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LeoVegas AB Q4: Year-end report 2020

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“Yet another record year for LeoVegas with a strong close” – Gustaf Hagman, Group CEO

fourth quarter 2020: 1 october–31 december        

  • Revenue increased by 13% to EUR 98.4 m (87.1). Organic growth in local currencies was 14%.
  • Adjusted EBITDA was EUR 11.5 m (9.2), corresponding to an adjusted EBITDA margin of 11.7% (10.6%). Reported EBITDA includes EUR -3.5 m (5.3) in items affecting comparability.
  • The number of depositing customers was 461,983 (372,032), an increase of 24%.
  • Adjusted earnings per share were EUR 0.08 (0.06).

Events during the quarter

  • LeoVegas was the first company in the gaming industry to offer payments via Open Banking.
  • During the quarter the Group’s unique and record-large jackpot was launched under the name LeoJackPot.
  • LeoVegas secured long-term and diversified financing through a combination of a bank credit facility (RCF of EUR 40 m) and a bond issue of SEK 500 m under a total framework of SEK 800 m.
  • During the quarter, LeoVegas repurchased its own shares for approximately EUR 5 million.
  • Ahead of the forthcoming regulation in Germany, a number of changes were implemented. This led to lower revenue during the quarter, with the greatest effect during the month of December.
  • LeoVegas has changed its interpretation of the calculation of gaming taxes in Denmark for earlier periods. This resulted in a self-correction, and a one-off cost of EUR 3.5 m has been charged against EBITDA.
  • Decision has been taken to migrate the Royal Panda brand to the Group’s proprietary technical platform.

Events after the end of the quarter

  • Preliminary revenue in January amounted to EUR 32.5 m (29.9), representing growth of 9%.
  • The Board of Directors proposes a raised dividend totalling SEK 1.60 per share (1.40), an increase of 14%, to be paid out on four occasions during the year.

 

COMMENT FROM GUSTAF HAGMAN – GROUP CEO

STRONG CLOSE TO 2020
LeoVegas concluded the record year 2020 with its strongest fourth quarter ever. And we did this despite frequent changes to the gaming requirements in our markets in addition to finding ourselves in the midst of a global pandemic. I am proud of our ability to quickly adapt to changed conditions through a high capacity for innovation at the same time as we are building an increasingly solid and diversified business. It is a demonstration of strength that LeoVegas delivered adjusted EBITDA growth of 25% for the full year while the operating cash flow increased almost 90 %. This was achieved despite maintaining a high investment pace with launches of new brands, new markets and product improvements.

During the fourth quarter we increased our revenue organically by 14%. Growth was mainly driven by a continued rise in depositing customers, which grew 24% to a new record level. Adjusted EBITDA increased by 25% during the quarter to EUR 11.5 m.  Reported EBITDA was charged with a one-off provision of EUR 3.5 m related to a changed interpretation of the calculation of gaming taxes in Denmark for earlier periods.

MarkETS
With the exceptions of Sweden and the UK, our core markets showed high double-digit growth during the quarter. Above all I want to highlight Italy, which has now become one of our five biggest markets. During the quarter we launched the Pink Casino brand in Canada. The launch is part of our multibrand strategy, where we are utilising existing resources and our technical platform to expand through scale.

In the German market, LeoVegas has implemented a number of changes ahead of the forthcoming licence system in July 2021. As expected, this affected revenue during the period. Operators in the market are acting differently with respect to the new restrictions, and at present necessary clarity is lacking in the ongoing transitional period, which unfortunately has led to a skewed competitive situation until the licence system has been fully implemented.

TECHNOLOGY AND PRODUCTS
During the quarter we carried out and launched several major projects and innovations. In particular I want to highlight our new exclusive jackpot – LeoJackpot – where our customers can win over SEK 50 m directly from their smartphones. We were also first in the industry to offer payments via Open Banking. This will benefit LeoVegas and our customers in many ways, including through more secure and faster payments and lower transaction costs.

During the quarter we began the migration of Royal Panda to our joint technical platform. As a result, in 2021 all brands will be operated on the same platform. The migration will lead to cost synergies such as lower platform and product costs and a more efficient organisation. The decision has also resulted in impairment of intangible assets attributable to Royal Panda’s platform, which was charged against EBIT in the amount of EUR 1.9 m.

FINANCING AND INVESTMENTS
At the end of the year we secured the Group’s long-term financing needs through the combination of a renewed bank credit facility of EUR 40 m and a newly issued corporate bond of SEK 500 m.

Stable financing combined with a strong balance sheet gives us a solid base for continued expansion, both through organic initiatives and potential acquisitions. During the fourth quarter we carried out share repurchases for approximately EUR 5 m. In addition, the Board of Directors proposes an increase in the dividend to SEK 1.60 per share.

COMMENTS ON FOURTH QUARTER
Revenue for the month of January amounted to EUR 32.5 m (29.9), corresponding to annual growth of 9%. In January revenue was fully impacted by the changes carried out in Germany ahead of the forthcoming regulation.

On the tailwinds of a strong 2020 we are now looking forward to a year with many exciting growth initiatives and an even stronger customer offering.

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G2 drops limited-edition One Piece streetwear capsule on June 25

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The esports organisation’s second anime apparel collaboration will be sold exclusively via g2esports.com/shop.

G2 is launching a limited-edition G2 | One Piece capsule collection on June 25, with the drop available exclusively through the organisation’s online store at g2esports.com/shop.

The collection is inspired by One Piece’s Gear 5 Monkey D. Luffy and includes hoodies, zip-ups, t-shirts, caps, sleeves, and tote bags. According to G2, the items use a black-and-white palette and feature a minimalist embroidered logo alongside a custom G2 | One Piece Jolly Roger that combines the G2 samurai emblem with Luffy’s straw hat.

“At G2, we’re continuing to push the culture and fashion of esports beyond competition alone, and this One Piece collection is a natural extension of that,” says Sabrina Ratih, COO of G2 Esports. “We wanted to create a capsule that continues to elevate the esports fashion space – understated, premium, and stylish enough for everyday wear, while still carrying the spirit of adventure, ambition, and individuality that defines One Piece and G2 alike. Every piece is designed to bridge the gap between fandom and everyday style, and continuing our mission to redefine what esports fashion can be.”

G2 described the drop as its second anime collaboration, following a previous apparel collaboration with Solo Leveling. The company positioned the release as part of its broader effort to connect esports, anime, and streetwear.

One Piece debuted in 1999 and remains one of the largest anime franchises globally. G2 cited over 600 million manga copies sold and more than 1,160 episodes for the series.

The post G2 drops limited-edition One Piece streetwear capsule on June 25 appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Ygam joins four UKRI-funded gambling harms research partnerships

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Projects sit within UKRI’s Research Programme on Gambling and the GHR-UK Evidence Centre, backed by the statutory levy.

Ygam has been named as a partner on four projects funded through the UKRI Research Programme on Gambling, supported by the statutory levy. The charity will work with academic teams including the University of Birmingham, Bournemouth University, the University of Plymouth, Lancaster University, and Liverpool John Moores University.

The four projects sit within the Gambling Harms Research UK (GHR-UK) Evidence Centre, which coordinates 19 one-year Innovation Partnerships under the programme. UKRI has been appointed by the UK Government to oversee research commissioned through the new statutory Gambling Levy. Under the levy, 20% of annual funding will be allocated to research, equating to £22.1 million in 2025/26.

Emily Tofield, Chief Executive of Ygam, said: “We are pleased to be working in partnership with leading university partners, contributing our expertise in a key strategic area of our work. A defining strength of our approach is that it is grounded in robust insight and research, underpinning everything we do. This enables us to understand how and why harms emerge and translate that into practical, preventative education that is credible and scalable. We look forward to achieving these outcomes together and informing effective measures to prevent harms among children and young people.”

Ygam said its advisory panels — including young people, individuals with lived experience, community and faith leaders, gaming and esports representatives, and student ambassadors — will help shape the research to reflect “real-world experience and diverse community perspectives.”

The four partnerships are: INTEGRATE (University of Birmingham, Ygam, Al-Hurraya and Community Connexions), focused on intersectional gambling harm and interventions for children, young people and emerging adults; “From Evidence to Action: Safeguarding Neurodivergent Young People in Gamified Digital Environments” (Bournemouth University, Ygam, Work’n’Diversity CIC), focused on gambling-like risks in gamified digital environments; GRASP (University of Plymouth-led partnership including NatCen, NHS and third-sector organisations, and Ygam), mapping support pathways and gaps in prevention and recovery; and GRACE-Net (Lancaster University and Liverpool John Moores University with local authorities, NHS partners, third-sector organisations and Ygam), testing collaborative approaches in the North West of England and sharing learning more widely.

The post Ygam joins four UKRI-funded gambling harms research partnerships appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Study: 400m Gen Z esports fans say brand activations drive purchases

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EFG, Hero Esports and Niko Partners survey 8,000 fans across eight markets; 74% report ads and brand presence influence buying.

ESL FACEIT Group (EFG), Hero Esports and Niko Partners have released a multi-country Gen Z esports study claiming around 400 million Gen Z consumers (20%) regularly engage with esports. The findings were published on 25th June 2026 in Cannes, France, in a white paper titled The Esports Generation: Who They Are & Why They Spend.

The report is based on survey data from 8,000 Gen Z esports fans aged 13-30 across eight markets. It positions esports as a high-attention channel for brands: 85% of respondents said they notice branding in esports, while 74% self-reported that advertising and brand participation in gaming spaces influences their purchasing behaviour. The study also reports that 66% have bought a product following a collaboration or co-branding partnership with an esports team, game or player.

On consumption and fandom touchpoints, the study found 71% regularly watch gaming content, including 66% who watch gaming livestreams and 33% who watch or listen to gaming podcasts. It also points to offline reach: 21% said they regularly attend gaming conventions and esports events, with the average respondent attending at least one in-person event in the past nine months.

The white paper also breaks out claimed purchase categories linked to esports collaborations over the past year, led by food and beverage (33%), electronics (33%) and fashion (32%). Beyond core categories, it reports 28% bought esports-related collectibles, 17% purchased makeup, beauty, or skincare products, and 10% bought from partnered brands in other categories.

Niccolo Maisto, CEO at ESL FACEIT Group said: “Esports has evolved into one of the most effective channels for companies looking to connect with Gen Z audiences at scale. What makes it unique is not just its reach, but the depth of engagement and trust that exists between fans, players, teams, and events. This research shows that esports fans are highly invested participants, not passive viewers, creating an opportunity for brands that show up authentically and build meaningful and lasting connections with this key audience.”

Danny Tang, Co-Founder and CEO of Hero Esports said: “This whitepaper confirms what we at Hero Esports have long believed: esports has evolved into a global cultural and economic force. The data shows an audience that is young, diverse, and deeply engaged. For brands, the message is clear—esports is no longer a niche market; it is the premier platform to connect with the next generation of consumers. We are proud to partner with Niko Partners and EFG to provide this blueprint for understanding and succeeding in this dynamic industry.”

Lisa Hanson, CEO at Niko Partners said: “Our data shows that, much like fans of other sports, Gen Z esports fans are incredibly passionate and have formed strong bonds within their communities. However, their media and consumer affinities extend well beyond gaming and esports, with our research revealing naturally connected interest areas that create valuable overlapping opportunities for brands and partners that show up authentically in this ecosystem.”

The post Study: 400m Gen Z esports fans say brand activations drive purchases appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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