Earnings before interest, taxes, depreciation, and amortization (EBITDA) was €15.1m, compared to €15m of Q2 2018, corresponding to an EBITDA margin of 16% which was 17.2% during the same period of the previous year.

“We reiterate our ambitious financial targets to achieve €600m in revenue and EBITDA of €100m by 2021. We want to clarify that the targets are based primarily on organic growth, but also include revenue from potential future acquisitions,” said Gustaf Hagman, CEO of LeoVegas group.

The number of depositing customers increased by 8%, from 309,961 to 334,961 and the number of returning depositing custmers also grew by 12%, from 175,500 to 196,203, compared to Q2 2018. Earnings per share were €0.07 before and after dilution, with no change reported.

‘Balanced’ revenue mix

“Compared to a year ago, LeoVegas has a more balanced geographic revenue mix. This means that we are not as sensitive to challenges that may arise in a specific market, which in turn means that we have lower business risk in the Group,” said Mr Hagman. 

“This work is helping to create necessary economies of scale and is countering the effect of that we are paying more gambling taxes. As previously communicated, our marketing investments also decreased compared with the first quarter of the year,” Mr Hagman added. “A contributing factor to this is more restrained marketing in Sweden during the quarter. In addition, the postponement of a few campaigns from the second to the third quarter has affected costs and contributed to operating profit, which will have a reverse effect during the third quarter.”

Furthermore, LeoVegas obtained a gaming licence in Spain and two weeks after the company launched its business in Spain, according to the press release sent to BM.

“This shows the strength and speed of LeoVegas and further demonstrates that our experience from regulated markets benefits us. Spain is a step in our continued expansion, and we have also recently carried out launches in other Spanish-speaking countries, such as Chile and Peru, as well as in Brazil,” continued Mr Hagman.

Moreover, Sweden has now been a regulated market for more than six months, and the development is beginning to indicate what kind of market the group will have over the long term. Leovegas also launched GoGoCasino and Pixel.bet.

“The investments made in 2018 and efficiency improvement work carried out thus far in 2019 are beginning to generate returns in the form of greater scalability of operations,” concluded Mr Hagman. 

The post LeoVegas sees organic revenue growing 8% in Q2 first appeared on The Malta Business Weekly.

“At LeoVegas we are proud to be supporting the largest event of its kind in Malta. The main goal of this collaboration is to show LeoVegas’ commitment to embracing diversity and equality in our workforce” says the press statement by the company that has offices in Malta, Italy and Sweden.

The press statement adds that today LeoVegas has over 400 employees at the Malta office, sporting a truly diverse workforce — be it race, ethnicity, gender, age, religion, ability, or sexual orientation —, which contributes to the overall success of the company.

“We are delighted to have LeoVegas supporting Malta Pride for the third year running,” said Clayton Mercieca, Community Manager of Allied Rainbow Communities

“Their strong commitment towards welcoming diversity in the workplace is a message that needs to be spread far and wide. In our work with the community, we have seen employers who were not as affirming and accepting, which led to employees’ wellbeing suffer and their motivation taking a dip as a result,” Mr Mercieca said. “Being simply tolerant is not enough,” he underscored.

Malta Pride is a week-long celebration with different activities, with the main parade and open-air free concert. This year’s theme will be “From Riots to Rainbows – 50 years since Stonewall”.

The post LeoVegas pledges support for Malta Pride 2019 first appeared on The Malta Business Weekly.

Despite its rather limited size, Malta has been a great environment for us to grow. LeoVegas started off with just five employees and today there are over 400 at the Malta office alone. As a gaming operator and employer, the Maltese market has a lot to offer when it comes to recruitment of competent talents, industry knowledge and opportunities connected to this.

The fact that Malta was the first EU jurisdiction to issue online gaming licenses was a major factor in attracting the most prominent operators of the industry. Over the years, more and more operators decided to open offices here and this trend started attracting a wider base of companies, including — but not limited to — gaming providers and payment gateways.

“We have been in Malta since October 2012 and one of the reasons we decided to base our operations here was because of the country’s advanced regulatory framework.”

– Director of Business Development Hanna Lerenius

We are lucky to be situated in the centre of Sliema with a newly-refurbished office space that more or less has it all, including terraces with almost 360 degrees views. We have worked closely with interior architects and designers to create a fun and functional working environment with plenty of space for social gatherings and events.

We sincerely believe that this initiative, among many others, makes LeoVegas the place to work for talented individuals looking for personal and professional growth. Our goal is not only to keep growing, but also to accelerate the growth. We have various short to long-term plans which should see our operations in Malta accommodating this growth. The coming years will be extremely exciting for us, as we are looking forward to seeing what the future has got in store.

New Spanish market raises hopes

We have high hopes for the Spanish market, as it is one of the biggest European markets that regulate both betting and casino games. The market has been regulated for quite a few years now and can definitely be considered one of the more mature regulated markets in Europe. At the same time, the market is growing at a high pace and we do expect both fierce competition and great opportunities.

As for any new market, it comes with a new culture to grasp and new customer and product requirements to adapt to. We have recruited native Spanish speaking personnel and an experienced country manager to make sure we will provide our players with a truly Spanish LeoVegas experience. We can definitely hear more Spanish in the corridors at the LeoVegas office in Malta.

At the same time as we are doing our utmost to tailor the LeoVegas experience to the Spanish market, we are also planning on utilising our strengths and our core – most importantly, our fantastic mobile casino product. We are entering the market with a very clear vision: “To provide the best casino experience on mobile to Spanish players”. We believe that no other brand has claimed that position and this is exactly what we have done successfully in other markets in the past. This is what we are aiming at doing in Spain.

Of course, we know that building a market and a solid player base takes time and effort. That being said, we are fully committed to making the Spanish market a success story and we prepare our business and operations accordingly.

With the entry into Spain, we also look forward to further leveraging our knowledge of operating in regulated markets. If one compares one regulation to another, there are always similarities and differences. However; the similarities always outweigh the differences. For each regulated market that LeoVegas enters, we are better prepared for the next, no matter if it comes to operational processes, marketing or product and platform development.

The latest European market that regulated was Sweden, with LeoVegas being one of the very first operators to receive a license. Because of the market’s size and strategic importance to LeoVegas as a group, obtaining the Swedish gaming license was a major milestone for us. It also means that from a Maltese operations perspective, we have experience from yet another regulated market, something which we, of course, are planning to leverage — we are ready and eager to take on Spain.

Data-driven marketing approach

At LeoVegas we measure all of our marketing activities closely both online and offline and we make decisions based on data and key performance indicators (KPIs) more than anything else — such as following a gut feeling, history or prestige.

As an example, we know the difference between customer value and different marketing sources on a quite granular scale and plan our investments based on that in a very agile way.

The result is more value for every single euro spent and important insights on where we need to improve. That can be anything from conversion rate in a specific part of the customer journey to how the audience perceives our brand communication in television commercials. This, of course, goes for all markets and is something that will be a critical success factor for us in the Spanish market.

BIO: As Director of Business Development, Hanna Lerenius is heading LeoVegas’ expansion into new markets and is driving initiatives to improve the scalability and efficiency of LeoVegas’ operations.

The post LeoVegas sees further expansion, vows commitment to new Spanish market first appeared on The Malta Business Weekly.

LeoVegas’ expansion strategy focuses on entering regulated markets or markets with plans to regulate. The company has gaming licences in Malta, where operations are made, the United Kingdom, Denmark, Italy, Sweden, Ireland, the German state of Schleswig-Holstein, and now officially in Spain.

“We welcome Spain as our seventh locally regulated market. With LeoVegas’ position as King of Casino, we are now entering Spain with the ambition to take the mobile position and offer the ultimate gaming experience,” said Gustaf Hagman, LeoVegas Group CEO. “The Spanish online gambling market has a strong underlying growth with over 20% per year. The Spanish license is an important step in our continued expansion, in other Spanish-speaking countries, where we have already conducted test launches in Peru and Chile.”

LeoVegas’ data-driven approach to marketing is one of the keys to the successful establishment, the company believes. In connection with a launch, marketing will gradually increase, and every marketing channel and player values are analysed. Such analyses form the basis for continuously optimising and scaling up customer acquisition.

Furthermore, the Spanish online gaming market will be worth of approximately €1b in 2019, according to Half Two (H2) Gaming Capital, compared with the Swedish market, which is estimated to be worth approximately €1.4b. 

Nowadays, only 13% of all gaming in Spain is online, compared with 50% in Sweden. However, the Spanish online market is experiencing strong growth as more and more gaming is moving online. 

In fact, the most recent figures from the Spanish Gambling Authority show that the casino segment grew by 20% in Q1/2019, compared with the same period a year ago. The casino segment accounts for about 35% of the total online market in Spain. 

The Spanish government approved a five-per-cent cut in gross gaming revenue from 25% to 20%, which action has been raising high hopes for the global iGaming industry, attracting eyes to the country, according to reports.

LeoVegas submitted a licence application for casino and sports betting, eyeing to set foot in the Spanish market late last year. LeoVegas’ competitor Gaming Innovation Group Inc (GiG) also applied for an online B2C casino and sports betting licence in Spain earlier.

Today, Gaming Innovation Group Inc (GiG) has also been awarded licences by the Directorate General for the Regulation of Gambling in Spain (DGOJ) permitting the GiG to offer online casino and sports betting in Spain, according to a press statement.

EDITORIAL NOTE: The present story has been updated with information about LeoVegas’ competitor GiG’s licences received for the Spanish market too.

The post LeoVegas bags Spanish gaming licence first appeared on The Malta Business Weekly.

The company says that its “flexible and scalable proprietary technical platform” as well as “technology and economies of scale” are the supporting factors for their recently announced upgrade to its platform.

LeoVegas hopes that recent progress will support the group’s expansion strategy and will contribute to the achievement of the financial targets for 2021 of €600m in revenue and €100m in EBITDA.

The upgrade of the platform started in 2018, and now the group hopes to strengthen its competitiveness in the iGaming market.

“LeoVegas’ goal has always been to market a global brand with a local touch — a successful strategy for leovegas.com that continues to take market shares. To meet needs that have emerged in certain markets, we now plan to launch more brands. These will be distinctly targeted to different customer groups — some of which are looking for niche functionality and others that are driven by the charm of novelty that a new and fresh brand offers,” says Gustaf Hagman, CEO of LeoVegas Group.

“The multibrand functionality that we have developed on our proprietary core platform will allow us to now launch new brands with a high level of flexibility and scalability. Our ambition is to raise the bar in the industry and always offer something new and unique while maintaining our overall focus on responsible gaming. We plan to launch the first brand shortly, and it will be exciting to follow its development,” the CEO adds.

LeoVegas Groups’ technology development is conducted in Sweden, while operations are based in Malta. LeoVegas offers casino, live casino and sports betting, and operates two global brands – LeoVegas and Royal Panda – as well as some local brands in the United Kingdom. The company’s shares are listed on Nasdaq Stockholm.

The post LeoVegas launches proprietary multi-brand platform first appeared on The Malta Business Weekly.

“With this licence, we gain the opportunity to offer our product and passion for esports betting to the Swedish market. Moreover, we have added a truly exciting casino experience that we know customers will appreciate. This springboard in Sweden will also position us for continued expansion internationally,” says Eirik Kristiansen, CEO of Pixel digital Ltd.

“During a year when we focus on strong growth but also cost efficiency, it is inspiring to see that pixel.bet are developing well and that we as a Group can benefit from our economies of scale with the sharing of resources and knowledge between our companies,” adds Gustaf Hagman, CEO of LeoVegas Group.

Pixel.bet is an aspiring brand in esports betting, also offering casino and live casino. While Sweden and the Nordics are considered to be the primary markets in focus, LeoVegas maintains a clear potential to grow further internationally.

LeoVegas’ technology development is conducted in Sweden, while operations are based in Malta. LeoVegas offers casino, live casino and sports betting, and operates two global and scalable brands – LeoVegas and Royal Panda – as well as a number of local brands in the UK. The company’s shares are listed on Nasdaq Stockholm.

The post LeoVegas launches new brand ‘Pixel digital’ in Sweden first appeared on The Malta Business Weekly.

During the last quarter of 2018, organic growth in local currencies was 7% on total, and excluding the UK it was 14%. EBITDA was €8.1mm (6.1), corresponding to an EBITDA margin of 9.6%, according to a press statement announcing the quarterly report. Net Gaming Revenue (NGR) from regulated markets was 33% of total NGR.

The number of depositing customers increased year-on-year 29% to 327,156, while the number of returning depositing customers grew by 46% to 181,747. Earnings per share were €0.22 before dilution and €0.22 after dilution.

During the last quarter, LeoVegas applied for a gambling licence for the Spanish market, as Business Malta reported earlier. Approval and implementation of this application are expected during the first or second quarter of 2019. During Q4, LeoVegas also received a licence for both casino and sports betting in Sweden.

Following Q4 2018, due to developments in the UK market, LeoVegas postponed its financial goals from 2020 to 2021. Despite this, the direction remains unchanged with business targets in absolute numbers to reach €600m in revenue and €100m in EBITDA, the company says. Also, LeoVegas Group’s Pixel.bet brand was granted a licence for online casino and sports betting in Sweden.

The Board proposes a total dividend of SEK 1.20 per share, to be paid out on two occasions during the year, the press statement says. Revenue amounted to €28.7m in January, representing growth of 16%.

Gustaf Hagman, CEO of LeoVegas Group, tags 2018 as the most challenging year in the group’s history, challenges of which hindered growth. “It was also a year in which we carried out a number of strategically crucial projects that have taken us large steps forward on our growth journey … Our multi-brand strategy is in place, enabling us to launch new casino brands rapidly, and we are ready to expand in more markets in 2019 with an overall focus on cost control and increased profitability,” the CEO says.

This year has had quite a strong start for the group, according to the CEO. Revenue hit €28.7m in January, growing by year-on-year 16%. Underlying customer activity strengthened by a 42% growth in depositing customers compared to the same period last year.

“We have now forged ahead through both an eventful and challenging year with several acquisitions, accolades, higher regulatory requirements, a number of major platform projects and a change in listing to the Stockholm Stock Exchange’s main market list,” the CEO adds.

The post LeoVegas sees 25% revenue increase in Q4 2018 first appeared on The Malta Business Weekly.

Both events took place on 4 February in London, coinciding with the beginning of B2B gaming event ICE London, following each other with a few-hour difference.

“It’s an honour to accept two awards related to our casino product and mobile offering in one evening. These distinguished titles really reflect the hard work and effort that everyone put in during the last year,” said Gustaf Hagman, Group CEO at LeoVegas, following the two events.

LeoVegas believes the “Online Casino of the Year” award comes as a recognition for efforts invested in strengthening the brand portfolio of the group, as well as commending efforts toward implementing responsible gaming strategies. The company adds that the “Mobile Operator of the Year” award aims to celebrate the continual updates to the LeoVegas mobile website and app, in addition to other improvements.

The Global Gaming Awards celebrates the achievements and the innovations of companies from all areas within the iGaming industry, while the International Gaming Awards is another prestigious event that highlights and rewards companies from all tiers of the industry based on a multitude of different categories.

The post LeoVegas bags accolades in London prior to ICE first appeared on The Malta Business Weekly.

Swish is currently considered to be Sweden’s most popular and highly-used payment service, counting approximately 6.7 million users.

LeoVegas expects that the reregulation of the Swedish gambling market, which came into effect 1 January 2019, will allow the group to work more closely with banks and popular local payment services such as Swish, which is currently considered to be Sweden’s most popular and highly-used payment service, counting approximately 6.7 million users. This new payment service both strengthens the offering and will contribute to further cost efficiency for LeoVegas, the group claims

“Today Swish has 6.7 million users and 180,000 connected businesses. We are super pleased with our continued growth, and that Swish is now being offered as a payment method on a growing number of platforms,” says Anna-Lena Wretman, CEO of Getswish AB, the company that owns the payment service Swish.

“LeoVegas’ goal is to offer the ultimate gaming experience for our customers, and we are now making this even better with the launch of Sweden’s fastest deposit method via Swish,” says Gustaf Hagman, CEO of LeoVegas Group. “Faster than this, you cannot make your payments, and we are living up to our epithet: ‘lightning-fast deposits’. In addition, customers are securely identified via BankID. The fact that 63% of all Swedes use Swish every week shows how popular Swish is, and it is therefore extra exciting that LeoVegas is now offering the favourite way of making payments in Sweden. Our teams have worked intensively to be able to launch immediately after the turn of the year. That we are also lowering our transaction costs makes this a win-win arrangement and exemplifies the new opportunities for LeoVegas in the Swedish market,” the CEO adds.

LeoVegas is a critical player in the iGaming market of Malta. Technology development by the group is conducted in Sweden, while operations are based in Malta. LeoVegas offers casino, live casino and sports betting, and operates two global and scalable brands — LeoVegas and Royal Panda — as well as a number of local brands in the UK. The company’s shares are listed on Nasdaq Stockholm.

Launched in 2012 by six large Swedish bank in Sweden in cooperation with the Central Bank of Sweden, Swish is a mobile payment system that has approximately 6.7 million users (50%+ of Swedish population), as is reported to be favoured for its rapid and secure transactions over paying in cash.

The post LeoVegas allows mobile payment by Swish in Sweden first appeared on The Malta Business Weekly.

“We are now taking the next step on our global expansion journey and apply for our first license in a Spanish-speaking country, Spain,” says Gustaf Hagman, CEO of LeoVegas Group.

Mr Hagman tags Spain as one of the fastest-growing markets in Europe. The CEO believes that due to his group’s technology and experience; they will be able to effectively adapt their business to regulated markets regardless of language and regulations.

As more than 470 million people speak Spanish, the company sees entering Spain as a first step to get into several Spanish-speaking countries, the press release notes.

The Spanish casino market grew by more than 30% in Q3 2018 compared to 2017, and it is projected to be worth approximately €1bn in 2019, according to estimates provided by H2 Gambling Capital data, which is one of the gambling industry’s leading providers of figures and analyses. The Swedish market, in comparison, is worth approximately €1.4bn.

“Today only about 11% of all gaming in Spain is conducted online, compared with 52% in Sweden. Spain’s online gaming market is experiencing strong growth as more and more gaming is being conducted online. The most recent figures from the Spanish gambling authority show that the casino segment grew by 30% in Q3 2018 compared with the same period last year,” LeoVegas notes in the press release.

LeoVegas holds gaming licences in Malta, the United Kingdom, Denmark, Italy, Sweden, Ireland and now awaits for Spain.

LeoVegas’s announcement comes very shortly after a cut in gross gaming revenue from 25% to 20% has been approved by the Spanish government. LeoVegas appears to pop up as a fierce competitor of GiG in the market with a jumpstart, which announced similar plans very recently for the second half of the year.

The post LeoVegas to enter Spanish market in Q1 first appeared on The Malta Business Weekly.