The group said that its “steady performance” was maintained by continuous capital investments in operational assets and human resources. The group added that it will continue to focus on its strategic investments, on further product improvements and on pursuing its internationalisation plans.

“It is encouraging to report a steady performance across all segments within our group, which continues to deliver robust results despite competitive pressures,” said Norman Aquilina, Farsons Group Chief Executive.

“The changing market landscape and changes in consumer spending patterns, along with growing concerns on packaging waste, will continue to be important challenges for the Group, as will the maintenance of equitable market conditions that ensure a level playing field for all operators in the sector,” Mr Aquilina added.

Due to fierce market competition fuelled by “newly-important brands” and pricing challenges, the brewing and beer segment only recorded a marginal increase, the press statement says. Nevertheless, the beverage and food importation segment registered an improved 10.3% contribution to profit, while the franchised food retailing establishments maintained growth with an 8.6% turnover increase.

“The group reaffirms its commitment in internationalising the business while remaining prudently optimistic of the growth potential in existing and new markets,” Group Chairman Louis A Farrugia. “The Board of Directors recognise that the long-term investment strategy deployed over the years will continue to prove beneficial in providing in an efficient, competitive and profitable manner the diversified high-quality product mix sought by our customers,” Mr Farrugia added.

The post Farsons after-tax profit grows 4.7% to €6.4m in H1 2019 first appeared on The Malta Business Weekly.

“While Malta is aware that the Energy Taxation Directive needs to be updated to reflect present day realities, and to help promote the use of renewable and clean energy sources, the removal of tax exemptions on aviation and shipping fuels will have serious repercussions on many member states, including Malta, unless tackled internationally,” said Minister for Finance Edward Scicluna during the Informal ECOFIN meeting held in Helsinki, Finland on 13-14 September, according to the government’s Department of Information (DOI).

“Ships will bunker tax-free outside the EU waters while new aviation taxes would hamper connectivity of peripheral regions,” the minister added.

Current EU rules for taxing energy products and electricity are recorded in the Energy Tax Directive 2003/96/EC. The Energy Taxation Directive establishes the minimum excise duty rates that EU member states must apply to energy products for fuel and transport and electricity, according to the official website of the European Commission.

“EU legislation only sets harmonised minimum rates. Member states are free to apply excise duty rates above these minima, according to their own national needs,” the EC writes on the subpage carrying details on the ETD.

Should all EU members align with the ETD, tax exemption would be removed from the area of the European Union. Pundits expect this would result in countries in the bloc losing revenues from bunkering and refuelling, as operators would likely manage such activities in a tax exemption zone before entering the area of the European Union.

Countering hybrid threats

During the informal meeting, attending ministers also debated the resilience of financial market infrastructure and the role of the financial sector in countering hybrid threats, the next steps needed by the European Union to enhance the Capital Markets Union (CMU) as well as the European Fiscal Rules, according to the press statement published on the official website of the DOI.

Minister Scicluna said that there are elements of the fiscal framework which need to be reviewed — including the overreliance on unobservable indicators such as the output gap, and the complexity of the rules. “However, changing the rules will not be enough. What is truly imperative is to ensure that the rules are observed and properly enforced. If we do not address this core issue, the framework will remain weak,” the minister added

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Profit before tax amounted to GBP 17.7m, while profit after tax came to GBP 15.1m. Earnings per share were GBP 0.067.

Gross winnings revenue from the Swedish market for the first quarter of 2019 amounted to SEK 207.4m after deduction of bonuses of SEK 137.9m.

The number of active customers during the first quarter was 1,631,636. “All-time high in active customers but, as expected, profits for the quarter significantly impacted by the new local licence in Sweden,” said Henrik Tjärnström, CEO of Kindred Group.

The CEO praised “strong levels of activity” across all markets and “all-time highs” for active customers and sports betting turnover. According to the CEO, investment in marketing activities focusing on responsible gambling in Sweden and football sponsorships in the United Kingdom were the main drivers of the results.

Swedish market reregulation leads to short-term margin pressure

“As anticipated for several years, the reregulation of the Swedish market resulted in significant short-term margin pressure, particularly in the first quarter. The single biggest impact came from all legacy and new Swedish customers being awarded one additional bonus under the terms of the new licensing system,” according to the CEO.

“The significant uptake on customer bonuses, especially in January and February, resulted in bonus expenditure increasing with GBP 6.6m for the first quarter compared with the same period last year. Bonus costs stabilised later in the quarter and by March, they were lower than last year with full-year costs expected to be lower than for 2018,” Mr Tjärnström added.

Gross winnings revenue, as well as EBITDA, was significantly affected by the Swedish betting duties paid of GBP 5.2m but also marketing investments increasing with GBP 3.8m, the press statement by the group says. “The total effect on Group EBITDA from the Swedish market opening in the first quarter was a reduction of GBP 18.9 million compared to the first quarter last year,” the CEO said.

Gross winnings revenue from mobile grew by 17% in the first quarter of the year as compared to the same period a year earlier, and amounted to 77% of the group’s total gross winnings revenue, while some 57% of the group’s gross winnings revenue, came from locally-regulated markets.

“For the period 1 April to 21 April 2019, the daily average Gross winnings revenue in GBP was 10 per cent higher (12 per cent in constant currency) than for the same period last year,” Mr Tjärnström added.

The post Kindred’s gross winnings revenue ups 8% in Q1 2019 first appeared on The Malta Business Weekly.

At the end of last year, the company says to have strengthened its balance sheet by allocating €173, to a “partial impairment of goodwill for operations” in the United States, Italy and Indonesia. After allowing for this allocation, net earnings for the year were €529m, 24.5% lower as compared to 2017.

Premiums for the EURASIA Regional Area (grouping operations in Europe with the exception of Spain and Portugal, the Middle East, Africa and Asia) dropped by year-on-year 5.6% to €1.77bn, the figures published in the press statement show.

Malta contributed €390m, representing the highest growth in this region, with an increase of 11%, the press statement says.

Mapfre Middlesea Plc (C-5553) is authorised by the Malta Financial Services Authority to carry on both Long Term and General Business under the Insurance Business Act, Cap 403 of the Laws of Malta. Mapfre MSV Life Plc is authorised by the Malta Financial Services Authority to carry on Long Term Business under the Insurance Business Act, Cap 403 of the Laws of Malta. MFSA regulates both entities.

The post Mapfre generates €702m operating in 2018, Malta outperforms peers first appeared on The Malta Business Weekly.

Adjusted EBITDA excluding non-recurring costs totalled €5.82m, an increase of 84%, corresponding to an adjusted EBITDA margin of 36%, the press statement about the group’s year-end report says. EBITDA totalled €4.98m, an increase of 69%, corresponding to an EBITDA margin of 31%.

Net cash generated from operating activities was €4.30m, while New Depositing Customers (NDCs) totalled 74,838, an increase of 106%, the report adds.

“The Group delivered, again, a record quarter in terms of revenue, EBITDA and Adjusted EBITDA as a result of substantial, ongoing organic revenue growth amounting to 62% for the fourth quarter and 37% for the full year,” said Charles Gillespie, CEO of the group.

Gambling.com Group Plc is a provider of digital marketing services for the global iGaming industry. Founded in 2006, the group has a workforce of over 80 and operates from offices in Dublin, Tampa, Monaco and Malta.


The post Gambling.com Group revenue ups 63% in 2018 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.