LeoVegas AB Q3 2016: Record-high revenues of 39,7 MEUR and 25% EBITDA margin

"LeoVegas has strong momentum in growth and earnings resulting from a consistent focus on mobile devices, our technology lead, effective marketing investments and strong customer inflow during the preceding quarter." – Gustaf Hagman, Group CEO and Co-founder

Third quarter: 1 July-30 September 2016^[1]

• Revenue grew 76% to EUR 39.7 m (22.6). Growth was entirely organic.
• EBITDA amounted to EUR 9.8 m (1.1), corresponding to an EBITDA margin of 24.7% (4.9%).
• Operating profit (EBIT) was EUR 9.4 m (0.9).
• Mobile deposits accounted for 67% (58%) of total deposits, which grew 87% to EUR 123.7 m (66.3).
• The number of depositing customers was 156,389 (88,290), an increase of 77%.
• The number of new depositing customers was 74,638 (42,378), an increase of 76%.
• The number of returning depositing customers was 81,751 (45,912), an increase of 78%.
• The increase in returning depositing customers from the second to the third quarters of 2016 was 22%, which is the highest sequential percentage growth rate in seven quarters.
• Earnings per share were EUR 0.09 both before and after dilution (0.01).
• Strong net cash position of 45,0 MEUR

Interim period: 1 January-30 September 2016

• Revenue grew 76% to EUR 100.2 m (57.0). Growth was entirely organic.
• EBITDA amounted to EUR 6.1 m (0.8). EBITDA adjusted for items affecting comparability was EUR 11.3 m (0.8), corresponding to an adjusted EBITDA margin of 11.3%.
• Operating profit (EBIT) was EUR 5.1 m. Operating profit adjusted for items affecting comparability was EUR 10.4 m (0.3), corresponding to an adjusted EBIT margin of 10.3%.
• Earnings per share were EUR 0.05 (0.00) before dilution and EUR 0.04 (0.00) after dilution.

Events after the end of the quarter

• LeoVegas granted a gaming licence for the Danish market

Comment from Gustaf Hagman – Group CEO and co-founder
LeoVegas continues to develop in line with our vision: to create the ultimate gaming experience and be number one in mobile gaming. The launches of LeoVegas Sport and LeoVegas Live Casino have laid the foundation for strong growth in new customers and gave us considerable momentum into the autumn and third quarter. LeoVegas continues to deliver a very good organic growth and in this quarter records in both revenues and profitability.

LeoVegas has been named as Mobile and Online Casino Operator of the Year on repeated occasions. We continue to lead the gaming industry with our advanced technological platform and now offer the market's broadest array of Live Casino games via mobile devices. In addition, we are focusing intensely on developing the market's fastest and most user-friendly mobile sportsbook.

LeoVegas' leading position in mobile gaming has been affirmed in a survey published in the Online Gambling Quarterly Report. The results of the survey, which is based on responses from leading experts and executives in the industry, suggest that during the coming 12 months LeoVegas will be the gaming operator that grows the most of all gaming operators in the world. I credit this to the fantastic contributions made by all of our employees.

The fourth quarter has opened in line with our expectations. Net gaming revenue (NGR) in October totalled EUR 12.8 m, corresponding to growth of 63% over the same period in 2015. December has historically been the month with the strongest growth for the quarter.

With strong momentum, new gaming categories and a leading position in mobile gaming, we look forward to an eventful winter.

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 5033 6538, UK: +44 (0) 20 3427 1902, US: +1646 254 3388
Bekräftelse kod: 7289278 or join at the web http://edge.media-server.com/m/p/vixtmczs

This information is information that LeoVegas AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 9th of November 2016.

For further information, please contact:

Gustaf Hagman, Group CEO co-founder: +46 70-880 55 22, gustaf.hagman@leovegas.com
Viktor Fritzén, Group CFO: +46 73-612 26 67, viktor.fritzen@leovegas.com
Visitors address: Sveavägen 59, Stockholm
Corporate identity number: 556830-4033

About the LeoVegas mobile gaming group
LeoVegas' vision is to create the ultimate mobile gaming experience and be number one in mobile casino. The business is distinguished by award-winning innovation and strong growth. LeoVegas' technical development is conducted in Sweden, while operations are based in Malta. The Swedish parent company LeoVegas AB (publ) invests in companies that offer gaming via mobile devices and desktop computers along with companies that develop related technologies. LeoVegas has attracted major international acclaim and has won numerous awards, including "Nordic Operator of the year", "Mobile Marketing Campaign of the year", and "Innovation in Mobile and Tablet of the Year" at the international EGR Awards. LeoVegas bases its development on "Mobile First" and is at the forefront of using state-of-the-art technology in the mobile gaming market. With a foundation in a great gaming experience, long-term customer relationships and establishment of a strong brand, the company has attracted a steadily growing customer base through innovative, effective and data-driven marketing. Since its start, the mobile gaming company LeoVegas has shown strong quarter-on-quarter growth. LeoVegas' shares are listed on Nasdaq First North Premier. Avanza Bank AB is the company's Certified Adviser. For more about LeoVegas, visit www.leovegas.com and www.leovegasgroup.com.

^[1] Throughout this report, figures in parentheses pertain to the same period a year earlier.