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LeoVegas AB Q2: Quarterly report 1 April – 30 June 2021

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“All-time-high in Sweden and a strong start for Expekt” – Gustaf Hagman, Group CEO

SECOND QUARTER 2021: 1 APRIL – 30 JUNE

  • Revenue decreased by 13% to EUR 96.8 m (110.7).
  • Excluding Germany, growth was positive 3%.
  • Adjusted EBITDA was EUR 10.6 m (23.0), corresponding to a margin of 10.9% (20.8%). Reported EBITDA was EUR 9.8 m (23.0).
  • The number of depositing customers was 460,697 (434,453), an increase of 6%.
  • Adjusted earnings per share were EUR 0.06 (0.19).

EVENTS DURING THE QUARTER

  • The acquisition of Expekt was completed and integrated on 19 May 2021. The start has been a success, and Expekt’s revenue and market share have nearly doubled in Sweden since the acquisition was carried out.
  • LeoVegas’ forthcoming expansion to the USA, starting in the state of New Jersey, is on track.
  • LeoVegas carried out share repurchases for EUR 4.9 m and paid out of the first out of four quarterly dividends to the Parent Company’s shareholders. The second quarterly dividend payment was made after the end of the period.
  • LeoVegas’ framework and routines for ensuring responsible gaming have been assessed by the independent agency eCOGRA. The external assessment shows that LeoVegas is in conformity with all relevant recommendations and requirements for responsible gaming published by the European commission.

EVENTS AFTER THE END OF THE QUARTER

  • Preliminary revenue in July amounted to EUR 32.8 m (30.7), corresponding to growth of 7%. Excluding Germany, revenue grew 23%.

COMMENT FROM GUSTAF HAGMAN – GROUP CEO

SECOND QUARTER
Most of our markets have continued to develop well, with high, double-digit growth in key markets like Italy and Spain. The development in Sweden is encouraging, with record-high revenue during the quarter. We are also growing rapidly in North America, which now accounts for 10% of consolidated revenue. However, re-regulation in Germany continued to negatively impact figures during the period. Excluding Germany, Group revenue increased by 3% to a new record level despite tough comparison figures from the start of the pandemic during the second quarter of 2020 and greater competition from other entertainment activities as societies are now opening up again. We expect to see positive growth for the Group on a yearly basis during the third quarter.

Our operating profit decreased compared with the same period a year ago, while we achieved stable earnings compared with the preceding quarter. This is despite a high level of investments and a number of important, strategic ventures, including our forthcoming launch in the USA, a stronger focus on sports with the acquisition of Expekt, and our new game studio. Marketing costs in relation to revenue were higher than the historic average, coupled among other things to the relaunch of Expekt and investments in a number of key markets in which we see high customer growth. Investments in marketing during the quarter weighed down earnings short-term but are driving value long-term and will also enable us to accelerate out of the revenue drop in Germany. As revenues increase, the share of marketing investment will decrease. At the same time, we have maintained good cost control, and our operating expenses have more or less been unchanged over the last three-year period.

THE NEW EXPEKT
In mid-May we consolidated the acquisition of Expekt, and shortly thereafter “the New Expekt” was launched with a large and attention-grabbing marketing campaign ahead of the Euro 2020 football championship. It was a successful start, and in a short time we nearly doubled Expekt’s revenue and market share in Sweden since completion of the acquisition.

GERMANY
The situation in Germany coupled to re-regulation, with strict product limitations, an extremely high gaming tax and a skewed competitive situation, is having a negative effect on the Group. Revenue in Germany decreased by 81% compared with a year ago and accounted for only 4% of Group revenue during the quarter. We believe it will take time to create a balanced and fair market climate and have therefore chosen to shift our investments to other, more profitable markets. Over the long term we still believe that Germany, with Europe’s largest population, offers great opportunities for the Group.

NORTH AMERICA
Our forthcoming expansion to the USA, starting with the state of New Jersey, is on track. We are currently working on adapting and certifying our technical platform, and during the autumn we will also begin establishing a local organisation. We expect to accept our first American customers during the first half of 2022.

The Canadian province of Ontario, which is home to roughly 40% of Canada’s population, is conducting preparations to introduce a local licence system for online gaming. LeoVegas has built up a strong brand along with a large and loyal customer base in Ontario and the rest of Canada, among other things with help from former hockey legend Mats Sundin. According to our assessment LeoVegas is one of the larger and most well-known casino actors in the Canadian market.

During the second quarter, North America accounted for 10% of the Group’s total revenue and grew 33%. In pace with our continued expansion in Canada and forthcoming launch in the USA, revenue from North America will increase. This is in line with the Group’s strategy to diversify our revenues.

COMMENTS ON THE THIRD QUARTER
Revenue for the month of July amounted to EUR 32.8 m (30.7), corresponding to positive growth of 7%. Adjusted for Germany, the Group’s growth in July was 23%.

George Miller (Gyorgy Molnar) 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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Podium’s Racing Data to Power Dabble’s Social-led Betting Service in the UK

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Podium, a leading global provider of trusted sports content and data solutions, is working with Dabble to help bring its socially driven betting experience to UK audiences.

Dabble combines traditional betting functionality with a social media-style interface to offer the next generation of racing fans a more interactive way to connect and share. The app-based platform is integrated with Betmakers technology, with all UK horse and greyhound racing data delivered by Podium.

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The collaboration, which has been in place since the summer, marks an evolution in how racing data is used and experienced, with Podium delivering UK racing content via Betmakers technology to help power Dabble’s social platform.

Tom Rundle, CEO of Dabble, says: “Dabble’s move into the UK is a natural fit. We’re a challenger brand with an exciting product that we built ourselves from scratch. We’re already seeing that resonate with the UK audience. Yes, you can get a bet on, but essentially, we are placing ourselves as being community driven. We’re creating a richer experience at every touch point.”

The UK is Dabble’s third international market, following rapid growth after launching in its native Australia.

The post Podium’s Racing Data to Power Dabble’s Social-led Betting Service in the UK appeared first on European Gaming Industry News.

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Football Stats Startup Challenges Multi-Million Company With Free Publication Of Blueprints

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A little company from Poland does something very odd for the competitive market — and thinks that one man’s dream can ignite a revolution in how we treat amateur football.

Prawn, the fresh startup from Eastern Europe with the international team, has announced its first hardware solution for recording football matches. But it is not on the shelf of the local store and does not pop out on the web page as an annoying ad. The users can literally obtain blueprints free of charge and craft it themselves.

Such an unusual decision is aimed at challenging the market that has been ignored and omitted by the big sports tech companies for years or even decades. Amateur football is miles and generations behind the professionals in the way players can assess their performance and improve — that is what Prawn dared to change.

They have already entered the market with the PrawnApp[a] that provides analytics for amateurs who record their match performance and upload the video. Powered by an AI, this system gives some key figures — goals, passes, dribbling attempts etc. — and, which is important, some tips for improvement. The service can be also used as a platform for creating highlights thanks to its ability to combine footage from different angles. The app is easy to try: each user is granted one month free of charge.

In this field Prawn faces some obvious competition. Other companies have released their own vision of prone holders for recording matches which is not much of a difference in functionality to what the Polish startup gives away for free on their Instagram page for following and tagging a friend. But there is a difference — the price tag.

Prawn developers, passionate football players and fans themselves, know exactly what the amateur footballers want — affordable tech for capturing their games and great service for analytics and improvement. That is exactly what PRAWNER[b] (that is how the phone holder is labeled) and PrawnApp are about.

The company has already proven that its ideas resonate with the players and sports industry: the initiative to create a global map of available pitches was mentioned 152 times in U.S., European and even Indian media, and their web page was visited by thousands of people within a couple of weeks. The Polish startup promotes its vision with a simple principle: those who love football and want to be better at it should not pay more, but play more.

The post Football Stats Startup Challenges Multi-Million Company With Free Publication Of Blueprints appeared first on European Gaming Industry News.

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Endorphina Goes Viral With Baywatch-inspired SBC Lisbon Posters

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The leading slot game provider, Endorphina, continues to make waves in the iGaming industry, announcing its presence at the highly anticipated SBC Lisbon with a big splash. From September 16-18, Endorphina’s stand, number B590, will bring the ultimate beach escape at the Feira Internacional de Lisboa & Meo Arena. 

To further tease its presence at the upcoming beach-themed booth at SBC Summit Lisbon, Endorphina created a campaign inspired by the popular TV show Baywatch. The company organized a special photoshoot with its employees dressed as lifeguards patrolling the beaches of Lisbon. In addition, Endorphina designed special posters that play with the aesthetics of 80s and 90s posters and VHS tapes. 

This announcement from Endorphina immediately captured the attention of the iGaming world, with the posts receiving 5x more engagement than usual on LinkedIn. The photoshoot featured employees from various departments, including Kirill Miroshnichenko, CCO; Irina Veselkova, Marketing Strategy Coordinator; Dejan Vranjanin, Head of Account Development; Mihail Cojocaru, Team Lead Client Success Management; Marie Eliseeva, Account Manager; and Svetlana MD Masud, Partnership Manager. 

This campaign teases Endorphina’s booth at SBC Summit Lisbon, which will be themed to bring the ultimate beach paradise straight to Portugal. The company promises unique activities and a memorable experience for visitors, inviting them to visit booth B590, meet the Endorphina team, and immerse themselves in the beach-themed atmosphere.

The post Endorphina Goes Viral With Baywatch-inspired SBC Lisbon Posters appeared first on European Gaming Industry News.

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