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LeoVegas AB Q3: Quarterly report 1 July– 30 September 2020

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THIRD QUARTER 2020: 1 julY–30 september

  • Revenue increased by 1% to EUR 88.9 m (88.2). Organic growth in local currencies was 2%.
  • EBITDA was EUR 11.9 m (12.7), corresponding to an EBITDA margin of 13.4% (14.4%).
  • The number of depositing customers was 438,691 (347,464), an increase of 26%.
  • Earnings per share were EUR 0.04 (0.05) before and after dilution, while adjusted earnings per share were EUR 0.08 (0.09).

Events during the quarter

  • GoGoCasino and Livecasino.com launched in Finland. An international launch of both brands is in progress.
  • Operations in Sweden have been affected by the temporary restrictions that were introduced on 2 July as a result of Covid-19
  • LeoVegas increased its ownership in the e-sports betting operator Pixel.bet to 85% from 51% previously.
  • Operating profit for the quarter includes costs of EUR 0.5 m in organisational streamlining and optimisation measures. Yearly net savings from these measures is expected to total EUR 1.5 m starting next year.

Events after the end of the quarter

  • Preliminary revenue in October amounted to EUR 33.0 m (26.0), representing growth of 27%.
  • Royal Panda has relaunched in Finland on the Group’s proprietary technical platform.
  • LeoVegas has launched Bingo as new product category.
  • Ahead of the forthcoming regulation of the German market, effective 15 October a number of changes have been made that affect the customer offering. This had a slight negative impact on revenue in October. LeoVegas expects to receive nationwide licences for the German market once they are available.

 

COMMENT FROM GUSTAF HAGMAN – GROUP CEO

THIRD QUARTER 2020
Once again, we have shown our ability to quickly adapt to new, external circumstances, such as those related to the continuing pandemic and the constant regulatory changes in our various markets. During the third quarter we maintained a high pace of innovation and investment, which is strengthening our long-term position and growth prospects.

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During the quarter our customer base again reached a new record level. The number of depositing customers grew 26% compared with the same period a year ago, which confirms the strong development of our business. This is partly attributable to the ongoing structural shift from land-based gaming to online, but above all to our focus on creating the best product and experience for our customers. We continue to optimise scalability and reduce complexity in the organisation. During the quarter, among other measures we realised synergies from previous acquisitions and instituted a clearer organisational and Group structure. This has led to a slight level of staff redundancy, and operating profit was charged with EUR 0.5 m for measures coupled to this. At the same time, we estimate that yearly net savings from these measures will amount to roughly EUR 1.5 m starting with next year. Our efficiency improvement work equips us for continued profitable growth and makes us – combined with greater diversification of the revenue base – more resilient to rapid fluctuations in individual markets.

MARKETS
We had a favourable development in most of our markets during the quarter, with our growing customer base as the main driver. Many markets had double-digit growth compared with the same period a year ago.

In Sweden we are seeing a troubling development in which the unlicensed market continues to grow unhindered. A growing number of operators without licences are actively targeting Swedish players, including those who have been barred by the self-exclusion tool Spelpaus. This has been confirmed by, among others, several organisations that provide help to people with a gambling problem. These organisations have noted that the majority of those seeking help are playing with the unlicensed operators. The problem is big and is shaking the foundation of the entire Swedish licence system. Quick and strong measures are now needed by Swedish politicians and authorities to ensure a well-functioning Swedish gaming market.

In Germany the federal states have agreed to introduce a licence system for gaming, which is expected to be implemented during the second half of 2021. We are looking forward with confidence to Europe’s largest market finally being regulated. Ahead of implementation of the licence system, it is expected that operators will carry out certain limitations in their respective customer offerings in advance. LeoVegas has already begun implementing such limitations, which will initially have a negative impact on revenue. Details on regulation of the German market are provided in the Legal update section in this report. LeoVegas today has a licence in the German state of Schleswig-Holstein and expects to receive nationwide licences once they are available. Germany generated approximately 17% of the Group’s total revenue during the third quarter.

technology and products
The quarter was intense for our technology and product organisation, with the completion of a number of major projects. For example, we implemented the German regulatory requirements on short notice and launched the GoGoCasino and Royal Panda brands in Finland on our proprietary platform. We also are seeing higher demand for broader entertainment games among our players and therefore recently launched our Bingo product.

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comments on fourth quarter
Preliminary revenue for the month of October amounted to EUR 33.0 m (26.0), corresponding to annual growth of 27%. The changes introduced in the German market on 15 October have had a slightly negative impact on revenue.

With a positive start to the fourth quarter, a record-large customer base and many exciting initiatives I am looking forward to a strong end to the full year.

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: 2874453 or join at the web https://edge.media-server.com/mmc/p/budae7ar
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Gaming Corps games suite to roll out with betPawa, which operates in 12 African countries

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Gaming Corps – a publicly-listed game development company based in Sweden – is to bring its premium games suite to more players across Africa after agreeing a partnership with betPawa.

More than 10 million Africans trust and use betPawa as their betting brand of choice, with the operator currently active in 12 countries across the continent. betPawa is on a mission to make betting friendly by providing 24-hour customer support, a user-friendly platform, the lowest minimum stakes and guaranteed and instant payments.

Players at betPawa will be able to enjoy Gaming Corps’ full portfolio of Crash, Mine, Table and Slot titles, as well as a certified Plinko. This will include recent smash hits such as RAMPAGE, Piggy Smash and Raging Zeus Mines, along with Gaming Corps’ renowned games series such as Jet Lucky and Coin Miner.

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Gaming Corps is now able to offer more value to players following the launch of its Smash4Cash™ mechanic, which is designed to make the game experience even more unique and bring an even greater chance for players to make the most of bonus rounds.

Mats Lundin, Gaming Corps’ Director of Sales, said: “We are delighted to partner with betPawa; an operator that has established a reputation as a successful and trusted betting brand across Africa.

“This is a fantastic opportunity for us to bring our thrilling games to many more players across the continent, and I look forward to offering even more magnificent games to betPawa’s players as we continue to strengthen our portfolio. Our Smash4Cash™ mechanic is already helping us produce games full of even more excitement, and I’m sure that trend will continue.”

Spencer Okach betPawa said: “This partnership with Gaming Corps will allow us to further strengthen our casino offering, and we are very excited to give our players the chance to make the most of Gaming Corps’ first-class games suite.

“We are always looking for ways to make the gaming experience with betPawa even more memorable, and I’m sure Gaming Corps’ ever-expanding list of games will help us do that.”

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The post Gaming Corps games suite to roll out with betPawa, which operates in 12 African countries appeared first on European Gaming Industry News.

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UK risks losing safer gambling leadership position – warns BetBlocker.org chief of partnerships

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Pedro Romero, chief of partnerships at safer gambling software provider BetBlocker.org has highlighted the sense of insecurity among Research, Education and Treatment organisations arising from the publication of the UK Government’s White Paper on gambling reform.

Speaking following February’s edition of ICE where BetBlocker and US-based International Centre for Responsible Gambling (ICRG), shared a £41,000 pool which was provided by leading brands Light and Wonder, Flutter, Betsson Group, IGT, Novomatic, Neccton and Playtech Pedro Romero noted: “The main talking points at ICE 2024, particularly in relation to safer gambling, revolved around the publication of the White Paper which has caused so much anxiety.

“It’s concerning that many in the third sector feel alienated from critical conversations about the future of safer gambling and harm minimisation.

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“The potential implications of this disconnect are significant, not just for the individuals and communities we serve, but for the UK’s reputation in the field.

“We must find a way to bridge this gap and work together to address the challenges ahead. Otherwise, I fear the UK risks losing its leadership position in advancing safer gambling practices.”

Regarding the £20,500 donation which was presented at ICE he added: “We have earmarked these funds with a dual purpose in mind. Primarily, it will assist with our running costs, which as a small charity is crucial for the sustainability of our operations.

“Additionally, we are excited about a very special project that we’re planning for ICE 2025 in Barcelona. Without giving too much away, it’s a development that aims to pay tribute to both Clarion and the city of Barcelona. We believe it will make a significant impact and we look forward to unveiling it.”

Romero spoke positively about the relocation to Barcelona stating: “ICE 2024 served as a fantastic farewell to London, marking the end of an era and the beginning of a new chapter in Barcelona.

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“While there’s a certain sadness in leaving a city that has been such a great host, the move to Barcelona is an exciting development. It represents a fresh opportunity for ICE to be the global gaming hub in a vibrant, dynamic city. We are very much looking forward to what the future holds in this new location.”

 

The post UK risks losing safer gambling leadership position – warns BetBlocker.org chief of partnerships appeared first on European Gaming Industry News.

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The MeridianBet – Golden Matrix Transaction Secures Approval at GMGI Shareholder Assembly

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The MeridianBet Group, Southeast Europe’s leading Business-to-Consumer (B2C) sports betting and gaming group, operating in multiple markets across Europe, Africa and Latin America, announced that the shareholders of Golden Matrix Group (GMG), a developer, licensor and global operator of online gaming and eCommerce platforms, systems and gaming content, have voted to approve the acquisition of MeridianBet.

Commenting on the merger Zoran Milosevic, Chief Executive Officer of MeridianBet Group, said: “Today marks a major milestone for MeridianBet and I am thrilled that the shareholders of Golden Matrix have overwhelmingly voted in favor of the acquisition of MeridianBet. By joining forces, we are not only expanding our reach but enhancing our ability to provide customers with a diverse and comprehensive offering whilst creating a leading global betting group. I look forward to announcing the completion of the deal in due course.”

The post The MeridianBet – Golden Matrix Transaction Secures Approval at GMGI Shareholder Assembly appeared first on European Gaming Industry News.

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