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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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Amusnet’s Virtual European Roulette Brings Timeless Elegance into the Modern Live Casino Era

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Experience the elegance of roulette in a sleek modern format with Virtual European Roulette, Amusnet’s refined take on one of the most iconic casino games ever created. Combining the timeless appeal of the traditional roulette wheel with contemporary design and intuitive controls, this release delivers a smooth, immersive single-player experience.

Inspired by the atmosphere of a premium casino floor, the game features a sophisticated visual style, polished animations and a clean interface that feels both luxurious and easy to navigate. Every detail is designed to recreate the excitement of live roulette while offering the convenience and flexibility of a modern virtual format.

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The post Amusnet’s Virtual European Roulette Brings Timeless Elegance into the Modern Live Casino Era appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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BGaming

BGaming Raises €200,000 for DAR Bjorn with its Second Annual Charity Gala

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Industry leaders and the local community united in Malta for an evening of meaningful impact

Popular iGaming content provider BGaming is proud to announce the success of its second Charity Gala, held at The Phoenicia Malta on May 29 in support of DAR Bjorn. Bringing together more than 400 guests from across the iGaming industry, the local business community, and Maltese society, the event raised over €200,000 for the neurological home and the people it supports.

Ian Borg, Malta’s Deputy Prime Minister and Minister for Foreign Affairs and Tourism, was also in attendance, underscoring the importance of the Charity Gala’s mission to support DAR Bjorn and its contribution to the Maltese community.

DAR Bjorn is Malta’s neurological home, providing care and support for people living with ALS, MS, and other severe neurological conditions. Founded by former iGaming professional Bjorn Formosa following his ALS diagnosis at the age of 28, the organisation now cares for 60 residents while supporting more than 800 people throughout the country.

The funds raised by this year’s event will go directly towards equipping DAR Bjorn’s new Respite Centre with essential medical care and equipment. As part of its ongoing commitment to DAR Bjorn, BGaming is dedicating all money raised to the cause, with the studio covering the event’s operating costs.

One of the meaningful parts of this year’s initiative was a special merchandise collection co-created by Portuguese street artist Gonçalo MAR and residents of DAR Bjorn. Inspired by their stories and creative contributions, the collection gave them the opportunity to become active participants in the project. The merchandise was first unveiled at NEXT Summit Valletta and later made available online in exchange for donations. The initiative raised €5,000 for DAR Bjorn, extending the Gala’s impact beyond a single evening.

BGaming would like to extend its sincerest thanks to all partners whose generosity and support made this year’s Charity Gala possible, including NEXT.io, which was an official media partner for the event.

MyAffiliates were the event’s Golden Partner, while 1spin4win, Finteq Hub, Amusnet Gaming, and TaDa Gaming were Bronze Partners. Supporting Partners included Flutter International, Alea, SiGMA, Focus Gaming News, The Phoenicia Malta, Booming Games, Internet Vikings, Behind the Gloves, EGT Digital and SWAG42.

Marina Ostrovtsova, CEO at BGaming, said, “When we organized the first Charity Gala last year, we simply wanted to help DAR Bjorn and do something meaningful together as an industry. We never imagined it would grow into such a powerful annual initiative.

What inspires me most is not only the amount raised, but the people behind it. Seeing companies that normally compete come together for one shared purpose says a lot about our industry and the kind of community BGaming has built around it.

The impact of this evening goes far beyond fundraising. It helps improve the lives of people at DAR Bjorn, but it also reminds all of us that we have the ability to create meaningful change when we work together.”

Maria Formosa, the executive secretary of ALS Malta and the wife of ALS activist Bjorn Formosa, said, “Charity Gala by BGaming showed the extraordinary impact that can be achieved when the gaming industry unites behind a meaningful cause. The generosity shown throughout the evening will directly help us equip new rooms in our respite home and improve the lives of people living with neurological conditions. It was truly another memorable night in a magical venue filled up with beautiful souls who believed in our mission.

We are profoundly grateful to BGaming, to Madame Lubov for her hard and meticulous work she did once again for the success of the event, to the support received from Next.io and every supporter who helped turn compassion into action.”

The post BGaming Raises €200,000 for DAR Bjorn with its Second Annual Charity Gala appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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RubyPlay signs World Sports Betting deal to expand in South Africa

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Operator adds RubyPlay slots including Elephant Stampede, Diamond Explosion® 7s and Mayan Cache to its online platform.

RubyPlay has partnered with South African operator World Sports Betting to roll out a selection of the supplier’s slot titles on the bookmaker’s online platform.

Under the agreement, World Sports Betting has integrated RubyPlay Studios games including Elephant Stampede, Diamond Explosion® 7s and Mayan Cache.

RubyPlay said South Africa remains a key market in its international growth strategy. The supplier entered the country in 2023 and said the World Sports Betting deal builds on a series of local partnerships.

Dima Reiderman, CCO at RubyPlay, said: “South Africa has been a real focus for us since we entered the market three years ago, and the traction we have seen in that time makes this partnership with World Sports Betting a genuinely engaging one. They are an established, highly respected brand and adding our portfolio to their platform is a strong example of how we are continuing to establish ourselves as a tier-one supplier across regulated markets.

“World Sports Betting has a deep understanding of their players and a clear vision for how they want to grow their offering. That kind of operator mindset is what we look for in a long-term partnership, and it gives us a strong foundation to build on together in what remains one of the most intriguing markets worldwide.”

Ryno Du Plessis, Chief Operating Officer at World Sports Betting, added: “Our focus is on delivering a high-quality iGaming experience, with a high breadth of standout content playing a key role. RubyPlay stands out as a quality content supplier, not only for the strength of its portfolio, but for its clear approach to game development and delivery.

“Their ecosystem model supports long-term player engagement, which aligns with our strategy as we grow our offering. Bringing in-demand titles such as Elephant Stampede, Diamond Explosion® 7s and Mayan Cache to our players is an exciting move, and we see strong potential in the partnership moving forward.”

The post RubyPlay signs World Sports Betting deal to expand in South Africa appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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