11, 2021 /PRNewswire/ - 'Yet another record year for LeoVegas with a strong close' - Gustaf Hagman, Group CEO fourth quarter 2020: 1 october-31 december Revenue increased by 13%. LeoVegas report for the fourth quarter 2020 will be published at 08:00 CET on February 11, 2021. A webcast telephone conference will be held at 09:00 CET the same day, where Gustaf Hagman, CEO. In Sport and Poker, there are a few market-leading actors. The market for Mobile Casino, however, is a fragmented market with numerous actors and no clear global leader. LeoVegas has the long-term ambition to take the position as the global market leader in Mobile Casino. Working at LeoVegas Mobile Gaming Group. Here, success is all about taking responsibility, delivering results and winning through teamwork. Thanks to our entrepreneurial heritage, you’ll have plenty of opportunities to try out and develop your ideas, and to grow with the business. With LeoVegas Casino, you also have the choice of playing on whichever device you feel most comfortable with: be it desktop, tablet or even mobile. With the sleek-looking and user-friendly LeoVegas App, available on both Android and Apple, you simply have to reach inside your pocket and start enjoying all your favourite casino slot games on the go!

STOCKHOLM, Feb. 11, 2021 /PRNewswire/ -- 'Yet another record year for LeoVegas with a strong close'

- Gustaf Hagman, Group CEO

fourth quarter 2020: 1 october-31 december

• Revenue increased by 13% to EUR 98.4 m (87.1). Organic growth in local currencies was 14%.
• Adjusted EBITDA was EUR 11.5 m (9.2), corresponding to an adjusted EBITDA margin of 11.7% (10.6%). Reported EBITDA includes EUR -3.5 m (5.3) in items affecting comparability.
• The number of depositing customers was 461,983 (372,032), an increase of 24%.
• Adjusted earnings per share were EUR 0.08 (0.06).

Events during the quarter

• LeoVegas was the first company in the gaming industry to offer payments via Open Banking.
• During the quarter the Group's unique and record-large jackpot was launched under the name LeoJackPot.
• LeoVegas secured long-term and diversified financing through a combination of a bank credit facility (RCF of EUR 40 m) and a bond issue of SEK 500 m under a total framework of SEK 800 m.
• During the quarter, LeoVegas repurchased its own shares for approximately EUR 5 million.
• Ahead of the forthcoming regulation in Germany, a number of changes were implemented. This led to lower revenue during the quarter, with the greatest effect during the month of December.
• LeoVegas has changed its interpretation of the calculation of gaming taxes in Denmark for earlier periods. This resulted in a self-correction, and a one-off cost of EUR 3.5 m has been charged against EBITDA.
• Decision has been taken to migrate the Royal Panda brand to the Group's proprietary technical platform.

Events after the end of the quarter

• Preliminary revenue in January amounted to EUR 32.5 m (29.9), representing growth of 9%.
• The Board of Directors proposes a raised dividend totalling SEK 1.60 per share (1.40), an increase of 14%, to be paid out on four occasions during the year.

COMMENT FROM GUSTAF HAGMAN - GROUP CEO

STRONG CLOSE TO 2020

LeoVegas concluded the record year 2020 with its strongest fourth quarter ever. And we did this despite frequent changes to the gaming requirements in our markets in addition to finding ourselves in the midst of a global pandemic. I am proud of our ability to quickly adapt to changed conditions through a high capacity for innovation at the same time as we are building an increasingly solid and diversified business. It is a demonstration of strength that LeoVegas delivered adjusted EBITDA growth of 25% for the full year while the operating cash flow increased almost 90 %. This was achieved despite maintaining a high investment pace with launches of new brands, new markets and product improvements.

During the fourth quarter we increased our revenue organically by 14%. Growth was mainly driven by a continued rise in depositing customers, which grew 24% to a new record level. Adjusted EBITDA increased by 25% during the quarter to EUR 11.5 m. Reported EBITDA was charged with a one-off provision of EUR 3.5 m related to a changed interpretation of the calculation of gaming taxes in Denmark for earlier periods.

MarkETS

With the exceptions of Sweden and the UK, our core markets showed high double-digit growth during the quarter. Above all I want to highlight Italy, which has now become one of our five biggest markets. During the quarter we launched the Pink Casino brand in Canada. The launch is part of our multibrand strategy, where we are utilising existing resources and our technical platform to expand through scale.

In the German market, LeoVegas has implemented a number of changes ahead of the forthcoming licence system in July 2021. As expected, this affected revenue during the period. Operators in the market are acting differently with respect to the new restrictions, and at present necessary clarity is lacking in the ongoing transitional period, which unfortunately has led to a skewed competitive situation until the licence system has been fully implemented.

TECHNOLOGY AND PRODUCTS

During the quarter we carried out and launched several major projects and innovations. In particular I want to highlight our new exclusive jackpot - LeoJackpot - where our customers can win over SEK 50 m directly from their smartphones. We were also first in the industry to offer payments via Open Banking. This will benefit LeoVegas and our customers in many ways, including through more secure and faster payments and lower transaction costs.

During the quarter we began the migration of Royal Panda to our joint technical platform. As a result, in 2021 all brands will be operated on the same platform. The migration will lead to cost synergies such as lower platform and product costs and a more efficient organisation. The decision has also resulted in impairment of intangible assets attributable to Royal Panda's platform, which was charged against EBIT in the amount of EUR 1.9 m.

FINANCING AND INVESTMENTS

At the end of the year we secured the Group's long-term financing needs through the combination of a renewed bank credit facility of EUR 40 m and a newly issued corporate bond of SEK 500 m.

Stable financing combined with a strong balance sheet gives us a solid base for continued expansion, both through organic initiatives and potential acquisitions. During the fourth quarter we carried out share repurchases for approximately EUR 5 m. In addition, the Board of Directors proposes an increase in the dividend to SEK 1.60 per share.

COMMENTS ON FOURTH QUARTER

Revenue for the month of January amounted to EUR 32.5 m (29.9), corresponding to annual growth of 9%. In January revenue was fully impacted by the changes carried out in Germany ahead of the forthcoming regulation.

On the tailwinds of a strong 2020 we are now looking forward to a year with many exciting growth initiatives and an even stronger customer offering.

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: 6385386 or join at the web https://edge.media-server.com/mmc/p/hr4rjg4u

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 11^th of February 2021.

Leovegas Careers

For further information, please contact
Gustaf Hagman
President and CEO
+46 (0) 8 410 367 66
gustaf.hagman@leovegasgroup.com

Stefan Nelson
CFO
+356 993 942 68
stefan.nelson@leovegasgroup.com

Philip Doftvik
Director of Investor Relations and Corporate Finance
+46 73 512 07 20
philip.doftvik@leovegasgroup.com

About LeoVegas mobile gaming group

LeoVegas vision and position is 'King of Casino'. The global group LeoVegas Mobile Gaming Group offers games on Casino, Live Casino, Bingo and Sport. The parent company LeoVegas AB (publ.) is located in Sweden and its operations are mainly located in Malta. The company's shares are listed on Nasdaq Stockholm. www.leovegasgroup.com

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/leovegas-mobile-gaming-group/r/leovegas-ab-q4--year-end-report-2020,c3284577

The following files are available for download:

OUR BRANDS

The LeoVegas Mobile Gaming Group operates several global and scalable brands.

MANAGEMENT TEAM

With over 100 years of experience from within the iGaming industry, our Management team has the competence to take on our goals and ambitions going forward.

KING OF MOBILE CASINO

Leovegas

The global gaming industry consists mainly of three game categories: Casino, Sport, and Poker. In Sport and Poker, there are a few market-leading actors. The market for Mobile Casino, however, is a fragmented market with numerous actors and no clear global leader. LeoVegas has the long-term ambition to take the position as the global market leader in Mobile Casino.

Leovegas.com

RESPONSIBLE GAMING & LEOSAFEPLAY

Responsible gaming not only matters to our customers but is central to our business model. Read all about our ongoing commitment at

LEADING THE WAY

Having seen the mobile revolution coming, we remain committed to our passion: leading the way into the mobile future. As innovation is part of our DNA, we’ll continue to offer the best mobile gaming experience.

Try our award winning experience at LeoVegas.com

BECOME PART OF OUR FAMILY

Help us build the mobile casino of the future. We are always looking for top talent in various fields. Read more about careers with us here.