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LeoVegas AB Q4: Quarterly report 1 October – 31 December 2019. LeoVegas reiterates its long-term financial targets, remove short term financial targets and raises the dividend

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“We have entered 2020 with good underlying growth and profitability, and an ever-stronger balance sheet”
– Gustaf Hagman, Group CEO

FOURTH QUARTER 2019: 1 october–31 december 2019[1]

  • Revenue increased by 3% to EUR 87.1 m (84.5).
  • EBITDA was EUR 14.5 m (8.1), corresponding to an EBITDA margin of 16.7% (9.6%)
  • Adjusted EBITDA was EUR 9.2 m (8.1), corresponding to a margin of 10.6% (9.6%).
  • The number of depositing customers was 351,613 (327,156), an increase of 7%.
  • The number of returning depositing customers was record-high 207,982 (181,747), an increase of 14%.
  • Adjusted earnings per share were EUR 0.06 (0.06).

Events during the quarter

  • LeoVegas investment company LeoVentures sold the subsidiary Authentic Gaming to Genting. The sales price was EUR 15.2 m on a debt-free basis and generated a capital gain of EUR 11.4 m.
  • LeoVegas carried out strategic measures in the UK and has called off a move to new offices in Malta. These initiatives will lead to annual cost savings of approximately EUR 3.7 m. Restructuring costs of EUR 6.1 m are reported under items affecting comparability for the fourth quarter. At the same time, an impairment loss of EUR 10.2 m has been recognised for the Royal Panda investment.

Events after the end of the quarter

  • Preliminary revenue of EUR 30,1 m in January (28.7), representing growth of 5%.
  • In light of a more pronounced focus on profitability in an increasingly dynamic business environment LeoVegas has decided to remove the financial targets to reach sales of EUR 600 m and EBITDA of EUR 100 m by 2021. At the same time, the company has reaffirmed its long-term financial target to achieve organic growth that outperforms the online gaming market and an EBITDA margin of no less than 15%.
  • LeoVegas’ Chairman, Mårten Forste, hired as new COO in Malta.
  • The Board of Directors proposes a dividend of SEK 1.40 per share (1.20), an increase of 17%, to be paid out – as in the preceding year – on two occasions during the year.

 

COMMENT FROM GUSTAF HAGMAN – GROUP CEO

sustainability and long-term growth
During 2019 we worked hard to reduce complexity in the Group, be more efficient and adapt to the changes taking place in the gaming industry. In parallel with this we have enhanced the attraction of our product through new functionality and greater personalisation. We have launched new brands, focused more on Casino, and expanded to new markets. Towards the end of the year we intensified the integration of our previous acquisitions, which is expected to contribute to cost savings and increased economies of scale.

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Our investments in sustainability have been particularly meaningful, where LeoVegas is one of the leading operators. For example, today we have some 70 employees who work exclusively with responsible gaming and compliance.

an industry in change
2019 was a year characterised by change in our industry, with external challenges coupled to higher demands for compliance, higher gambling taxes and undertainty surrounding future regulation. In the near term this is presenting challenges to navigate in an increasingly complex world, but it also presents long term competitive advantages for a company like LeoVegas, which has a scalable organisation, proprietary technology and focus on sustainable growth along with an increasingly broader revenue base spread across several markets and brands.

We have entered 2020 with a good starting point, with an increasingly efficient organisation and many ongoing initiatives surrounding product innovation and brand expansion. Owing to the increasingly dynamic business environment and a more pronounced focus on profitability, we have decided to remove our financial targets for 2021 while we reiterate our long-term financial targets of organic growth in excess of the market and an EBITDA margin of at least 15%.

At the same time, our underlying profitable growth and favourable financial position have created the foundation for the Board’s proposal to raise the dividend for 2019 by 17% to SEK 1.40 per share.

fourth quarter 2019
Revenue for the fourth quarter amounted to EUR 87.1 m (84.5), representing organic growth of 3%. Growth during the period remained good in most of our markets. Excluding the UK market, organic growth in local currencies was 11%. We are especially pleased with our performance in Sweden, where we continue to take market shares.

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EBITDA for the fourth quarter adjusted for items affecting comparability during the period totalled EUR 9.2 m (8.1), corresponding to an EBITDA margin of 10.6% (9.6%). We thereby improved our underlying profit by 13% compared with a year ago despite a higher burden from gambling taxes and increased regulatory complexity, which confirms that our focus on efficiency and cost control is yielding the desired result.

A couple of weeks ago we communicated a number of strategic decisions coupled mainly to the UK and our ambitions to create a less complex and more scalable organisation. These initiatives gave rise to one-off restructuring costs that affected fourth quarter earnings by a total of EUR 6.1 m and are expected to lead to annual cost savings of approximately EUR 3.7 m. The savings consist mainly of platform and product costs, a more efficient organisation and more optimized premises.

During the fourth quarter we recognised a capital gain on the sale of Authentic Gaming, which was sold in October. The capital gain was EUR 11.4 m. EBIT for the fourth quarter was also affected by an impairment loss of EUR 10.2 m related to goodwill in Royal Panda.

markets
We had favourable performance in most of our markets during the full year 2019. Three of our major markets, Sweden, the UK and Germany, underwent major changes during the past year. In Germany, the removal of a key payment services provider affected our revenue during the fourth quarter. Development improved gradually during the quarter in pace with customers finding alternative payment methods. We are now growing again sequentially month-on-month in Germany. We are confidently waiting for clarity regarding what future regulation will look like in Germany. Based on the most recent information, the German federal states are now in agreement to regulate the market at the national level at the end of 2021.

As previously communicated, we are addressing the challenges in the UK by migrating all of our brands in the UK to our proprietary technical platform. In parallel with this we are refining our brand portfolio and closing Royal Panda in the UK. Altogether these measures are leading to a more focused and efficient operation and opening up economies of scale within the Group. Revenue for the remaining operations in the UK, consisting of 13 brands, grew 15% over the third quarter and showed good profitability. Royal Panda will now focus entirely on fast-growing markets outside the UK.

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In the Swedish market we are stronger than ever. It is clear that we are benefiting from our strong brand, focus on responsible gaming and experience from regulated markets. In addition, GoGoCasino has exceeded our expectations and was successful in the strategy of filling an empty space in the Swedish casino market. December was record-strong and we ended the year with revenue as well as the number of customers at record high levels. During 2020 we expect to see the authorities taking a harder line against unlicensed actors, which will improve channelisation and consumer protection in the Swedish market.

Comments on first quarter 2020
Revenue for the month of January amounted to EUR 30.1 m (28.7), representing growth of 5%.

Royal Panda in the UK, which was closed in January, is not expected to generate any significant revenue during the first quarter. During the fourth quarter Royal Panda generated revenue of EUR 1.1 m in the UK.

With good momentum in many of our markets and a number of growth initiatives, we are looking forward to the remainder of 2020. We continue to work hard to deliver profitable growth at the same time as we are working to live up to our vision, to be “King of Casino”.

Presentation of the report – today at 09:00 CET
To participate in the conference call, and thereby be able to ask questions, please call one of the following numbers: SE: +46 (0) 8 50 69 21 80, UK: +44 (0) 20 71 92 80 00, US: +1 63 15 10 74 95, Confirmation code: 9682129 or join at the web https://edge.media-server.com/mmc/p/g9y6w2q8

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Affiliate Industry

iGB L!VE 2024: Boomerang Introduces Partnership with AC Milan and New Affiliate Opportunities

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Boomerang Partners will participate in iGB L!VE 2024, held from July 16-19 at RAI Amsterdam, inviting partners to meet at stand 11-C20. One of the event’s highlights will be Boomerang’s recently announced collaboration with AC Milan, presenting new marketing opportunities and benefits across Europe (Italy excluded) for sportsbook affiliates and partners.

At this year’s iGB L!VE, Boomerang will spotlight its role as the official regional betting partner of AC Milan. This collaboration enhances Boomerang’s brand visibility through extensive media coverage, including TV broadcasts and digital marketing across Europe. It also provides affiliates with unique promotional and engagement opportunities. Book a meeting with us to learn more.

“Partnership with the legendary AC Milan demonstrates Boomerang’s credibility as a proven business partner,” says Ivan Kraynov, co-founder of Boomerang Partners. “As this partnership draws strong interest from partners and the media, we will create and showcase new collaborative formats aimed to enhance value for stakeholders. These will be presented for the first time at iGB L!VE 2024.”

Boomerang will host an exclusive contest at iGB L!VE 2024, offering event attendees the chance to win tickets to upcoming AC Milan matches. Join us for three thrilling raffle rounds on July 17 at 4:00 PM, and July 18 at 11:00 AM and 4:00 PM. Visit Boomerang at stand 11-C20 to try your luck and be part of this unforgettable experience!

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This exciting draw will feature a performance, underscoring the dynamic synergy of this collaboration and enhancing the event experience for all our distinguished guests.

Vitalii Prokofev, CEO at Boomerang Partners, expressed enthusiasm about the event, noting, “iGB L!VE provides a fantastic platform to engage with our partners and showcase our latest initiatives. It’s always an excellent opportunity for real-time feedback and fostering new partnerships.”

The iGB L!VE event is renowned for its extensive networking opportunities, which serve as a hub for innovation, where industry leaders discuss current trends and future directions. Boomerang’s participation underscores its commitment to staying at the forefront of industry advancements and enhancing affiliate relationships.

Attendees are invited to visit Boomerang’s booth 11-C20, to explore the benefits of Boomerang’s AC Milan partnership, participate in related activities, and engage with key team members.

The post iGB L!VE 2024: Boomerang Introduces Partnership with AC Milan and New Affiliate Opportunities appeared first on European Gaming Industry News.

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Affiliate Industry

MightyTips and Marathonbet collaborate on a new partnership deal to conquer the Brazilian market

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Affiliate website MightyTips and betting platform Marathonbet are entering into a new partnership that covers the Brazilian market to dominate the booming iGaming scene.

This strategic partnership will help Marathonbet to skyrocket its presence in the giant South American country with a population of over 215 million, boosting acquisition numbers in an increasingly competitive market.

A recent report by SOFTSWISS estimated that Brazilians participating in sports betting-related activity and online casinos in 2022 exceeded 46%.

The report also suggested the sports betting market in Brazil is significantly larger than that of online casinos. It is with these figures in mind that Marathonbet will seek to capitalise on.

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Launched in 1997, Marathonbet has a rock-solid reputation and primarily operates under a licence issued by the Government of Curaçao. It was one of the first sportsbooks to launch an online betting service back in 2002.

Its brand is associated with some of the biggest names in football thanks to a deep-rooted commitment to the sport. In the past ten years, it has sponsored the likes of Real Madrid, Manchester United, Sevilla, and Lazio.

Eugene Ravdin, MightyTips Communications and Marketing Manager said: “Marathonbet is one of the biggest names in betting. Its long and storied evolution from the beginning of iGaming is incredible and we can’t wait to work alongside them.”

A Marathonbet spokesperson said: “We are pleased to announce the beginning of a long and fruitful cooperation with MightyTips. We are sure this will bring us and the players only positive emotions, and we wish all the players good luck and many victories.”

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Affiliate Industry

DeepCI rebrands to PartnerMatrix Intelligence to create all-in-one affiliate powerhouse

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DeepCI has rebranded to PartnerMatrix Intelligence to create an all-in-one affiliate management and data tracking powerhouse under the PartnerMatrix brand.

PartnerMatrix will combine the strengths of PartnerMatrix Intelligence’s advanced data tracking and analysis capabilities with its leading affiliate and agent management systems, providing both affiliate and operator customers with a superior, all-in-one solution.

Following its integration earlier this year, customers can access PartnerMatrix Intelligence both within the PartnerMatrix platform and as a standalone option.

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Lewis Civin, co-founder of DeepCI will become Chief Product Officer for PartnerMatrix working alongside existing PartnerMatrix CEO, Vahe Khalatyan.

PartnerMatrix is the iGaming industry’s most comprehensive affiliate and agent management multi-brand system with real-time data enabling affiliate managers to create, manage, track and analyse their programs from one, easy-to-use location.

In 2023-24 the PartnerMatrix system saw traffic increase by more than 135% Year-on-Year helping to connect 170,000 affiliates to its brand partners. Total 2023 revenues increased by 175% compared to 2022, with a large pipeline of prospects for the rest of this year.

Vahe Khalatyan, CEO PartnerMatrix, said: “At PartnerMatrix we never stand still, and we are always looking at ways to enhance our customer offering.

“The integration of PartnerMatrix Intelligence into the wider PartnerMatrix offering is the logical continuation of our mission to provide our customers with a complete, all-in-one affiliate solution accessed from one source.

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“Now, equipped with a powerful data analytics and optimisation tool accessed via PartnerMatrix, our customers can take their brands to even higher levels, managing, tracking and analysing all their activities, their competitors and key trends across millions of data points empowering them to make instant decisions to drive further efficiencies and maximise revenues.”

Lewis Civin, CPO, PartnerMatrix, said: “PartnerMatrix Intelligence, formerly DeepCI.com, has established itself as a ‘must-have’ data management tool for affiliate managers.

“Today we’re officially joining forces with the most powerful affiliate management platform on the market in PartnerMatrix so we can now uniquely present brands and affiliates with all the financial data they need plus the ‘why,’ pinpointing the precise pages anywhere in the world that bring brands the most first-time depositors.

“PartnerMatrix Intelligence has access to every traffic insight that matters so we can give you the why behind FTDs, where you’re best performing and where you could do more, enabling brands and affiliates to take instant, actionable decisions. This combination simply doesn’t exist anywhere else.”

PartnerMatrix will exhibiting at stand 10-D50 iGB Live in Amsterdam on 16th to 19th July. Don’t miss the chance to meet the team and take a dive deep into all the new opportunities we can offer you. Book a meeting today!

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The post DeepCI rebrands to PartnerMatrix Intelligence to create all-in-one affiliate powerhouse appeared first on European Gaming Industry News.

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