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LeoVegas’s Q1 Report Registered Promising Results
Swedish LeoVegas has published the Q1 performance report. Even though the mobile iGaming giant faced some difficulties in Scandinavia, and also Germany connected with the legislative changes in gambling in that country at the beginning of this year.
2021 Q1performance report publicized information about the structure of the company’s products revenues. The vast majority of LeoVegas’s profit consists of casino and live casino revenues (74% and 17% respectively). The company’s sportsbook registers the same stable high share (9%) as it did before the lockdown. LeoVegas’s profit grew by approximately 97mln EUR (8%). The calculations show if there weren’t headwinds in Germany group profit would have been more than twice big.
Compared to the first quarter of 2020 group’s revenue grew by 7% reaching 93.4mln EUR. 65% of the revenue comes from the regulated markets and/or markets with local tax.
LeoVegas has also improved Earnings Before Interest, Taxes, Depreciation, and Amortization indicator – 10.9mln EUR. Group’s profitability also increased as EBIT increased by 1.5mln EUR compared to the same measurement of the Q1 of the last year.
The “Markets” section of the report largely consists of coverage of the German iGaming industry. The report mentions that the changes resulted in unbalanced competition and businesses that chose not to adopt the new regulations now cover about 70-80% of the casino market in Germany. It is also worth mentioning that the German share in the company’s total revenue had decreased by 9%. The report says that the group managed to compensate losses in Germany by diverse geography and high-performance reports from Southern Europe and Canada. The company highlights the importance of the home market in Sweden and welcomes the first growth since mid-2020 when COVID-19 related restrictions were implemented.
Spelinspektionen, Swedish gaming industry inspectorate issued 2mln SEK penalty against LeoVegas. Mr. Gustaf Hagman, chief executive officer and one of the founders of LeoVegas, says that despite the disagreements with Swedish authorities the company enjoys a high level of trust among the population. We can already see evidence of the company’s statement as it registered the record level players in Sweden during the Q1 of this year. The number of registering deposit clients has increased by 12% and consists of both new and returning players. LeoVegas representatives announced that they are going to appeal against the sanctioning decision.
LeoVegas has registered some major achievements in the mergers and acquisitions direction as well supplementing with subsidiaries that promote the company’s brand. LeoVegas will take over Betclic’s Expekt, which coasted the company 5mln EUR, this month. Thus LeoVegas will strengthen its presence in the sports betting market. The group believes that its recent acquisition will prove its efficiency next month, particularly during the UEFA EURO 2020[u1] starting on June 11.
Newly acquired subsidiaries have already helped LeoVegas to soften the effects of temporary complications and headwinds. Earlier, LeoVegas invested 1.1mln EUR to purchase 25% of SharedPlay’s shares, the first multiplayer gaming solution in the company.
LeoVegas successfully launched the Rhino platform that will incorporate the companies where it has 100% of shares. Royal Panda online gaming casino is already integrated into the new platform. A few days ago LeoVegas announced the launching of the ambitious Blue Guru Games studio, which will start developing and offering exclusive games at the end of this year.
LeoVegas’s fast-growing advancement was noticed outside of Europe as well – the company’s stocks are being sold on New York-based OTCQX markets. As already mentioned LeoVegas’s expansion in Canada has registered immediate success.
[u1]It was postponed last year so this years championship is still called 2020
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