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BunKhai88's avatar

Hi. I'm also a shareholder in Evolution, and I saw your recent letter to management – great initiative on reaching out directly!

Since you have a direct line to them, I was hoping you could potentially convey some thoughts I have, especially regarding one of the agenda items for the upcoming shareholder meeting.

I'm quite concerned about the proposal from one shareholder regarding the idea of a significant donation to a current US administration to lobby for licenses. I understand the goal of US expansion is key, but this specific approach feels incredibly high-risk, potentially volatile, and quite frankly, gives the company very little control over the outcome for such a massive sum (SEK 1 billion is huge!).

Speaking of control and influence, knowing that Kenneth Dart is the largest shareholder, I strongly feel they should be consulting closely with him on their US strategy, especially concerning state-level nuances. Beyond just his significant investment, he likely has unparalleled connections and strategic insights into operating within complex US systems, particularly at the state level where gaming licenses are decided. His experience and network could be invaluable in navigating the regulatory landscape more effectively and perhaps less controversially than the proposed donation. I hope you could flag the importance of leveraging Mr. Dart's unique position and expertise with them.

Considering your excellent suggestion about direct marketing to boost brand awareness among players – that seems like a much more controllable and brand-building approach.

Building on that, another strategic direction I believe warrants serious consideration, especially looking at the recent Q1 results (where slow revenues grew, and expenses grew while squeezing profits), is for Evolution to invest in establishing its own direct-to-consumer mobile gaming division.

Imagine building mobile apps where players can experience Evolution's high-quality games directly (maybe free-to-play for limited hours increase game flexibility with in-game for more customize games experience ). This would achieve several things:

* Directly engage potential players and build brand loyalty.

* Provide a platform for market research and testing new game concepts.

* Create an alternative, controlled revenue stream (from in-game purchases or ads).

* Crucially, it could serve as a funnel to drive players towards our operator partners for real-money gaming once they are hooked on the Evolution experience.

Yes, launching a mobile division is a significant investment, but unlike the proposed political donation, it leverages Evolution's core strengths: building fantastic games and reaching consumers. It offers management direct control over the investment and execution, aiming for a desired long-term outcome with more predictable inputs, which is vital in the current market volatility and given the pressure on profitability shown in the latest report.

Any chance you could raise these points – particularly the concern about the political donation proposal, the importance of involving Mr. Dart, and perhaps the strategic merit of a direct mobile gaming push – in your communications with management?

Thanks so much for considering this, and seriously, appreciate you taking the step to talk to them!

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AncientSion's avatar

Thats for that timely and detailled analyis.

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