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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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Apollo Games

REEVO Announces a New Partnership with Apollo Games

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REEVO has announced a new partnership with Apollo Games, a Czech game studio renowned for its distinctive fruit and joker-style slot games. This collaboration marks another exciting step in REEVO’s continued expansion, further enriching its aggregation platform with proven, entertainment-driven content that appeals to players across multiple markets.

Through this partnership, Apollo Games’ portfolio is now available on the REEVO aggregation platform, providing operators with seamless access to a collection of engaging titles through a single integration. The addition reinforces REEVO’s commitment to delivering a diverse content ecosystem that combines established player favourites with innovative experiences from leading studios.

At REEVO, building a world-class aggregation platform means partnering with studios that understand what keeps players coming back. Apollo Games has established a strong reputation for combining classic casino appeal with modern mechanics, intuitive gameplay, and memorable entertainment. This makes the studio a valuable addition to REEVO’s growing portfolio of premium content providers.

As REEVO continues to expand its global footprint, every new partnership strengthens its ability to offer operators greater variety, stronger player engagement, and scalable content solutions through a single integration.

Daniel Cuc, Head of Account Management at REEVO, said: “Apollo Games brings a style of content that has stood the test of time while continuing to evolve with today’s players. We’re excited to welcome them to the REEVO platform as we continue building an aggregation ecosystem that combines trusted content with fresh experiences. Every new partnership is about giving our operators more opportunities to succeed, and Apollo Games is another excellent addition to our growing network.”

Robert Mikudik, CCO at Apollo Games, said: “We are truly excited to begin this new chapter with REEVO. This partnership will significantly strengthen the distribution of Apollo Games’ portfolio across multiple markets and help us bring our games to an even wider audience. I would like to thank everyone from both teams who contributed their time, energy, and expertise to successfully bring this project to life. A special thank you to David Ciolovan and Daniel Cuc for their dedication and for playing a key role in making this deal happen. We are very much looking forward to everything we can achieve together.”

This partnership reflects REEVO’s continued momentum as it expands its aggregation platform with providers that combine quality, innovation and commercial value. By growing a carefully curated content ecosystem, REEVO remains focused on helping operators deliver outstanding gaming experiences while supporting sustainable business growth.

The post REEVO Announces a New Partnership with Apollo Games appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Bacta

MGD – the Tax That Could Cost Britain its “Great Seaside Holiday”

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Bacta has warned how an increase in Machine Games Duty will have a devastating impact on the country’s seaside piers and arcades forcing closures and undermining the appeal of the Great British seaside holiday.

The warning comes after research conducted by VisitBritain showed an 18% year-on-year decline in trips to England’s coast, an alarming down-turn that has seen it launch the domestic coastal campaign – #AllOnTheCoast – which encourages the supply chain of seaside businesses and partners to share videos and social posts to inspire Brits to discover England’s seaside and coastal destinations.

Commenting on the VistBritain campaign against the backdrop of the recent Social Market Foundation proposal to increase Machine Games Duty, Bacta President Joseph Cullis said: “Such a decline in trips to the coast, as reported by VistBritain, is extremely concerning.

“What’s perfectly clear is that any increase in the tax burden for already under pressure destination venues such as piers and coastal arcades will directly impact the appeal of a trip to the seaside as businesses either close permanently, are forced to pass on tax increases to holiday makers or have to reduce the hospitality offering. However individual businesses respond, the outcome is inevitable – a significantly reduced and more expensive experience that will serve to either transform two or three- night breaks into a day trip, and/or encourage families to holiday abroad.”

Increasing the tax burden would also have a significant impact on regional economies.

“Many seaside piers and amusement arcades rely on the income from their gaming areas to stay viable year-round. That income helps keep staff employed beyond the summer season and it helps maintain the attractions and buildings that are part of Britain’s coastal heritage. Take it away and the damage spreads throughout the broader business community of bars, cafes, newsagents, restaurants, convenience stores and B&Bs. Healthy, well-maintained piers and sea-front arcades make the difference between resort status and simply being somewhere that visitors go for a coastal walk,” noted Cullis.

“A pier does not survive on warm words about heritage, an arcade cannot pay wages with nostalgia and games creators aren’t able to invest in new products if the market is taxed into decline. It would be painfully ironic if the government chooses to implement a destructive tax regime that will destroy the Great British seaside holiday at the same time as funding VistBritain’s #AllOnTheCoast campaign.”

The post MGD – the Tax That Could Cost Britain its “Great Seaside Holiday” appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Andreas Hackl

Bet-at-home Goes Live with Fast Track

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Bet-at-home, the European online sports betting and gaming operator, has gone live with Fast Track, using the platform to manage player engagement across its sportsbook and casino.

Founded in 1999 and listed on the Regulated Market of the Frankfurt Stock Exchange (Prime Standard), bet-at-home operates online sports betting and gaming across European markets, with Germany among its core markets. The agreement is the next step in bet-at-home’s player engagement strategy, as the operator continues to deepen the experience it delivers to players across regulated markets.

Fast Track gives bet-at-home’s team a single real-time customer model across CRM, Rewards and Greco, enabling the operator to scale player engagement, gamification and loyalty strategies, and build a gameplay intelligent bonus strategy from one connected platform. bet-at-home also uses Fast Track AI to power fully agentic CRM workflows, allowing its team to work with the platform in natural language and delegate end-to-end CRM tasks to AI agents.

“We needed a platform built for the realities of operating in regulated European markets, with the data foundation and agility to engage players consistently across our brands. Fast Track gives us exactly that, and we are excited about what this partnership will let us build for our players,” said Andreas Hackl, Head of Operations at bet-at-home.

“bet-at-home has built one of European betting’s most recognised brands over more than two decades, and across exactly the kind of regulated, competitive markets Fast Track was built for. We are looking forward to the work ahead together,” said Simon Lidzén, Co-Founder and CEO of Fast Track.

The post Bet-at-home Goes Live with Fast Track appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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