A：The key highlights of Yala Group Limited's first quarter 2026 earnings include resilient financial results with revenues of 779 million USD, a 7.7% increase in average MAUs driven by strong user reach and engagement, and the gaming business reinforcing its position as the company's key growth engine.

A：The growth strategies and recent business developments include a partnership with Blaze, a top-tier SLG game studio, for a new SLG game initiative, the successful launch of a new Match 3 title 'Table Match', the ramp-up of user acquisition campaigns, and an increased budget for user acquisition from external channels.

A：Yala is exploring the use of AI technologies to enhance product capabilities and operational efficiency. They are experimenting with new forms of social and interactive experiences, encouraging employees to adopt AI tools in their daily work, and building a dedicated management platform to monitor and optimize token usage.

A：As of March 31 of 2022, Yala had repurchased 146,000 shares for an aggregate amount of 9.7 million USD, bringing the total number of shares repurchased under the 2021 share repurchase program to 170,001,402 with an aggregate amount of 115.7 million USD. Yala will continue to execute the 2021 program through May 21, 2026, and will implement a new share repurchase program of up to 150 million USD over the 24 months starting from March 9, 2026.

A：The company has supported the regional digital culture and social interaction by transcending physical boundaries through online celebrations, notably the 11010L Ramadan campaign which achieved record participation and new highs in buying users.

A：The partnership with the Saudi eSport Federation is significant as it aims to drive growth across the regional eSports ecosystem. The company serves as an official event partner for CFO the El 2026, the nation's Premier Esports competition, and is the presenting partner of the Elite Women 2026 Fivesix event, which showcases female players in competitive gaming. This partnership underlines the company's commitment to nurturing competitive gaming, particularly women's eSports, in Saudi Arabia and throughout the Mena region.

A：The financial performance indicators include revenues of $79 million, with game service revenues accounting for 38.3% of total revenues at $30.3 million. Non-GAAP net income was $33.3 million with a net margin of 42.2%. The company maintained a strong balance sheet and healthy cash flow, continuing investments in business development and consistent shareholder returns.

A：The company expects its revenues for the second quarter to be between $702.5 million and $82 million. This outlook is based on current market conditions and is subject to change. For further details, one should refer to the company's earnings press release.

A：The company has demonstrated operational resilience and stability in the Middle East over the past decade and continues to validate its competitive strength in the region.

A：The company sees potential for growth with the new game pipeline and is excited about the potential opportunities that could arise in the second half of the year.

A：The company expects its legacy business revenue to decline by a low middle single-digit percentage year over year in 2026. With the addition of new game titles, it anticipates total revenues to be broadly flat compared to 2025. If all goes well, there is potential for double-digit year-over-year growth. The company will provide more specific guidance once the monetization performance and user traction of the games are clearer.

A：The company has been advancing an internal cross-promotion initiative between Turbo Match and Yellow Lu, which has led to increased downloads and stronger user retention for Turbo Match. External user acquisition efforts for Turbo Match are being stepped up with focused marketing campaigns across multiple markets, including the US and Europe. For the SLG title, a faster market pace is expected following its official launch, with paid user acquisition scaling across the Middle East and East. The company anticipates significant marketing spending over the next six months to drive revenue contribution.

A：The company's capital allocation strategy is centered on maximizing long-term shareholder value. It has launched a new share repurchase program and maintains a strong cash position to support business development, particularly in gaming, marketing, and R&D requirements. M&A or other investment opportunities will be considered if they represent strong strategic fits for the company.

A：The partnership will embed the company's brand deeper into Saudi Arabia's national eSport ecosystem, enhance brand recognition, and provide access to a high-potential segment of the gaming community. It will also increase visibility and user awareness of the company's new games and provide valuable insights into the local eSports and gaming ecosystem.

A：The company is embracing AI technology and has deeply integrated it into operations and workflows. It has improved Arabic content moderation efficiency, is accelerating the incubation of new AI-driven social networking products, and exploring AI-powered in-app features for Lexi products. The company is committed to exploring AI applications tailored to Arabic language and local culture. An internal management system is in place to monitor AI usage, manage resource allocation, and improve overall efficiency.

A：Profit margin compression in the quarter was due to a combination of factors, including pressure on legacy business revenue, increased marketing spending for social products, and the expansion of the company's investment in new products. For the remainder of the year, a margin level around E is expected for the existing legacy business. If the new gaming projects progress as planned, there may be further increases in marketing spend in the second half of the year. Margins will depend on the interplay of market spend and revenue, and the company will provide more specific guidance once the monetization models of the games are clearer. Gaming businesses typically experience an upfront investment phase with margin pressure, followed by normalization and profitability once the investment phase is completed.