering industry evangelists deals that are structured like that, because it means they’re not penalised for the value they create. They can buy more at the same value as when they joined the business, even when it’s worth significantly more. All of them have put their own money in.

Does their collective ownership come to around 10% or less than that?

I’d say collectively it’s around 10%, but they have options to go nearer to 20-25%.

What do you think really needs to improve in the area of voice technology and how will you take it on a level?

I think the big tech in this space is amazing and I wouldn’t want to be seen to be in any way critical of it, but they’re working without any context. If you use Google’s voice dictation, it’s phenomenally accurate, but it is having to do that without context. You’ve got so many things happening in a sportsbook, and even if you want to ask about events in the next three hours, it’s too much to ask Google to understand that model, because there’s too many terms.

I think the big tech engines aren’t sufficiently adaptable to customer-facing scenarios in a B2B sense, but the business knows the context. I could be at an insurance company, and I know when someone sends me a voicenote over WhatsApp, they’re going to be talking about making a claim or wanting a renewal. The amount of language that’s relevant in that scenario is a very small fraction of what they’re able to understand, but because they’re open to understanding everything, they get more wrong. I think the ability to configure their platforms for a very narrow context is what makes us different.

How many operators have you partnered with and how many will you go live with at Cheltenham?

We have one media company which we will go live with, and they work with 10 UK bookmakers, so there will be bets placed with this at up to 10 major UK bookmakers.

Going forward, which markets will you focus on?

English is a priority. Everybody wants to focus on the US, but for us, we are also focusing on the Chinese language. We’ve got our platform working for the Asian market, so if we can do that, we can do anything. English will be the priority, but our biggest customer is PMU in French, which is easy for us to do. We’re undecided but we will take the opportunities where they come. A new language requirement will take about a month for us to get it working.

Do you have a target for the number of sites you want to be live with in the next few years?

We want to be live on at least 100 sites in three years and want to be on almost every site within five years.

How will the technology evolve over the next few years to allow that to happen?

The voice technology that’s out there is good enough. It will really depend on whether operators want to offer a chat-style user interface, where a customer can say: ‘I want to bet and I fancy Liverpool to beat Spurs tonight. What will the price be if put 20 quid on that?’ That’s not our approach. We just want customers to say: ‘£20, Liverpool to win.’

The whole area of what’s happening with ChatGPT and AI could change what user experiences people want and how they want to engage. I think people want to engage with technology as though it’s technology and want to engage with people naturally. It would be sad if people wanted to engage with technology as though it’s a person, but that doesn’t mean it won’t happen.

eSports

eSports in the CIS region , Q&A w/ Viktor Block, Senior Sales Manager/PandaScore

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eSports in the CIS region , Q&A w/ Viktor Block, Senior Sales Manager/PandaScore
Reading Time: 5 minutes

 

Esports has long been popular in the CIS region, with various top-tier teams and players all calling it home. How has the landscape evolved over the last few years? Have any particular trends emerged that have surprised you at all?

Esports boomed in the CIS region in 2008 when Multiplayer Online Battle Arena (MOBA) games became really popular. While esports had been a thing as far back as 2003, the rise of games such as Counter-Strike and DOTA2 was a major catalyst for the upward trajectory the sector has been riding ever since. In recent years, the infrastructure needed to support esports has improved drastically across the CIS region, including the construction of the Pixel Esports Arena in Minks, Belarus, and the Cyberspace Arena in Almaty, Kazakhstan, both of which hold top-flight contests. Internet connectivity has also improved, while support from local and international sponsors such as Monster Energy, Red Bull and War Gaming have provided funds for further investment while also driving awareness. Ultimately, this has seen the landscape evolve into a thriving industry with lots of opportunities for further growth.

In terms of trends, and especially relating to esports betting, I’ve been surprised by the high demand for betting on console games – we call them eBattles and they include disciplines such as eSoccer and eBasketball. I think this is just a natural development that has occurred off the back of strong demand for video game content, which is often the bridge between traditional sports and esports.

 

What factors have contributed to esports’ growth in the CIS over the past few years?

One of the biggest factors for me is that teams have become more professional and are now training and playing in well-run clubs. This takes place in dedicated buildings and rooms, set up with high-speed internet and the absolute best gaming equipment. Player salaries have also gone up, which has increased the calibre of players taking part in contests across the region, taking competitiveness to the next level. Today, many CIS players now play for high-ranked teams such as Virtus.pro, Team Spirit, Betboom or Na`Vi which compete on the international stage. This in turn is helping esports grow across the CIS region.

 

Given how many countries are in the CIS region, can you walk us through some of the biggest regulatory differences when it comes to betting on esports? And how does PandaScore navigate these changes?

The legality of betting and esports betting differs from country to country within the CIS region. Some are super strict or even prohibit gambling, while others take a more liberal approach, regulating the activity and licensing operators. Let’s take a look at some of the biggest markets and their approach.

In Ukraine, esports has been recognised as a sport since 2018 and in 2020 the country regulated and licensed gambling for the first time. The law focuses mostly on standard betting – sports and casino – but is likely to also include esports betting given that esports is a recognised sport in the country with tier-one Ukraine sportsbooks like Favbet and Parimatch offering it to their players.

Kazakhstan has a growing gambling industry with betting shops and casinos operating in major cities such as Almaty and Nur-Sultan. Gambling is regulated by the Ministry of Culture and Sports and while the regulatory framework is somewhat restrictive, sports betting – which is likely to include esports betting – is permitted.

Navigating the constant changes in betting regulation across the CIS region can be challenging, so we make sure to keep up to speed with the latest developments by monitoring legislative updates and amendments to regulatory guidelines. We also track industry trends and best practices to anticipate regulatory changes ahead of time, allowing us to adapt quickly if needed. This can involve benchmarking against competitors, attending conferences and networking with key stakeholders.

 

In your view, are there any unique opportunities for the expansion of esports and esports betting within the CIS region? And how does this differ to other regions?

It’s important to understand that CIS, especially Ukraine and Kazakhstan, play by their own rules. By that I mean they are very different to other esports markets, so don’t think what works in Italy will work in Ukraine. For example, while League of Legends is very popular in Europe, in CIS, it’s Dota 2 that takes the top spot. But for those who can understand the region and each market, there are plenty of opportunities to explore.

Let me elaborate. Dota 2 is thriving in the broader CIS, with regular tournaments and events attracting large audiences both offline and online. teams like Natus Vincere (Na’Vi), Virtus.pro and Team Spirit have achieved significant success in Dota 2 competitions, contributing to the game’s popularity in the region. While Dota 2 is big, other video games also enjoy significant popularity, including CS2, World of Tanks and Fortnite among others.

Operators need to consider this when deciding their markets and odds, marketing strategies and plans for player engagement.

 

What would you say is the key to creating a successful esports product for a CIS audience?

Understanding layer preferences in each market and delivering an experience that exceeds their expectations. For the CIS region, this means focusing on Dota 2 – this is a game that offers deep and strategic gameplay requiring teamwork, communication and skilful execution of plans and strategies. Its competitive nature appeals to gamers as they enjoy the challenge of multiplayer experiences – this goes back to the original MOBAs back in 2008. These factors must be present in the esports betting experience offered to players – at PandaScore, this means a comprehensive Dota 2 offering that covers markets such as Kills, Towers, Roshans and Barracks, with players able to challenge themselves in a betting competition against others.

Support is also key to delivering a quality player experience. We offer round-the-clock assistance and are regularly rolling out updates to improve the experience players receive when betting on esports at sportsbooks using our data, odds and betting tools such as our Bet Builder. We are always working hard to expand our offering to cover the most in-demand games including CS2, Valorant, Call of Duty and many more.

 

What trends or developments do you anticipate shaping the future growth of esports in the CIS region over the next few years?

The industry will continue to grow and become more professional. Esports is different to traditional sports and it still lacks recognition in some markets, even though it is considered an official sport in a growing number of countries across the CIS region. I think as it evolves, more governments will provide more support for esports as it brings tremendous economic, cultural and social benefits. This could include funding for esports initiatives, rolling out regulatory frameworks, helping to foster partnerships with esports organisations or simply recognising it as a sport.

The continued proliferation of smartphones across the region will be a further catalyst for esports growth. Titles such as PUGB Mobile, Free Fire and Mobile Legends: Bang Bang will attract large audiences and provide new opportunities for teams, players, sponsors and other stakeholders to explore. This is a really exciting time for esports and esports betting in the CIS region, and PandaScore is thrilled to be part of it.

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Interviews

Exclusive Q&A w/ Rory Credland, Head of Strategy at Next.io

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Q&A w/ Rory Credland, Head of Strategy at Next.io
Reading Time: 4 minutes

 

  • Could you provide an overview of the upcoming Next.io summit in May?

We are hosting our 4th annual NEXT.io event in Valletta on 15 – 16 May. With a global delegation of 5,000 attendees, Valletta’24 is more than just a conference; it’s where groundbreaking ideas and innovations converge. In addition to the leadership stage, we host several side tracks on marketing, investment, HR, sustainability, technology, emerging markets/jurisdictions – plus a new track on personal development. As we expect over 5,000 attendees, we have also increased our networking space with a new hall dedicated to more exhibitors, entertainment area, lunch, and a chill-out zone. Finally, our recent partnership with Ask Gamblers will ensure greater affiliates and operators in attendance, so as you can see there is definitely something for everyone and the event promises to be one of endless connections and activities.

 

  • What speakers or panelists can attendees expect to hear from during the summit?

We have tailored the event to make this event the pinnacle of the iGaming industry, offering unparalleled networking opportunities and insights from 300 industry-leading voices. We have many c-level speakers attending including Angus Nisbet, VP Gaming, BetMGM, gaming industry expert Paris Smith, Lahcene Merzoug, CEO. PressEnter, Francesco Postiglione, CEO, Casumo, Martina Akerlund, CEO, CallsU, Jeffrey Haas, Chief Growth Officer, William Hill, Todd Haushalter, CPO, Evolution Group, Tim Heath, General Partner, Yolo Investments plus an amazing keynote to kick off the start the event. We have two amazing keynotes to kick-start day 1 and 2 of the event, so I urge you to check out our agenda via

 

  • Can you share any insights into the format of sessions and discussions planned for the summit?

We like to change the formats and concepts up at NEXT.io compared to the norm that you see at other organisers. For instance, we base our talks at 30mins max to ensure that it is short and sharp straight to the point discussions and a limited number of speakers on each session so that more interactive discussion and debate can be had. We also are putting the CEOs under the spotlight this year – think Mastermind – with each CEO – one by one – under a “spotlight” for 10mins with direct questioning from the host. Should be awesome and insightful.

 

  • How does Next.io ensure diversity and inclusivity in the selection of speakers and participants for its summits?

Internally we take an active stance to ensure that there is a cross selection of speakers to this regard based on our own internal metrics. Wherever possible we encourage new speakers to be put forward by their organisations or through connections that we make – this allows for new and different perspectives on the discussion to hand which make the event and tracks interesting and informative for the audience.

 

  • What unique networking or collaboration opportunities will be available to participants during the event?

For two years ago we have designed NEXT.io Valletta to be a festival week of iGaming, encouraging people to arrive for the week to take part in our activities we have on the Monday and Tuesday before attending the event on Wednesday. This year we have Golf, Padel, Run Club plus many networking events taking place from Tuesday through to Friday night, so check out the website where you will be able to find more information.

 

  • How does Next.io leverage technology or innovation to enhance the summit experience for attendees, whether in-person or virtual?

We have a unique advantage hosting the event at the MCC in that the main stage is built like a theatre – so with use of such a big stage we can use LED screens which allow for animation and interaction on screen as well as several attendee applications which ensures they get directly involved with what session is taking place and have an input into the direction of the questioning.

 

  • What motivated Next.io to choose Malta as the location?

NEXT.io head office is based in Malta, so it felt a natural fit to organise our flagship event within the country and at one of Malta’s iconic venues – The Mediterranean Conference Centre – with epic views over the harbour and Mediterranean Sea. When NEXT.io was formed the company had amazing support from the Maltese Gaming Authority who backed us at the time and so since day one we continue to use Malta to host what we feel is becoming an event on everyone’s calendars.

 

  • How does Next.io ensure that its summits provide a platform for emerging voices and perspectives alongside established leaders and experts?

As mentioned previously we like to continuously promote not only the established experts but also the leaders of tomorrow. Our Advisory Board is instrumental in that regards as they also have an ear to the ground as to whom is best to suggest for topics and discussions. I think what works best is a mix of experience and new to crate that interesting discussion on stage.

 

  • How does Next.io plan to capture and share the insights and outcomes from the Malta summit to extend its impact beyond the event itself?

We record our main stage sessions and use this through our awesome marketing to promote the event long after it is over via access on our news part of the website. In fact, we never see an event having an “end” more of a continuation to the next show as we promote what was and what is new for the following year. Continuous dialogue with our audience and clients is important to ensure consistent messaging and allows us to react to what market forces are in play at the time.

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Interviews

BetGames Classic roulette launch w/ Andreas Koeberl, CEO

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BetGames Classic roulette launch w/ CEO, Andreas Koeberl
Reading Time: 3 minutes

 

You’ve just launched your own spin on the casino classic roulette – what prompted this move and why now?

AK: Our mission is to help our partners convert their recreational punters into casino players, organically, resulting in lower CPAs and higher retention rates. In practice, this means instead of throwing massive bonuses at your players, you use a curated set of games, features and targeted bonuses at a way lower cost. We already deliver the initial part of this journey and have now added arguably the most classic game of all time to ensure we don’t lose those players to the competition.

 

Some may consider such a launch as brave given how saturated the market is with versions of the game – how have you built the trademark BetGames DNA into your version?

AK: The products we launch are all key parts of the puzzle to convert bettors to casino, rather than being efforts to attack the big established brands in the market. Roulette is a commodity and what’s the point of entering a price war we can’t win due to lower scale? The crucial focus is the player conversion journey and a seamless experience – not having to switch lobbies and staying with the supplier you trust. We didn’t reinvent the wheel, so to speak! I don’t think the fancy studios with robot arms and seven different cameras add any value in our core markets. We focused on a slick player experience with a professional presenter quality. We have kept it simple and targeted.

 

Do you have certain markets in mind for this latest launch? Are we seeing RNG table games surge in popularity in LatAm, for example?

AK: We’re focusing on our existing markets and LatAm initially. This is one reason why we launched the game without a continuous stream during the placing of bets, reducing data consumption. What we have learned from some of our existing games, and certainly from our most popular examples, is that our players (who are generally more sports savvy) enjoy silence and focus during betting. Thus, we have top-notch quality presentation during the spin but a quiet, slick betting experience during the dwell time. This helps to save players’ data, particularly in markets where developing infrastructures are a challenge. LatAm isn’t very developed yet with live content, and one of the main reasons for that is partly poor infrastructure. Quick, data-light products like RNG games remain popular because of that.

 

You’ve seen a lot of success in LatAm and Africa – are the requirements of developing markets hugely different to those of the more established when you are developing products?

AK: Africa is special because it is an extremely superstitious market – trust and ease of use are everything. LatAm is more demanding on the localisation front. People want Brazilian Portuguese or Latin Spanish, even though they often play games muted – this makes it tricky. From a live perspective, both markets are still in their infancy. RNG develops quicker, but still has huge potential. We will see what the new regulations in areas such as Brazil, Peru and Chile will bring in terms of market development.

 

Is the widening of your product portfolio indicative of a long-term shift of focus for BetGames? Will we see more of your more traditional lottery and card-based games?

AK: We follow a niche strategy and want to add incremental value for our partners. We have seen a lot of new competitors entering the live dealer space aiming to take on the likes of Evolution, Playtech and Pragmatic Play. Most of them failed or at least experienced a hard landing in terms of commercial success. The big players, especially Pragmatic and Evolution have massive scale, giving them significant competitive advantages, which lots of smaller or new studios often underestimate. A 24/7 live operation comes with enormous challenges and OPEX and the rev shares on commodities like roulette are getting smaller and smaller. So, we will stick to our mission and USP. If a partner wants a roulette environment, we are capable of delivering, but it needs to make sense. Hence, we aren’t neglecting our core to become a supplier of roulette and blackjack specifically.

We’ve grown our portfolio over the years to accommodate constantly shifting player trends and technology and will continue to do so, remaining agile, relevant and making informed decisions on a product offering that suits global markets.

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