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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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Alexandros Michas on Building Platforms, Not Pages

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alexandros-michas-on-building-platforms,-not-pages

In the world of affiliate marketing, a little chaos is usually the norm. Managing dozens of websites across different regions often means endless firefighting. Enter Alexandros Michas, who was recently appointed as the Head of Website Operations at Media 24. In this interview, we talked with Alexandros about how he is replacing chaotic, site-by-site fixes with a single blueprint to turn standard affiliate sites into true digital platforms.

A few months ago, you were appointed as the Head of Website Operations at Media 24. To give our readers a look behind the scenes, what exactly does this role involve, and what are the main things you focus on in this position?

My job is to take the big-picture goals discussed with our CEO and figure out how we actually build them. I translate high-level business strategy into a concrete technical roadmap and take responsibility for it and everything that goes into our websites.

Day-to-day, I am leading our talented and experienced team of site managers. Together, we look at our portfolio of websites not just as platforms, but as products. We are constantly tweaking site functionality, brainstorming new product features, and upgrading the user experience. The ultimate goal is to move past standard affiliate landing pages and build something stickier. We want our websites to be the definitive, go-to destination where sports bettors in any given region don’t just visit once to find a bookmaker, but actively want to return to for value.

 

With dozens of websites in the portfolio, how do you prevent operational chaos? What does a scalable architecture look like for a modern affiliate house?

Honestly, if you treat every site like its own special project, you’ll drown in chaos overnight. The secret is standardisation.

Of course, every region has its own local specifics that we have to adapt to, and we do so by having locals as website managers. But underneath it all, we build everything on a single, shared blueprint. When we design a new feature, we don’t just build it for one site. We build it to level up the whole portfolio at once. It also makes expanding into a new market much easier. If a promising new region opens up tomorrow, we don’t have to start from scratch. We just drop in a product that’s already battle-tested and ready to go.

I’ve also set up teams around each GEO and manager, which include SEO specialists, content managers, and others, to ensure a smooth and efficient workflow.

 

Since you rely on a single blueprint, how do you manage the human element? How much freedom do your site managers have to experiment in their local markets versus sticking to the playbook?

Our site managers are the true experts in their specific regions, so they have total autonomy over their local content plans and figuring out what makes bettors in their area tick. They own that local strategy completely, while the blueprint just ensures they are building on a rock-solid foundation.

Because they are on the ground, I actually encourage them to constantly pitch product improvements. I always listen to their suggestions because a great idea shouldn’t just stay on one site. If a manager finds a feature that works incredibly well for their audience, we don’t just keep it there. We roll it into our core blueprint so the entire portfolio benefits from it.

 

The company has shifted toward building true digital platforms rather than just simple affiliate sites that rank. In practice, what is the biggest difference between those two approaches?

The biggest difference is value and retention. A simple affiliate site is transactional. It’s built entirely around SEO keywords just to capture a click, send the user to a sportsbook, and hope for a conversion. If Google tweaks its algorithm, that site is incredibly vulnerable because users have no real loyalty to it.

A digital platform, on the other hand, is an actual product. We aren’t just trying to get a click. We are trying to be a helpful place for the sports bettor. That means building features, community, and data hubs. It takes a lot more time and energy to maintain, but it turns a casual visitor into a loyal user. They don’t just find us on Google once. They bookmark the site and keep coming back because the product itself is valuable.

 

The World Cup is live right now. An event of this scale is a massive test for any affiliate. How did you approach the preparation for this global tournament from a product perspective, and what features did you ship to keep bettors engaged?

We knew the traffic spikes would be insane, so preparation actually started months ago. From a product perspective, the ultimate goal was instant utility. During a massive event like this, users want their information immediately, without any friction.

Feature-wise, we shipped an advanced match centre, a tournament bracket simulator, and worked heavily on upgrading our entire content strategy specifically for the World Cup. Because of the shared framework we talked about earlier, we didn’t have to build these tools site-by-site. Our blueprint allowed us to deploy these advanced features across all of our sports betting properties simultaneously, giving every region a premium product at the same time.

 

When the final whistle blows on the World Cup and we look back at the rest of 2026, what will have to happen for you to look back and say we absolutely nailed it?

On the data side, I want to look at our metrics and see a clear spike in returning users. That will be the ultimate proof that our platform strategy is actually working.

But our upgrades and feature improvements don’t just stop with the World Cup. We already have plenty of things in the pipeline, and we are planning a massive push right before the main European leagues kick off late this summer.

At the end of the day, I’ll know we nailed it if our site managers are effortlessly launching these new features, seeing the direct results of their work, and feeling like they have the absolute best tools in the industry to win their markets. That would be proof that we didn’t just build websites. We built a highly scalable affiliate product.

The post Alexandros Michas on Building Platforms, Not Pages appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

Continue Reading

affiliate marketing

Alexandros Michas on Building Platforms, Not Pages

Published

on

alexandros-michas-on-building-platforms,-not-pages

In the world of affiliate marketing, a little chaos is usually the norm. Managing dozens of websites across different regions often means endless firefighting. Enter Alexandros Michas, who was recently appointed as the Head of Website Operations at Media 24. In this interview, we talked with Alexandros about how he is replacing chaotic, site-by-site fixes with a single blueprint to turn standard affiliate sites into true digital platforms.

A few months ago, you were appointed as the Head of Website Operations at Media 24. To give our readers a look behind the scenes, what exactly does this role involve, and what are the main things you focus on in this position?

My job is to take the big-picture goals discussed with our CEO and figure out how we actually build them. I translate high-level business strategy into a concrete technical roadmap and take responsibility for it and everything that goes into our websites.

Day-to-day, I am leading our talented and experienced team of site managers. Together, we look at our portfolio of websites not just as platforms, but as products. We are constantly tweaking site functionality, brainstorming new product features, and upgrading the user experience. The ultimate goal is to move past standard affiliate landing pages and build something stickier. We want our websites to be the definitive, go-to destination where sports bettors in any given region don’t just visit once to find a bookmaker, but actively want to return to for value.

 

With dozens of websites in the portfolio, how do you prevent operational chaos? What does a scalable architecture look like for a modern affiliate house?

Honestly, if you treat every site like its own special project, you’ll drown in chaos overnight. The secret is standardisation.

Of course, every region has its own local specifics that we have to adapt to, and we do so by having locals as website managers. But underneath it all, we build everything on a single, shared blueprint. When we design a new feature, we don’t just build it for one site. We build it to level up the whole portfolio at once. It also makes expanding into a new market much easier. If a promising new region opens up tomorrow, we don’t have to start from scratch. We just drop in a product that’s already battle-tested and ready to go.

I’ve also set up teams around each GEO and manager, which include SEO specialists, content managers, and others, to ensure a smooth and efficient workflow.

 

Since you rely on a single blueprint, how do you manage the human element? How much freedom do your site managers have to experiment in their local markets versus sticking to the playbook?

Our site managers are the true experts in their specific regions, so they have total autonomy over their local content plans and figuring out what makes bettors in their area tick. They own that local strategy completely, while the blueprint just ensures they are building on a rock-solid foundation.

Because they are on the ground, I actually encourage them to constantly pitch product improvements. I always listen to their suggestions because a great idea shouldn’t just stay on one site. If a manager finds a feature that works incredibly well for their audience, we don’t just keep it there. We roll it into our core blueprint so the entire portfolio benefits from it.

 

The company has shifted toward building true digital platforms rather than just simple affiliate sites that rank. In practice, what is the biggest difference between those two approaches?

The biggest difference is value and retention. A simple affiliate site is transactional. It’s built entirely around SEO keywords just to capture a click, send the user to a sportsbook, and hope for a conversion. If Google tweaks its algorithm, that site is incredibly vulnerable because users have no real loyalty to it.

A digital platform, on the other hand, is an actual product. We aren’t just trying to get a click. We are trying to be a helpful place for the sports bettor. That means building features, community, and data hubs. It takes a lot more time and energy to maintain, but it turns a casual visitor into a loyal user. They don’t just find us on Google once. They bookmark the site and keep coming back because the product itself is valuable.

 

The World Cup is live right now. An event of this scale is a massive test for any affiliate. How did you approach the preparation for this global tournament from a product perspective, and what features did you ship to keep bettors engaged?

We knew the traffic spikes would be insane, so preparation actually started months ago. From a product perspective, the ultimate goal was instant utility. During a massive event like this, users want their information immediately, without any friction.

Feature-wise, we shipped an advanced match centre, a tournament bracket simulator, and worked heavily on upgrading our entire content strategy specifically for the World Cup. Because of the shared framework we talked about earlier, we didn’t have to build these tools site-by-site. Our blueprint allowed us to deploy these advanced features across all of our sports betting properties simultaneously, giving every region a premium product at the same time.

 

When the final whistle blows on the World Cup and we look back at the rest of 2026, what will have to happen for you to look back and say we absolutely nailed it?

On the data side, I want to look at our metrics and see a clear spike in returning users. That will be the ultimate proof that our platform strategy is actually working.

But our upgrades and feature improvements don’t just stop with the World Cup. We already have plenty of things in the pipeline, and we are planning a massive push right before the main European leagues kick off late this summer.

At the end of the day, I’ll know we nailed it if our site managers are effortlessly launching these new features, seeing the direct results of their work, and feeling like they have the absolute best tools in the industry to win their markets. That would be proof that we didn’t just build websites. We built a highly scalable affiliate product.

The post Alexandros Michas on Building Platforms, Not Pages appeared first on Americas iGaming & Sports Betting News.

Continue Reading

Latest News

Alexandros Michas on Building Platforms, Not Pages

Published

on

In the world of affiliate marketing, a little chaos is usually the norm. Managing dozens of websites across different regions often means endless firefighting. Enter Alexandros Michas, who was recently appointed as the Head of Website Operations at Media 24. In this interview, we talked with Alexandros about how he is replacing chaotic, site-by-site fixes with a single blueprint to turn standard affiliate sites into true digital platforms.

A few months ago, you were appointed as the Head of Website Operations at Media 24. To give our readers a look behind the scenes, what exactly does this role involve, and what are the main things you focus on in this position?

My job is to take the big-picture goals discussed with our CEO and figure out how we actually build them. I translate high-level business strategy into a concrete technical roadmap and take responsibility for it and everything that goes into our websites.

Day-to-day, I am leading our talented and experienced team of site managers. Together, we look at our portfolio of websites not just as platforms, but as products. We are constantly tweaking site functionality, brainstorming new product features, and upgrading the user experience. The ultimate goal is to move past standard affiliate landing pages and build something stickier. We want our websites to be the definitive, go-to destination where sports bettors in any given region don’t just visit once to find a bookmaker, but actively want to return to for value.

 

With dozens of websites in the portfolio, how do you prevent operational chaos? What does a scalable architecture look like for a modern affiliate house?

Honestly, if you treat every site like its own special project, you’ll drown in chaos overnight. The secret is standardisation.

Of course, every region has its own local specifics that we have to adapt to, and we do so by having locals as website managers. But underneath it all, we build everything on a single, shared blueprint. When we design a new feature, we don’t just build it for one site. We build it to level up the whole portfolio at once. It also makes expanding into a new market much easier. If a promising new region opens up tomorrow, we don’t have to start from scratch. We just drop in a product that’s already battle-tested and ready to go.

I’ve also set up teams around each GEO and manager, which include SEO specialists, content managers, and others, to ensure a smooth and efficient workflow.

 

Since you rely on a single blueprint, how do you manage the human element? How much freedom do your site managers have to experiment in their local markets versus sticking to the playbook?

Our site managers are the true experts in their specific regions, so they have total autonomy over their local content plans and figuring out what makes bettors in their area tick. They own that local strategy completely, while the blueprint just ensures they are building on a rock-solid foundation.

Because they are on the ground, I actually encourage them to constantly pitch product improvements. I always listen to their suggestions because a great idea shouldn’t just stay on one site. If a manager finds a feature that works incredibly well for their audience, we don’t just keep it there. We roll it into our core blueprint so the entire portfolio benefits from it.

 

The company has shifted toward building true digital platforms rather than just simple affiliate sites that rank. In practice, what is the biggest difference between those two approaches?

The biggest difference is value and retention. A simple affiliate site is transactional. It’s built entirely around SEO keywords just to capture a click, send the user to a sportsbook, and hope for a conversion. If Google tweaks its algorithm, that site is incredibly vulnerable because users have no real loyalty to it.

A digital platform, on the other hand, is an actual product. We aren’t just trying to get a click. We are trying to be a helpful place for the sports bettor. That means building features, community, and data hubs. It takes a lot more time and energy to maintain, but it turns a casual visitor into a loyal user. They don’t just find us on Google once. They bookmark the site and keep coming back because the product itself is valuable.

 

The World Cup is live right now. An event of this scale is a massive test for any affiliate. How did you approach the preparation for this global tournament from a product perspective, and what features did you ship to keep bettors engaged?

We knew the traffic spikes would be insane, so preparation actually started months ago. From a product perspective, the ultimate goal was instant utility. During a massive event like this, users want their information immediately, without any friction.

Feature-wise, we shipped an advanced match centre, a tournament bracket simulator, and worked heavily on upgrading our entire content strategy specifically for the World Cup. Because of the shared framework we talked about earlier, we didn’t have to build these tools site-by-site. Our blueprint allowed us to deploy these advanced features across all of our sports betting properties simultaneously, giving every region a premium product at the same time.

 

When the final whistle blows on the World Cup and we look back at the rest of 2026, what will have to happen for you to look back and say we absolutely nailed it?

On the data side, I want to look at our metrics and see a clear spike in returning users. That will be the ultimate proof that our platform strategy is actually working.

But our upgrades and feature improvements don’t just stop with the World Cup. We already have plenty of things in the pipeline, and we are planning a massive push right before the main European leagues kick off late this summer.

At the end of the day, I’ll know we nailed it if our site managers are effortlessly launching these new features, seeing the direct results of their work, and feeling like they have the absolute best tools in the industry to win their markets. That would be proof that we didn’t just build websites. We built a highly scalable affiliate product.

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