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LeoVegas AB Q2: Quarterly report 1 April – 30 June 2020

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“The strong EBITDA growth clearly illustrates the scalability of our business model”

– Gustaf Hagman, Group CEO

second quarter 2020: 1 april–30 june

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  • Revenue increased by 17% to EUR 110.7 m (94.4). Organic growth in local currencies was 19%.
  • EBITDA was EUR 23.0 million (15.1), corresponding to an EBITDA margin of 20.8% (16.0%) and a growth of 53 %.
  • The number of depositing customers was 434,453 (350,298), an increase of 24%.
  • Earnings per share were EUR 0.14 (0.08) before and after dilution, while adjusted earnings per share were EUR 0.19 (0.11).

Events during the quarter

  • LeoVegas completed the migration of 12 brands in the UK to the Group’s proprietary technical platform.
  • The LiveCasino.com brand was launched in a number of English-speaking countries.
  • At LeoVegas’ Annual General Meeting on 8 May, Anna Frick and Fredrik Rüdén were re-elected as board members. Hélène Westholm, Mathias Hallberg, Carl Larsson, Per Norman and Torsten Söderberg were elected as new board members. Per Norman was elected as Chairman of the Board.
  • The effects related to COVID-19 are judged overall to have had a positive impact on NGR during April and May, however, the effect on revenues in Sweden was negative during the quarter.

Events after the end of the quarter

  • Preliminary revenue in July amounted to EUR 30.7 m (29.3), representing growth of 5%. The temporary restrictions introduced in Sweden starting on 2 July have had a negative impact on revenue.
  • The number of depositing customers increased by 34% in July compared with the same period a year ago, to a new record level for a single month.
  • GoGoCasino was launched in Finland. An international rollout of the brand is now continuing.
  • LeoVegas has increased its ownership in the e-sports betting operator Pixel.bet to 85%, from 51% previously.

COMMENT FROM GUSTAF HAGMAN – GROUP CEO

SECOND QUARTER 2020
LeoVegas has delivered continued solid growth and profitability during a period of exceptional circumstances in the world around us. Supported by the record-large customer base that we entered the quarter with, together with our ability to quickly adapt to new conditions, the positive trend from the first quarter is continuing.

Revenue during the second quarter amounted to EUR 110.7 m (94.4), representing organic growth of 19%. Net Gaming Revenue (NGR) for casino grew 24% during the period, while for sports betting it decreased by 53% compared with the same period a year ago.

EBITDA amounted to EUR 23.0 m (15.1), corresponding to a margin of 20.8% (16.0%). We thus grew EBITDA by 53%, which shows the scalability in our business model from higher revenue. The sharply improved operating profit has been achieved despite a continued high pace of expansion and increased investments in technology and products.

covid-19
I am very satisfied with how we at LeoVegas are handling the COVID-19 situation so that we can conduct our business without noticeable disruptions, despite challenges such as not being able to meet in our daily work. Our industry, like many other sectors, is experiencing a structural shift from offline to online. Owing to LeoVegas’ online position, appreciated brands and proprietary technical platform, we stand strong in an increasingly digital world.

Markets
We had favourable development in most of our markets during the second quarter. Growth has been driven primarily by a record-large depositing customer base, which grew 24% compared with a year ago. The Rest of Europe region experienced exceptionally high growth, with Italy posting record-strong performance. The effects related to COVID-19 are judged overall to have had a positive impact on NGR during April and May, mainly in the markets that were entirely shut down during the period. In these markets, LeoVegas has taken market shares from the land-based gambling industry. However, the effect on revenue related to COVID-19 is judged to have been negative in Sweden during the quarter.

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responsible gaming
During the quarter, several countries implemented measures to reduce the risk for problem gaming in connection with COVID-19. Spain, for example, introduced a temporary ban on gambling advertising. On top of these restrictions, LeoVegas has chosen to implement its own proactive measures to strengthen player protection. Most of the temporary restrictions throughout Europe ended in June, and Spain and the UK, among other countries, have reverted to normal regulations once their respective societies opened up again.

It is therefore remarkable that Sweden, despite massive criticism from most areas, has moved in the opposite direction and introduced new, temporary restrictions, effective 2 July, focused particularly on online casino. There is a large risk that these restrictions, implemented entirely without supporting factual data, are undermining the Swedish regulation system and driving players to companies without Swedish licences, where player protection is non-existent. These restrictions therefore risk being counter-productive and instead contribute to an increase in problem gaming in Sweden.

The independent research consultancy Copenhagen Economics has noted that one consequence of the new restrictions is that the unregulated market for online casino may increase to as much as 50%, which is far from the authorities’ stated goal to limit the unregulated market to 10% at most.

We advocate for balanced and clear regulations for achieving long-term sustainable licensing systems. LeoVegas wants to contribute to this through a broader dialogue and collaboration with the authorities in the countries we are active in.

MULTIBRAND STRATEGY
During the quarter we launched the new LiveCasino.com brand in a number of English-speaking countries. We see great potential for the brand. The start has been promising, and additional markets are to be expected.

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Following the successful launch of GoGoCasino in Sweden last year, an international rollout of the brand is now under way. Finland was the second market to launch, at the start of July.

The successful launches of new brands are in line with the company’s multibrand strategy and show our ability to create new revenue streams while at the same time drawing benefit from the Group’s economies of scale.

comments on third quarter
Revenue for the month of July amounted to EUR 30.7 m (29.3), representing a growth rate of 5%.

Our assessment is that the gaming market has returned to a more normal environment in July, with a natural player shift from casino back to sports betting now that the major sports leagues have restarted. At the same time, the temporary restrictions introduced in Sweden starting on 2 July are having a negative impact on revenue.

The positive trend in our customer base is continuing into the third quarter, and the number of depositing customers increased by 34% in July compared with the same period a year ago, to a new record level for a single month. We will maintain a continued high rate of investment during the third quarter, partly linked to the launch of new brands and market establishments. Our current assessment is therefore that marketing costs will be in line with – or slightly higher than – the level during the second quarter.

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We continue to focus on delivering sustainable and profitable growth for our shareholders and on offering an entertaining and safe gaming experience for our customers around the world. LeoVegas’ long-term vision is 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: 222 77 69 or join at the web https://edge.media-server.com/mmc/p/5fggroyh

 

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Industry Awards

ELA Games Receives Key Nomination at EGR Marketing & Innovation Awards

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The studio is shortlisted for the “Brand of the Year – B2B” category

ELA Games, an innovative game development studio, has been shortlisted for the “Brand of the Year – B2B” category at the upcoming EGR Marketing & Innovation Awards 2025.

The EGR Marketing & Innovation Awards is an event that celebrates key figures and innovative brands within the iGaming industry. The ceremony recognises companies that demonstrate commercial success through game-changing creativity and contributions to the improvement of the industry. It gathers the brightest and most influential minds to reward those who have helped the online gaming sector grow.

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ELA Games’ nomination for the “Brand of the Year – B2B” category highlights the company’s efforts in creating a portfolio that balances operator-centric growth with player-friendly gaming experiences. The studio has demonstrated a commitment to helping operators improve player acquisition and retention metrics through data-backed performance, making it a beneficial partner.

Marharyta Yerina, ELA Games’ Managing Director, commented on the nomination, “The ELA Games team is proud to receive a nomination for a significant category at a prestigious event. We’ve made considerable strides in 2025 to develop our portfolio and create games that both help operators grow and provide fun for players. We look forward to networking with all our peers at the ceremony, and congratulations to all nominees!”

The EGR Marketing & Innovation Awards 2025 will take place on June 19, 2025, at The Mermaid, London. The ELA Games team will attend the ceremony for a night of excitement, networking, and celebration.

The post ELA Games Receives Key Nomination at EGR Marketing & Innovation Awards appeared first on European Gaming Industry News.

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eSports

Esports World Cup Foundation Launches Global “Road to EWC” Program, Unveiling Qualification Pathways for the Esports World Cup 2025

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The Esports World Cup Foundation (EWCF) has unveiled the full scope of the qualification system for the Esports World Cup 2025 with the launch of the global “Road to EWC” program. Featuring over 200 tournaments spanning grassroots leagues to elite international circuits, the Road to EWC offers opportunities for players at every level to compete on the world’s biggest stage, the Esports World Cup, set to return to Riyadh, Saudi Arabia, from July 7 through August 24.

“Road to EWC is a platform for every player, Club, and community whose journey defines the spirit of competition,” said Faisal Bin Homran, Chief Product Officer, of the Esports World Cup Foundation. “By connecting hundreds of tournaments across the world, we are creating life-changing opportunities for players at every level, bringing the world’s best talent to Riyadh. This is how we grow the sport – by growing our partnerships, investing in competitions and laying the foundation for sustainable growth across the industry.”

The Road to EWC qualification program marks a major milestone for the Esports World Cup and is a core component of EWCF’s commitment to the sustainable growth of esports, supporting the professional ecosystem and advancing the sport on a global scale. With 25 tournaments in 24 games, including four new games – Chess, Crossfire, FATAL FURY: City of the Wolves and VALORANT – the EWC 2025 will bring together more than 2,000 elite esports players and 200 top Clubs to compete for a prize pool of more than $70 million, the largest in esports history.

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For League of Legends, Valorant, Overwatch 2, and Apex Legends, official publisher circuits such as the LEC, VCT, OWCS, and ALGS serve as the primary route to qualification. Other games, including Dota 2, Call of Duty: Warzone, PUBG, Teamfight Tactics, and StarCraft II, are holding open online qualifiers, while fighting games, including Street Fighter 6, TEKKEN 8, and Fatal Fury are qualifying players through community-driven tournaments such as EVO Japan, Combo Breaker, and CEO.

In mobile titles like Mobile Legends: Bang Bang, Free Fire, PUBG MOBILE, and Honor of Kings, region-specific leagues across Southeast Asia, MENA, and LATAM are producing national champions who will represent their respective nations in Riyadh. Finally, for titles such as Chess, EA SPORTS FC 25, and Overwatch 2, a final wave of Last Chance Qualifiers will be staged in July, giving one last opportunity for breakout players and rising stars to earn their spot in Riyadh.

Additional information about the Road to EWC, including events and dates for specific titles, can be found at esportsworldcup.com.

As anticipation builds for the Esports World Cup, the Road to EWC also features a multi-channel marketing campaign with a calendar of original content from selected qualifier events and partner leagues around the world. Player interviews and behind-the-scenes access will bring to life the stakes, talent, dedication and human interest stories behind the competition, alongside tournament and game explainers to introduce EWC games to broader audiences and bring fans closer to the action.

The Esports World Cup 2025 will once again unite gaming and esports communities in Riyadh, Saudi Arabia, for a global competition that will crown the next Esports World Cup Champion. The tournament’s unique cross-game format will reward Clubs and players competing for a life-changing prize pool across a mix of platforms and genres, bringing together esports’ best teams, players and games under one banner in the largest-ever celebration of esports.

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Compliance Updates

Exclusive Commentary from Vixio On Their AML Outlook Findings

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Your recent AML Outlook report highlights over €36 million in fines issued across Europe in just one year. What recurring weaknesses or compliance gaps are regulators most commonly identifying in payments and e-money firms?

John Gidla (JG): Regulators continue to flag underinvestment in anti-financial crime controls as a key concern for payments and e-money firms. Common themes include weak governance, limited oversight, and fragmented controls, all of which increase vulnerability to financial crime. There’s a growing expectation that firms scale their compliance frameworks in line with their risk exposure and growth trajectory

 

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The report mentions that AML compliance can be costly—yet the reputational and financial risks of non-compliance are even greater. What are the most cost-effective measures firms can implement today to strengthen their AML frameworks without overwhelming their budgets?

JG: While not all firms can afford advanced compliance tools, strong governance remains one of the most cost-effective ways to reduce risk. Practical steps such as training staff on emerging threats, embedding a culture of accountability, and regularly updating frameworks as the business grows can go a long way in strengthening AML resilience without major spend.

 

With the creation of the EU’s new AMLA authority, do you expect a more consistent and centralized enforcement approach across Europe? How might this change how firms prepare for inspections and adapt their compliance strategies?

JG: AMLA has the potential to bring greater consistency to AML enforcement across the EU, addressing long-standing issues caused by fragmented supervision and uneven implementation by national authorities. Its impact will depend on how much direct oversight it gains, how assertively it acts on cross-border risks, and whether it can close the regulatory gaps that have permitted high-profile scandals. Firms should expect more rigorous and standardised inspections and will need to ensure their compliance programmes are not only locally robust, but scalable across jurisdictions.

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Vixio emphasizes the importance of a proactive rather than reactive compliance culture. In your view, what does a ‘proactive’ AML strategy look like in 2025, and what technologies or best practices are leading firms adopting to stay ahead?

JG: A truly proactive AML strategy in 2025 extends beyond technology to encompass a strong compliance culture at every level of the organisation. Leading firms understand that combating financial crime isn’t just the responsibility of the compliance team — it’s integrated into day-to-day operations, with senior leadership driving risk awareness across departments. In terms of technology, firms are increasingly adopting AI, machine learning, and automated monitoring systems to detect suspicious activity early and reduce human error. However, culture plays a critical role; firms that foster a compliance-first mindset and invest in ongoing staff training are better positioned to adapt to emerging threats and ensure that their compliance frameworks evolve in step with business growth and digital transformation. A proactive approach also means constantly reassessing risk and using data to predict and prevent issues, rather than just reacting to them. With regulations in constant flux, and regulators ramping up enforcement, proactive compliance looks like implementing strategies to anticipate regulations, not just react to them. In Vixio’s PC Outlook Report, we found that a clear majority of firms surveyed are using some form of outsourcing for their compliance functionality, turning to firms like Vixio to get ahead of regulatory change.

 

Thanks to John Gidla, Head of Payments Compliance at Vixio, for his insightful responses.

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The post Exclusive Commentary from Vixio On Their AML Outlook Findings appeared first on European Gaming Industry News.

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