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

“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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Central Europe
Pro Selection – next generation casino multigame from Promatic Group

Promatic Group, a Polish manufacturer of slot machines and system solutions for the gaming industry, is launching a new collection of slots dedicated to casino customers – the Pro Selection multigame. The first devices have already been certified in Poland and stood in casinos in Warsaw and Krakow.
One platform, up to 55 games
Pro Selection is software with a collection of as many as 55 different titles, covering the full functional and stylistic range of games from the Polish company’s portfolio. Players will find both classic “fruits” games – traditional and simple in form – and modern adventure games, based on an elaborate narrative and unique logics. Branded productions that stand out for their original creations and high graphic quality are also worthy of special attention.
“In Pro Selection, we wanted to include our best titles and those that have proven themselves in both the land-based and online slot segments. That’s why players will find classics such as Miss Joker, one of the most popular games at Poland’s only legal online casino, or 81 Show, a popular hat game. There are also online hits of recent months such as Pixel Fruits and Ale Cool Bober. On top of that, we have added titles that have so far only been available in land-based slot machines and have been great in them, namely Golden Train, Aladdin or Magic Ladybird Mega,” says Piotr Fedak, CEO of Promatic. – “As for branded productions, games with Mariusz Pudzianowski remain a hit, and not only in Poland”, he adds.
Variability and mathematics for every player
One of the important features of Multigame Pro Selection is the mathematical diversity of the games available in it. The collection offers games with varying levels of volatility – from low to very high (on a scale of 1 to 5 stars). As a result, the package meets the needs of both enthusiasts of long session play with frequent, smaller wins, and players looking for higher risk and high wins.
Also new to Pro Selection is a revamped user interface. An intuitive lobby, it provides quick access to all titles, convenient filtering and easy navigation – both from the touch screen and traditional buttons. This is part of software that meets the highest industry technical standards and has been certified by a Polish testing laboratory accredited by the Minister of Finance as authorized to test gaming machines.
“As a product dedicated to casinos, i.e. the most demanding B2B customers, Pro Selection is designed to be fully integrated with the SAS protocol, which is standard in this market, giving compatibility with various casino management systems and providing full operational and billing transparency. It’s a product that is ready for deployment in casino environments where reliability and control are key,” explains Piotr Fedak. – We strive to ensure that Pro Selection’s multigame always goes hand in hand with our proprietary Royal Sevens Jackpot progressive jackpot system, which in itself is a huge asset and player magnet, Fedak adds.
Ease of maintenance and energy efficiency
Pro Selection software is available exclusively on the latest casino-class slot machines from Promatic Group – that is, the Casino 27 and PRO VIP 27 and 32 cabinets These are top-quality terminals equipped with HD monitors, state-of-the-art sound systems and RGB lighting to enhance the gaming atmosphere.
“Thanks to their modular design and intuitive service menus, our multigames are virtually maintenance-free – that is, technical service friendly. Interestingly also, our energy efficiency studies have shown that compared to the competition, Promatic machines consume significantly less energy,” says Piotr Fedak. – At the moment Pro Selection is fully certified for the Polish market, and work is already underway to obtain licenses for the Czech Republic, Slovakia where our goal is to implement this 100% Polish product in those very markets, says Piotr Fedak.
About Promatic Group
Promatic Group is a Polish company with more than 28 years of experience in the gambling industry, specializing in the production of gaming machines and providing dedicated software for gaming rooms and casinos, both land-based and online. The company’s headquarters and factory are located in Warsaw and Jelenia Gora.
In Poland, Promatic’s devices can be found in Totalizator Sportowy’s legal gaming salons, casinos of the WinCasino chain and selected Casinos Poland locations. The company also operates in Latin American and African markets.
Promatic Group is certified to ISO 27001 for information security and ISO 9001 for slot machine manufacturing quality.
Since 2021, the company has also been developing its online gaming segment under the Promatic Games brand, offering online slots in regulated markets in Poland, the Czech Republic and Slovakia. It also holds B2B licenses issued by regulators in Romania (ONJN) and Malta (MGA) and plans to enter more than a dozen new markets in the next few months.
The post Pro Selection – next generation casino multigame from Promatic Group appeared first on European Gaming Industry News.
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VentureMax Supports Talent Through iGaming Scholarship

Local talent looking to break into the iGaming industry can now apply for a potentially life-changing scholarship by VentureMax.
The Sliema-based investment company is funding an iGaming Foundations education course in full, which will be delivered by ICE Campus, one of Malta’s leading educational institutes.
This scholarship will offer crucial support for people in Malta who want to enter the iGaming industry but lack the skills or knowledge.
The course is an introduction to iGaming and covers such topics as the industry’s eco-system, products such as games/sportsbooks, fraud prevention, anti-money laundering and working in iGaming, among other aspects.
Delivery is via four live online sessions of three hours each, and applicants for the 30 spaces will have to submit a short entry video explaining why they want to take the course and why they should be chosen for the scholarship.
This course is accredited as EQF/MQF Level 5, and the scholarship will be launched in the autumn of 2025 via a publicity drive. It will be open to anyone living in Malta aged 18 or older.
VentureMax CEO Justin Anastasi said: “I want to support local people who have ambition, drive and a desire to make it big in the iGaming world.
“That’s why I wanted VentureMax to sponsor this scholarship, because I believe education is the way to improve your career, your outlook on the world and eventually your life.
“I’m delighted to be teaming up with ICE Campus, which will deliver a first-class course that has the potential to generate real success stories among Malta’s workforce.”
Matthew Sammut, director and co-founder of ICE Campus, said: “We believe education is the most powerful engine for industry transformation.
“Partnering with VentureMax to offer full scholarships for our iGaming Foundations course is a strategic investment in the future talent of this thriving sector.
“We’re proud to work with forward-thinking organisations like VentureMax, who are committed to creating real, lasting impact by opening doors for the next generation of iGaming professionals.”
VentureMax’s scholarship is part of its ongoing CSR efforts, which have already seen donations made to Malta-based causes such as Dar Merħba Bik women’s shelter, Little Sisters of the Poor care home, the MSPCA animal shelter, and FIDEM women’s charity.
The post VentureMax Supports Talent Through iGaming Scholarship appeared first on European Gaming Industry News.
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Red Rake Gaming expands presence in the Netherlands through partnership with Starcasino.nl

Red Rake Gaming, a leading developer of premium casino content, continues to strengthen its presence in the regulated Dutch market by partnering with Starcasino.nl, one of the latest operators to go live in the Netherlands.
This new partnership marks a significant step in the ongoing collaboration between Red Rake Gaming and the Starcasino group, following previous successful launches in Belgium and Spain. With this latest agreement, Dutch players can now enjoy Red Rake Gaming’s top-performing titles via www.starcasino.nl, including a wide selection of NL-certified slots and popular videopoker titles such as Bonus Poker and Joker Poker.
Starcasino is a well-established casino and sportsbook brand with a decades-long track record of trust and reliability in Belgium. Now expanding into the Netherlands, Starcasino.nl offers a secure, fully regulated, and high-quality gaming experience specifically tailored to Dutch players.
“We’re delighted to expand our partnership with the Starcasino group and bring our games to the Dutch market through their new platform. The Netherlands continues to be a key focus for Red Rake Gaming, and we’re confident that our engaging and feature-rich titles will resonate well with their player base.” — Nick Barr, Managing Director for Red Rake Gaming Malta.
“We’re excited to go live with Red Rake’s games on Starcasino in the Netherlands. Their games are a perfect fit for our Dutch audience, enhancing our mission to deliver premium, diverse iGaming entertainment across the Netherlands.” — Pieter van den Bos, Director at Starcasino.
The collaboration will ensure Starcasino.nl players gain access to Red Rake Gaming’s diverse portfolio, including high-action slots with unique mechanics, interactive bonus features, and a wide range of game styles that cater to all player preferences.
The post Red Rake Gaming expands presence in the Netherlands through partnership with Starcasino.nl appeared first on European Gaming Industry News.
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