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LeoVegas AB Q3: Quarterly Report 1 July – 30 September 2019



LeoVegas AB Q3: Quarterly Report 1 July - 30 September 2019Reading Time: 5 minutes


“We delivered EBITDA growth of over 40%, which clearly shows that our efficiency efforts are generating positive results.” Gustaf Hagman, Group CEO

Third quarter 2019: 1 july- 31 september 2019[1]

  • Revenue increased by 12% to EUR 88.2 m (78.6).
  • Organic growth in local currencies was 13%.
  • EBITDA increased with over 40% and amounted to EUR 12.7 m (9.0), corresponding to an EBITDA margin of 14.4% (11.4%).
  • The number of depositing customers was 334,042 (318,189), an increase of 5%.
  • The number of returning depositing customers was 199,023 (177,637), an increase of 12%.
  • Earnings per share were EUR 0.05 (0.13) before and after dilution.

Events during the quarter

  • LeoVegas was launched in Japan.
  • LeoVegas opted to not apply for a gaming licence in the recently re-regulated Swiss market, and therefore the business was closed on 1 July.
  • A key payment service provider has chosen to stop offering its service for certain gaming-related payments on the German market, which affected revenue and new customer acquisition during the quarter.

Events after the end of the quarter

  •  Preliminary revenue of EUR 26.5 m (26.1) in October, representing growth of 1%. October was affected by an exceptionally low game margin. With a normalized game margin, revenues had amounted to approximately EUR 28.5 m and a growth rate of 9 percent.
  • LeoVegas was initially granted a two-year gaming licence in Sweden – a decision that was appealed. The administrative court has now ruled in the company’s favour, increasing the licence period from two to five years.
  • LeoVegas has received a sanction by the Netherlands Gambling Authority. The decision is in line with the sanctions previously issued for other gaming companies.
  • The LeoVegas Group’s investment company LeoVentures has entered into an agreement to sell the subsidiary Authentic Gaming to Genting. The sales price is EUR 15 m on a debt-free basis.


Third quarter 2019

We continued to show progress during the third quarter in a difficult-to-navigate environment and generated double-digit growth in both sales and operating profit. Greater regulatory complexity in several of our main markets has given rise to certain short-term challenges but is also raising the barriers to succeed in the sector which benefit established companies.

LeoVegas today has a much more even distribution of revenue across several markets and brands where half of our revenue is derived from locally regulated markets, which contributes to greater stability and lower business risk. Meanwhile, we continue our efforts to execute our strategy of innovation, expansion and profitability.

Revenue during the third quarter amounted to EUR 88.2 m (78.6), representing organic growth of 13%. Growth was favourable during the period in most of our markets, including Sweden where we are gaining market shares, but also in key markets such as Finland, Denmark and Italy. The UK is profitable at Group level but remains challenging, where Royal Panda in particular had poorer performance during the quarter. Excluding the UK, the Group’s organic growth was 27%. In total we invested less than planned in marketing during the quarter, which is coupled to our data-driven and ROI-based marketing model. We chose to not apply for a licence in Switzerland, where we stopped accepting business on 1 July based on commercial rationale. Meanwhile in Germany we are facing challenges related to the elimination of a key payment solution, which is affecting both our revenue and new customer acquisition during the quarter.

EBITDA for the third quarter totalled EUR 12.7 m (9.0), corresponding to an EBITDA margin of 14.4% (11.4%). We grew EBITDA by more than 40% during the quarter despite a higher burden from gambling taxes and greater regulatory complexity compared with previous years. Our focus on efficiency and cost control continues to generate the desired results. As a concrete example of our efficiency enhancement, our staffing has remained essentially unchanged for the past year despite greater business complexity, adding more markets and more brands, while we continue to generate good underlying growth. We continue to renegotiate our supplier agreements in gaming, payments, marketing and technology. Through scalability and efficiency we are creating scope to invest in growth combined with improved profitability.


LeoVegas was initially granted a two-year gaming licence in Sweden – a decision that was appealed. The Administrative Court has now ruled in our favour, entailing that the licence period has been changed from two to five years. At the same time, our returning customers in Sweden are at all-time-high, which is proof that our focus on the product and customer experience coupled with a commitment to responsible gaming is paying off in a regulated environment.

We estimate that channelisation of online casino in Sweden is far below the Swedish Gambling Authority’s goal of 90%. We therefore look positively upon the fact that the Gambling Authority to a greater extent has begun prioritising measures to curb unlicensed actors. This is needed to ensure that the market’s regulation is successful and results in greater consumer protection.


Thus far during the year LeoVegas has launched operations in five new markets, where Japan is the most recent addition. We want to especially highlight the launch in Spain, which so far has exceeded our expectations. The online growth in Spain is considerable, and we are highly confident that Spain can become one of our key markets.

During the quarter LeoVegas was issued a fine by the Netherlands Gambling Authority, in line with the fines that were previously issued to other gaming companies. The amount has been expensed in its entirely in the income statement. We are in compliance with the current regulations and will appeal this decision. We remain confident that we will be awarded a licence once the market is opened – mostly likely at the start of 2021.


LeoVentures has entered into an agreement to sell the subsidiary Authentic Gaming for EUR 15 m on a debt-free basis. The buyer is Genting, one of the world’s largest land-based operators. Authentic Gaming generated approximately EUR 1 m in revenue during the third quarter, while the effect on EBITDA was neutral. The transaction shows how we can successfully invest in, grow and realize value in our portfolio companies. In connection with this sale we have also concluded our strategic evaluation of LeoVentures and will continue to develop the remaining portfolio companies Pixel.Bet and Casinogrounds.

Comments on the fourth quarter

Revenue for the month of October totalled EUR 26.5 m (26.1), representing growth of 1%. The gaming margin in October was lower than normal, with a number of large winners, while Germany is affected by payment limitations. Underlying growth during October remained solid, which is confirmed by a positive start in November. With a normalized game margin in October, revenues had amounted to approximately EUR 28.5 m, with a growth rate of 9 percent.

Our current assessment is that marketing costs will increase during the fourth quarter over the third quarter, both in relation to revenue and in absolute figures. This is in line with the seasonal pattern, where LeoVegas normally invests the most in marketing during the fourth quarter.

Finally, I want to remind about the half-yearly dividend payment of SEK 0.60 per share to our shareholders on 6 December.

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: 9566914 or join at the web at


About LeoVegas mobile gaming group:
LeoVegas’ vision and passion is to be “King of Casino”. 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 group in which LeoVegas AB (publ) is the parent company. LeoVegas AB (publ) does not conduct any gaming operations; rather, operating activities are conducted by subsidiaries within the Group. The company’s shares are listed on Nasdaq Stockholm. For more about LeoVegas, visit

Source: LeoVegas Mobile Gaming Group

Source: Latest News at European Gaming Media
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 2019

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Digitain prepares to shine at SAGSE




Digitain prepares to shine at SAGSEReading Time: 2 minutes


Platform provider stakes claim for market leadership with bespoke LatAm portfolio

Digitain, the leading sportsbook and casino platform provider, is set to highlight its market-leading credentials at this month’s SAGSE conference in Buenos Aires (Argentina) from 20th – 22nd November.

Well on its way to becoming the most important event in the South American iGaming calendar, SAGSE is a critical opportunity for companies looking to do business on the continent.

With Digitain set to take centre stage at Stand 209 at Buenos Aires’ Costa Salguero Centre, the team will be spearheaded by Business Development Managers Araksi Sargsyan and Gevorg Rushanyan, both seasoned LatAm experts who have proven instrumental in tailoring the provider’s bespoke LatAm portfolio.

Fresh from recent wins for excellence at the CEEGC, EGR and RGW Awards 2019, its highly modular platform enables it to provide flexible functionality and features to meet the unique challenges of the LatAm market, including bespoke payment provisions, creative engagement tools and an immersive range of home-grown games.

In total, Digitain’s sportsbook product covers 65 sports, covers 7,500 leagues, and offers more than 3,000 betting markets. It also offers odds on 35,000 live events each month, while its casino solution has 3,000-plus games from major casino suppliers (such as Novomatic, Microgaming, NetEnt and Playson).

Commenting on their plans for SAGSE, Digitain’s Business Development Manager Araksi Sargsyan said: “SAGSE is a key fixture in the iGaming calendar, and we can’t wait to showcase our full range of products and services designed for operators to get the very best out of the region.

“Because our platform is so modular, it’s allowed us to tackle diverse emerging markets like LatAm with tailored solutions that give our partners total peace of mind. From differing needs in payment provisions to our flexible functionality and features – we’re here to deliver.”

Source: Latest News at European Gaming Media
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Digitain prepares to shine at SAGSE

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Freebets & BetRadar Join Forces to Help Punters Back a Winner




Freebets & BetRadar Join Forces to Help Punters Back a WinnerReading Time: 2 minutes have partnered up with BetRadar to offer punters a better package and take sports betting to the next level.

After a successful trial using the Beta version, will make their expertise even more readily available by including the full BetRadar widget across their site and in predictions and previews.

It will provide all manner of information to help punters make more informed decisions on their wagers. Data will be provided covering a number of different angles including, team news, live tables and fixtures, head-to-head analysis and player information such as goal scorers, assists and more.

The partnership will enhance the betting experience considerably, with real-time data that offers a much fuller picture of football fixtures across the world. The widgets are putting betting fans on a level playing field with the likes of Roy KeaneGary Neville and Jamie Carragher, with the same level of insight as any pundit on Super Sunday.

As well as first-class insight from the team, you can now expect to find the likes of win probability for every fixture, analysis of a team’s previous fixtures and even the opportunity to follow live scores integrated into previews and predictions.

It’s time to take betting to the next level and Freebets are at the very forefront as they look to help punters become more informed than ever and increase the chances of a win.


About is one of the country’s leading betting affiliate sites, working with all the big names in the business to bring punters expert tips, previews and the best free bet offers.

With almost 10 years in the game they continue to provide thousands of punters daily with help, support and plenty of winners.

You can view their full offering at:


Source: Latest News at European Gaming Media
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Freebets & BetRadar Join Forces to Help Punters Back a Winner

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FunFair-Changelly partnership allows for Bitcoin payments




FunFair-Changelly partnership allows for Bitcoin paymentsReading Time: 2 minutes


Integration will host five cryptocurrency swaps at launch

FunFair, the leading Isle of Man-licensed blockchain gaming platform, has gone live with cryptocurrency exchange Changelly to deliver numerous new cryptocurrency payment options.

As part of its mission to bring blockchain gaming to the masses, FunFair has integrated Changelly’s exchange API into its recently launched FunFair Wallet to allow players to swap various cryptocurrencies for its gambling token, FUN.

Registered players will now be able to bring the likes of Bitcoin, Tron and Litecoin to one of its partner casinos, CasinoFair and CryptoCasino, and trade for FUN without leaving the platform or needing third-party exchange accounts.

This will further improve the customer journey, significantly reducing friction between sign-up and gameplay, while opening up FunFair-powered casinos to gamblers who may not hold FUN but want to experience the first-class gaming experience that the platform delivers.

With five cryptocurrency funding options at launch and more to come after, as well as strong liquidity and instant transactions, Changelly’s innovative exchange API has been chosen to deliver the seamless experience that FunFair strives for.

Fred Kessler, CPO at FunFair Technologies Europe Ltd: “Integrating Changelly’s user-friendly exchange will open up our platform to a vast new audience of crypto-holders and allow for a far superior onboarding journey.

“To date, players must own FUN to play, but this new partnership of choice will allow for holders of the likes of Bitcoin to experience the best in blockchain gaming without the added hurdle of heading off-site to use a crypto exchange.”

Eric Benz, CEO at Changelly: “Funfair is a project I have been following for the past couple years and the team behind it is one of the best from both the gaming and crypto industries.

“I look forward to the integration of the Changelly API as this will benefit both customers and the partner companies who will utilise the FunFair Wallet.”

Following the launch of FunFair’s ‘any browser, any device’ wallet and second-gen platform, the added integration of Changelly’s exchange will confirm the supplier’s position as the most user-friendly blockchain casino platform around.


Source: Latest News at European Gaming Media
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: FunFair-Changelly partnership allows for Bitcoin payments

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