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LeoVegas AB Q4: Quarterly report 1 October–31 December 2021

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“Strong end to the year with many growth initiatives” – Gustaf Hagman, Group CEO

FOURTH QUARTER 2021: 1 OCTOBER – 31 DECEMBER

  • Revenue amounted to EUR 98.2 m (98.4). Revenues were unchanged compared with the same period last year. Excluding Germany and the Netherlands, revenues increased by 26%.
  • Organic growth in local currencies was -4%.
  • Net Gaming Revenue (NGR) from regulated markets and markets in which the company pays local gaming taxes was 74% (67) of total NGR.
  • EBITDA was EUR 11.6 m (11.5), corresponding to an EBITDA margin of 11.8% (11.7).
  • The number of depositing customers was 456,063 (461,983), a decrease of 1%.
  • Adjusted earnings per share were EUR 0.07 (0.08).

EVENTS DURING THE QUARTER

  • LeoVegas repurchased shares for EUR 2.1 m and distributed the third quarter dividend (EUR 3.9 m).
  • Following policy changes in the Netherlands, LeoVegas decided to stop providing its services in the country as from 30 September 2021. As such, the company had no revenue from the Netherlands in the fourth quarter (compared with 6% of the Group’s total revenue during the third quarter). The company will apply for a licence during the first quarter.
  • LeoVegas was granted renewed gaming licences by the Danish Gambling Authority.

EVENTS AFTER THE END OF THE QUARTER

  • Preliminary revenue in January amounted to EUR 35.5 m (32.5), corresponding to growth of 9%. Excluding Germany and the Netherlands, revenue increased by 24%.
  • The Board of Directors proposes an increased dividend of 5 percent to SEK 1.68 per share (1.60), to be distributed on four occasions over the course of the next 12 months.
  • LeoVegas applied for a gaming licence for the Canadian province of Ontario.
  • The establishment in New Jersey in the US is proceeding according to plan and the recruitment of a local team has begun.
  • In January, LeoVegas distributed the fourth dividend (EUR 3.8 m) of a total of four to the Parent Company’s shareholders.

COMMENT FROM GUSTAF HAGMAN – GROUP CEO

FOURTH QUARTER
I am proud of how we concluded 2021 and how we offset the revenue loss related to the ongoing regulatory changes in Germany and the Netherlands. In the fourth quarter, sales were unchanged compared with the preceding year. However, excluding the two abovementioned markets, growth was some 26%, which demonstrates our strong underlying growth.

Adjusted EBITDA improved somewhat year-on-year, despite ceasing to provide our services in the Netherlands while waiting for a gaming licence, which was previously one of our most profitable markets. At the same time, we have paid more gaming taxes than ever before during the quarter. The improved profit was achieved through good cost control and higher marketing efficiency.

During the quarter and the full-year 2021, we took several important steps as a company, which we expect to drive growth for many years to come. We increased our strategic focus on sport with the acquisition of the brand Expekt. The new launch of Expekt has been a major success, with sales increasing almost fourfold since the acquisition. We are now planning to expand into more markets. We have also commenced establishing operations in the US, where the online gaming market is still in its infancy. We are seeing significant potential for a smartphone-oriented casino expert like LeoVegas in North America, where we already hold a leading position in Canada. We also invested in our own gaming studio during the year. The first games are expected to be launched shortly and over 15 titles are planned for 2022. Our own contents provide us with a more unique gaming experience, greater customer loyalty and lower costs.

We demonstrate a high ability to adapt and continue to drive innovation even when faced with turbulent times. An increasing number of European countries are becoming regulated and some 74% of our revenue is currently regulated and/or taxed. The external market environment will remain erratic and turbulent in places, but we are well-positioned to manage this. Armed with all of our ongoing growth initiatives, I feel optimistic ahead of 2022.

MARKETS
Our underlying customer activity and growth remain favourable. In general, we are growing faster than our competitors in the markets that are not affected by major external events and where equal conditions apply for all operators. A good example of this is Sweden, where we reached a new record level during the quarter. LeoVegas is currently the largest private operator in the Swedish market, something we have accomplished with strong brands, the best product and data-driven marketing. We continue to see favourable growth prospects in Sweden.

As previously mentioned, a re-regulation period is ongoing in the Netherlands and in the Canadian province of Ontario. In the Netherlands, we decided to stop providing services to gamers from 30 September 2021 pursuant to the latest regulations. At the start of 2022, we have applied for licenses in the Netherlands and Ontario we applied for a license in Ontario and will apply for a license in the Netherlands during the first quarter. Our ongoing expansion in the US, with New Jersey as the first state, is proceeding according to plan. We have commenced recruitment of a local team and completed much of the technical development as well as initiated the certification process of LeoVegas’ proprietary technical platform (PAM, Player Account Management). We also began efforts for the expansion into additional US states.

TEN YEARS
At the beginning of 2022, LeoVegas turned ten years old. The company, our product and the entire industry has developed enormously since my co-founder, Robin Ramm-Ericson, and I, started LeoVegas. Today, the industry is much more complex with more stringent requirements and tougher competition. At the same time, LeoVegas has taken tremendous strides and matured in many areas, making us stronger than ever before. We always aim to be at the forefront of customer focus, technology and data-driveness, but also continue to continually challenge ourselves to be better in all areas. I can affirm that LeoVegas with all its employees will continue to drive the industry forward with the mobile gaming experience in the spotlight. We are continually making progress as we stand on the starting line of ten more intense and exciting years!

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Infingame set to “Unleash Your Beast Mode” at SiGMA São Paulo

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Infingame, one of the industry’s fastest-growing iGaming aggregators, will return to Brazil this April for SiGMA São Paulo, bringing its bold new “UNLEASH YOUR BEAST MODE” campaign to the heart of the Latin American market.

Inspired by the jaguar, a symbol of speed, strength and dominance in Brazil and across LatAm, the campaign reflects Infingame’s platform focus on scalable and stable technology, fast integrations and a carefully curated ecosystem of top-tier providers.

Attending the event will be Jana Filagina, Head of Commercial, and Yerassyl Yelemessov, Senior Partner Success Manager, both available to meet with operators seeking a stable, performance-led aggregation partner in the region.

At SiGMA São Paulo, Infingame will focus on reinforcing its position as a leading aggregation partner for Latin America. With over 16,000 games from more than 150 providers, the aggregator will be showcasing the strength of its platform and the depth of its provider network.

Highlighted at the event will be Infingame’s tournaments and challenges, engagement tools designed to help operators boost structured, repeatable player activity. Built directly into the aggregation layer, these tools allow operators to activate campaigns quickly while maintaining full control over performance and localisation.

With Brazil continuing to evolve as a regulated and increasingly competitive market, Infingame’s aggregation platform has been developed to support operators looking to build sustainable growth across Latin America.

Jana Filagina, Head of Commercial at Infingame, said: “Brazil is one of the most exciting markets in iGaming today, but it is also one of the most demanding. Operators need infrastructure that performs consistently, not just at launch, but over time.

“At Infingame, we focus on offering more than just content, giving operators tools such as tournaments and challenges that can be implemented quickly and managed efficiently. SiGMA São Paulo is an important opportunity for us to connect with partners who are serious about long-term performance in LatAm.”

Infingame will also use the event to strengthen relationships across the wider Latin American region, as it continues to expand its presence and support operators navigating regulatory change and increasing competition.

About Infingame

With more than 16,000 games from over 150 providers, Infingame has firmly established itself as one of the world’s fastest-growing iGaming aggregators and a market-leading Sweepstakes provider.

Delivered via a single API, Infingame offers unparalleled technical excellence, the industry’s fastest spin times, exclusive tournaments and strategic partnerships with top-tier operators in North America, LatAm and beyond. Spanning a portfolio of slots, crash games, sweepstakes and live casino, book a demo via our LinkedIn page, website or at [email protected].

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Regulating the Game Global Awards: First-Ever Winners Announced

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Regulating the Game has declared the winners of the first RTG Global Awards, honoring exceptional leadership, stewardship, and excellence in gambling policy and regulation, safer gambling practices, compliance, technology, and community results.

The Awards were created to recognize the people, groups, and innovations that significantly contribute to integrity, public trust, and sustainable progress in the sector. After substantial worldwide involvement in the first year, victors have now been chosen in all six categories by an impartial judging panel made up of senior leaders with knowledge across industry, law, integrity, governance, and safer gambling.

The 2026 RTG Global Award winners are:

• Leadership Voice — Danny Munk, Wests Illawarra
• Safer Gambling Champion — Gamble Alert
• Compliance Excellence — Dominic Monti, Wests Illawarra
• RegTech Solution of the Year — Cherry Hub
• Community Impact Initiative — Nathan Reeves, Unibet
• Emerging Leader — Michael Simone, Bankstown Sports

The award winners showcase the diversity of leadership throughout the sector, from individuals steering the industry with vision and intent to those promoting excellence in compliance, innovation, responsible gambling, and community engagement.

RTG Founder and Principal at Vanguard Overwatch, Paul Newson, said the inaugural winners had set a strong benchmark for future years: “The inaugural RTG Global Awards were established to recognise substance, integrity and measurable contribution across the sector. This year’s winners represent the calibre of leadership, innovation and commitment required to strengthen regulatory practice, improve industry capability and deliver better outcomes for communities.”

“What distinguishes these recipients is not simply professional achievement, but their contribution to lifting standards, advancing safer gambling, strengthening compliance and demonstrating leadership in areas that matter to public confidence and sector credibility.”

The quality of this year’s nominations resulted in a very competitive field, with finalists chosen from an exceptional group of candidates in every category. Being shortlisted was already a noteworthy accomplishment, showcasing the quality of work, leadership, and contributions made by the finalists, while the eventual winners came from an incredibly competitive group.

The winners were selected following an independent assessment process led by a judging panel comprising:
• Don Hammond, Chief Executive Officer, Leagues Clubs Australia
• Jamie Nettleton, Former President, International Masters of Gaming Law and Partner, Addisons
• Khalid Ali, Chief Executive Officer, International Betting Integrity Association (IBIA)
• Tracy Parker, Senior Vice-President – Accreditation, Advisory and Insights, Responsible Gambling Council (Canada)

The RTG Global Awards form part of the broader Regulating the Game program, which brings together regulators, industry leaders, compliance professionals and innovators to examine critical issues, advance policy dialogue and strengthen sector capability.

The post Regulating the Game Global Awards: First-Ever Winners Announced appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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Seasonal Campaigns and Tournaments: Q&A w/ Olga Pronak Head of Key Account Management at Evoplay

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How are seasonal campaigns and tournament-based mechanics changing the way players engage with slots compared to traditional gameplay?

Right now, we see that tournament mechanics and seasonal campaigns increase player engagement by introducing additional layers of success and rewards. However, we cannot say this with complete certainty yet, as we need more time to observe long-term patterns. Sometimes players simply do not have time to join short promotions, as they are busy with their daily lives. At the same time, running shorter campaigns of around three months gives players multiple chances to compete while maintaining high engagement throughout the promotion.

What makes limited-time events and promotional layers so effective in driving retention and repeat play?

By now, the gaming industry is very familiar with tournaments and, more recently, prize drops. However, in today’s environment, where people are used to receiving new information in short 30-second videos every day, it can become boring for a player to see and play the same things everywhere, even though they enjoy tournaments. A greater number of promotional layers gives players a sense of novelty and fresh engagement.

We saw this in practice with our Big Adventures campaign, which ran in phases featuring Tournaments, Prize Drops, and Wheel of Fortune rather than a single promo. Prize draws were held every three months, offering high-value rewards such as iPhones, alongside in-game rewards and additional chances to win through Tournaments, Prize Drops, and Wheel of Fortune. This mix maintained player activity, built anticipation, and generated extra engagement as players approached the final grand prize, a trip for two to the Maldives. The key value of this approach is that it expands the pool of potential winners, giving more players real opportunities to succeed and stay motivated.

How do competitive elements like leaderboards and rewards reshape player motivation and interaction?

I believe this principle is well known, as it is used everywhere now – in marketing, education, and sports. However, in Tournaments, Prize Drops, or Wheel of Fortune, it may differ slightly, as we see different motivations shaping player interaction and engagement. In Tournaments, we show players their current position and how many additional points they need to earn to reach a prize or move to a higher tier. In Prize Drops or Wheel of Fortune, we show that other players have already won prizes, demonstrating that the rewards are real and that everyone has the same opportunity to win. People like to be part of exclusive groups.

Do you see seasonal ecosystems becoming a standard expectation for slot audiences in the years ahead?

It’s hard to say whether this will remain the standard over the coming years, as the entertainment industry is evolving rapidly, including in iGaming, where innovations driven by AI and other emerging technologies are advancing. We also enjoy experimenting with new tools and implementing bold ideas, including exploring ways to engage players in fresh and unexpected ways. But at least for the next year, I believe this will be one of the most popular approaches.

The post Seasonal Campaigns and Tournaments: Q&A w/ Olga Pronak Head of Key Account Management at Evoplay appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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