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“We delivered EBITDA growth of over 40%, which clearly shows that our efficiency efforts are generating positive results.” – Gustaf Hagman, Group CEO
Third quarter 2019: 1 july- 31 september 2019
- Revenue increased by 12% to EUR 88.2 m (78.6).
- Organic growth in local currencies was 13%.
- EBITDA increased with over 40% and amounted to EUR 12.7 m (9.0), corresponding to an EBITDA margin of 14.4% (11.4%).
- The number of depositing customers was 334,042 (318,189), an increase of 5%.
- The number of returning depositing customers was 199,023 (177,637), an increase of 12%.
- Earnings per share were EUR 0.05 (0.13) before and after dilution.
Events during the quarter
- LeoVegas was launched in Japan.
- LeoVegas opted to not apply for a gaming licence in the recently re-regulated Swiss market, and therefore the business was closed on 1 July.
- A key payment service provider has chosen to stop offering its service for certain gaming-related payments on the German market, which affected revenue and new customer acquisition during the quarter.
Events after the end of the quarter
- Preliminary revenue of EUR 26.5 m (26.1) in October, representing growth of 1%. October was affected by an exceptionally low game margin. With a normalized game margin, revenues had amounted to approximately EUR 28.5 m and a growth rate of 9 percent.
- LeoVegas was initially granted a two-year gaming licence in Sweden – a decision that was appealed. The administrative court has now ruled in the company’s favour, increasing the licence period from two to five years.
- LeoVegas has received a sanction by the Netherlands Gambling Authority. The decision is in line with the sanctions previously issued for other gaming companies.
- The LeoVegas Group’s investment company LeoVentures has entered into an agreement to sell the subsidiary Authentic Gaming to Genting. The sales price is EUR 15 m on a debt-free basis.
COMMENT FROM GUSTAF HAGMAN – GROUP CEO
Third quarter 2019
We continued to show progress during the third quarter in a difficult-to-navigate environment and generated double-digit growth in both sales and operating profit. Greater regulatory complexity in several of our main markets has given rise to certain short-term challenges but is also raising the barriers to succeed in the sector which benefit established companies.
LeoVegas today has a much more even distribution of revenue across several markets and brands where half of our revenue is derived from locally regulated markets, which contributes to greater stability and lower business risk. Meanwhile, we continue our efforts to execute our strategy of innovation, expansion and profitability.
Revenue during the third quarter amounted to EUR 88.2 m (78.6), representing organic growth of 13%. Growth was favourable during the period in most of our markets, including Sweden where we are gaining market shares, but also in key markets such as Finland, Denmark and Italy. The UK is profitable at Group level but remains challenging, where Royal Panda in particular had poorer performance during the quarter. Excluding the UK, the Group’s organic growth was 27%. In total we invested less than planned in marketing during the quarter, which is coupled to our data-driven and ROI-based marketing model. We chose to not apply for a licence in Switzerland, where we stopped accepting business on 1 July based on commercial rationale. Meanwhile in Germany we are facing challenges related to the elimination of a key payment solution, which is affecting both our revenue and new customer acquisition during the quarter.
EBITDA for the third quarter totalled EUR 12.7 m (9.0), corresponding to an EBITDA margin of 14.4% (11.4%). We grew EBITDA by more than 40% during the quarter despite a higher burden from gambling taxes and greater regulatory complexity compared with previous years. Our focus on efficiency and cost control continues to generate the desired results. As a concrete example of our efficiency enhancement, our staffing has remained essentially unchanged for the past year despite greater business complexity, adding more markets and more brands, while we continue to generate good underlying growth. We continue to renegotiate our supplier agreements in gaming, payments, marketing and technology. Through scalability and efficiency we are creating scope to invest in growth combined with improved profitability.
LeoVegas was initially granted a two-year gaming licence in Sweden – a decision that was appealed. The Administrative Court has now ruled in our favour, entailing that the licence period has been changed from two to five years. At the same time, our returning customers in Sweden are at all-time-high, which is proof that our focus on the product and customer experience coupled with a commitment to responsible gaming is paying off in a regulated environment.
We estimate that channelisation of online casino in Sweden is far below the Swedish Gambling Authority’s goal of 90%. We therefore look positively upon the fact that the Gambling Authority to a greater extent has begun prioritising measures to curb unlicensed actors. This is needed to ensure that the market’s regulation is successful and results in greater consumer protection.
Thus far during the year LeoVegas has launched operations in five new markets, where Japan is the most recent addition. We want to especially highlight the launch in Spain, which so far has exceeded our expectations. The online growth in Spain is considerable, and we are highly confident that Spain can become one of our key markets.
During the quarter LeoVegas was issued a fine by the Netherlands Gambling Authority, in line with the fines that were previously issued to other gaming companies. The amount has been expensed in its entirely in the income statement. We are in compliance with the current regulations and will appeal this decision. We remain confident that we will be awarded a licence once the market is opened – mostly likely at the start of 2021.
LeoVentures has entered into an agreement to sell the subsidiary Authentic Gaming for EUR 15 m on a debt-free basis. The buyer is Genting, one of the world’s largest land-based operators. Authentic Gaming generated approximately EUR 1 m in revenue during the third quarter, while the effect on EBITDA was neutral. The transaction shows how we can successfully invest in, grow and realize value in our portfolio companies. In connection with this sale we have also concluded our strategic evaluation of LeoVentures and will continue to develop the remaining portfolio companies Pixel.Bet and Casinogrounds.
Comments on the fourth quarter
Revenue for the month of October totalled EUR 26.5 m (26.1), representing growth of 1%. The gaming margin in October was lower than normal, with a number of large winners, while Germany is affected by payment limitations. Underlying growth during October remained solid, which is confirmed by a positive start in November. With a normalized game margin in October, revenues had amounted to approximately EUR 28.5 m, with a growth rate of 9 percent.
Our current assessment is that marketing costs will increase during the fourth quarter over the third quarter, both in relation to revenue and in absolute figures. This is in line with the seasonal pattern, where LeoVegas normally invests the most in marketing during the fourth quarter.
Finally, I want to remind about the half-yearly dividend payment of SEK 0.60 per share to our shareholders on 6 December.
Presentation of the report – today at 09:00 CET
- To participate in the conference call, and thereby be able to ask questions, please call one of the following numbers: SE: +46 (0) 8 50 69 21 80, UK: +44 (0) 20 71 92 80 00, US: +1 63 15 10 74 95, Confirmation code: 9566914 or join at the web at https://edge.media-server.com/mmc/p/cgmbbfh8
About LeoVegas mobile gaming group:
LeoVegas’ vision and passion is to be “King of Casino”. LeoVegas is the premier GameTech company and is at the forefront of using state-of-the-art technology for mobile gaming. A large part of this success can be credited to an extreme product and technology focus coupled with effective and data-driven marketing. Technology development is conducted in Sweden, while operations are based in Malta. LeoVegas offers casino, live casino and sports betting, and operates two global and scalable brands – LeoVegas and Royal Panda – as well as a number of local brands in the UK. LeoVegas is a global group in which LeoVegas AB (publ) is the parent company. LeoVegas AB (publ) does not conduct any gaming operations; rather, operating activities are conducted by subsidiaries within the Group. The company’s shares are listed on Nasdaq Stockholm. For more about LeoVegas, visit www.leovegasgroup.com.
Source: LeoVegas Mobile Gaming Group
Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: LeoVegas AB Q3: Quarterly Report 1 July – 30 September 2019
BTOBET TO SHOWCASE FULL RETAIL SOLUTION AT ICE LONDON
BtoBet, the leading provider of interconnected omni-channel sports betting solutions, has ramped up its Self-Service Betting Terminal (SSBT) and Over The Counter (OTC) solution, with the systems being showcased at the company’s stand at ICE London, N5-150, to be added to its currently available retail solution, that is already live in multiple markets.
An expansion of its GLI-33 certified sports betting Neuron 3 platform, the new retail solutions were built for mature markets such as Europe and the North American market, and will connect land-based estates seamlessly to any online operation.
The new SSBT solution is highly modular allowing different display options based on business preferences, and provides players with the operator’s full online betting offer.
The introduction of the new OTC solution, with its advanced user account management and ability to control the odds displayed in multiple TV devices provides operators with a complete retail sportsbook solution, enabling them to deliver a superior betting experience.
All the bets placed on both the SSBT and OTC are visible in the dedicated back-office via a detailed reporting system, enabling managers to have a complete overview of their betting operations, thus ensuring a highly competitive retail sportsbook.
Dima Reiderman, Managing Director at BtoBet said: “BtoBet’s new retail solutions have been the culmination of a lot of hard work to get our retail proposition into a strong place. The company combines best-in-class technology with human technical expertise to deliver a fully customizable retail operation. The solutions are not solely aimed for those bookmakers with a retail network, but even for casino operators which can now offer their own sportsbook and control their brand and player experience, seamlessly cross-promote and drive revenues across their entire business.
“Our aim is to be the first-shop-stop for operators looking for a quality, flexible, and superior sportsbook performance, whether online or retail. We constantly seek to support our operator partners drive incremental revenues and we’re confident that our premium retail solutions, with their heightened functionality, will help that further.”
Visit BtoBet at stand N5-150 for a detailed demonstration of its new retail solutions.
Wizard Games adds Yoganand Aiyadurai as Director of Game Technology
NeoGames S.A subsidiary Wizard Games has appointed Yoganand Aiyadurai as Director of Game Technology as it continues to bolster its senior leadership team.
Aiyadurai boasts a wealth of experience across software engineering roles in a career spanning more than 28 years, including 21 years with Derivco, part of the Microgaming Group now Games Global.
Among his responsibilities at Wizard Games will be overseeing the research and development department at the studio, as well as continuing to develop and expand the provider’s IT infrastructure to enable production demand.
In addition, he will be responsible for overseeing market planning and trends, working closely with other senior employees at Wizard Games.
It marks the latest major hire by the supplier, having appointed Simon Jagdhar as Director of Game Studio in November 2022, as it continues to expand its footprint in key regulated markets.
Joey Hurtado, Managing Director at Wizard Games, said: “We are delighted to welcome Yoganand to the growing team here at Wizard Games. We’re continuing to go from strength to strength, and someone of his calibre will allow us to scale new heights.
“We’re always striving to hire the best talent to join our team, and this reaffirms our commitment to excellence, which can be found at every layer of our business.”
Yoganand Aiyadurai, Director of Game Technology at Wizard Games, said: “I’m thrilled to be joining Wizard Games as it continues to make huge leaps in the industry.
“With a fantastic roadmap of content, and countless new partnerships on the horizon, it is an exciting time to be joining the team, and I look forward to helping us take the next step.”
Week 5/2023 slot games releases
Here are this weeks latest slots releases compiled by European Gaming!
Betsoft has released Hearts Desire, a brand new slot with an amorous spin on the classic fruit machine. True love lasts forever, so get ready to fall in love with slots all over again in this fantastical five reels, 30 paylines classic release. Packed with features, Hearts Desire gives Stacked Mystery Reels and a Multiplier Scatter in the unique Free Spins round
The well-known bullfighter and media personality from Cádiz, Canales Rivera, makes his debut as the protagonist in the new instalment from MGA Games. “Canales Rivera La Feria de Abril” is a 3-reel slot game equipped with the latest technology that offers players a walk through the most famous fair in Andalusia in the company of a bullfighter.
Spinomenal, has released an all new, spellbinding instalment to the Book of Baba Yaga series, as part of the ever-expanding Spinomenal Universe. Book Of Baba Yaga – Winter Spell is the perfect follow up to match the current Winter season, promising to be more rewarding than ever. Following the success of the original version, the mystical Book of Baba Yaga has returned to screens in a new form.
Yggdrasil, the leading worldwide publisher of online gambling content, has rolled out a cyberpunk crime caper in its latest release, Neon Villains DoubleMax™. Always a favourite amongst players, the heist theme delivers a feeling of thrill and excitement that quite simply can’t be matched!
ELA Games, launched a new game called “Wild Piranha” which takes players through the winding rivers of South America, in search of many hidden treasures. This high-volatility title depicts an animated waterfall full of colourful creatures such as a piranha, wild fish as well as an array of vivid symbols that award players handsomely when landing on the reels.
Get ready to ignite the western frontier with Chilli Bandits, the latest slot game from Slotmill. This spicy video slot stars “Chilli the Kid”, “Belle Pepperr”, and “Clint Heatwood”! Join the Chilli Bandits as you spin the reels and watch the stacked Chilli wilds bring extra excitement to your game. These special symbols have the power to double your ways, split into multiple symbols and reveal mystery symbols thereby increasing the chances of hitting big wins!
Swintt is inviting players to brave the icy winter weather and join them for another unforgettable slot adventure in Bloxx Arctic – a brand-new release in the studio’s Premium range that features Free Spins and special Bloxx bonuses. Played out across a 5×3 reel set that includes 30 fixed paylines, Bloxx Arctic sees players venture to the globe’s polar region to unearth prizes of up to 3,500x their stake.
Slot fans can get their teeth stuck into action-packed adventure Crazy Crocs, the latest feature-filled game from Reevo, that awards Wild upgrades, Multipliers, Cash Spins and incredible surprises. Players take on the role of a fearless hunter and travel through treacherous swamps using boomerangs, boosters, knives and rifles to hunt for golden crocodile eggs and big wins in one of the standout titles of this beginning of year.
At the heart of an ancient temple treasures lie in wait as Play’n GO write a new legend into their portfolio of premium slots with their latest release, Legacy of Inca. An easy-to-follow game that will appeal to both newcomers to slots and enthusiasts alike, Legacy of Inca sees the return of the Wheel of the Gods feature which can be found in the titles mentioned previously. But there’s a twist.
RubyPlay announced that it has built and launched a custom, bespoke football-themed slot for Holland Casino Online. Eredivisie Goal Collect has been designed to be innovative and intuitive so that players can immerse themselves in the action from the very first spin, including picking their favourite Eredivisie team to represent the Wild symbols in the game.
Pragmatic Play, a leading content provider to the iGaming industry, has reimagined the infamous adventurers of Sherwood Forest in the latest release, Fire Archer™. Money pouches, beer and feathered hats make up the symbols of this 5×5 release, which is home to 25 paylines. Players will need to create matching combinations of these symbols to be awarded a win.
Playson, has released Bozo Cats – a 3×5 slot featuring an interactive Free Spins mode with Sticky Wilds as its main feature. The latest addition to Playson’s portfolio of high-quality online casino games is centred around the lives of furry friends, who scour the streets in search of Golden Scatter symbols and Wilds to reward players.
“Autobahn Automat”, the latest Premium Series slot from German company Hölle Games, is now available in MGA territories. As the title suggests, the Berlin-based start-up went with a distinctive style in their new, 5×3 Hold & Win slot – the German Autobahn! This is a legendary icon both in and out of the country, and a unique theme that hasn’t received much attention in the slot industry – until now.
PopOK Gaming is excited to announce the release of its bold and sensual new video slot, Hot Angels. This game intrigues slot lovers with its stunning visuals and breathtaking wins. With its seductive design and attractive features, Hot Angels will provide players with a unique form of entertainment. The slot features Respins in the main game, but there is also a Free Spins round during which the mystery lady joins the adventure.
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