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LeoVegas AB: Quarterly report 1 april – 30 june 2019
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“LeoVegas is delivering good growth with high profitability in a difficult-to-navigate environment. Q2 2019 was our best quarter ever, and we continue to take market shares.” – Gustaf Hagman, VD och koncernchef
Second quarter 2019: 1 april–30 june 2019[1]
- Revenue increased organically by 8% to EUR 94.4 m (87.4).
- EBITDA was EUR 15.1 m (15.0), corresponding to an EBITDA margin of 16.0% (17.2%).
- The number of depositing customers was 334,961 (309,987), an increase of 8%.
- The number of returning depositing customers was 196,203 (175,500), an increase of 12%.
- Earnings per share were EUR 0.07 (0.07) before and after dilution.
Events during the quarter
- LeoVegas was granted a gaming licence in Spain. Two weeks after the licence was granted, LeoVegas was launched in Spain.
- LeoVegas’ technological infrastructure was migrated to Google Cloud.
- A number of product innovations were launched, including improved search functions, multiplay on mobile devices and exclusive games.
Events after the end of the quarter
- Preliminary revenue of EUR 29.7 m (27.1) in July, representing growth of 9%.
- LeoVegas has opted to not apply for a gaming licence in the recently re-regulated Swiss market. Switzerland accounted for EUR 2.2 m of revenue during the second quarter.
- Dersim Sylwan recruited as new Chief Marketing Officer and will assume his position by 1 January 2020 at the latest.
- Louise Nylén leaving as deputy CEO. Her role will not be replaced.
- Notice of Extraordinary General Meeting on August 28 regarding incentive program. The notice is posted on the company’s website.
Comment from Gustaf Hagman – Group CEO
First half of 2019
During the first half of 2019 we generated good underlying growth and profitability despite a difficult-to-navigate external environment in several of our largest markets.
Second quarter results
Revenue during the second quarter amounted to EUR 94.4 m (87.4), an increase of 8%. Organic growth in local currencies was 8%. Growth was favourable during the period in most of our markets. However, the UK continued to be challenging. Excluding the UK, organic growth was 26%. At the same time, in Sweden we have found a new base to grow from following regulation of the market, and our revenue developed in a positive direction month-on-month during the quarter.
Compared with a year ago, LeoVegas has a more balanced geographic revenue mix. This means that we are not as sensitive to challenges that may arise in a specific market, which in turn means that we have lower business risk in the Group.
EBITDA totalled EUR 15.1 m (15.0) during the second quarter, corresponding to an EBITDA margin of 16.0% (17.2%). Greater focus on efficiency and cost control has had the intended effect, and we continue to review our external agreements and optimise our own organisation. This work is helping to create necessary economies of scale and is countering the effect of that we are paying more gambling taxes. As previously communicated, our marketing investments also decreased compared with the first quarter of the year. A contributing factor to this is more restrained marketing in Sweden during the quarter. In addition, the postponement of a few campaigns from the second to the third quarter has affected costs and contributed to operating profit, which will have a reverse effect during the third quarter.
To further benefit from the expertise that has been added through acquisitions and be more efficient, we have restructured the country organisations for the UK and Italy. We have moved country-specific functions into our central teams and eliminated roles that have become redundant as a result of acquisitions. This is one of many initiatives we have taken to increase efficiency and optimisation within the Group.
Sweden
Sweden has now been a regulated market for more than six months, and the development is beginning to indicate what kind of market we will have over the long term. We are satisfied with our performance in Sweden and believe that we are taking market shares. LeoVegas is today the single largest casino brand in Sweden. Our focus on product and customer experience, our knowledge about regulated markets and our strong brand position contribute to the positive development. On top of this, the launches of GoGoCasino and Pixel.bet have been successful, and the brands are appreciated by our Swedish customers.
As a large and long-term player both in Sweden and globally, we at LeoVegas want to participate in changing the perception of the industry. There is a strong need today to educate and inform the general public, opinion-shapers and politicians about our industry, what we stand for and the work we are doing – not least in responsible gaming and sustainability. This is important for ensuring that we work together to secure that the new regulation is a success with high participation in the licence system, i.e. that there is a high level of channelization, and with extensive consumer protections.
Expansion
Only two weeks after we received our licence in Spain, we went live as the first newly licensed operator. This shows the strength and speed of LeoVegas and further demonstrates that our experience from regulated markets benefits us. Spain is a step in our continued expansion, and we have also recently carried out launches in other Spanish-speaking countries, such as Chile and Peru, as well as in Brazil.
Technology
During the quarter we migrated our technology to Google Cloud. The move will allow us to better scale our technical infrastructure environment without having to invest in hardware. Within the product innovation area, we have, among other things, launched improved search functionality, multiplay on mobile devices and new, exclusive casino games for LeoVegas customers.
Financial targets
We reiterate our ambitious financial targets to achieve EUR 600 m in revenue and EBITDA of EUR 100 m by 2021. We want to clarify that the targets are based primarily on organic growth, but also include revenue from potential future acquisitions.
Comments on the third quarter
Revenue for the month of July was EUR 29.7 m (27.1), representing growth of 9%.
LeoVegas has opted to not apply for a licence in the recently re-regulated Swiss market, and as a result we are no longer accepting business in that market. Switzerland accounted for EUR 2.2 m in revenue during the second quarter.
Our current assessment is that the Group’s marketing costs will increase during the third quarter compared with the second quarter, both in relation to revenue and in absolute figures.
Final words
We have once again presented a quarter with organic growth combined with good profitability. The investments made in 2018 and efficiency improvement work carried out thus far in 2019 are beginning to generate returns in the form of greater scalability of operations. Despite this, we are not content and are working continually to be even better. The external market environment in several key markets is currently more turbulent and difficult to predict than previously, which is creating new challenges and requirements, but at the same time it is presenting major opportunities for us to grow and take market shares. We continue to focus on becoming the global casino company number 1 – we are King of Casino!
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: Quarterly report 1 april – 30 june 2019
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EGT to present its latest gaming solutions at SiGMA Central Europe 2025
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EGT is thrilled to announce that it will participate in SiGMA Central Europe 2025. Visitors to the event, which will be held in Rome from November 4th to 6th, will be able to see the newest developments from the company’s portfolio alongside its well-established products at stand 2038.
Among the highlights in the selection for the show will be two models from EGT’s latest series of slot cabinets Supreme – S 32-32 ST and S 55 V ST. Powered by the Exciter IV platform and standing out with an eye-catching outlook with captivating UHD 4K displays, numerous interactive features, and user-friendly ergonomics, these machines are created to provide a superior experience. They will reveal the wide variety of games of the top-performing Supreme Selection series mixes: Mega Supreme Fruits Selection, Supreme Green, and Supreme Red Selection.
The popular General Series will also be presented by two of its most successful cabinet models – the G 50 C ST and the G 50 J2 ST. They will offer the attendees the chance to try their luck and win big with the hit jackpots Bell Link, Bell Link Boost, as well as Gods & Kings Link with its new multigame Gods & Kings Link 2, enriched with even more exciting titles.
The Compact 6 Roulette, the newest addition to the company’s ETG portfolio, will be on display as well. Including sleek design, American roulette, and multiple options for connection to other EGT Automated Roulette units, it will definitely won’t go unnoticed by the guest at the stand. Alongside the Power HD multigames, the roulette will invite players to explore the astonishing world of Supreme Green Union, offering a fascinating blend of video slots, Blackjack, Baccarat, roulette, and Keno.
At stand 2050 EGT Digital will also demonstrate its ever-growing array of iGaming solutions, covering instant and casino games, as well as the in-house developed betting platform X-Nave, providing operators with the technology and tools they need to build and maintain a successful business online.
Nadia Popova, Chief Revenue Officer and VP Sales & Marketing at EGT, shared her enthusiasm regarding the upcoming edition of the show: “SiGMA Central Europe continues to evolve as a high-value meeting point for the industry, and we are proud to be part of it. Our goal is to present not only our strong product selection but also our vision for sustainable growth and technological excellence. The event brings together decision makers shaping the industry’s future, and we are ready to contribute with solutions that combine performance, reliability, and a deep of market insight.”
The post EGT to present its latest gaming solutions at SiGMA Central Europe 2025 appeared first on European Gaming Industry News.
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FURIA Pulls Off the Reverse Sweep to Win Thunderpick World Championship 2025
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Thunderpick, the leading esports betting platform delivering fans cutting-edge tools and experiences, announced that FURIA has emerged victorious at the Thunderpick World Championship 2025 — one of the tournament’s most competitive editions yet, featuring four of the world’s top 10 ranked teams. FURIA takes home the $500,000 first-place prize, with KSCERATO earning his first Grand Final MVP.
FURIA’s steady performance and relentless focus were on full display throughout the tournament, culminating in a Finals victory over Natus Vincere. After NAVI went up two maps to zero, FURIA did what many thought was impossible and completed a dominant reverse sweep with a 13:1 on the decisive map.
Natus Vincere finished second place, earning $150,000. The MongolZ, who won the Thunderpick World Championship last year, finished third after defeating Aurora earlier in the day, receiving $70,000 and $50,000, respectively. Venom, 9z, Imperial and OG all placed fifth through eighth, taking home $20,000 each.
“It is a privilege to congratulate FURIA as the Thunderpick World Champions! This tournament was thrilling, featuring exceptional gameplay. The success of our World Championship is thanks to the incredible teams, streamers, partners, staff, and everyone behind the scenes who made it possible, as well as the passionate fans who make this event so special,” said Kelly Sanders, Head of Strategy at Thunderpick.
This year marks the third consecutive Thunderpick World Championship. Last year, The MongolZ stunned HEROIC to claim their third international title of the season, cementing their status on the global CS2 stage. In 2023, FaZe Clan took the crown after defeating Virtus.pro, with Robin “ropz” Kool earning the MVP title. The TWC 2025 Finals are presented in collaboration with Hotspawn, a leading hub for esports news and analysis.
The post FURIA Pulls Off the Reverse Sweep to Win Thunderpick World Championship 2025 appeared first on European Gaming Industry News.
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The Danish Gambling Authority Wins International Award for Education Programme in Secondary Schools
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For the second year in a row, an initiative from the Danish Gambling Authority has been recognised as the best in the world by international peers. At a major conference in Toronto, Canada, the Authority received the Best responsible / safer gambling initiative award for its engaging educational sessions in Danish secondary schools. The jury particularly highlighted how the programme has clearly influenced young people’s attitudes towards gambling.
The award is presented by the International Association of Gaming Regulators (IAGR) – a network of 81 gambling authorities from around the world that meet annually to discuss key cross-border issues. Last year, the Danish Gambling Authority won with its campaign The One-Armed Bandit. Now, another trophy is heading to Denmark.
Since 2022, the Danish Gambling Authority has offered free presentations to secondary schools across the country – more than 200 so far.
“Gambling plays a big role in many schools. In some classrooms, gambling has almost become part of the everyday culture. It distracts from learning and can lead to addiction. That’s why we developed our own educational programme to help students understand how gambling works and where to seek help if it gets out of hand,” said Anders Dorph, Director of the Danish Gambling Authority.
The presentations are delivered by a team of eight staff members from the Danish Gambling Authority, typically working in pairs. They are held in individual classes to ensure maximum participation. A real roulette table is a key feature, providing students with a tangible understanding of how games of chance operate.
“Our goal isn’t to tell students never to gamble. It’s to make sure that if they choose to play, they understand that the games are designed so the player will lose money over time,” said Heine Jakobsen, Special Adviser and coordinator of the programme, who accepted the award in Toronto on behalf of the Authority.
Impact studies show a clear shift in students’ attitudes towards gambling. The Danish Gambling Authority conducted surveys before and three months after each visit – and the results speak for themselves:
Before the session, 64% said they gambled to win money. Three months later, that number had dropped to 54%.
The share of students gambling for entertainment rose from 70% to 87%.
This shift – from gambling to make money towards gambling as entertainment – demonstrates that the Danish Gambling Authority’s message is resonating with young people.
The interactive approach and measurable results are key reasons why the Danish Gambling Authority has now received the award for the second consecutive year.
The jury’s motivation read: “For an interactive, school-based education programme that engages young people with practical demonstrations and surveys evidencing shifts away from gambling ‘to make money’ towards safer play and awareness of help services.”
“We are truly honoured to receive this award. It’s vital that young people understand gambling as entertainment – not a shortcut to easy money. By meeting them with honesty and engagement, we’ve managed to make responsible gambling relevant and accessible for our target group. I’m proud that the jury recognised this, and that our work can inspire other regulators around the world,” said Anders Dorph.
The post The Danish Gambling Authority Wins International Award for Education Programme in Secondary Schools appeared first on European Gaming Industry News.
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