Tag: Industry News

German lottery provider Zeal Network has reported a 101.6% year-on-year increase in net profit for the first quarter of its 2022 financial year, following a rise in revenue and reduction in operating costs.

Revenue, including income from jackpot insurance, for the three months to 31 March 2022 was €25.1m, an increase of 11.0% from €22.6m in the same period last year.

The majority of revenue (€24.0m) was generated through Zeal’s German business, while the remaining €1.1m came from other operations, with both areas benefitting from higher billings.

Total group billings, which comprise all stakes from customers through Zeal’s offering, were up 10.9% to €181.1m due to better jackpot development and an increase in customers.

Zeal was able to acquire 154,000 registered new customers in the quarter, slightly lower than the 156,000 last year, with acquisition costs per registered new customer up from €33.48 to €38.09.

Turning to costs, operating expenses were 9.8% lower at €16.5m, helped by a 20.2% cut in personnel spend as total employee headcount was reduced from 164 to 156. Marketing costs were 3.3% higher at €7.3m, but direct operating expenses were down 10.6% to €2.5m and indirect operating expenses were reduced by 15.2% to €2.6m.

Higher revenue and lower spending led to a 95.6% year-on-year increase in earnings before interest, tax, depreciation and amortisation (EBTIDA), which reached €8.9m in the quarter, up from €4.6m last year.

Zeal also noted €2.1m in amortisation and depreciation expenses, a 2.9% drop on Q1 2021, which resulted in a 187.6% jump in earnings before interest and tax (EBIT) to €6.8m.

After also taking into account €158,000 in financial costs and a €43,000 loss from associates, pre-tax profit was €6.7m. Zeal paid €1.6m in income tax, meaning it ended the quarter with a net profit of €5.0m, more than double the €2.48m posted last year.

“We have made a good start to 2022 and were able to increase revenue and profitability once again; this gives us momentum to invest in further growth this year,” Jonas Mattsson, chief financial officer of Zeal, said.

Do not fix it if it isn’t broken, right? Well, no, not really, and let us tell you why. This is the story on how we upgraded the perfect game by adding necessary variations to global success based on our customers’ feedback and our own know-how.

Lucky Six back story

Our draw-based, bingo-style game Lucky Six is almost as old as the company. It was our firstborn child and the first asset for the foundation of soon to become a successful business in the betting and gaming industry on a global level. Everybody loves Lucky Six. Since the V1, the game was simple, neat, running on any device, with good (configurable) RTP. The RNG driven entertainment soon became a must-have for any betting shop. And yes, it was first made for bet shops.

How to play

A total of 48 numbers are divided into eight groups. Every group has its colour, so the player will find red, green, blue, purple, brown, yellow, orange and black coloured balls with numbers. The player chooses six to ten numbers, and 35 out of 48 numbers will be drawn from the drum.

To win the draw, the player has to guess six numbers correctly.

Evolution of the game

Ever since this basic setup, the game has been continuously renewed, always featuring something new – visual enhancement, better performances, new bonus games, simpler UX, richer statistics, sound effects, etc. It was and still is the ongoing process that resulted in one of the best bingo-style games on the market for the retail distribution channel.

In cooperation with our partners, and betting operators, we have gathered invaluable information from the players themselves, and that is the secret of Lucky Six – the players helped us polish it!

Satellite distributed

Lucky Six is available to the operators and players even in areas with a poor internet connection, thanks to satellite streaming. The satellite stream is performed via the shared channel and with no additional fee for the satellite steam service.

Lightning Lucky Six is born.

After conquering retail, naturally, we have released the game on the online channels: web and mobile. The process demanded the adaptation of the well known and lovable product to the somewhat different surroundings. Online Lucky Six needed to meet quite different expectations of online players. The biggest one was speed-related.

So, fast Lucky Six was born, and it was named accordingly: Lightning Lucky Six.

As we have already mentioned, and as the name itself suggested, the main change of Lucky Six for web and mobile app were speed rounds. The number of markets was optimised as well. This was done in order to keep desired dynamic of the game even with the speeded process and not to overwhelm the players. The entire setup of the Lightning Lucky Six game had the basic premise of creating a fast bet experience for the players. The backend used for the game is similar to one at Lucky Six, with the same flair and simplicity. It can run on almost any device as well.

Although the round duration is configurable in both games, it is evident that the optimal time between rounds for the online is significantly different from the land-based presentations. The payment procedure in a physical shop lasts longer, thus the longer in-between desired time, while online players can only be annoyed with a long delay between rounds.

Optimised markets do not diminish the overall betting experience. On the contrary, it lifts the game and aligns with the desired fast betting experience. Predefined systems 6/7, 6/8, 6/9 and 6/10 in both games give the players more options for winning.

Lucky Six in the Casino category

The expansion of Casino content spin games and video slots is exponential. A lightning-fast!

Online players have easily related to the fast, flashy games, IT games for the online channel.

NSoft has offered and still offers third party integration with leading casino providers covering every aspect of this industry niche. Recently, our Games team have started an exciting journey: the production of our own video slots and casino content. Together with several exciting slots representing the vertical, like Classic Neon, Temple of Horus, and Vice Nights, there is also a spin version of Lucky Six. The game is called Slingshot 6 and proudly represents the latest upgrade of our classic.

Slingshot 6 is a casino game for the online channel. It is a spin game based on bingo which brings diversity into inevitable video slots category and ultra-popular crash categories.

The game’s duration is configurable, but being an on-demand game, there is no waiting time between rounds unless the players choose to have one. The round duration spans from up to 3 sec in turbo mode to 35 seconds.

Similar to Lightning Lucky Six, Slingshot 6 offers optimised betting options, sweetened with the possibility to play on favourites and run the game within one second. A system bet is also available, as well as the bonus symbol, a star, which multiplies the winnings.

User Interface differences

Lucky Six UI differs from the UI made for lightning and casino game categories mainly due to the differences between the number of markets. Still, all of them offer neat design, simplicity, showcase round history, statistics, favourite numbers and appealing drum visualisation.

All games share the same legacy, yet every one of them has its place in the operators’ setting. The popularity of Lucky Six made Lightning Lucky Six desirable online content, which led to a version for the popular casino category.

The FBMDS portfolio keeps growing as the brand launches its fresh Bonus VIP collection. This new video bingo pack contains four products – Plus 3, Multi Mega, Multi Champion and Multi Plus – and changes the players’ experience by bringing new possibilities, new emotions and memorable prizes.

“The video bingo players asked and we delivered. After reading the market numbers and the feedback that players provided to our network of clients, FBMDS decided to produce a new line of video bingos that bring more excitement to the gaming sessions,” the company said.

Besides the rewarding Free Plays Bonuses, these four online casino games raise the bet limits to a new level, allowing players to aspire to even more memorable wins.

The FBMDS Bonus VIP video bingo collection also includes subtle graphic changes, building a premium atmosphere. It contains three titles that allow players to bet on 20 cards simultaneously and one game in which players can bet on 4 cards at the same time in each round.

FBMDS makes available demo versions of the four games:

Plus 3 Bonus VIP

Multi Mega Bonus VIP ​

​Multi Champion Bonus VIP​

Multi Plus Bonus VIP

Playtech plc has published a trading update for the first four months of 2022 and also provides an update on the company’s ongoing corporate activity.

Trading Update

Since FY 2021 results were announced on 24 March 2022, Playtech has continued its excellent start to the current financial year with Adjusted EBITDA (unaudited) for the first three months of more than EUR100 million. This positive Q1 run rate has continued through April.

These results are reflected across both B2B and B2C businesses, with Snaitech seeing a positive drive through online business, retail recovery and favourable sports results.

B2B results have been encouraged through strong momentum from the Americas, especially with Caliplay in Mexico, as well as through wider B2B operations such as live casino.

The live casino business has also signed several new licensees and launched a range of new games.

In North America, Playtech has obtained new customers in the US and agreed terms on several new partnerships in Canada following the opening of the Ontario market.

Despite positivities, the effects of the pandemic as well as the war in Ukraine also add to potential uncertainties.

Corporate Activity

In terms of corporate activity, there has been positive progress made with the TTB investor group with regard to a possible offer for the company. Neither terms of the agreement nor a certainty of the deal completing can yet be assured.

And despite the current market conditions, Caliplay and Playtech are continuing to explore possible opportunities that would allow Caliplay to enter the US market on an accelerated basis.

In addition, the disposal of Finalto is still on track to complete in Q2 2022 with two of the four regulatory clearances having now been received.

Annual General Meeting

Playtech will hold its 2022 Annual General Meeting on Thursday 30 June 2022.

EGT Interactive has announced a portfolio upgrade with a revamped version of the lottery-style game keno, called Superb Keno.

Superb Keno is a single-play slot game that offers a precise flow, smooth animation, and other attractive features, according to EGT’s interactive division. In the game, players will pick up to 10 numbers and get rewards for the matches they hit.

The game features a Shuffle Option. With it, players will be able to choose their numbers relying on the company’s RNG predefined numbers.

Superb Keno also features real-time draw animation, and an Exclusive Paytable x2, in which players must match the last Bonus Ball to receive their winnings, while triggering the Jackpot Cards Bonus game reveals impressive Jackpots.

Regulus Partners, a global strategic advisory business focused on the sports and leisure sector, has announced the acquisition of Global Betting & Gaming Consultants (GBGC).

The acquisition will see GBGC’s global betting and gaming data and reports move under the Regulus umbrella, complementing the company’s existing offering to provide the industry standard for accurate and reliable global gambling data and market analysis.

Following the acquisition, GBGC’s dedicated research team in Isle of Man and Croatia will join the Regulus team to continue to build a leading data product. The Acquisition will see Regulus’ advisory and analysis capability combine with GBGC’s data portal and research team to develop industry leading global data and analysis products. Warwick Bartlett, who founded GBGC in 2001, will continue as a non-executive Director.

“The GBGC database and team are a great fit for Regulus because they have always been as accurate and thorough as possible in an often opaque and uncertain environment. We intend to invest further in the team’s proven capabilities to ensure that we develop a market leading product. Given the increasing scale and complexity of the industry, there has never been a greater need for high quality data and we are delighted to welcome such a high quality team to the Regulus family,” Paul Leyland, co-founder of Regulus, said.

“Regulus is a good fit for GBGC because we both complement each other in so many ways. The combined business will be able to offer the gambling industry and its stakeholders an unapparelled service. The clients of both our businesses will benefit tremendously from the additional services that will assist them in the management and expansion of their businesses,” Warwick Bartlett, founder of GBGC, said.

Betsson AB has published its interim report for the first quarter of 2022.

Highlights

• Group revenue was EUR 170.2 (157.4) million, an increase of 8%. Organic increase of 14%.
• Casino revenue decreased by 5%. Sportsbook revenue increased by 45% and the sportsbook margin was 8.3% (7.2%).
• EBITDA was EUR 33.4 (35.8) million, a decrease of 7%. The EBITDA margin was 19.6% (22.7%).
• Operating income (EBIT) was EUR 23.6 (27.3) million, a decrease of 13%. The EBIT margin was 13.9% (17.3%).
• Net income was EUR 20.9 (23.7) million, corresponding to EUR 0.16 (0.17) per share.
• Operating cash flow was EUR 26.9 (32.3) million.
• Active customers increased by 33% to 1,256,449 (948,109).

CEO’s Comments

“Revenue growth driven by continued good momentum in the sportsbook and through geographic diversification”

Some years ago, Betsson conducted an extensive review to capitalise on growth opportunities on the gaming market that would maintain profitability. The review resulted in the following strategic cornerstones: growth in existing markets, growth in new markets, strategic additions and acquisitions and investment in Business to Business, B2B. Thanks to a goal-oriented work from our employees, we have been able to take advantage of the growth opportunities identified, which has resulted in increased revenue and healthy profitability.

Betsson’s revenue increased during the first quarter by 8 percent (14 percent organic) to EUR 170.2 (157.4) million. Once again, new records were set for sportsbook revenue and in several individual markets. It has been said many times before, geographic diversification makes Betsson’s business less sensitive to disruptions in individual markets.

The launch in March of the proprietary sportsbook in the United States was an important milestone in Betsson’s continued global expansion. The US investment is primarily focused on presenting the US adapted sportsbook to other operators within the framework of the B2B offering. More specifically, we are initially using the Business to Consumer (B2C) offering in Colorado as a showcase for the sportsbook. Many months of hard work from the product and technology teams were required to create a competitive sports product for the American market.

Starting this quarter, developments in Latin America will be reported as a separate region in our financial reports. The region is developing very satisfactorily. Market presence has also been strengthened in Latin America through the launch of our offering in both the City and Province of Buenos Aires, Argentina. To support the region’s growth, Betsson has built up a regional hub with central functions to serve local markets based on their respective conditions. The assessment is that these markets are still in their early stages in many respects and that growth opportunities for the coming years continue to be positive.

Although Betsson has several highlights to celebrate in the past quarter, the geopolitical developments in the surrounding world are concerning. The Russian invasion of Ukraine has led to incredible human suffering and created a high level of uncertainty in many countries. Belarus’ active choice to get involved in the conflict on the Russian side led to Betsson’s decision to return the local license and completely shut down the operations that was building up in the country. The conflict has also brought that Betsson-contracted developers in Ukraine could in some cases be evacuated to Malta and Budapest, in other cases to less dangerous areas of Ukraine. Betsson sets the safety and health of its employees at the highest priority and is therefore carrying out ongoing efforts to ensure their security.

During the quarter, further efforts were made to promote responsible gaming. Through increased training efforts and earlier customer interaction et cetera, the trend of the share of red-flagged customers has decreased during the last years.

Looking ahead, we are seeing more undertakings on the horizon. Our ambition is to further strengthen our presence in North America by operating under a new license in the Ontario region in Canada starting this summer. We also aim to launch in Mexico together with our local partner Big Bola Casino in 2022.

Applications to operate in the Netherlands under the new license model were submitted during the quarter in line with the Group’s plan.

All in all, the year has been off to a good start as there are many important activities that we look forward to during the remainder of 2022.

Gambling technology supplier Evolution AB has published its interim report for the first quarter of 2022.

Highlights

• Operating revenues increased by 38.6% to EUR 326.8 million (235.8)
• EBITDA increased by 43.4% to EUR 229.7 million (160.1), corresponding to a margin of 70.3% (67.9)
• Profit for the period amounted to EUR 197.7 million (132.0)
• Earnings per share before dilution amounted to EUR 0.93 (0.62)

Events During the First Quarter of 2022

• In the quarter, 747,000 own shares were acquired. A total of 1,905,865 shares have been acquired and the repurchase programme, announced on 3 December 2021, is thereby completed.
• Launch of Lightning Roulette in New Jersey with other states to follow.
• After the end of the period, Evolution went live with an extensive set of online casino services for multiple operators in the new regulated online gaming market in Ontario, Canada.
• After the end of the period, the first tables are live in our new Madrid studio.

CEO’s Comments

“I’m very happy to see the great work of all Evolution employees producing yet another strong quarter. We continued the strong development from 2021 also during the first quarter of this year. Revenues in the quarter increased by 38.6 percent to EUR 326.8 million, supported by continued strong demand for Live Casino, and the EBITDA increased to EUR 229.7 million, which corresponds to an EBITDA margin of 70.3 percent.

Looking back at the start of this year the developments outside of Evolution are very much in my thoughts. Even though we were happy to see the effects of the pandemic slowly subsiding in Europe and North America during the quarter our attention moved to the war and the humanitarian catastrophe in Ukraine created by the unprovoked invasion from Russia. At the start of the war Evolution had approximately 100 co-workers based in Kyiv. As for now, the war has limited direct financial impact on our business but emotionally it has affected us all. We will naturally continue to follow the development closely.

The first quarter for Live Casino has started very well with good momentum on most metrics resulting in a strong growth of 44.0 percent. We experienced exceptional growth in the first half of 2021 so the comparable figures are demanding. 2022 has started very well and the entertainment and excitement that Live games offer continues to drive new as well as existing customers to our games.

RNG growth of 1.8 percent year on year pro-forma is in line with our expectations. While structural efforts, such as the One Stop Shop and other cross sales activities are important elements, at the end of the day the key for improved growth is developing great games to all players. End-user satisfaction is always key and taking us there is not done overnight. The road to success will not be straight-lined but the focus and ambition is clear and I’m convinced that we will reach our growth ambitions over time.

The EBITDA margin of 70.3 percent is a step up from the same period last year and within our guidance of 69-71 percent for 2022. I’m happy with this delivery during Q1, especially considering the situation in the world with general cost increases not only relating to transport and energy. Looking ahead we see that the guidance of 69-71 percent EBITDA margin remains.

For us at Evolution, launching new games is what we live for. Creating new fantastic end-user experiences and simply put – to innovate! New games build loyalty among our existing players, introduce existing players to new games they have not played before and attract completely new categories of players. In Q1 we launched Bac Bo, a unique dice game which combines elements of the classic games Baccarat and Sic Bo. We also released Peek Baccarat which is another version of the classic Baccarat. In the quarter we also introduced new RNG titles such as Narcos Mexico and Knight Rider, as well as home grown brands like Doggy Riches Megaways and Zillard King. During the remaining part of the year, we have a very strong line up of new games both in RNG as well as in Live – a very exciting time indeed.

There is a continued strong demand for online casino across the globe. In North America we continue to expand all our studios, with Connecticut as the next studio to be launched during 2022. In Asia we also continue to experience good growth, while the more mature European markets are, in general, in slower growth mode – some due to regulatory changes affecting operators. However, we still see growth opportunities in Europe. LatAm also offers good potential going forward and continues to develop with several markets in discussions regarding regulation of their market for online gaming.

As I write this we are in the final preparations of Go-Live in our new studio in Madrid and as you read this the first tables are just opening! Also, we are moving closer to open our Yerevan studio to add even more capacity to the Evolution network. A lesson learned during the pandemic years is to not be too dependent on any one studio. Today we can efficiently allocate our resources within our network of fifteen studios and shift resources from one site to another when needed, without any impact on our delivery capacity. As we add studios to the network this becomes even more of a strength benefiting our operators. As earlier communicated, we expect total investments in new studios to increase also in 2022.

We are well on our way into 2022, leaving the first quarter with good delivery and momentum. We strive to be better every single day, every single one of us, and we fight every day to increase the gap to our competitors. With our 88 new games 2022 we have shown what thousands and thousands of fantastic Evolution employees can achieve together. Evolution is a workplace where everyone is accepted and respected. Together, we hope for a brighter end of 2022 than the beginning.”