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LeoVegas AB Q4: Quarterly report 1 October – 31 December 2019. LeoVegas reiterates its long-term financial targets, remove short term financial targets and raises the dividend

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“We have entered 2020 with good underlying growth and profitability, and an ever-stronger balance sheet”
– Gustaf Hagman, Group CEO

FOURTH QUARTER 2019: 1 october–31 december 2019[1]

  • Revenue increased by 3% to EUR 87.1 m (84.5).
  • EBITDA was EUR 14.5 m (8.1), corresponding to an EBITDA margin of 16.7% (9.6%)
  • Adjusted EBITDA was EUR 9.2 m (8.1), corresponding to a margin of 10.6% (9.6%).
  • The number of depositing customers was 351,613 (327,156), an increase of 7%.
  • The number of returning depositing customers was record-high 207,982 (181,747), an increase of 14%.
  • Adjusted earnings per share were EUR 0.06 (0.06).

Events during the quarter

  • LeoVegas investment company LeoVentures sold the subsidiary Authentic Gaming to Genting. The sales price was EUR 15.2 m on a debt-free basis and generated a capital gain of EUR 11.4 m.
  • LeoVegas carried out strategic measures in the UK and has called off a move to new offices in Malta. These initiatives will lead to annual cost savings of approximately EUR 3.7 m. Restructuring costs of EUR 6.1 m are reported under items affecting comparability for the fourth quarter. At the same time, an impairment loss of EUR 10.2 m has been recognised for the Royal Panda investment.

Events after the end of the quarter

  • Preliminary revenue of EUR 30,1 m in January (28.7), representing growth of 5%.
  • In light of a more pronounced focus on profitability in an increasingly dynamic business environment LeoVegas has decided to remove the financial targets to reach sales of EUR 600 m and EBITDA of EUR 100 m by 2021. At the same time, the company has reaffirmed its long-term financial target to achieve organic growth that outperforms the online gaming market and an EBITDA margin of no less than 15%.
  • LeoVegas’ Chairman, Mårten Forste, hired as new COO in Malta.
  • The Board of Directors proposes a dividend of SEK 1.40 per share (1.20), an increase of 17%, to be paid out – as in the preceding year – on two occasions during the year.

 

COMMENT FROM GUSTAF HAGMAN – GROUP CEO

sustainability and long-term growth
During 2019 we worked hard to reduce complexity in the Group, be more efficient and adapt to the changes taking place in the gaming industry. In parallel with this we have enhanced the attraction of our product through new functionality and greater personalisation. We have launched new brands, focused more on Casino, and expanded to new markets. Towards the end of the year we intensified the integration of our previous acquisitions, which is expected to contribute to cost savings and increased economies of scale.

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Our investments in sustainability have been particularly meaningful, where LeoVegas is one of the leading operators. For example, today we have some 70 employees who work exclusively with responsible gaming and compliance.

an industry in change
2019 was a year characterised by change in our industry, with external challenges coupled to higher demands for compliance, higher gambling taxes and undertainty surrounding future regulation. In the near term this is presenting challenges to navigate in an increasingly complex world, but it also presents long term competitive advantages for a company like LeoVegas, which has a scalable organisation, proprietary technology and focus on sustainable growth along with an increasingly broader revenue base spread across several markets and brands.

We have entered 2020 with a good starting point, with an increasingly efficient organisation and many ongoing initiatives surrounding product innovation and brand expansion. Owing to the increasingly dynamic business environment and a more pronounced focus on profitability, we have decided to remove our financial targets for 2021 while we reiterate our long-term financial targets of organic growth in excess of the market and an EBITDA margin of at least 15%.

At the same time, our underlying profitable growth and favourable financial position have created the foundation for the Board’s proposal to raise the dividend for 2019 by 17% to SEK 1.40 per share.

fourth quarter 2019
Revenue for the fourth quarter amounted to EUR 87.1 m (84.5), representing organic growth of 3%. Growth during the period remained good in most of our markets. Excluding the UK market, organic growth in local currencies was 11%. We are especially pleased with our performance in Sweden, where we continue to take market shares.

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EBITDA for the fourth quarter adjusted for items affecting comparability during the period totalled EUR 9.2 m (8.1), corresponding to an EBITDA margin of 10.6% (9.6%). We thereby improved our underlying profit by 13% compared with a year ago despite a higher burden from gambling taxes and increased regulatory complexity, which confirms that our focus on efficiency and cost control is yielding the desired result.

A couple of weeks ago we communicated a number of strategic decisions coupled mainly to the UK and our ambitions to create a less complex and more scalable organisation. These initiatives gave rise to one-off restructuring costs that affected fourth quarter earnings by a total of EUR 6.1 m and are expected to lead to annual cost savings of approximately EUR 3.7 m. The savings consist mainly of platform and product costs, a more efficient organisation and more optimized premises.

During the fourth quarter we recognised a capital gain on the sale of Authentic Gaming, which was sold in October. The capital gain was EUR 11.4 m. EBIT for the fourth quarter was also affected by an impairment loss of EUR 10.2 m related to goodwill in Royal Panda.

markets
We had favourable performance in most of our markets during the full year 2019. Three of our major markets, Sweden, the UK and Germany, underwent major changes during the past year. In Germany, the removal of a key payment services provider affected our revenue during the fourth quarter. Development improved gradually during the quarter in pace with customers finding alternative payment methods. We are now growing again sequentially month-on-month in Germany. We are confidently waiting for clarity regarding what future regulation will look like in Germany. Based on the most recent information, the German federal states are now in agreement to regulate the market at the national level at the end of 2021.

As previously communicated, we are addressing the challenges in the UK by migrating all of our brands in the UK to our proprietary technical platform. In parallel with this we are refining our brand portfolio and closing Royal Panda in the UK. Altogether these measures are leading to a more focused and efficient operation and opening up economies of scale within the Group. Revenue for the remaining operations in the UK, consisting of 13 brands, grew 15% over the third quarter and showed good profitability. Royal Panda will now focus entirely on fast-growing markets outside the UK.

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In the Swedish market we are stronger than ever. It is clear that we are benefiting from our strong brand, focus on responsible gaming and experience from regulated markets. In addition, GoGoCasino has exceeded our expectations and was successful in the strategy of filling an empty space in the Swedish casino market. December was record-strong and we ended the year with revenue as well as the number of customers at record high levels. During 2020 we expect to see the authorities taking a harder line against unlicensed actors, which will improve channelisation and consumer protection in the Swedish market.

Comments on first quarter 2020
Revenue for the month of January amounted to EUR 30.1 m (28.7), representing growth of 5%.

Royal Panda in the UK, which was closed in January, is not expected to generate any significant revenue during the first quarter. During the fourth quarter Royal Panda generated revenue of EUR 1.1 m in the UK.

With good momentum in many of our markets and a number of growth initiatives, we are looking forward to the remainder of 2020. We continue to work hard to deliver profitable growth at the same time as we are working to live up to our vision, to be “King of Casino”.

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: 9682129 or join at the web https://edge.media-server.com/mmc/p/g9y6w2q8

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Affiliate Industry

Amusnet Announces Partnership with Onlandia.org.ua

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Amusnet, a top-tier gaming provider, has announced a new partnership with Onlandia.org.ua, a prominent Ukrainian iGaming affiliate. This collaboration is designed to leverage Onlandia’s extensive market reach and dedicated platform to amplify Amusnet’s brand presence and effectively drive engagement within the Ukrainian market.

The partnership will utilise Onlandia’s platform to feature exciting game content, exclusive interviews and run various activities. It will also ensure Ukrainian players have direct access to the latest news and updates from Amusnet.

“We are excited to partner with Onlandia.org.ua. By combining their expertise in audience engagement with our top-tier portfolio, we can drive substantial regional growth and strengthen brand visibility in this key focus market for Amusnet. This collaboration represents a strategic step toward expanding our footprint and delivering long-term value to operators and players,” said Liliya Chatalbasheva, Chief Marketing and Communications Officer at Amusnet.

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“We are delighted to begin this partnership with Amusnet. We see them not just as developers, but as reliable partners who strive to ensure their games are presented fairly and transparently. This collaboration will allow us to continue providing high-quality content for Ukrainian players, helping them navigate the world of the gaming industry,” said a representative of onlandia.org.ua.

This partnership marks a significant step for Amusnet in reinforcing its commitment to the Ukrainian market and shaping the future of online gaming in the region.

The post Amusnet Announces Partnership with Onlandia.org.ua appeared first on European Gaming Industry News.

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Affiliate Industry

Nikita Lukanenoks Brings Slotsjudge Into Spotlight With Affiliate Leaders Awards 2025 Nomination

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Content Manager’s commitment to clear, reliable casino reviews earns recognition in one of the most competitive categories at the Affiliate Leaders Awards 2025.

Nikita Lukanenoks, Content Manager at Slotsjudge, has been nominated for Affiliate Content Manager of the Year at the Affiliate Leaders Awards 2025. The nomination highlights his contribution to the platform’s growth and puts Slotsjudge alongside some of the most recognised names in the iGaming industry.

Being shortlisted in such a competitive category as Affiliate Content Manager of the Year only highlights the growing influence of Slotsjudge in the iGaming space. The platform has steadily moved from a niche review site to a recognised industry player, attracting a wider audience and building trust among players. This growth has been driven by a clear focus on high-quality, informative content that keeps readers coming back and helps them make better decisions when choosing where and what to play.

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Slotsjudge stands out for the way it combines clear, practical casino reviews with helpful guides that even beginners can easily follow. This approach has not only improved how players choose casinos, but has also boosted user engagement across the platform. In addition, strict editorial standards keep every review accurate, up to date, and written in plain, straightforward language, giving readers confidence in the information they find.

“For me, it is all about creating content that is genuinely useful to players. Whether someone is completely new or already experienced, they should find clear, honest information that helps them make better decisions. In an industry that is constantly changing, I believe staying transparent and adapting quickly is the best way to keep our readers’ trust.” — Nikita Lukanenoks, Slotsjudge.

A strong work ethic in content creation has always been central to Slotsjudge’s growth and solid reputation. By providing readers with relevant information, practical tips, and regular updates, the site continues to attract new visitors, while also rewarding returning players with regular perks like Wheel of Fortune. This approach has made Slotsjudge a trusted destination for players seeking the latest insights from the iGaming world.

High-quality content has become one of the main drivers of success in affiliate marketing. In a competitive space where players have countless options, clear and trustworthy information can make a significant difference. The nomination highlights how valuable a strong editorial approach is for building credibility, driving engagement, and building trust with readers.

The post Nikita Lukanenoks Brings Slotsjudge Into Spotlight With Affiliate Leaders Awards 2025 Nomination appeared first on European Gaming Industry News.

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Affiliate Industry

ReferOn Earns Dual Nominations for Innovation and Marketing Excellence at SiGMA Euro-Med Awards 2025

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The company continues its growth in 2025 with key industry recognition

ReferOn, a next-gen affiliate management platform has been shortlisted for the “Affiliate Product Innovation” and “Best Marketing Solution Provider” categories at the upcoming SiGMA Euro-Med Awards 2025.

These nominations come after an important year for the company, defined by strong market traction, continuous product development, and an increased demand from operators and affiliate managers looking to transition from outdated legacy platforms to a more agile, transparent, and scalable solution.

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Since its launch, the ReferOn team has demonstrated its commitment to solving real problems for affiliate teams. At the core of its value propositions is creating a simple and accessible platform that’s built for modern needs. Core developments like full-cycle automation, customisable dashboards, instant postbacks, and real-time data visibility help to reduce chaos and boost performance. Additionally, tools like the Sub-Affiliate System, No Bundling Model, and dynamic variables assist with increased operational control.

Vlad Bondarenko, ReferOn’s Head of Product, commented on the nominations, “We didn’t build ReferOn to compete with legacy platforms — we built it to replace them. Every development, addition, and decision is guided by the goal of empowering our users to move faster, make more insightful decisions, and scale efficiently. These nominations have shown us that we’re moving in the right direction and that our incredible team is working towards something truly impactful.”

ReferOn’s roadmap remains ambitious and future-focused, with numerous investments in product developments, customer-facing services, and initiatives that help affiliate teams act faster and move smarter.

Voting for the SiGMA Euro-Med Awards 2025 is now open.

The post ReferOn Earns Dual Nominations for Innovation and Marketing Excellence at SiGMA Euro-Med Awards 2025 appeared first on European Gaming Industry News.

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