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LeoVegas AB: First quarter 2019, 1 January– 31 march 2019

George Miller



Notice of Extra General Meeting in LeoVegas AB
Reading Time: 6 minutes


“LeoVegas has had a good start to the year – customer loyalty and the inflow of new customers has never been better!”– Gustaf Hagman, Group CEO


First quarter 2019: 1 January– 31 march 2019

  •  Revenue increased by 12% to EUR 86.3 m (77.4).
  •  Organic growth in local currencies was 4%.
  •  Organic growth in local currencies excluding the UK was 19%.
  •  EBITDA was EUR 7.2 m (9.5), corresponding to an EBITDA margin of 8.3% (12.3%).
  •  Net Gaming Revenue (NGR) from regulated markets was 50% (35%) of total NGR.
  •  The number of depositing customers was 370 209 (302 014), an increase of 23%.
  •  The number of returning depositing customers was 196 863 (155 951), an increase of 26%.
  •  Earnings per share were EUR 0.00 (0.02) before and after dilution.

Events during the quarter

  •  Sweden launched as a regulated market and the assessment is that LeoVegas is taking market shares.
  •  The Group’s brand was granted a five-year license for casino and sports betting in Sweden.
  •  The Group is seeing positive effects of a pronounced internal focus on efficiency and cost control.
  •  LeoVegas launched its proprietary multibrand platform to further complement its brand portfolio.
  •  The new GoGoCasino brand was launched in the end of March and has been well-received.
  •  Strategic evaluation of LeoVentures continues. The portfolio company Authentic Gaming is growing strongly and achieved a positive result for the first time in March and is expected to continue generating profits.

Events after the end of the quarter

  •  Preliminary revenue in April amounted to EUR 30.5 m (29.1), representing growth of 5%.
  •  Richard Woodbridge, COO, and Avshalom Lazar, CCLO, has started their employment with the Group, while Mattias Wedar, CPTO, will assume his position during the second quarter. The new Group Management team is thereby complete.
  •  LeoVegas’ 2018 Annual Report published on
  •  LeoVegas Annual General Meeting to be held on 29 May 2019.
  •  Nomination Committee has presented its recommendation for the new Board of Directors. Per Brilioth, Barbara Canales Rivera and Patrik Rosén have declined re-election, while Fredrik Rüden has been nominated to be elected as a new director.
  •  14 August 2019 set as new date for the second quarter interim report.


Positive start to 2019
During the first quarter we once again delivered sequential growth and posted record performance on a number of key performance indicators. This, combined with the fact that our customer base is growing in a sound and sustainable way, has given us a good start to 2019. We are maintaining a high pace of expansion and innovation at the same time as we are focusing on cost efficiency and scalability in the Group. This makes us well positioned for a year of continued profitable growth.

First quarter results
Revenue during the first quarter amounted to EUR 86.3 m (77.4), an increase of 12%. Organic growth in local currencies was 4%. Growth during the first quarter continued to be affected by the regulatory tightening that took place in the UK last year. Excluding the UK, organic growth for the Group was 19%, which reflects stable underlying growth in general for the Group. In March we posted the highest revenue and in February the lowest revenue for the period.

EBITDA totalled EUR 7.2 m (9.5), corresponding to an EBITDA margin of 8.3% (12.3%). Our marketing investments remained at a high level during the first quarter, among other reasons to secure our leading position in Sweden. Royal Panda increased its pace of investment following a very low level of marketing during the preceding quarter. We paid EUR 11.5 m in gaming duties during the first quarter, which is an increase of EUR 4.3 m compared with the preceding quarter, which affected the operating margin for the period.

We are seeing positive effects from our highlighted focus on efficiency and cost control within the Group. We continue to work on renegotiating supplier agreements in gaming, payments and marketing, among other areas, where we are benefiting from our size and position as one of Europe’s leading casino operators. At the same time, we are continuously reviewing our internal operating costs and processes. The effects of this work are expected to begin showing gradually in 2019 in the form of increased scalability on a growing revenue base.

Sweden has now been regulated for a quarter. We are generally satisfied with our performance during the period, where we had record-high customer activity and believe to have taken market shares. Our organic revenue decreased by 16% during the first quarter, adjusted for currency movements, partly owing to short-term effects of the market’s regulation in January. At the same time our depositing customer base grew 23% compared with the same period a year ago. Revenue in Sweden during the quarter has been growing month on month, and this trend has continued into the second quarter.

The new regulation in Sweden entailed a number of changes for our customers and for the industry, resulting in short- as well as long-term effects. I’m referring in particular to changes in the customer experience, competition, gaming duties, and new marketing channels and payment solutions. As is always the case when a market becomes regulated, it will take some time for the industry and customers to adapt, and thereafter we expect a more stable and predictable market.

Regulation has sparked an intensive debate on the amount of marketing. We also agree that the volume right now is too high, which at the same time is natural in a recently regulated market in which new players, such as the state-run companies, are launching new products. Therefor we are working to diversify our marketing mix to other channels than commercial radio and TV, and we are conveying the responsible gaming message more in our advertising.

Over time, a regulated market tends to lead to fewer operators. We have already begun to see this trend, as smaller operators are now leaving or reducing their focus in Sweden. This means that the amount of marketing is gradually expected to decrease.

What makes it difficult for the industry to self-regulate is when the government urges operators to apply for licences only to shortly after consider major changes in the terms as soon as the licence system is in place. In this case it applies to marketing. We are now awaiting the findings of a study into how marketing is to be handled. The study is expected to be ready by October 2020, and we are looking forward to clearer guidelines. One should keep in mind that it is in the state’s interest to protect the licence system and its channelisation. The greatest benefit for licensed operators, who pay local taxes and adhere to local rules, is the ability to market themselves. A restriction of marketing opportunities would make it challenging to protect the channelisation.

The UK market remains challenging in the near term, but we are gradually making progress, and our customer acquisition is growing at Group level compared with the preceding quarter. In particular, the brands we have gathered under Rocket X are showing clear improvements, with sequential revenue growth paired with good profitability. Royal Panda, on the other hand, had a weaker quarter in the UK, partly coupled to the lower level of marketing in earlier quarters as well as necessary regulatory adaptations in line with the rest of the Group.

Our acquisitions in the UK have generally resulted in greater complexity coupled to synchronisation of databases, routines and processes between the different Group brands. To manage this in the best way and comply with the regulatory requirements, LeoVegas has an action plan that was initiated last year. LeoVegas takes compliance with the utmost seriousness and is working consistently to ensure a safe experience for our customers in all markets, all to uphold our position as a credible, long-term and reliable operator.

Scale-up markets
One market that stuck out during the first quarter is Germany, where we expect to be granted extended gaming licences in Schleswig-Holstein, which gives us a competitive advantage. Finland, Denmark and Canada also delivered good quarters, and in Italy we are taking market shares.

LeoVentures’ portfolio companies developed well during the period. The companies are in various phases of rapid growth and investment, but despite this, together they succeeded in making a positive contribution to EBITDA for the Group during the month of March. For the first time, the portfolio company Authentic Gaming also achieved a positive result in March, and it is expected to continue generating profits. In line with previous communication, we are continuing with our strategic evaluation of LeoVentures.

New brand on proprietary multibrand platform
During the quarter we launched our proprietary multibrand platform. Owing to our multibrand functionality, we can now flexibly launch and scale up new brands. The first such brand that was launched is called GoGoCasino. The start and customer response have been positive and are proof of how we are successfully capitalising on the Group’s strengths, experience and economies of scale. During the year we expect to launch GoGoCasino in more markets.

Comments on the second quarter
The month of April has developed well with preliminary revenue of EUR 30.5 m (29.1), representing a growth of 5%. Our current estimate is that marketing costs in relation to revenue will decrease during the second quarter compared with the first quarter.

LeoVegas has entered the second quarter with full focus on sustainable, profitable growth.

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 5069 2180, UK: +44 (0) 20 71 92 80 00, US: +1 63 15 10 74 95, Confirmation code: 2488668 or join at the web



About the LeoVegas mobile gaming group:
LeoVegas’ passion is “Leading the way into the mobile future”. 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 corporate group in which LeoVegas AB (publ.) is the parent company. LeoVegas AB (publ.) doesn ́t conduct any gaming operations. The operational work is carried out in the subsidiaries within the Group. The company’s shares are listed on Nasdaq Stockholm. For more about LeoVegas, visit

George Miller started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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Industry News

Approval of Foundation Level Gambling Industry Tester Specialist Syllabus by ISTQB®

Niji Narayan



Reading Time: 2 minutes


International Software Testing Qualifications Board (ISTQB) is a software testing certification organisation that operates internationally, founded in Edinburgh in November 2002. The company has approved the release of 2019 version of the ISTQB® Gambling Industry Tester Specialist (GT) Syllabus.

The GT Syllabus gives essential understanding and knowledge to anyone involved in testing in the gambling industry and also reflects the current best practices and procedures for testing in the gambling industry.

The ISTQB® provides the new GT Syllabus as follows:


  1. To the ISTQB® Member Boards, to translate into their local language and to accredit training providers. Member boards may adapt the syllabus to their particular language needs and modify the references to adapt to their local glossary terms.
  2. To the certification bodies, to derive examination questions in their local language adapted to the learning objectives for this syllabus
  3. To the training providers, to produce courseware and determine appropriate teaching methods
  4. To the certification candidates, to prepare for the certification exam (either as part of a training course or independently)
  5. To the international software and systems engineering community, to advance the profession of software testing, and as a basis for books and articles.


ISTQB® President, Olivier Denoo, stated – “the focus of ISTQB® is towards addressing its customers main needs. The Gambling Industry Tester certification, will address a growing market of Gaming of all kinds, including Gambling games, which has a great potential for those developing and testing those games. We have shown with this certification we are not looking only for huge markets, but also on unique trends and customers who needs certifications in today’s growing IT market”.

Alon Linetzki, ISTQB® Marketing working group chair added: “as ISTQB® is trying to address evolving and new areas of testing and target Software Testers, came out this unique syllabus. It addresses the needs of a growing industry – Gaming and Gambling Testing – which this is the first syllabus in that domain”.


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Industry News

iovation Research: Fraudsters Increasingly Leveraging Mobile Devices for Schemes

George Miller



iovation Research: Fraudsters Increasingly Leveraging Mobile Devices for Schemes
Reading Time: 3 minutes


TransUnion company explores top continents and countries for risky mobile transactions, and types of behavior businesses to need to look for to catch mobile fraud

iovation, a TransUnion company, today released its recent research that about half of all risky online transactions appear to be coming from a mobile device. Specifically, in the first half of 2019 iovation saw 49% of all risky transactions come from mobile devices, up from 30% in 2018, 33% in 2017 and 25% in 2016.

“Fraudsters are like chameleons. They are always adapting their tactics to make it look like they’re legitimate customers,” said iovation’s Senior Director of Customer Success, Melissa Gaddis. “With well over half of all transactions now coming from mobile devices, our analysts increasingly see fraudsters either using mobile devices or making it look like their transactions are coming from mobile when in fact they are using a traditional desktop.”

Among its research, iovation found:

  • The top continents for mobile fraud: So far in 2019 it is North America with 59% of all risky transactions coming from mobile devices. In 2018, it was Asia at 53%. In 2017, it was North America with 55%. In 2016, it was North America again with 36%.

  • The top countries for mobile fraud: Gabon leads so far in 2019 with 85% of all risky transactions coming from mobile devices. It 2018, it was Japan with 79%. Papua New Guinea led in 2017 with 86%. In 2016, it was Bangladesh with 59%.

  • The top industries for mobile fraud: So far in 2019 it is telecommunications with 75% of all risky transactions coming from mobile devices. In 2018, it was gambling with 60%. Communities (for example social networks or online dating sites) led in 2017 at 59%. In 2016, it was healthcare with 58%.

To find fraudulent transactions from mobile devices, iovation suggests businesses closely analyze specific indicators including:

  • Mobile emulators: Fraudsters like to hide information by using emulators to make it look like their desktop device is a mobile device.

  • Orientation: Is a device staying in the same position or is it face down? These could be tell-tale signs of a bot or a fraudster emulating a mobile device.

  • SIM card country: Since fraudsters often try to mask their location, the SIM card country provides yet another method for identifying the true location of the end-user. Fraud analysts may find fraudsters that target their businesses tend to have devices from particular countries.

  • SIM card carrier name: Certain mobile carriers can have a higher percentage of fraudulent activity originating from them.

  • Currency: The type of currency tied to a device provides additional context to the region associated with the device. This can be another way to determine if the device is coming from a risky location.

  • Language: Much like countries, carriers and currency, the language used on a device provides additional context on the transaction which can help crack a fraud case when a fraudster is attempting to mask other aspects of their device.

  • Mobile OS version: Certain mobile operating system versions may correlate with fraud or abuse.


Mobile Transaction Jump

iovation found 61% of all online transactions came from mobile devices so far this year, up from 56% in 2018, 51% in 2017 and 45% in 2016. Europe and North America are consistently among the top continents for mobile transactions with 67% and 60% respectively so far this year. The top industry for mobile transactions so far in 2019 is communities with 73%.

For more insights into iovation’s findings along with new iovation features to catch mobile fraud, go to this blog post that includes an infographic.


iovation came to its findings by analyzing the 30 billion online transactions it evaluated for fraud from January 2016 to June 30, 2019. To find the risky mobile transactions, it calculated the percent of risky transactions from mobile devices compared to overall risky transactions. For overall mobile transactions, it calculated the percent of mobile transactions compared to all online transactions. iovation defines risky transactions as those that typically result in fraud.


About iovation:

iovation, a TransUnion company, was founded with a simple guiding mission: to make the Internet a safer place for people to conduct business. Since 2004, the company has been delivering against that goal, helping brands protect and engage their customers, and keeping them secure in the complex digital world. Armed with the world’s largest and most precise database of reputation insights and cryptographically secure multifactor authentication methods, iovation safeguards tens of millions of digital transactions each day.


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Industry News

Zitro’s LINK ME Arrives in Spain

Niji Narayan



Zitro’s LINK ME Arrives in Spain
Photo Source:
Reading Time: 1 minute


The casinos of the Grup Peralada, Casino Barcelona and Casino Peralada, have installed the Zitro’s LINK ME. Link Me is a new progressive bank, that along with Link King, are delighting the players of the establishments of this important Group of Casinos.

“At Grup Peralada we always try to be pioneers and offer the latest products on the market. Our priority is to provide our customers with a game offer of absolute technological vanguard, and that is why we have relied again on Zitro for our group of casinos,” Josep Maria Roig, general director of Casinos at Grup Peralada said.

“The bet that Grup Peralada has made for Zitro products, once again, fills us with pride. We are convinced that the results of Link Me in both casinos will be formidable, just as they are in casinos in all parts of the world. Link King, Link Me and Link Shock are consolidating as the most profitable video slots banks in the global market,” Nadège Teyssedre, Commercial Director of ZITRO for EMEA said.

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