Affiliate Industry
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
“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.
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.
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.
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
Affiliate Industry
ReferOn Earns Dual Nominations for Innovation and Marketing Excellence at SiGMA Euro-Med Awards 2025
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.
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.
Affiliate Industry
First Look Games and Evoplay Partner to Bring 250+ Award-Winning Titles to Global Affiliate Network
Empowering affiliates with instant access to certified marketing tools and demo content
First Look Games, the London-based B2B marketing platform empowering iGaming game studios, has announced a new partnership with Evoplay, the acclaimed Cyprus-based game developer known for pioneering 2D, 3D and instant casino content. The partnership takes effect immediately.
Founded in 2018, First Look Games enables game studios to distribute certified marketing assets, demo games, and game information to a network of over 1000 approved affiliated publishers who collectively reach more than 40 million players worldwide. The platform offers advanced reporting tools including Accuracy Management and Sentiment Analysis, which are set up to bring unique insights to game studios to support their growth.
Evoplay, established in 2017, has built a reputation for cutting-edge content and next-generation gameplay. Its portfolio of over 250 titles – including player favourites like the Penalty Shoot-out trilogy, The Greatest Catch Bonus Buy, Elven Princesses, and Star Guardians – has earned widespread recognition and a strong presence across regulated markets.
Through this partnership, Evoplay’s complete catalogue is now available to First Look Games’ affiliate network. Affiliates gain instant access to promotional materials, demo links, and game information to deliver accurate, engaging & compliant content. The collaboration aims to expand Evoplay’s market reach, support growth in new jurisdictions, and set higher standards for compliance and review quality.
Partnership Benefits
- Faster time to market for Evoplay releases
- Access to high-quality visuals, game sheets, and demo tools
- Enhanced compliance and Accuracy Management features
- Support for expansion into new regulated markets
The partnership meets the rising demand for streamlined content distribution. Affiliates will have instant access to accurate marketing materials and compliance documentation, enabling them to serve their audiences more effectively while maintaining regulatory standards.
Diana Larina, Head of Marketing at Evoplay, said: “We are excited to start working with First Look Games. We’re confident that their extensive publisher network will enhance the visibility of our dynamic portfolio, allowing even more players to discover and enjoy the premium entertainment Evoplay is known for.”
Tom Galanis CEO of First Look Games said: “We have watched Evoplay grow and grow its market share for some time now, so I am thrilled to welcome the team to the First Look Games platform, enabling access for publishers to their innovative game content to support that growth even further. We look forward to sharing the insights Evoplay’s presence on the platform delivers for them.”
The post First Look Games and Evoplay Partner to Bring 250+ Award-Winning Titles to Global Affiliate Network appeared first on European Gaming Industry News.
SBC has announced the debut shortlist for the inaugural Affiliate Leaders Awards – a new ceremony spotlighting the companies shaping affiliate marketing’s next chapter. This time, it’s the public who holds the power, with open voting deciding which nominees will be celebrated on stage in Lisbon this September.
The ceremony will welcome 600 industry leaders to Lisbon’s MEO Arena, located just steps away from the main event venue, Feira Internacional de Lisboa, on Wednesday, 17 September. The evening will celebrate the standout companies shortlisted across 22 fiercely contested categories, and ultimately, honour the winners.
While the shortlist was selected by an independent panel of experts, the final decision lies with the public, who can now cast their vote online for the company they believe deserves the spotlight.
Speaking on the launch of the awards, Rasmus Sojmark, CEO and Founder of SBC, said: “Last year’s launch of the Affiliate Leaders Summit was a huge step forward for us, but this year we wanted to go even further and recognise the vital role that affiliates, operator programmes, and the suppliers that power them play in the industry’s growth by giving them their very own ceremony.
“By putting the final decision in the public’s hands, we’re able to honour the companies that truly resonate with the community and celebrate the ones people genuinely believe in.”
Leading the way for nominations at the Affiliate Leaders Awards are BetAffiliation and Hub Affiliations, who boast seven nominations each across both company-wide and individual categories. Boomerang Partners follow closely with six, while Game Lounge and Gentoo Media have each earned five, reflecting their strong performance and visibility across the affiliate industry.
Both BetAffiliation and Hub Affiliations will go head-to-head for Best Affiliate Network as well as Affiliate Campaign of the Year, but face stiff competition from the likes of KR3W and Gentoo Media.
Meanwhile, the hotly contested Sports Affiliate of the Year category features some of the industry’s most recognised names, including Better Collective, Catena Media, Oddschecker, and Flashscore Network.
The shortlist for Affiliate Traffic Source of the Year sees BetAffiliation pick up another nod, alongside the likes of Clever Advertising and Oddschecker.
Workplace culture takes centre stage in Affiliate Employer of the Year, with BetAffiliation, Hub Affiliations, Clever Advertising, and Game Lounge recognised for their efforts in building positive team environments.
On the casino front, Catena Media, Game Lounge Ltd, Casino Guru, and Betting Hero are all in contention for Casino Affiliate of the Year.
In the operator categories, bet365 Partners is aiming for a third consecutive win in Best Affiliate Programme (Operator), having previously claimed the title at the SBC Awards. This year, they face competition from Betsson Group Affiliates, Boomerang Partners, and Kaizen Gaming. The Affiliate Programme of the Year – Large category will also feature major operators, with 1w, BetMGM, Betsson Group Affiliates, and PIN-UP Partners all in contention for the gong.
The awards also spotlight the tech providers underpinning affiliate growth. Aff.Tech, ReferOn, and other leading platforms have secured nominations in both Affiliate Management Platform of the Year and Affiliate Technology of the Year.
Other categories on the night include Casino Title of the Year and Marketing Agency of the Year, rounding out a comprehensive celebration of affiliate marketing excellence.
Individual leadership in the industry will also be recognised, with awards for Affiliate Leader of the Year, Affiliate Content Manager of the Year, and Affiliate Account/Community Manager of the Year, underscoring the critical role individuals play in elevating brand performance.
The post Meet the First-Ever Affiliate Leaders Awards 2025 Shortlist and Cast Your Vote! appeared first on European Gaming Industry News.
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