Leo Vegas CEO Gustav Hagman on Q4 and Full Year Performance

General Overview

• Strong Q4: 9% growth and 25% EBITDA margin.
• Innovations: Launched Leo Jackpot (€6 million) and open banking solution.
• Positive January Update: Continued positive trends into the new year.

Market Performances

Italy

• Top 5 Market for Leo Vegas despite advertising bans.
• Team Effort: Success attributed to hard work in Milan office.
• Mobile Focus: Strong product on mobile platforms, benefiting from lockdowns.

Germany

• Regulation Changes: New regulations impacting revenue.
  • €1000 monthly deposit limit.
  • 5-second spins between rounds.
  • €1 max stakes.
• Impact: Significant revenue impact in Q4 and January.
• Adaptation: Implemented changes in October and December.

UK

• Pending Regulations: Awaiting new slot guidance and regulation from the Gambling Commission.
• Preexisting Measures: Some measures already in place; potential for more impact when new regulations are disclosed.

Sweden

• Sequential Growth: Month-on-month growth for 5-6 months.
• Channelization Issues: 25% black market presence, aiming for 90% channelization.
• Government Action: B2B licenses and protection against unlicensed operators on the agenda.
• Impact: Lack of channelization affecting growth; potential improvement post-legislative changes.

Challenges and Future Prospects

• Swedish Market: Expecting regulatory improvements and lifting of temporary restrictions by July 2021.
• Continuing Restrictions: 5000 SEK weekly deposit limit and bonus caps currently in place.
• Customer Base: Trend towards more recreational and casual players.
• Long-Term Prospects: 2022 more realistic for major regulatory shifts.

Growth Strategies and Projections

• Innovation: Continued focus on product innovation (e.g., Leo Jackpot, open banking).
• Market Expansion: Entering new markets throughout the year.
• Improving Customer Experience: Enhancing product performance and customer journey.

Conclusion

• Leo Vegas is well-positioned to continue growth through innovation and market adaptation, despite regulatory challenges in key markets.