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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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Conferences
ELA Games to Speak on Sustainable Growth at HIPTHER Prague 10th Anniversary Summit
The Head of Business Development at ELA Games collaborates with industry colleagues to explore the forthcoming phase of scalability.
ELA Games is happy to share that Yaroslav Soloshenko, Head of Business Development, will serve as an expert panelist at the forthcoming HIPTHER Prague Summit 2026.
Celebrating its 10th anniversary, the Prague Summit is a focused event for leaders in gaming and technology across Central and Eastern Europe. On Day 2 (March 25, 2026) at 12:00 PM, Yaroslav will take the stage in the QUARTZ Room for a session called: “Game Innovation & Studio Growth: What Scales in 2026.”
Led by the esteemed industry personality Michael Caselli, the dialogue unites a panel of experienced experts, featuring Robert Lenzhofer (Hölle Games), Alexis Wicén (Scatters Group), Alessia Paiano, and Assaf Stieglitz. The session aims to investigate the realities of the contemporary gaming scene, aiding in differentiating between short-term experiments and the sustainable growth strategies that succeed in a competitive, regulated setting.
Yaroslav Soloshenko, Head of Business Development at ELA Games, said of the upcoming session: “Innovation in 2026 is defined by how a good idea adapts to the specific needs of the market. ELA Games is focused on the artistry of our games, making sure every animation and feature meets a standard of quality that itself is a core selling point for our partners. Scaling today requires us to push creative boundaries while finding new ways to maintain a competitive edge in a crowded and ever-changing market. It’s an honor to join such a distinguished panel at the Prague Summit, particularly as HIPTHER marks a decade of bringing together some of the most influential voices in the CEE region.”
The discussion will center on various critical aspects of studio development, such as:
Strategic Innovation Cycles: Syncing ambitious creative experimentation with the practical needs of product-market fit and scalable business success.
Efficient Distribution: Ways specialized studios can broaden their audience via strategic aggregation and partnerships with platforms.
Creative Adaptation: Preserving a studio’s artistic identity while effectively managing the changing technical and regulatory requirements of European markets.
The post ELA Games to Speak on Sustainable Growth at HIPTHER Prague 10th Anniversary Summit appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
Cashpoint
EveryMatrix wins Cashpoint omnichannel turnkey platform deal in Denmark
EveryMatrix has signed a landmark omnichannel agreement to provide turnkey technology for one of Western Europe’s leading betting and gaming brands. Under the deal, EveryMatrix will power over 1,000 sports betting terminals across 230+ shops nationwide, while also delivering a fully integrated online sportsbook platform and launching Merkur’s first online casino in the second half of 2026.
The agreement represents the second major Denmark-based turnkey deal for EveryMatrix in just two months, following Danske Spil’s selection of the provider to power its casino and bingo operations.
Cashpoint, set to rebrand as Merkur Bets once the platform migration is complete, holds strong market positions in Germany, Austria, Belgium, and Denmark, making it one of the most prominent betting and gaming operators across Western Europe.
The brand began searching for a modern technology partner in early 2025, aiming to implement a scalable, omnichannel solution capable of integrating sportsbook and casino offerings. The migration from its in-house system to EveryMatrix’s turnkey platform is scheduled to align with the start of the new football season, ensuring a seamless transition for customers.
Ebbe Groes, Group Co-CEO & Co-Founder at EveryMatrix, said:
“The Cashpoint and Merkur brands are among the most recognisable in Denmark and across Europe. Partnering with their team to deliver a project of this scale is a privilege, and it demonstrates the growing trust tier-1 operators and lotteries are placing in EveryMatrix technology.”
Mathias Dahms, Managing Director Sportsbetting at Merkur Group, added:
“Merkur Bets is taking a major step forward this year. By switching to EveryMatrix technology and rebranding, we are positioning the brand for continued growth and success in Denmark. EveryMatrix offers the ideal foundation to support our omnichannel strategy and future expansion.”
This agreement reinforces EveryMatrix’s position as a leading provider of turnkey sportsbook and casino solutions, delivering both in-store and online experiences for operators across Europe.
The post EveryMatrix wins Cashpoint omnichannel turnkey platform deal in Denmark appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
EGT
24 Years Strong: EGT’s Commitment to Excellence and Timeliness
EGT was established to quickly rise as one of the leading manufacturers and suppliers of gaming equipment worldwide. Today, as the organization marks its 24th anniversary, its narrative can be expressed in years of development, in hours of output, in minutes of accuracy, and even in seconds of engineering brilliance. Let’s reflect on how it accomplished this success.
Throughout this time, the company developed and patented more than 700 products and manufactured over 200,000 gaming devices, which have been placed in many of the most prestigious venues globally.
Numerous advancements from the EGT collection, including the Egypt Quest and Bell Link jackpots as well as the cabinets from the Premier, General, and Supreme series, have established benchmarks within the industry, defining its standards and making EGT synonymous with unwavering quality.
EGT has established 3 factories where it produces its goods and meets orders for clients globally. The company has even taken an additional step, successfully completing its production cycle at 360 degrees, which enables it to supply nearly everything required for manufacturing its machines.
This comprehensive production system enables EGT to assess its efficiency not only over years of expansion but also in seconds, minutes, and hours on the manufacturing floor.
Thanks to this, in just 24 seconds, the machines in the company’s production lines cut over 40 meters of cable used in EGT’s products. At this speed, the height of Mount Everest could be reached in under 90 minutes.
In just 24 minutes, over 16,000 components used in EGT’s products pass through the production process. At this rate, a venue the size of Madison Square Garden could be filled in about 30 minutes.
In 24 hours, 420 slot cabinets come off EGT’s production lines. Placed side by side, they would stretch almost the length of three football fields.
Impressive figures, right? Yet they represent only a fraction of what EGT has achieved over the past 24 years.
EGT is continually expanding its presence, with its products now available in more than 100 markets across 5 continents. Over 4,500 staff members across 28 global offices guarantee that the business remains close to its clientele.
In the last 24 years, EGT has been involved in more than 300 exhibitions globally. It has grown its family by adding 2 subsidiaries – EGT Digital and EGT Steel Production, which have allowed it to enhance its product offerings and now provide an even broader array of solutions to its existing and prospective clients and partners.
Throughout this time, EGT has garnered more than 30 accolades, serving as clear evidence of its standing as a leader in the gaming sector both nationally and internationally, along with its recognition as one of the most reliable firms in the Bulgarian economy overall.
Furthermore, EGT belongs to various Bulgarian and international business and industry associations. It holds more than 10 certifications for its work quality and presently utilizes systems like SAP, supported by internationally acknowledged testing labs like GLI and BMM, ensuring that the company’s products comply with all industry standards.
None of these achievements could have been realized without the company’s most important resource – its staff. EGT has established and fostered a culture of assistance and motivation for its staff to realize their potential and advance their careers within the company. Consequently, in just the past 5 years, its staff have participated in more than 200 varied courses and training sessions to enhance their professional skills and qualifications.
Simultaneously, the organization ensures a healthy balance between professional and personal life by enacting various family-focused social policies and allowing individuals to engage in their interests. EGT fields sports teams in football and athletics that frequently engage in multiple tournaments and competitions, showcasing impressive performances.
The company’s artists have the opportunity to showcase their individual creations in a unique exhibition that EGT hosts each year, and in 2025, the display was open to the public for the first time.
Annually, EGT offers internship programs that allow numerous young individuals at the start of their careers to gain essential knowledge and skills, with some going on to work at the company and utilizing this knowledge in practical applications at EGT.
Consequently, the company takes pride in a substantial percentage of long-serving employees—20% of the workforce has more than a decade of experience with the organization, which is an outstanding accomplishment.
In addition to all this, EGT continues to be accountable to society. Throughout the years, the organization has participated in various charitable initiatives focused on safeguarding the environment and assisting vulnerable individuals and those in distress.
EGT also actively backs various initiatives to encourage responsible gaming, enhancing its reputation as a developer of cutting-edge gaming solutions that lead industry trends.
Vladimir Dokov, CEO of EGT, shared: “Inspired by all these milestones achieved over the past 24 years, we have set ourselves no less ambitious goals for 2026. Along with further modernizing our production facilities, entering new markets and strengthening our leadership on a global level, an equally important priority for us will be to continue contributing to the improvement of the educational and professional environment in the country. This way, we will be able to prove once again that we not only know how to do successful business, but also that we are a socially responsible company that contributes to the overall development of society. This is the true meaning of excellence for us.”
Happy 24th birthday, EGT. Here’s to many more years where every second counts.
The post 24 Years Strong: EGT’s Commitment to Excellence and Timeliness appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
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