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LeoVegas AB Q4: Year-end report 2020
“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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eSports
How esports betting became a sportsbook essential
Reading Time: 3 minutes
Short-form esports betting has transitioned from niche product to an established cornerstone of the sportsbook offering that drives consistent engagement. Peter Camden, Head of Competitive Gaming Product at SIS, shares how its growth was built on integrity, structure and the simple power of consistent play.
Previously used to fill the void left by the absence of live sporting events, esports is now firmly part of the sportsbook offering and valued by operators for delivering quick, dependable and consistently engaging betting entertainment.
Take a look at the homepages of major brands globally – a common theme sees the vertical feature prominently, illustrating its importance in grabbing bettor interest. The potential of esports betting has been discussed at length in recent years, and now the product’s importance is a reality because of its ability to drive business growth.
The question is: what turned the tide for esports betting? And how did a vertical that began as supporting content become one of betting’s most reliable formats?
The answer lies in how the industry, and its players have adapted. Confidence in the product has reshaped where it stands today, and that shift is clear to see in sportsbooks. What was once tucked away at the bottom of the sports menu now sits alongside the biggest sports, showing how visibility shapes perception, which is, after all, the true marker of progress. In the United States, for example, eBasketball often appears directly below the Big Four sports in the homepage menu. That speaks volumes as to how far the vertical has grown.
Its success comes from how naturally it fits the pace of modern betting. Sports simulated matches are quick, familiar and structured, offering a constant flow of action that is fair and transparent. Every game that we offer is properly refereed and monitored, which gives bettors confidence that what they see is fair and has integrity at its core. It is an experience that shows speed does not come at the cost of quality, proving that even the briefest contests can leave a lasting mark.
The format has also evolved with the audience. Popular sportsbook features such as player props, bet builders and live statistics have been incorporated to make the overall experience more interactive, giving bettors new ways to follow and engage with the action. They can now track rebounds, corners and assists just as they would with their favourite teams, blurring the boundaries between traditional sports betting events and simulated content. It is clear that the line between the sports sims and the familiar has never felt thinner.
Trust, once earned, is what turns a product into a permanent presence, and integrity has always been the key foundation on which we built and continue to build our product. Strong oversight and transparency have created lasting confidence among operators and bettors, helping transform short-form esports from an emerging concept into one of the sportsbook’s most stable and respected products.
SIS Competitive Gaming has been instrumental in defining the journey of esports betting to becoming an established fixture, delivering more than 140,000 eSoccer and 85,000 eBasketball events each year to the world’s biggest sportsbook brands within a framework designed for precision and control. It shows how scale, when managed with care, can sustain the highest levels of quality and engagement across every match.
The story of short-form esports betting is one of steady progress. It may have found its place, but its evolution is far from over. The next chapter will introduce new sports, richer markets and even greater scale, reinforcing its position as a permanent fixture within the sportsbook.
As technology continues to advance and data insights deepen, the product will only grow more sophisticated – giving operators innovative ways to engage their audiences and bettors even more reasons to return.
Its future, like the matches it delivers, promises to move fast and stay exciting.
The post How esports betting became a sportsbook essential appeared first on European Gaming Industry News.
FDJ UNITED
Kambi Group plc and FDJ UNITED sign expanded Odds Feed+ agreement
Reading Time: 2 minutes
FDJ UNITED’s Online Betting & Gaming division gains access to Kambi’s complete library of sports odds to elevate its proprietary sportsbook offering
Kambi Group plc, the home of premium sports betting solutions, has signed an expanded Odds Feed+ agreement with FDJ UNITED, providing the operator with full access to Kambi’s extensive library of pre-match and live sports odds.
FDJ UNITED, which recently acquired Kindred Group, is now able to complement its in-house sportsbook offering with a bespoke selection of Kambi’s traded odds, which can be continuously iterated to support its pricing and offering strategy. Kambi will continue to supply FDJ UNITED with its Turnkey Sportsbook in markets which have yet to transition to its proprietary sportsbook.
The multi-year agreement builds upon an existing Odds Feed+ partnership, signed in February, for the provision of Kambi’s esports odds. Having already integrated Kambi’s Odds Feed+ API for esports, today’s deal provides FDJ UNITED and its sportsbook division with instant access to Kambi’s entire menu of sports odds, in line with their ‘best in class’ approach to both supplier integrations and in-house offering development.
Odds Feed+ is Kambi’s premium odds feed solution, engineered to deliver high-quality pre-match and live odds, as well as an extensive range of micro and player props markets, through a single API integration. Kambi’s odds are traded on its €17bn liquidity, ensuring sharper and more reliable odds, no matter the sport or league.
Werner Becher, CEO of Kambi Group, said: “We are delighted to agree this partnership with FDJ UNITED as we continue to expand the list of operators leveraging parts of our Odds Feed+ product. As the sports betting landscape becomes ever more competitive and complex, the need for a flexible, high-quality, trusted odds feed has never been greater. Given our vast experience in sports trading, along with our large global liquidity, we believe our Odds Feed+ solution will become the go-to odds feed for visionary operators, such as FDJ UNITED.”
Nils Andén, Chief Online Betting & Gaming Officer at FDJ UNITED, added: “Partnering with Kambi and expanding our Odds Feed+ agreement into selected sports is an important milestone as we continue the migration to our in-house sportsbook platform. Odds Feed+ gives us the quality, flexibility and control we need to tailor our sportsbook, while benefiting from the reliability and expertise of a true industry leader like Kambi.”
The post Kambi Group plc and FDJ UNITED sign expanded Odds Feed+ agreement appeared first on European Gaming Industry News.
Booming Games
Booming Games Strengthens Its Presence in Portugal Through Strategic Partnership with Placard.pt
Reading Time: < 1 minute
Booming Games is proud to announce its official launch on Placard.pt, one of Portugal’s most trusted and fastest-growing online gaming platforms. This collaboration marks a major milestone in Booming Games’ strategic expansion into the Portuguese regulated market and reinforces its commitment to delivering premium, certified gaming content tailored to local players.
Placard.pt, a project proudly positioned as ‘100% Portuguese’, builds on the legacy of one of the nation’s most recognised betting brands. It stands as a symbol of trust, familiarity, and excellence in Portugal’s online gaming landscape.
Through this new partnership, Placard.pt players will gain access to Booming Games’ fully certified Portuguese portfolio, featuring a selection of the company’s most popular titles and recent releases, including Buffalo Hold and Win Extreme 10,000, Burning Classics, Mr. Oinksters Hold and Win and Greedy for Gold Power Hit
This collaboration underscores Booming Games’ strategy of partnering with trusted, locally respected operators in regulated markets worldwide, delivering entertainment experiences defined by innovation, integrity, and player engagement.
Lucia Baranda, Head of Partnerships at Booming Games, commented: “We are delighted to announce our partnership with Placard.pt, one of Portugal’s most established and respected gaming brands. Entering the Portuguese market marks an exciting new chapter for Booming Games, and we look forward to bringing our diverse and innovative portfolio to players who value premium quality and authentic entertainment.”
Nuno Ruivo, Content Manager at Placard, added:“We are very pleased to welcome Booming Games to our platform. Their reputation for delivering visually impressive, feature-rich slot content aligns perfectly with our mission to offer our players the very best in online entertainment. This partnership reflects our continued commitment to expanding our casino offering with top-tier international providers.”
The post Booming Games Strengthens Its Presence in Portugal Through Strategic Partnership with Placard.pt appeared first on European Gaming Industry News.
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