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LeoVegas AB Q4: Quarterly report 1 October–31 December 2021

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“Strong end to the year with many growth initiatives” – Gustaf Hagman, Group CEO

FOURTH QUARTER 2021: 1 OCTOBER – 31 DECEMBER

  • Revenue amounted to EUR 98.2 m (98.4). Revenues were unchanged compared with the same period last year. Excluding Germany and the Netherlands, revenues increased by 26%.
  • Organic growth in local currencies was -4%.
  • Net Gaming Revenue (NGR) from regulated markets and markets in which the company pays local gaming taxes was 74% (67) of total NGR.
  • EBITDA was EUR 11.6 m (11.5), corresponding to an EBITDA margin of 11.8% (11.7).
  • The number of depositing customers was 456,063 (461,983), a decrease of 1%.
  • Adjusted earnings per share were EUR 0.07 (0.08).

EVENTS DURING THE QUARTER

  • LeoVegas repurchased shares for EUR 2.1 m and distributed the third quarter dividend (EUR 3.9 m).
  • Following policy changes in the Netherlands, LeoVegas decided to stop providing its services in the country as from 30 September 2021. As such, the company had no revenue from the Netherlands in the fourth quarter (compared with 6% of the Group’s total revenue during the third quarter). The company will apply for a licence during the first quarter.
  • LeoVegas was granted renewed gaming licences by the Danish Gambling Authority.

EVENTS AFTER THE END OF THE QUARTER

  • Preliminary revenue in January amounted to EUR 35.5 m (32.5), corresponding to growth of 9%. Excluding Germany and the Netherlands, revenue increased by 24%.
  • The Board of Directors proposes an increased dividend of 5 percent to SEK 1.68 per share (1.60), to be distributed on four occasions over the course of the next 12 months.
  • LeoVegas applied for a gaming licence for the Canadian province of Ontario.
  • The establishment in New Jersey in the US is proceeding according to plan and the recruitment of a local team has begun.
  • In January, LeoVegas distributed the fourth dividend (EUR 3.8 m) of a total of four to the Parent Company’s shareholders.

COMMENT FROM GUSTAF HAGMAN – GROUP CEO

FOURTH QUARTER
I am proud of how we concluded 2021 and how we offset the revenue loss related to the ongoing regulatory changes in Germany and the Netherlands. In the fourth quarter, sales were unchanged compared with the preceding year. However, excluding the two abovementioned markets, growth was some 26%, which demonstrates our strong underlying growth.

Adjusted EBITDA improved somewhat year-on-year, despite ceasing to provide our services in the Netherlands while waiting for a gaming licence, which was previously one of our most profitable markets. At the same time, we have paid more gaming taxes than ever before during the quarter. The improved profit was achieved through good cost control and higher marketing efficiency.

During the quarter and the full-year 2021, we took several important steps as a company, which we expect to drive growth for many years to come. We increased our strategic focus on sport with the acquisition of the brand Expekt. The new launch of Expekt has been a major success, with sales increasing almost fourfold since the acquisition. We are now planning to expand into more markets. We have also commenced establishing operations in the US, where the online gaming market is still in its infancy. We are seeing significant potential for a smartphone-oriented casino expert like LeoVegas in North America, where we already hold a leading position in Canada. We also invested in our own gaming studio during the year. The first games are expected to be launched shortly and over 15 titles are planned for 2022. Our own contents provide us with a more unique gaming experience, greater customer loyalty and lower costs.

We demonstrate a high ability to adapt and continue to drive innovation even when faced with turbulent times. An increasing number of European countries are becoming regulated and some 74% of our revenue is currently regulated and/or taxed. The external market environment will remain erratic and turbulent in places, but we are well-positioned to manage this. Armed with all of our ongoing growth initiatives, I feel optimistic ahead of 2022.

MARKETS
Our underlying customer activity and growth remain favourable. In general, we are growing faster than our competitors in the markets that are not affected by major external events and where equal conditions apply for all operators. A good example of this is Sweden, where we reached a new record level during the quarter. LeoVegas is currently the largest private operator in the Swedish market, something we have accomplished with strong brands, the best product and data-driven marketing. We continue to see favourable growth prospects in Sweden.

As previously mentioned, a re-regulation period is ongoing in the Netherlands and in the Canadian province of Ontario. In the Netherlands, we decided to stop providing services to gamers from 30 September 2021 pursuant to the latest regulations. At the start of 2022, we have applied for licenses in the Netherlands and Ontario we applied for a license in Ontario and will apply for a license in the Netherlands during the first quarter. Our ongoing expansion in the US, with New Jersey as the first state, is proceeding according to plan. We have commenced recruitment of a local team and completed much of the technical development as well as initiated the certification process of LeoVegas’ proprietary technical platform (PAM, Player Account Management). We also began efforts for the expansion into additional US states.

TEN YEARS
At the beginning of 2022, LeoVegas turned ten years old. The company, our product and the entire industry has developed enormously since my co-founder, Robin Ramm-Ericson, and I, started LeoVegas. Today, the industry is much more complex with more stringent requirements and tougher competition. At the same time, LeoVegas has taken tremendous strides and matured in many areas, making us stronger than ever before. We always aim to be at the forefront of customer focus, technology and data-driveness, but also continue to continually challenge ourselves to be better in all areas. I can affirm that LeoVegas with all its employees will continue to drive the industry forward with the mobile gaming experience in the spotlight. We are continually making progress as we stand on the starting line of ten more intense and exciting years!

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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Internet Vikings and SB Software Partnership Transforms Infrastructure Performance for iGaming Operator Editec

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Internet Vikings, a licensed hosting provider for the European and U.S. iGaming and online sports betting industry, and SB Software a B2B provider of iGaming platforms, share the success of their partnership in transforming performance outcomes for Editec, a multinational gaming operator serving over 20 countries and operating among others such brands as: PremierBetZone, PremierLotoZone, ZoneGold, etc. 

The Challenge: Infrastructure Bottlenecks Threaten Growth 

As Editec was growing dynamically, it required the implementation of the best available server solution. Simply adding storage was inefficient, creating persistent bottlenecks that threatened the operator’s expansion plans and the quality of the user experience.

The Turning Point: Purpose-Built iGaming Infrastructure 

SB Software, Editec’s trusted platform provider, began conversations with Internet Vikings, an established iGaming-focused hosting provider to deliver a comprehensive solution combining advanced platform capabilities with specialized hosting infrastructure to secure platform and operator’s growth. Internet Vikings implemented a VMware vSAN-based cloud solution specifically optimized for high-demand iGaming workloads. The new setup delivers up to 20,000 (input/output operations per second) per virtual machine with average throughput of 600-700 MB/s representing an enormous performance improvement over the previous solution.

“Internet Vikings stood out through their technical transparency, great account management, and understanding of the specific industry needs,” said Kamil Głowacki, CTO at SB Software. “They provided clear performance benchmarks and a detailed roadmap that addressed our client’s exact requirements.” 

Measurable Results Across Multiple Markets 

The partnership has delivered significant improvements across Editec’s operations:

Performance Enhancement: Virtual machines now handle peak loads without degradation, supporting seamless user experiences during high-traffic periods.

Operational Efficiency: Unified back-office management across all 20+ countries, with multi-language and multi-currency support, custom loyalty programs, and specialized odds management.

Scalable Architecture: Infrastructure designed to support continued growth and market expansion without performance compromise.

“SB Software’s flexibility in tailoring solutions to our business requirements has been exceptional,” added the Editec spokesperson. “Combined with Internet Vikings’ hosting expertise, we now have a technology foundation that can scale with the platform and our ambitions.” 

Industry Implications 

The successful partnership demonstrates the value of specialized providers in the iGaming sector, where standard hosting solutions often fall short of industry-specific performance requirements.  “This collaboration shows how purpose-built infrastructure and flexible platform solutions can transform operational outcomes,” said Rickard Vikström, CEO and Founder of Internet Vikings. “When hosting providers truly understand iGaming demands, operators can focus on growth rather than technical limitations.” 

For iGaming operators looking for a powerful and scalable platform supported by a hosting provider that truly feels the industry, the Editec–SB Software–Internet Vikings story shows a clear blueprint of an alliance for success.

The post Internet Vikings and SB Software Partnership Transforms Infrastructure Performance for iGaming Operator Editec appeared first on European Gaming Industry News.

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Аmusnet Enters into Strategic Partnership with efbet

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Amusnet has partnered with efbet Greece to strengthen its presence in the local market and deliver a premium gaming experience to Greek players. The collaboration is now live and brings a wide selection of Amusnet’s top-performing titles to efbet’s platform, marking another important step in the company’s strategic growth across regulated European markets.

This partnership signifies an achievement for Amusnet in Greece, bringing over 100 acclaimed titles including Extra Crown – a royal slot game filled with exciting bonus features, Cocktail Rush – video slot will take you to stunning golden beaches with exotic drinks and fruitful wins, Vegas Roulette 500x – a fast-paced European roulette that combines the classics with the excitement of the dynamic payout experience, Orient Story Deluxe – a video slot offering rewarding features and winning spins, and 40 Power Hot – a royal slot game filled with exciting bonus features to efbet’s platform.

“Partnering with efbet Greece marks a significant step in strengthening our position in the local market. efbet’s established reputation, combined with our comprehensive gaming portfolio, provides a solid foundation for delivering a high-quality, elevated experience to Greek players. This collaboration reflects our shared commitment to sustainable growth, operational excellence, and long-term success,” said Jelena Stankovic, Director of Amusnet Greece.

“We are excited to welcome Amusnet to our growing portfolio of gaming providers at efbet.gr. This partnership marks another important step in enhancing our casino offering and delivering even more value to our players in Greece. By integrating Amusnet’s popular titles, we continue to strengthen our position in the market and reaffirm our commitment to quality and entertainment – a move fully aligned with our long-term strategy,” the Senior Management from efbet noted.

This collaboration underscores Amusnet’s commitment to excellence and reflects its ongoing strategy of forging impactful partnerships with top-tier operators in regulated markets, ensuring sustained growth and enhanced player experience.

The post Аmusnet Enters into Strategic Partnership with efbet appeared first on European Gaming Industry News.

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ZITRO DIGITAL AND TORRERO ANNOUNCE STRATEGIC PARTNERSHIP

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Zitro, a global leader in the gaming industry known for its innovative slot and video bingo titles, has officially partnered with Torrero, a rapidly expanding B2B aggregator and white-label platform provider. This collaboration will see Zitro’s celebrated game portfolio integrated into Torrero’s extensive platform, significantly broadening its reach to a diverse international audience.

Torrero’s robust platform features a vast collection of over 9,500 games from 130+ suppliers, alongside a comprehensive sportsbook. The addition of Zitro’s content further strengthens this diverse portfolio, bringing a curated selection of high-performing games designed for today’s online casino landscape. Built on strong engagement mechanics and backed by a proven track record in land-based markets, Zitro’s digital portfolio enhances Torrero’s offering—enabling operators to deliver standout experiences in competitive, regulated environments.

A Powerful Alliance for Global Expansion

José Javier Martí, COO at Zitro Digital, commented on the new alliance: “This partnership with Torrero represents a strategic extension of our digital footprint. Their extensive platform and operator network provide the ideal environment to showcase our innovative titles and deliver proven player engagement. We are confident this collaboration will drive mutual growth, reinforce our presence in key regulated markets, and offer operators enhanced content diversity and performance.”

Torrero offers a complete white-label solution, including integrated payment systems, multilingual customer support, and regulatory compliance, making it a comprehensive partner for online gaming operators.

Elevating Game Selection and Performance

Aleksei Tolstov, Head of Business Development at Torrero, expressed his enthusiasm: “Zitro is a globally recognized gaming powerhouse, and their engaging slot and video bingo titles are a fantastic addition to our platform. Their strong performance in both land-based and digital markets makes them an ideal partner. We are thrilled to welcome Zitro to our network and look forward to a highly successful collaboration, enriching our content offering and delivering exceptional player experiences.”

Zitro’s titles are now live and accessible across Torrero’s network. This partnership underscores both companies’ commitment to innovation, player engagement, and leadership in key evolving markets across Latin America and Europe, serving established operators such as betmaster.com.mx, betmaster.com,  betmaster.ie, casinoin.ie, betmaster.ee, casinoin.ee and betmaster.eu

The post ZITRO DIGITAL AND TORRERO ANNOUNCE STRATEGIC PARTNERSHIP appeared first on European Gaming Industry News.

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