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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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Booming Games
New Fish Tales Colossal Catch: Link & Loot Released by Booming Games
- Booming Games has launched Fish Tales Colossal Catch: Link & Loot, the latest game in the hit Fish Tales series
- The game boasts a 5×3 grid with 10 paylines, alongside a maximum win of 10,000x
- Players can unlock two exciting bonus features; free spins and the all-new Link & Loot
Booming Games, a top supplier of high-quality gaming content, has today released Fish Tales Colossal Catch: Link & Loot. Featuring a 5×3 layout with 10 paylines, offering high stakes with a top win of 10,000x a wager, this is the newest entry in Booming Games’ popular Fish Tales series.
Link & Loot is a brand-new function where players arrive and capture fish to win rewards. Participants who stock their barrel with fish to observe their haul increase and possibly reveal significant multiplier rewards. Connect symbols to form massive symbols; the larger the catch, the greater the reward!
Placed against a stunning tropical backdrop, adorned with palm trees, crystal-clear waters, and engaging animations, the game showcases a variety of Colossal Fish icons. These are capable of providing Mini, Minor, Major, and Grand awards.
To enhance the possibility of achieving a huge win, players can also activate eight Free Spins by revealing three or more Scatters.
Craig Asling, Director of Games at Booming Games, said: “Fish Tales Colossal Catch: Link & Loot is the ultimate underwater adventure, where every spin could land your biggest catch. The Fish Tales series has been a big hit with players across the globe. Now with the brand new Link & Loot feature with ‘colossal’ win potential, bonus features and vibrant visuals on offer, this latest iteration is an awesome addition to the existing lineup of games. Now is the time to get swept away in the fun!”
The post New Fish Tales Colossal Catch: Link & Loot Released by Booming Games appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
Akshay Rajagopal
Fireplace Raises $1.5M to Build Institutional Trading Infrastructure for Prediction Markets
Fireplace, a professional trading terminal for prediction markets, announced a $1.5 million pre-seed round to bring institutional trading infrastructure to one of the fastest growing asset classes in history. The round was led by Frachtis, with participation from White Star Capital and several other notable VCs and Angel Investors, including Syndicate rounds on Legion and Echo.
Fireplace offers what prediction markets always lacked: a unified terminal that aggregates markets, liquidity, and execution across prediction market venues. Fireplace delivers real-time data, institution-grade execution, advanced charting, wallet, whale, and insider tracking, and discovery. Wallet technology and automations are powered by in-house Enclave Money infrastructure.
As prediction markets fragment across platforms and chains, Fireplace is being built to support cross-venue aggregation with smart-order-routing. Rather than forcing traders to manually compare prices and liquidity across venues, Fireplace will intelligently route orders when the same market exists in multiple places.
“Prediction markets are one of the most powerful financial primitives, but the user experience hasn’t caught up. Trading feels slow and information-poor, Fireplace fixes that by giving traders the fastest, most intelligent terminal,” said Sumer Malhotra, Co-Founder and CEO of Fireplace.
Prediction markets have exploded over the past year, becoming a core venue for macro-events, sports, crypto events, and elections. Despite this growth, tooling remains fragmented, slow, and information-poor.
Akshay Rajagopal, Co-Founder and CTO, added: “Prediction markets needed their own Bloomberg Terminal. Fireplace brings real-time infrastructure and execution that simply didn’t exist before.”
Fireplace sits above existing prediction markets, aggregating markets, traders, and liquidity into a single interface.
“Fireplace is building the professional interface that markets like Polymarket have been missing – the data, speed, and tooling that serious traders expect. This will unlock a new category for prediction markets, allowing pro-traders and institutions to participate in a new asset class,” said Xavier Meegan, CIO of Frachtis.
The post Fireplace Raises $1.5M to Build Institutional Trading Infrastructure for Prediction Markets appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
Adventure One QSS
Dutch Gambling Authority Imposes Penalty on Adventure One QSS for Illegal Gambling
The Netherlands Gambling Authority (KSA) has imposed a penalty on Adventure One QSS Inc. for illegal gambling. Adventure One offers games of chance on the Dutch market under the Polymarket brand name, without a license. The KSA has called on Polymarket to cease its activities immediately. If it fails to do so, the company will be fined €420,000 per week, with a maximum of €840,000.
Polymarket has been frequently in the news in recent months, particularly regarding betting on the Dutch elections. Although Polymarket itself states that prediction markets do not fall under the category of gambling, the Netherlands Gambling Authority (KSA) has taken a different stance. After contacting the company about its illegal activities on the Dutch market, there has been no visible change, and the offering remains available. The Netherlands Gambling Authority therefore imposed this order, subject to a penalty. A turnover-related fine may also be imposed at a later date.
Ella Seijsener, director of licensing and supervision at the Netherlands Gambling Authority (KSA), said: “Prediction markets are on the rise, including in the Netherlands. These types of companies offer bets that are not permitted in our market under any circumstances, not even by license holders. Besides the social risks of these kinds of predictions (for example, the potential influence on elections), we conclude that this constitutes illegal gambling. Anyone without a KSA license has no business in our market. This also applies to these new gambling platforms.”
The post Dutch Gambling Authority Imposes Penalty on Adventure One QSS for Illegal Gambling appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
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