LeoVegas Reports Year-on-Year Revenue and Operating Profits Growth

LeoVegas Gaming Group repots an annual increase in revenue and operating profit in 2019’s Q3. The company has enjoyed a steady growth in almost all of its core markets.

The revenue for the three months leading to September 30th was €88.2 million, which is a 12% increase from €78.6 million over the same period last year.

UK and Europe Leading the Way

The organic revenue growth was 13% for the quarter. Without the UK market, this growth would have been 27%. Revenue for net gaming also rose 11% year-on-year…

…and the Nordic market is the most responsible one for this, with a 44% contribution. The remainder of Europe was close behind at 42% and the rest of the world contributed with 14%.

Slots and other classic casino games were by far the most popular type of entertainment. They contributed with a 74% of gross gaming revenue in the third quarter. This was followed by live dealer games, way behind at 17%. Sports betting contributed with 9%.

Deposits also rose 9% year-on-year in the third quarter, which was also the revenue-boosting factor. Mobile ed for 75% of total deposits in the quarter, which is an increase of 71% from the last year.

Less Marketing Expenditures

LeoVegas spent €27.7 million in the third quarter of this year on marketing…

…which is a little less than €27.7m last year. Staff costs rose a little, from €10.5m to €11.3m, however other operating expenses fell from €10.1m to €8.7m.

With costs decreased and revenue increased…

…LeoVegas was able to post an operating profit of €6 million, which is up 70.9% from last year’s €3.5 million. Earnings before interest, tax, depreciation and amortization have also jumped from €9 million to €12 million.

Profits before tax declined 58.4% to €5.5 million. Net profit was also down, from €12.8m to €5.1m.

The Year in Plus

On stock exchange, LeoVegas’ share price was down about 8% to SEK 2.72. This is the lowest mark in six months.

Looking at the year in total, from the beginning of the year until September 30th, the revenue for the nine months period was €269 million – up 10.7% from last year’s same period (€243.3m).

Gustaf Hagman, LeoVegas president and CEO, said:

“We continued to show progress during the third quarter in a difficult-to-navigate environment and generated double-digit growth in both sales and operating profit.

Greater regulatory complexity in several of our main markets has given rise to certain short-term challenges but is also raising the barriers to succeed in the sector which benefit established companies.”

Source:

“LeoVegas reveals revenue and operating profit growth”, igamingbusiness.com, November 7, 2019.