Connect with us

Latest News

LeoVegas AB Q1: Quarterly report 1 January – 31 March 2021

Published

on

Reading Time: 4 minutes

 

“A good start to the year and increased focus on sports”
Gustaf Hagman, Group CEO

first quarter 2021: 1 january–31 march        

  • Revenue increased by 8% to EUR 96.7 m (89.4). Organic growth in local currencies was 8%.
  • Organic growth when excluding Germany was 19%.
  • Adjusted EBITDA was EUR 10.9 m (9.0), corresponding to an adjusted EBITDA margin of 11.3% (10.0%). Reported EBITDA was EUR 10.4 m (9.0).
  • The number of depositing customers was 462,386 (413,269), an increase of 12%.
  • Adjusted earnings per share were EUR 0.07 (0.06).

events during the quarter

  • LeoVegas acquired Expekt from Betclic Group for a total purchase price of EUR 5 m. Expekt is one of the most well-known sports betting brands in Sweden and the Nordic markets, and strengthens LeoVegas’ brand portfolio ahead of the intensive sport event years in 2021 and 2022. The acquisition of Expekt is expected to be completed in May 2021.
  • LeoVegas’ shares were taken up for trading in USD on OTCQX Markets in the USA. This is a way for the company to meet a steadily growing interest from US investors.
  • Via LeoVentures, LeoVegas invested EUR 1.1 m for 25% of the shares in SharedPlay, a company that makes it possible for players to share their gaming experiences with others through the industry’s first multiplayer solution.

Events after the end of the quarter

  • Preliminary revenue in April amounted to EUR 32.7 m (37.5), representing negative growth of 13%. Excluding Germany, revenue grew 4%.
  • The Royal Panda brand has been migrated to the Group’s proprietary technical platform, Rhino. All of the Group’s wholly owned brands are now run on the Rhino platform.
  • LeoVegas has started its own game studio, Blue Guru Games, to develop new and innovative games. The studio will develop exclusive games for LeoVegas as well as for other operators. The first games will be released in late 2021.
  • LeoVegas was issued a sanction fee of SEK 2 m by the Swedish Gambling Authority. The company intends to appeal the decision.

 

COMMENT FROM GUSTAF HAGMAN – GROUP CEO

FIRST QUARTER
We are pleased with the start of the year and increased our revenue by 8% during the first quarter. Excluding Germany, which has been affected by new restrictions related to the upcoming regulation, revenue increased by 19%. Our growth has been driven mainly by our loyal customer base, which reached a new record level during the period. We have maintained a high pace of investment, and despite this we achieved adjusted EBITDA growth of 22%, driven by our scalability and good cost control.

ACQUISITION OF EXPEKT – increased FOCUS ON SPORTS BETTING
During the first quarter we acquired the well-known sports betting brand Expekt. The acquisition gives us one more leg to grow on and complements the Group’s brand portfolio and product offering in a strategically good way. We are looking forward to Expekt once again becoming a leading sports betting brand in Sweden and thereafter also in other markets. The acquisition is expected to be completed in May in connection with our migration of the brand to our own technical platform. The timing of the acquisition is perfect as we are now facing two years filled with major sports events, and we plan to launch Expekt well in advance of the UEFA European Football Championship, which starts in June.

MarKETS
During the first quarter we saw the full effect of the changes taking place in the German market. Operators in the market are acting differently with respect to implementing the new restrictions, which unfortunately has led to a skewed competitive situation. The assessment is that up to 70%-80% of the German market for casino has temporarily been shifted over to operators that have chosen to not adapt to the coming market regulation. Our hope is that this will soon be sorted out by the German authorities, which is a prerequisite for the licence system’s success, with a high level of channelisation and consumer protection. Germany generated approximately 6% of the Group’s total revenue during the first quarter, compared with 15% a quarter earlier. Despite this development in Germany we delivered good growth at the Group level, which reflects our strong performance in many other key markets, including Italy, Canada and Spain. Our business is more diversified than ever before, and growth at the Group level is proof that our data-driven way of working and allocating marketing investments is effective.

I also want to highlight Sweden, where the strength of the LeoVegas brand and our product breadth is appreciated by our customers. Our Swedish customer base set a new record during the quarter, and in March we grew on a yearly basis for the first time since the temporary Covid-19 restrictions were implemented in July 2020.

leoventures
The first quarter was an intensive period for our investment vehicle LeoVentures. Among other things we invested in SharedPlay, a company that makes it possible for players to share their gaming experiences with others through the industry’s first multiplayer solution. For a long time we have created successful,  exclusive games with the help of external providers. We are now taking the next step by starting our own game studio – Blue Guru Games. This venture will give us full control and greater flexibility in developing new games, a unique offering to our players, and also a new revenue stream for the Group.

COMMENTS ON the SECOND QUARTER
Revenue for the month of April amounted to EUR 32.7 m (37.5), corresponding to negative growth of 13%. Excluding Germany, growth in April was positive at 4%.

Finally I want to urge you to be on the lookout for the new launch of Expekt in Sweden towards the end of May – you won’t be disappointed!

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: 6888544 or join at the web https://edge.media-server.com/mmc/p/x6q2utt4

This information is information that LeoVegas AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact person set out below, at 08:00 CET on 6th of May 2021.

Continue Reading
Advertisement

Daily Fantasy Sports

Assessing the esports DFS opportunity in the US

Published

on

assessing-the-esports-dfs-opportunity-in-the-us

 

Oliver Niner, Head of B2B says that DFS remains a compelling vertical with huge growth potential especially if operators expand their offering into esports

The roll out of legal online and mobile sports betting across US states has presented a significant opportunity for operators, but the market has proved harder to crack than many anticipated.

The cost of customer acquisition is skyrocketing, building brand equity is taking much longer than expected, and there’s been a slowdown in new states embracing regulation and licensing.

This has led to a run of operators exiting the market as the numbers simply don’t add up.

But while this is happening, the daily fantasy sports space continues to thrive and remains a compelling opportunity for operators.

DFS has a unique legal standing in many states where sports betting is still restricted, allowing operators to reach audiences they otherwise couldn’t.

It also fosters deeper engagement with those who play – players aren’t just betting on outcomes; they’re actively managing lineups and pitting their knowledge and skills against others.

This is the perfect combination for retention and loyalty – something sportsbooks struggle to achieve with players easily swayed to join another brand simply because of a generous free bets offer.

There’s also an untapped opportunity in bringing the worlds of esports and daily fantasy sports together, allowing operators to connect with an entirely new audience.

Until now, traditional DFS brands have focused on the major sports, but the younger, digital-native audiences are more interested in esports such as CS2 and LoL than the NFL.

 

Why the DFS model works:

Before discussing how operators can get in on the esports DFS action, it’s important to understand why the DFS model works so well in the US, especially for those looking to diversify their offering.

The first is regulatory accessibility. DFS is legal in more states than traditional sports betting, allowing operators to enter markets where sportsbook licensing is unavailable or complex.

DFS has much lower acquisition costs while serving as a gateway to paid gaming. It often attracts a younger, more engaged audience at a lower CPA compared to traditional sports betting.

Strong user retention is another upside. Unlike one-off bets, DFS players return regularly to manage lineups, track stats and compete in contests, driving retention rates way beyond sports betting.

It’s also esports ready. Esports fans are highly engaged with player performance stats, making DFS a natural fit. It can then serve as an introduction to real-money esports betting when regulations allow.

 

The esports DFS opportunity to be explored:

DFS is an established and thriving vertical and while some operators offer esports within their proposition, it often lacks depth, innovation and mainstream adoption.

Esports fans are naturally engaged with stats, player performance metrics and in-game analytics, so easily segue into the DFS format.

Titles like LoL, CS2, Dota 2 and Valorant offer rich data sets that allow for creative and competitive fantasy formats, but most operators are yet to really get into it.

This leaves a major gap in the market and a huge opportunity for those who put together a compelling esports DFS product, especially as the popularity of esports betting grows.

 

What a compelling esports DFS product looks like:

The foundation of any esports DFS product is reliable, real-time data and the ability to provide a range of engaging contest formats.

This is where companies such as PandaScore come in. We provide operators with comprehensive esports data including player and team stats across all the major disciplines.

We supplement this with accurate odds and DFS pricing models, helping operators to set accurate and competitive odds – both our data and odds feeds are integrated seamlessly via API.

We also provide unrivalled market expertise; the team has years of experience powering esports betting which we leverage to ensure our partners can succeed with esports DFS.

In addition to markets and odds, players need to be able to access deep performance metrics so they can make informed decisions.

It’s also important for the operator to provide a smooth and intuitive experience via a seamless UX and mobile first approach to site and app navigation.

The diversity of the contests offered needs to be considered, too. This includes classic salary cap formats as well as pick’em games and more.

It goes without saying that social interaction needs to be baked into the experience through features such as leaderboards, private leagues and head-to-head challenges.

 

Operators need to get ahead in a rapidly evolving market:

The US sports betting and iCasino market is fast moving with the landscape constantly changing – just look at the conversation around sweepstakes casinos.

For me, DFS and especially esports DFS remain an underutilised growth channel that operators need to take advantage of.

As esports betting gains traction – PandaScore recently surpassed €1bn in bets through its platform – DFS serves as a vital entry point through which operators can build brand recognition and engage a digital-first audience primed and ready to play.

This audience might not be familiar with real-money betting today, but by providing them with an experience they are familiar and comfortable with, they can become the bettors of tomorrow.

At PandaScore, we are here to help operators capitalise on this opportunity with best-in-class data, pricing models and strategic support.

For operators, this means the numbers will always add up when it comes to esports daily fantasy sports.

The post Assessing the esports DFS opportunity in the US appeared first on Gaming and Gambling Industry in the Americas.

Continue Reading

1PRA1.BET.BR

Avaí Signs Master Sponsorship Deal with Betting Company 1PRA1.BET.BR

Published

on

avai-signs-master-sponsorship-deal-with-betting-company-1pra1bet.br

 

The company will also appear on training uniforms and other club assets.

Starting this Saturday (April 26), when Avaí faced América-MG at Ressacada Stadium for the Brazilian Série B, the team will showcase a new master sponsor on their jerseys: the betting platform 1PRA1.BET.BR. The contract was signed on Friday (April 25) and is valid until April 2026. In terms of value, this agreement surpasses all previous sponsorship deals signed in past seasons.

In addition to featuring its brand in the main space on the jersey, the company will also appear on training uniforms, stadium assets (such as the big screen and field boards), and on the club’s social media platforms. Marketing activations will also be carried out throughout the year. Beyond men’s football, the agreement may also extend to other sports, which will be defined by both parties in the coming days.

“I’m proud to sign this agreement, which will be extremely beneficial for the club. It also demonstrates the strength of the Avaí brand and the value we can offer our commercial partners. We have big goals this year and will continue to seek further support to strengthen the institution in every aspect,” said Júlio César Heerdt, President of Avaí.

“It is a great pleasure for 1PRA1.BET.BR to announce our partnership with Avaí. Walking side by side with such a traditional club beloved by its fans is a point of pride for all of us. We strongly believe in the power of this union: the number one football club in Santa Catarina now paired with the number one entertainment platform. We’re very excited to take this step and confident that we will achieve great things together!” celebrated Tiago Grecco, Marketing Director at 1PRA1.BET.BR.

“We always work in Avaí’s best interest to bring more opportunities and valuable resources that can be reinvested into the club. This deal represents another collective effort by everyone here to strengthen Avaí in pursuit of even greater goals. We thank the leadership at 1PRA1.BET.BR for their trust, and I’m certain we’ll build a great relationship with mutual benefits for both the company and the team,” added Rodrigo Florenzano, Avaí’s Business Director.

In addition to 1PRA1.BET.BR, Avaí has sponsorship agreements with Genial Investimentos, WOA, Liderança, UniCesumar, and JTA Empreendimentos, as well as Volt Sport, the club’s official sportswear supplier.

The post Avaí Signs Master Sponsorship Deal with Betting Company 1PRA1.BET.BR appeared first on Gaming and Gambling Industry in the Americas.

Continue Reading

Asia

Construction of Japan’s First Integrated Resort with a Casino Begins

Published

on

construction-of-japan’s-first-integrated-resort-with-a-casino-begins
Reading Time: 2 minutes

 

Construction has officially begun on Japan’s first integrated resort with a casino, as MGM Osaka held its groundbreaking ceremony last week. The event, hosted by Osaka IR KK, the project’s promoter, was attended by Osaka Governor Hirofumi Yoshimura and representatives of MGM Resorts International and Japan’s Orix Corporation, the lead partners behind the ¥1.27 trillion ($8.8 billion) development.

Located on the man-made island of Yumeshima in Osaka Bay, MGM Osaka is scheduled to open in the autumn of 2030. The project marks a key milestone in Japan’s long-debated foray into legalised casino gaming. Once operational, it is expected to generate around $5.9 billion annually in gross gaming revenue.

MGM Osaka will feature a casino, three hotels with approximately 2500 rooms, and extensive convention and entertainment facilities, including a 3500-seat theater, 330,000 square feet of exhibition space and 400,000 square feet of conference areas. Dining and retail outlets are also part of the expansive master plan.

“In collaboration with Osaka Prefecture and Osaka City, this project… is expected to contribute to the development of Japan’s tourism industry and the growth of the Kansai region,” a press statement reads.

The complex’s timeline coincides with the tail end of Expo 2025, also hosted on Yumeshima Island. To minimise disruption during the event, construction will be scaled down on peak days and the use of heavy machinery delayed until after the Expo concludes in October.

The resort will benefit from enhanced transportation access. A new Osaka Metro station opened in January to serve Expo 2025 and eventually MGM Osaka, while the Kintetsu Nara Line is being extended to further improve connectivity before the resort opens.

Financially, the project is backed by a ¥530 billion ($3.68 billion) debt financing package led by Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp., with investments from regional businesses in Osaka.

The post Construction of Japan’s First Integrated Resort with a Casino Begins appeared first on European Gaming Industry News.

Continue Reading

Trending