LeoVegas AB Q4: Quarterly news 1 Oct – 31 Dec 2019. LeoVegas reiterates a long-term financial targets, mislay brief tenure financial targets and raises a dividend

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

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

  • Revenue increasing by 3% to EUR 87.1 m (84.5).
  • EBITDA was EUR 14.5 m (8.1), analogous to an EBITDA domain of 16.7% (9.6%)
  • Adjusted EBITDA was EUR 9.2 m (8.1), analogous to a domain of 10.6% (9.6%).
  • The series of depositing business was 351,613 (327,156), an boost of 7%.
  • The series of returning depositing business was record-high 207,982 (181,747), an boost of 14%.
  • Adjusted benefit per share were EUR 0.06 (0.06).

Events during a entertain

  • LeoVegas investment association LeoVentures sole a auxiliary Authentic Gaming to Genting. The sales cost was EUR 15.2 m on a debt-free basement and generated a collateral benefit of EUR 11.4 m.
  • LeoVegas carried out vital measures in a UK and has called off a pierce to new offices in Malta. These initiatives will lead to annual cost assets of approximately EUR 3.7 m. Restructuring costs of EUR 6.1 m are reported underneath equipment inspiring comparability for a fourth quarter. At a same time, an spoil detriment of EUR 10.2 m has been recognized for a Royal Panda investment.

Events after a finish of a quarter

  • Preliminary income of EUR 30,1 m in Jan (28.7), representing enlargement of 5%.
  • In light of a some-more conspicuous concentration on profitability in an increasingly energetic business sourroundings LeoVegas has motionless to mislay a financial targets to strech sales of EUR 600 m and EBITDA of EUR 100 m by 2021. At a same time, a association has validated a long-term financial aim to grasp organic enlargement that outperforms a online gaming marketplace and an EBITDA domain of no reduction than 15%.
  • LeoVegas’ Chairman, Mårten Forste, hired as new COO in Malta.
  • The Board of Directors proposes a division of SEK 1.40 per share (1.20), an boost of 17%, to be paid out – as in a preceding year – on dual occasions during a year.



sustainability and long-term growth
During 2019 we worked tough to revoke complexity in a Group, be some-more fit and adjust to a changes holding place in a gaming industry. In together with this we have extended a captivate of a product by new functionality and larger personalisation. We have launched new brands, focused some-more on Casino, and stretched to new markets. Towards a finish of a year we clever a formation of a prior acquisitions, that is approaching to minister to cost assets and increasing economies of scale.

Our investments in sustainability have been quite meaningful, where LeoVegas is one of a heading operators. For example, currently we have some 70 employees who work exclusively with obliged gaming and compliance.

an attention in change
2019 was a year characterised by change in a industry, with outmost hurdles joined to aloft final for compliance, aloft gambling taxes and undertainty surrounding destiny regulation. In a nearby tenure this is presenting hurdles to navigate in an increasingly formidable world, though it also presents prolonged tenure rival advantages for a association like LeoVegas, that has a scalable organisation, exclusive record and concentration on tolerable enlargement along with an increasingly broader income bottom widespread opposite several markets and brands.

We have entered 2020 with a good starting point, with an increasingly fit organization and many ongoing initiatives surrounding product creation and code expansion. Owing to a increasingly energetic business sourroundings and a some-more conspicuous concentration on profitability, we have motionless to mislay a financial targets for 2021 while we echo a long-term financial targets of organic enlargement in additional of a marketplace and an EBITDA domain of during slightest 15%.

At a same time, a underlying essential enlargement and enlightened financial position have combined a substructure for a Board’s offer to lift a division for 2019 by 17% to SEK 1.40 per share.

fourth entertain 2019
Revenue for a fourth entertain amounted to EUR 87.1 m (84.5), representing organic enlargement of 3%. Growth during a duration remained good in many of a markets. Excluding a UK market, organic enlargement in internal currencies was 11%. We are generally gratified with a opening in Sweden, where we continue to take marketplace shares.

EBITDA for a fourth entertain practiced for equipment inspiring comparability during a duration totalled EUR 9.2 m (8.1), analogous to an EBITDA domain of 10.6% (9.6%). We thereby softened a underlying distinction by 13% compared with a year ago notwithstanding a aloft weight from gambling taxes and increasing regulatory complexity, that confirms that a concentration on potency and cost control is agreeable a preferred result.

A integrate of weeks ago we communicated a series of vital decisions joined especially to a UK and a ambitions to emanate a reduction formidable and some-more scalable organisation. These initiatives gave arise to one-off restructuring costs that influenced fourth entertain benefit by a sum of EUR 6.1 m and are approaching to lead to annual cost assets of approximately EUR 3.7 m. The assets include especially of height and product costs, a some-more fit organization and some-more optimized premises.

During a fourth entertain we recognized a collateral benefit on a sale of Authentic Gaming, that was sole in October. The collateral benefit was EUR 11.4 m. EBIT for a fourth entertain was also influenced by an spoil detriment of EUR 10.2 m associated to goodwill in Royal Panda.

We had enlightened opening in many of a markets during a full year 2019. Three of a vital markets, Sweden, a UK and Germany, underwent vital changes during a past year. In Germany, a dismissal of a pivotal remuneration services provider influenced a income during a fourth quarter. Development softened gradually during a entertain in gait with business anticipating choice remuneration methods. We are now flourishing again sequentially month-on-month in Germany. We are quietly watchful for clarity per what destiny law will demeanour like in Germany. Based on a many new information, a German sovereign states are now in agreement to umpire a marketplace during a inhabitant turn during a finish of 2021.

As formerly communicated, we are addressing a hurdles in a UK by migrating all of a brands in a UK to a exclusive technical platform. In together with this we are enlightening a code portfolio and shutting Royal Panda in a UK. Altogether these measures are heading to a some-more focused and fit operation and opening adult economies of scale within a Group. Revenue for a remaining operations in a UK, consisting of 13 brands, grew 15% over a third entertain and showed good profitability. Royal Panda will now concentration wholly on fast-growing markets outward a UK.

In a Swedish marketplace we are stronger than ever. It is transparent that we are benefiting from a clever brand, concentration on obliged gaming and knowledge from regulated markets. In addition, GoGoCasino has exceeded a expectations and was successful in a plan of stuffing an dull space in a Swedish casino market. Dec was record-strong and we finished a year with income as good as a series of business during record high levels. During 2020 we design to see a authorities holding a harder line opposite unlawful actors, that will urge channelisation and consumer insurance in a Swedish market.

Comments on initial entertain 2020
Revenue for a month of Jan amounted to EUR 30.1 m (28.7), representing enlargement of 5%.

Royal Panda in a UK, that was sealed in January, is not approaching to beget any poignant income during a initial quarter. During a fourth entertain Royal Panda generated income of EUR 1.1 m in a UK.

With good movement in many of a markets and a series of enlargement initiatives, we are looking brazen to a residue of 2020. We continue to work tough to broach essential enlargement during a same time as we are operative to live adult to a vision, to be “King of Casino”.

Presentation of a news – currently during 09:00 CET
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