Investor Day: Waiting for Lightning (Link) to Strike Thrice

Research evidence excerpt

Investor Day: Waiting for Lightning (Link) to Strike Thrice

ummyZhao Fu InteractiveInteractive TBCTBC ClassClass IIII MobileMobile

. The Hunt for Neptunes Gold Interactive TBC Class II Mobile

Source: Company reports, Jefferies estimates

Outperforming a challenged social market. Social gaming remains structurally challenged,

although ALL has done well to outperform; we expect this is driven by scale (UA investment)

and market-leading content. We expect and forecast ongoing growth for Product Madness

despite a declining market backdrop.

Interactive incrementally upbeat. ALL Mgmt have noted in more recent updates Interactive

has not performed to where they had hoped, specifically iGaming. ALL seemed more confident

in achieving US$1bn FY29 target, noting expectation for an incremental $250-350m revenue

from Content FY25-29 (in line with consensus). Feedback from iGaming operators has shown

optimism on Lightning Link launch and ALL seems ready with a series of follow-up launches

(sensible given shorter game lifecycle in iGaming). Mgmt's commentary was similar, with

strong customer anticipation. We continue to be positive on the iLottery opportunity as ALL is

well-positioned to capitalise on renewals and new licences in the US; ongoing VI RFP renewal

is the next major catalyst for iLottery (responses due Sep-26).

AI to support development. ALL provided more uses cases of AI, in particular driving porting

and multiplying games (i.e. moving cross-platform and channels). ALL did not provide any

specific AI-related cost targets, which is sensible in our view, as ALL is likely to leverage market

position to enhance returns (i.e. faster game development / more game releases) on market-

leading D&D budget.