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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!

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BetGames research reveals more than 70% of players failed to recognise AI avatar gameshow presenters

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BetGames has revealed the results of a research project testing AI-generated presenters on its live game shows, finding that fewer than 30% of players realised the hosts were artificial — and that the change produced no significant impact on player behaviour.

For the experiment, the supplier introduced AI avatars designed as digital replicas of real presenters, quietly deploying them on one of its live games over several days to evaluate whether they could effectively replace human hosts.

The results showed that more than two-thirds of players did not notice the switch to AI. At the same time, key performance indicators — including session duration, stake size and total bets placed — remained statistically unchanged.

According to BetGames, the absence of both positive and negative shifts suggests that while AI avatars can technically replicate the role of live presenters, they currently provide no measurable advantage. As a result, the company believes there is not yet a strong business case for rolling out the technology on a large scale.

Cost efficiency, often cited as a major driver of AI adoption, also failed to deliver a clear benefit. BetGames reported that generating and operating an AI avatar around the clock remains resource-intensive, limiting potential financial gains compared with human hosts.

Technical hurdles further complicate the widespread adoption of AI presenters. One of the most significant challenges remains achieving realistic text-to-speech performance. As AI technology becomes more advanced and visual realism improves, even minor imperfections in speech become increasingly noticeable to audiences.

Other constraints include latency issues, lip-synchronisation delays and inaccuracies in real-time translation — all critical elements that must be refined before the technology can be implemented reliably across live products.

BetGames continues to explore the potential of AI under the leadership of CEO Andreas Koeberl, who is also co-founder of Autonomous Minds, the developer behind the AI analyst Milo. The initiative forms part of the company’s broader strategy to experiment with emerging technologies and help future-proof the iGaming industry.

Koeberl said:
“AI has been building momentum, but its role within the live casino sector remains largely untested. When it comes to AI presenters, we built it, it worked, and nobody cared. That raises the question of what we are actually working toward.

“The technology didn’t produce any meaningful positive or negative impact on the player experience or product margins, and the cost of running an AI avatar 24/7 offers no significant advantage compared with employing human presenters.

“So rather than attempting to replace humans and replicate what already exists, the focus should shift to exploring what AI can enable that wasn’t previously possible. That’s where the real value lies.”

The post BetGames research reveals more than 70% of players failed to recognise AI avatar gameshow presenters appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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Blueprint Gaming Expands into South Africa Through Strategic Partnership with Hollywoodbets

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Blueprint Gaming™ has enhanced its foothold in the South African market via a major alliance with top operator Hollywoodbets, offering a wider range of its globally acclaimed slot titles to players in the area.

Although Blueprint has been operational in South Africa since late 2025, this agreement signifies its initial significant launch with a top-tier operator in the country, highlighting a key advancement in its long-term regional plan.

Through the collaboration, Hollywoodbets will launch a variety of Blueprint’s most recognized and top-performing games, featuring its successful Cash Strike series and the consistently favored Fishin’ Frenzy, along with a selection of celebrated IP-based titles like Ted™.

Blueprint has established a reputation for merging well-known intellectual property with robust mathematical models and focused gameplay, producing titles that consistently appeal across regulated markets. The addition of this portfolio to Hollywoodbets’ live game selection further enriches the operator’s content variety, offering players reliable games supported by global performance credentials.

South Africa ranks among the most advanced and established gaming markets in Africa, backed by a strong regulatory system and a rich history of retail betting. As digital adoption speeds up and online casinos keep rising in popularity, the market offers substantial long-term growth opportunities for high-quality content providers.

Through a collaboration with Hollywoodbets, one of the leading betting brands in the country, Blueprint gains instant access to a vast, active customer base along with extensive local market knowledge. The partnership enables the studio to achieve significant growth in South Africa, while also creating a strategic base for broader expansion throughout the African continent.

Sam Haggblom, Director of Business Development at Blueprint Gaming™, said: “South Africa represents a compelling opportunity for Blueprint. It is a mature and well-established market with a clear appetite for high-quality online casino content.

“Introducing our wide and performance-focused portfolio through Hollywoodbets allows us to showcase the depth and versatility of our games to a new audience. We see strong long-term potential not only in South Africa but across the wider African landscape.”

Wayde Dorkin, Head of Product at Hollywoodbets, added: “Blueprint Gaming’s portfolio has delivered consistent results across multiple regulated markets worldwide.

“The addition of established brands such as Cash Strike and Fishin’ Frenzy further strengthens our online casino offering, enabling us to continue providing players with proven, high-quality and internationally recognised content.”

The post Blueprint Gaming Expands into South Africa Through Strategic Partnership with Hollywoodbets appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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New Videoslots app stars in AI-assisted “Stone Age” ad

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Pioneering online casino Videoslots is preparing to launch a new television campaign in Sweden to promote its newly released mobile app for iOS and Android.

The advert, titled “Stone Age,” recreates a cinematic prehistoric world and was produced using artificial intelligence as part of the creative and production workflow. The use of AI enabled the team to bring the ambitious setting to life in a way that would have been significantly more expensive through traditional production methods.

The campaign was created in partnership with Stockholm-based Armstrong Film and has also been adapted in English and Danish for distribution across digital and social media channels.

Marco Trucco, Chief Marketing Officer at Videoslots’ parent company Immense Group, said the decision to incorporate AI was driven by creative possibilities rather than technological novelty.

“The creative idea was entirely human-led,” Trucco explained. “AI simply helped us execute the concept in a way that would have been very costly using traditional production methods. For us, it was about unlocking creative freedom.”

Philip Karlberg, Executive Producer at Armstrong Film, noted that the prehistoric theme presented a number of practical challenges.

“Designing characters and adapting performances across three languages would typically require several separate cast productions,” he said. “Using AI allowed us to approach that ambition differently. However, AI doesn’t replace filmmaking. You still need a strong concept, clear storytelling and a defined visual direction. The work doesn’t disappear — it simply shifts from physical production to detailed planning, direction and refinement.”

Trucco added that the project highlights how AI could reshape the future of television advertising.

“High-quality TV production has traditionally required substantial budgets,” he said. “AI has the potential to allow more brands to compete creatively with larger advertisers. Better advertising ultimately leads to a better viewing experience, more choice for consumers and stronger competition in the market. At Videoslots, we’re pleased to launch an original and entertaining TV advert to introduce our new apps.”

The post New Videoslots app stars in AI-assisted “Stone Age” ad appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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