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LeoVegas AB Q2: Quarterly report 1 April – 30 June 2021

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“All-time-high in Sweden and a strong start for Expekt” – Gustaf Hagman, Group CEO

SECOND QUARTER 2021: 1 APRIL – 30 JUNE

  • Revenue decreased by 13% to EUR 96.8 m (110.7).
  • Excluding Germany, growth was positive 3%.
  • Adjusted EBITDA was EUR 10.6 m (23.0), corresponding to a margin of 10.9% (20.8%). Reported EBITDA was EUR 9.8 m (23.0).
  • The number of depositing customers was 460,697 (434,453), an increase of 6%.
  • Adjusted earnings per share were EUR 0.06 (0.19).

EVENTS DURING THE QUARTER

  • The acquisition of Expekt was completed and integrated on 19 May 2021. The start has been a success, and Expekt’s revenue and market share have nearly doubled in Sweden since the acquisition was carried out.
  • LeoVegas’ forthcoming expansion to the USA, starting in the state of New Jersey, is on track.
  • LeoVegas carried out share repurchases for EUR 4.9 m and paid out of the first out of four quarterly dividends to the Parent Company’s shareholders. The second quarterly dividend payment was made after the end of the period.
  • LeoVegas’ framework and routines for ensuring responsible gaming have been assessed by the independent agency eCOGRA. The external assessment shows that LeoVegas is in conformity with all relevant recommendations and requirements for responsible gaming published by the European commission.

EVENTS AFTER THE END OF THE QUARTER

  • Preliminary revenue in July amounted to EUR 32.8 m (30.7), corresponding to growth of 7%. Excluding Germany, revenue grew 23%.

COMMENT FROM GUSTAF HAGMAN – GROUP CEO

SECOND QUARTER
Most of our markets have continued to develop well, with high, double-digit growth in key markets like Italy and Spain. The development in Sweden is encouraging, with record-high revenue during the quarter. We are also growing rapidly in North America, which now accounts for 10% of consolidated revenue. However, re-regulation in Germany continued to negatively impact figures during the period. Excluding Germany, Group revenue increased by 3% to a new record level despite tough comparison figures from the start of the pandemic during the second quarter of 2020 and greater competition from other entertainment activities as societies are now opening up again. We expect to see positive growth for the Group on a yearly basis during the third quarter.

Our operating profit decreased compared with the same period a year ago, while we achieved stable earnings compared with the preceding quarter. This is despite a high level of investments and a number of important, strategic ventures, including our forthcoming launch in the USA, a stronger focus on sports with the acquisition of Expekt, and our new game studio. Marketing costs in relation to revenue were higher than the historic average, coupled among other things to the relaunch of Expekt and investments in a number of key markets in which we see high customer growth. Investments in marketing during the quarter weighed down earnings short-term but are driving value long-term and will also enable us to accelerate out of the revenue drop in Germany. As revenues increase, the share of marketing investment will decrease. At the same time, we have maintained good cost control, and our operating expenses have more or less been unchanged over the last three-year period.

THE NEW EXPEKT
In mid-May we consolidated the acquisition of Expekt, and shortly thereafter “the New Expekt” was launched with a large and attention-grabbing marketing campaign ahead of the Euro 2020 football championship. It was a successful start, and in a short time we nearly doubled Expekt’s revenue and market share in Sweden since completion of the acquisition.

GERMANY
The situation in Germany coupled to re-regulation, with strict product limitations, an extremely high gaming tax and a skewed competitive situation, is having a negative effect on the Group. Revenue in Germany decreased by 81% compared with a year ago and accounted for only 4% of Group revenue during the quarter. We believe it will take time to create a balanced and fair market climate and have therefore chosen to shift our investments to other, more profitable markets. Over the long term we still believe that Germany, with Europe’s largest population, offers great opportunities for the Group.

NORTH AMERICA
Our forthcoming expansion to the USA, starting with the state of New Jersey, is on track. We are currently working on adapting and certifying our technical platform, and during the autumn we will also begin establishing a local organisation. We expect to accept our first American customers during the first half of 2022.

The Canadian province of Ontario, which is home to roughly 40% of Canada’s population, is conducting preparations to introduce a local licence system for online gaming. LeoVegas has built up a strong brand along with a large and loyal customer base in Ontario and the rest of Canada, among other things with help from former hockey legend Mats Sundin. According to our assessment LeoVegas is one of the larger and most well-known casino actors in the Canadian market.

During the second quarter, North America accounted for 10% of the Group’s total revenue and grew 33%. In pace with our continued expansion in Canada and forthcoming launch in the USA, revenue from North America will increase. This is in line with the Group’s strategy to diversify our revenues.

COMMENTS ON THE THIRD QUARTER
Revenue for the month of July amounted to EUR 32.8 m (30.7), corresponding to positive growth of 7%. Adjusted for Germany, the Group’s growth in July was 23%.

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LEON announces LEON.bet Masters, a new CS2 tournament in Portugal

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LEON continues to strengthen its presence in esports with the launch of LEONBET Masters, a new Counter-Strike 2 tournament set to take place from September 24 to 27 at the SAW Esports Arena in Vila Nova de Gaia, Portugal.

The tournament will bring together 16 teams competing for a €30,000 prize pool and valuable VRS points, which play a key role in qualification opportunities for major international events, including the Singapore Major later this year.

LEONBET Masters will feature a group stage with four groups of four teams, followed by playoffs that will determine the tournament champion. The event is expected to attract some of the strongest Tier 2 and Tier 3 teams looking to improve their rankings and continue their path toward the highest level of professional Counter-Strike competition.

The launch of LEONBET Masters marks another step in LEON’s long-term commitment to esports. Over the past few years, the company has actively supported the competitive gaming ecosystem through partnerships with prominent organizations and by hosting its own tournaments across multiple disciplines. Previous initiatives include the LEON Masters Dota tournament, the LEON Masters Deadlock competition, and the LEON Esports Cup Free Fire, further demonstrating the brand’s investment in developing competitive gaming. 

LEON currently partners with German esports organization GamerLegion, supporting both its Counter-Strike 2 and Dota 2 rosters. The company also partners with teams such as SAW, one of Portugal’s most recognizable esports organizations, and FlyQuest, further strengthening its presence across key international esports markets. 

By creating LEONBET Masters, LEON aims to provide emerging teams with additional opportunities to compete at a high level, gain valuable ranking points, and showcase their talent on a larger stage.

Additional information about the participating teams, tournament format, broadcast talent, and where to watch the event can be found on the official tournament page here: 

https://leonbetmasters.com/ 

About LEON

LEON is an international sportsbook and online casino brand with over 17 years of industry experience. The company actively supports esports through strategic partnerships, sponsorships, and competitive gaming initiatives, working with organizations and communities across multiple regions worldwide.

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ELA Games reports 201.9% betting volume jump in Greece over two quarters

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ELA Games says it has delivered triple-digit growth in Greece over the last two quarters, reporting an 86.30% increase in active users, a 77.20% rise in turnover, and a 201.90% surge in overall bet counts.

The supplier attributed the results to aligning its content with local player preferences and said its Greece performance has been driven by certified titles focused on visual design and “narrative-led experiences.”

ELA Games named Piñatas Festival, Riches Express, and Flame Fruits Frenzy as its top-three performing titles in Greece during the period.

The company also linked the performance to a new strategic partnership with Fonbet in Greece. ELA Games said the integration creates an exclusive hub for its content and expands access to its catalogue for local players.

Yaroslav Soloshenko, Business Development Team Lead at ELA Games, said: “When we look at the numbers, it is satisfying to see that our regional strategy is paying off in such a big way. We spend a lot of time analyzing what players in specific markets want to see. Our unique design philosophy combined with that regional focus has resulted in proven commercial success across our main European markets, and Greece is a perfect example of that in action.”

The post ELA Games reports 201.9% betting volume jump in Greece over two quarters appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Midnite signs Middlesbrough shirt deal, renews Sheffield United sponsorship

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Midnite has agreed a principal partnership with Middlesbrough FC that will put the bookmaker on the club’s front of shirt for the 2026/27 season. The brand will also continue as principal partner of Sheffield United FC for a second consecutive year, also including front-of-shirt sponsorship.

Midnite said the Middlesbrough agreement will run during the club’s 150th season and will include a supporter-facing activation called “This Season’s On Us”. The company said the initiative will offer prizes including men’s or women’s season tickets, 2026/27 home and away shirts, hospitality tickets and a £25 club shop voucher, with participation described as first-come-first-served via trivia and football challenges.

For Sheffield United, Midnite is launching a new matchday promotion called 2UP. Midnite said if Sheffield United go two goals up in a home league match, “one lucky fan will win the 2UP prize pot”. The Sheffield United 2UP prize fund will start at £10,000 when the season begins in August, with £1,000 added for every home league fixture, according to the company.

Andrew Mook, Midnite‘s Head of Brand Marketing, said:

“The Championship is one of the most viewed football leagues in the world, with some iconic and historical names from English football competing in it. We are looking forward to being a part of the action by partnering with two of the league’s biggest clubs in what should be another thrilling season.

“Middlesbrough are a club with a storied history and we’re delighted to announce this partnership during such a monumental year with the club celebrating their 150th anniversary.

“We are also delighted to be Sheffield United’s principal partner for a second consecutive season after a really exciting first year. We’ll be looking to create even more memorable fan experiences in the upcoming season.”

Midnite said the 2UP campaign will run across all of its Midnite-sponsored Championship clubs and referenced a separate front-of-shirt deal announced last month with Wolverhampton Wanderers. The company also highlighted other UK sports marketing activity, including a renewed sponsorship with the World Snooker Tour for the World Snooker Championship and a UK betting and casino partner designation for the 2026 Johnstone’s Paint Masters.

The post Midnite signs Middlesbrough shirt deal, renews Sheffield United sponsorship appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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