LeoVegas Revenue up 13% in Strongest Q4 to Date

LeoVegas has reported a 13% increase in revenue to €98.4m (£86.3m/$119.4m) for Q4 of 2020, making it the operator’s strongest fourth quarter to date.

Meanwhile, gross profit reached €66.9m, up from €57m at the same time in the previous year and EBITDA fell 45% from €14.5m to €7.9m in the period 1 October to 31 December.

The number of depositing customers during the quarter was 461,983, an increase of 24% from 372,032 in 2019.

Europe (excluding the Nordics) made up the bulk of the firm’s income during Q4, equating to 47% of net gaming revenue. The Nordics made up 36% and the rest of the contributed 17%.

Over the quarter, casino accounted for 75% of GGR, with live casino contributing 16%, and sports betting making up 9%.

Looking at the full-year, LeoVegas grew its revenue by 9% to €387.4m from €356m, the previous year.

Gross profit increased to €262.3m from €237.1m in 2019 and EBITDA was €51.8m compared to €49.5m in 2019.

The firm also reported that January 2021 had brought in €32.5 m, a 9% rise on €29.9m in 2020.

Group CEO Gustaf Hagman said: “LeoVegas concluded the record year 2020 with its strongest fourth quarter ever. And we did this despite frequent changes to the gaming requirements in our markets in addition to finding ourselves in the midst of a global pandemic.

“I am proud of our ability to quickly adapt to changed conditions through a high capacity for innovation at the same time as we are building an increasingly solid and diversified business. It is a demonstration of strength that LeoVegas delivered adjusted EBITDA growth of 25% for the full year while the operating cash flow increased almost 90%. This was achieved despite maintaining a high investment pace with launches of new brands, new markets and product improvements.”

Hagman flagged that the firms core markets all saw double-digit growth, apart from Sweden and the UK. While revenue was also affected by the implementation of changes ahead of the forthcoming German licencing system in July 202. Italy, however, became one of the firm’s five biggest markets.

Commenting on the German market specifically, Hagman said: “Operators in the market are acting differently with respect to the new restrictions, and at present necessary clarity is lacking in the ongoing transitional period, which unfortunately has led to a skewed competitive situation until the licence system has been fully implemented.”