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LeoVegas AB Q3: Quarterly report 1 July– 30 September 2020


THIRD QUARTER 2020: 1 julY–30 september
- Revenue increased by 1% to EUR 88.9 m (88.2). Organic growth in local currencies was 2%.
- EBITDA was EUR 11.9 m (12.7), corresponding to an EBITDA margin of 13.4% (14.4%).
- The number of depositing customers was 438,691 (347,464), an increase of 26%.
- Earnings per share were EUR 0.04 (0.05) before and after dilution, while adjusted earnings per share were EUR 0.08 (0.09).
Events during the quarter
- GoGoCasino and Livecasino.com launched in Finland. An international launch of both brands is in progress.
- Operations in Sweden have been affected by the temporary restrictions that were introduced on 2 July as a result of Covid-19
- LeoVegas increased its ownership in the e-sports betting operator Pixel.bet to 85% from 51% previously.
- Operating profit for the quarter includes costs of EUR 0.5 m in organisational streamlining and optimisation measures. Yearly net savings from these measures is expected to total EUR 1.5 m starting next year.
Events after the end of the quarter
- Preliminary revenue in October amounted to EUR 33.0 m (26.0), representing growth of 27%.
- Royal Panda has relaunched in Finland on the Group’s proprietary technical platform.
- LeoVegas has launched Bingo as new product category.
- Ahead of the forthcoming regulation of the German market, effective 15 October a number of changes have been made that affect the customer offering. This had a slight negative impact on revenue in October. LeoVegas expects to receive nationwide licences for the German market once they are available.
COMMENT FROM GUSTAF HAGMAN – GROUP CEO
THIRD QUARTER 2020
Once again, we have shown our ability to quickly adapt to new, external circumstances, such as those related to the continuing pandemic and the constant regulatory changes in our various markets. During the third quarter we maintained a high pace of innovation and investment, which is strengthening our long-term position and growth prospects.
During the quarter our customer base again reached a new record level. The number of depositing customers grew 26% compared with the same period a year ago, which confirms the strong development of our business. This is partly attributable to the ongoing structural shift from land-based gaming to online, but above all to our focus on creating the best product and experience for our customers. We continue to optimise scalability and reduce complexity in the organisation. During the quarter, among other measures we realised synergies from previous acquisitions and instituted a clearer organisational and Group structure. This has led to a slight level of staff redundancy, and operating profit was charged with EUR 0.5 m for measures coupled to this. At the same time, we estimate that yearly net savings from these measures will amount to roughly EUR 1.5 m starting with next year. Our efficiency improvement work equips us for continued profitable growth and makes us – combined with greater diversification of the revenue base – more resilient to rapid fluctuations in individual markets.
MARKETS
We had a favourable development in most of our markets during the quarter, with our growing customer base as the main driver. Many markets had double-digit growth compared with the same period a year ago.
In Sweden we are seeing a troubling development in which the unlicensed market continues to grow unhindered. A growing number of operators without licences are actively targeting Swedish players, including those who have been barred by the self-exclusion tool Spelpaus. This has been confirmed by, among others, several organisations that provide help to people with a gambling problem. These organisations have noted that the majority of those seeking help are playing with the unlicensed operators. The problem is big and is shaking the foundation of the entire Swedish licence system. Quick and strong measures are now needed by Swedish politicians and authorities to ensure a well-functioning Swedish gaming market.
In Germany the federal states have agreed to introduce a licence system for gaming, which is expected to be implemented during the second half of 2021. We are looking forward with confidence to Europe’s largest market finally being regulated. Ahead of implementation of the licence system, it is expected that operators will carry out certain limitations in their respective customer offerings in advance. LeoVegas has already begun implementing such limitations, which will initially have a negative impact on revenue. Details on regulation of the German market are provided in the Legal update section in this report. LeoVegas today has a licence in the German state of Schleswig-Holstein and expects to receive nationwide licences once they are available. Germany generated approximately 17% of the Group’s total revenue during the third quarter.
technology and products
The quarter was intense for our technology and product organisation, with the completion of a number of major projects. For example, we implemented the German regulatory requirements on short notice and launched the GoGoCasino and Royal Panda brands in Finland on our proprietary platform. We also are seeing higher demand for broader entertainment games among our players and therefore recently launched our Bingo product.
comments on fourth quarter
Preliminary revenue for the month of October amounted to EUR 33.0 m (26.0), corresponding to annual growth of 27%. The changes introduced in the German market on 15 October have had a slightly negative impact on revenue.
With a positive start to the fourth quarter, a record-large customer base and many exciting initiatives I am looking forward to a strong end to the full year.
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: 2874453 or join at the web https://edge.media-server.com/mmc/p/budae7ar
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 2020

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Champions League Drama & EPL Showdown — WinSpirit Launches Betting Series with 2,500 USD in Freebets
March brings some of the most anticipated football clashes across Europe, including Champions League knockout battles, Premier League showdowns, and UEFA Nations League fixtures. To mark the occasion, WinSpirit has introduced a dedicated Weekly Tournament Series, giving bettors the opportunity to compete across four weeks and claim a share of the Freebet prize pool.
4 Weeks. 4 Tournaments. 2,500 USD in Freebets.
As the football calendar intensifies with Liverpool vs. PSG, Arsenal vs. Chelsea, and Germany vs. Italy, WinSpirit introduces a new Weekly Tournament Series designed to bring even more excitement to sports betting. Across four weeks, participants can compete in a points-based system, with the top 10 players in each tournament earning Freebets.
Tournament Schedule & Prize Pool
- March 7–11 – 500 USD in Freebets
- March 14–18 – 500 USD in Freebets
- March 21–25 – 500 USD in Freebets
- March 28–April 1 – Grand Finale: 1,000 USD in Freebets
How to Join the Action
- Place bets with min odds of 1.50
- Earn 1 point for every qualifying bet (1 EUR = 1 point)
- Climb the leaderboard and finish in the top 10 to win
The Weekly Tournament Series will be available on the WinSpirit platform according to the schedule. Stay tuned for more upcoming tournaments on the WinSpirit website.
The post Champions League Drama & EPL Showdown — WinSpirit Launches Betting Series with 2,500 USD in Freebets appeared first on European Gaming Industry News.
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French Union of Professional Esports Clubs (UFCEP): Esports clubs unite to strengthen their representation in France
Today marks a historic moment for the global esports industry with the creation of the French Union of Professional Esports Clubs (UFCEP). The new association will unite France’s leading esports clubs, including Team Vitality, Karmine Corp, Gentle Mates, and Solary, to collectively represent the esports ecosystem and its passionate fanbase. The UFCEP will play a crucial role in shaping future decisions made by government bodies, tournament organizers, and publishers, ensuring the continued growth and success of esports in France and beyond.
The UFCEP’s initiative is part of a bigger strategy aimed at building a stronger, more credible and sustainable global esports ecosystem. A unique opportunity to strengthen France’s position as a key player in the global esports industry and create a new union to represent and support its various stakeholders, especially with many key deadlines fast approaching in 2025, including the VALORANT Champions and the Rocket League Worlds esports tournaments
A new union to represent France and the esports ecosystem
The UFCEP builds upon years of collaboration among France’s top esports clubs, having collectively worked together to evolve and grow the global esports industry. With a mission to increase the visibility and credibility of esports worldwide, the union is dedicated to representing the interests of both the clubs and their passionate fanbase. Its goal is to elevate the global esports landscape by fostering positive change on both the international and local levels.
By representing all French esports clubs and their millions of fans, the UFCEP is creating one strong voice that the teams and clubs can identify with. The UFCEP will also represent the needs of the esports ecosystem, including fans, clubs and players, any decisions made by tournament organizers and game publishers and manage any issues with government bodies.
Aligned with the global esports landscape, the UFCEP is committed to promoting an open and inclusive model, allowing any club that meets the eligibility criteria to automatically join the union. This approach guarantees representation for all professional esports clubs, embracing their diversity while uniting them within a structured and cohesive ecosystem.
The elected members of the Steering Committee will be responsible for representing the interests of the UFCEP and serving as key communicators with various stakeholders, including tournament organizers, publishers, government, parliamentarians, and economic and institutional decision-makers. A designated representative will ensure a supportive framework that promotes the long-term sustainability of the esports ecosystem, safeguarding the interests of its brands, fans, and players.
Protecting the sustainability and structure of the esports industry
Comprising internationally recognized esports organisations, the UFCEP represents a diverse range of popular esports titles, including League of Legends, Rocket League, VALORANT and Counter-Strike. These French clubs also boast a roster of exceptionally talented professional gamers, including Mathieu “zywOo” Herbaut, Caliste “Caliste” Henry-Hennebert, Jeremy “Eika” Valdenaire, and Luna “Lilith” Benzerara-Arnoux. Home to many esports superstars, France has an incredible ability to create and nurture talent, a strength that must be protected and built on to develop and propel the global esports industry into the next generation.
The participating esports clubs are already deeply committed to fostering a healthy and sustainable ecosystem. However, to elevate these efforts further, a robust framework must be created, coupled with comprehensive support for players throughout their careers. This involves developing personalised training programs that empower players to continue their education alongside their professional esports careers. Additionally, dedicated training courses, such as esports focused studies and specialised skills development, are crucial to nurturing player growth. This enhanced support system will unlock greater post-career opportunities for young talent, ensuring long-term success both on and off the screen.
Equally vital is addressing the challenges players face in their professional journeys. This begins with the creation of a streamlined legal framework that facilitates visa processing during transfer periods and prioritises the protection of players’ mental well-being. Combating the pervasive threat of cyberbullying, a significant concern for many young esports and sports athletes alike, must remain a top priority.
These measures are crucial, not only for safeguarding players but also for strengthening France’s position as an emerging global esports hub. With a rising number of French players exerting significant economic influence and an increasing influx of major international tournaments being held in the country, ensuring their well-being and development is fundamental to sustaining this momentum.
France, an esports nation, fuelled by its passionate young fanbase
The UFCEP stands firm in its commitment to the core values that define esports and unite its players: performance, inclusion, and passion. These organizations play a pivotal role in shaping French youth culture, captivating over 7 million fans, predominantly between the ages of 18 and 34. Through their active participation in major international competitions, they continue to expand their influence and elevate France’s standing on the global esports stage.
As the global esports audience experiences significant growth, reaching 544 million fans in 2024, France has emerged as a key destination for hosting major international events. Paris has been chosen multiple times by Riot Games, the publisher of League of Legends, to host the highly coveted World Championship Finals. In 2023, the region made history by hosting the inaugural Counter-Strike Major, an event of Grand Slam caliber in the esports world.
Looking ahead, 2025 is poised to be an equally prestigious year for the esports ecosystem. The UFCEP’s member clubs will be at the forefront of a calendar brimming with high-profile tournaments, including the VALORANT Champions (equivalent to World Championships), the Rocket League Worlds, the Evolution Championship Series, the 2025 Fortnite Global Championship and the TFT Open Qualifier.
These events provide a unique opportunity for the UFCEP to collaborate closely with governing bodies, tournament organizers, and publishers to create unforgettable experiences for fans, athletes, clubs and players alike. With an unwavering focus on advancing France’s position as a global esports powerhouse, the UFCEP is poised to continue driving positive change and shaping the future of esports on the world stage.
The post French Union of Professional Esports Clubs (UFCEP): Esports clubs unite to strengthen their representation in France appeared first on European Gaming Industry News.
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How to Drive Traffic Without Caps and Earn Without Limits? Betmen Affiliates x Marsa Team
If you – as an affiliate marketer – can generate quality traffic, then you can easily secure offers with competitive CPA rates. However, these often come with limited daily caps – a well-known pain point in the market. Advertisers are afraid of running into high costs, are reluctant to share other GEOs with advertising networks, or simply don’t trust you.
The problem of limited caps becomes even more apparent when resources allow affiliates to drive traffic in large volumes, and due to constant caps, partners have to gather dozens of offers at once in order to earn.
In this article, Betmen Affiliates and Marsa Team explain how to go about building relationships in the iGaming market. We discuss how the two companies worked using a spend-based traffic payment model with no volume limitation, and why such conditions are a real growth opportunity for affiliate marketers.
How Teams Typically Take on Offers and What Problems They Face
When an Affiliate Sales Manager agrees on an offer’s terms, rates and an offer’s technical aspects, the next step for partners is the test run. This usually involves 25-50 FTDs (first-time deposits). After the traffic is delivered, the advertiser checks the profitability over 1-2 weeks, analyzing player behavior, the percentage of bonuses that were used, and other metrics.
If the traffic quality is deemed suitable, the affiliate is given a small daily cap. The CPA rate, however, remains unchanged or increases slightly, resulting in little profit to the affiliate marketer in this collaboration.
We can see two issues with this partnership model:
1. Limited scaling opportunities. Very often, the advertiser is not willing to provide a significant increase in the cap — for example, offering 70 daily FTDs instead of 50. Volumes such as these are insufficient for a large team of affiliate marketers. This means new offers must constantly be found leaving the affiliate team to, each time, have to adapt to a new product and new conditions. Circumstances such as these make it hard to predict profits.
2. Even a converting offer might not be profitable. Let’s say an affiliate team has a good deal whereby they provide high-quality traffic and bring in a positive – though not high – ROI of 30%. With a volume of 50 daily FTDs, income is indeed insignificant. With a CPA of $100, in a month, an affiliate team could earn:
This offer results in a profit of around $1,000 per day. Working with the advertiser under these conditions is pointless if the offer can’t be scaled. However, if volumes were increased tenfold with profits of $349,000, the situation would certainly be more appealing, right?
The Uncapped Model Used by Marsa Team and Betmen Affiliates
To transition to an uncapped model, partners had to achieve a certain level of traffic quality without increasing the cost of acquiring deposits to critical levels. Team leads from both sides communicated regularly to solve problems together: they worked on targeting by excluding smaller cities, adapted age groups, and adjusted creative approaches. The Marsa Team was open to suggestions, and the quality of traffic started to improve.
Quality traffic always leads to higher lead costs, so Betmen Affiliates suggested that the Marsa team switch to a spend-based payment model and drive traffic at any volume – a proposal which was much more interesting and profitable than working on a CPA basis.
The spend-based model works like this: after selecting the GEO and setting the deposit price, partners receive a fixed percentage of the amount their advertising expenses for meeting their target. The quality of the traffic is evaluated as a percentage based on the 14-day Deposit OAS: for example, if you agreed on terms of 25% on the amount spent with a 70% 14-day Deposit OAS, you would earn $2,500 for every $10,000 spent on advertising.
The main difference with the spend-based model is that the same lead may cost $100 under a CPA model and twice as much when working on a spend-model. This means that the team sets its own cost per lead. The only condition is higher traffic quality: the advertiser will expect that these types of players will show better results than those acquired through CPA.
How to Get an Uncapped Offer and Other Traffic Conditions
We have two main recommendations:
- Build a relationship of trust with the advertiser. Approach requests to improve traffic quality not as a signal to terminate the offer but as an opportunity for long-term cooperation. The advertiser can always help with recommendations and advice — optimize campaigns together, and the partner will notice that you’re interested in mutual success.
- Test multiple approaches and analyze all available metrics. If you want to drive traffic using the spend-based model with no caps, you’ll need to find an approach that gives you the most cost-effective FTD acquisition price and provides the advertiser with the required quality.
It may take months before you and your partner come to a mutual understanding, but the numbers speak for themselves as it is well worth it!
Where to Get an Uncapped Offer?
At Betmen Affiliates, we aim for long-term and mutually beneficial cooperation. All you need to do is bring in quality traffic, and in return, we’ll purchase all your traffic volume. Register on the Betmen Affiliates website to kickstart a productive, successful collaboration.
The post How to Drive Traffic Without Caps and Earn Without Limits? Betmen Affiliates x Marsa Team appeared first on European Gaming Industry News.
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