European Entertainment Group (EEG) has shined a spotlight on Finland’s in-bound iGaming regime, citing the soon-to-be liberalised market as a new catalyst that will help revive its performance across the Nordics.
The parent firm of ComeOn, Yggdrasil, Highlight Games and the affiliate network Game Lounge, EEG reported softer trading across its portfolio as its management continued to reposition the business towards regulated markets.
Revenue fell 7 % year-on-year to €81.9m in the first quarter, while EBITDA declined 23 % to €19.1m – corresponding to a weaker performance on lower contributions from its B2B assets – that are adjusting to softer margin effects.
Adjusted EBITDA slipped 12 % to €21.6m and the group swung to a net loss of €21.1m, compared to a profit of €19.3m a year earlier.
Group accounts detailed that net debt reached €550m – for EEG, a business that remains majority owned by the LSE-listed private equity fund of Bridgepoint, the debt is somewhat surprising.
ComeOn growth engine
EEG’s B2C Online Gaming division, operated through ComeOn Group, maintained its growth and resilience despite changing market conditions across various gaming jurisdictions.
Online Gaming revenue edged up 1% to €62.1m, while customer deposits increased 8% to €217m. Active customers rose 7% to more than 352,000.
ComeOn noted that underlying growth would have reached 7.4%, had the impact of Germany’s exit been excluded and the Netherlands business been fully consolidated.
EEG formally completed its withdrawal from Germany during the quarter, after concluding that the market no longer offered an attractive long-term return profile. The business contributed around 1.8% of group revenues in 2025, but was generating a negative cash contribution.
B2B slowdown
The picture was less encouraging across EEG’s B2B assets.
Game Lounge, the group’s affiliate and media division, saw revenue fall 48 % to €7.1m as continued disruption from Google’s search algorithm updates weighed heavily on traffic and customer acquisition.
Management responded with a restructuring programme centred on cost reductions, AI-driven content production, CRM development and greater diversification of acquisition channels.
Meanwhile, Game Development revenue declined 6% to €13.2m.
Within the division, performance was mixed. Highlight Games delivered another strong quarter, with revenue rising 23% and Adjusted EBITDA increasing 27%. The virtual sports supplier strengthened its position in Italy, where it now commands a 62.5% market share, while securing new agreements with Stanleybet, Ladbrokes Coral and Superbet Brazil.
Yggdrasil continued its strategic retreat from selected .com markets while investing in the rollout of its proprietary Game-in-a-Box platform. While the transition weighed on short-term revenues, management believes the move will improve scalability and support stronger margins over time.
Finland comes into play
The clearest positive for investors was EEG’s progress in Finland, where the company submitted its licence application ahead of the market’s planned opening on 1 July 2027.
Chief Executive Itai Frieberger described the quarter as a period of transition as the group continued to focus on improving the quality and sustainability of earnings.
“The first quarter of 2026 represented a transitional period for the Group as we continued executing strategic initiatives to improve the long-term quality and resilience of earnings,” he said.
Frieberger added that Finland represents “a substantial long-term growth opportunity” for EEG.
The company has operated in Finland for more than 15 years through a portfolio of established brands and believes the shift from monopoly control to a competitive licensing regime could create a market comparable in scale to its Swedish operations.
For now, however, investors are likely to focus on the immediate challenges. With earnings under pressure, leverage remaining elevated and key B2B businesses undergoing significant transformation, EEG’s long-term growth story increasingly hinges on whether Finland can deliver the next chapter of expansion from 2027 onwards.
