Enlabs today provided a general update on the ongoing operations and a forecast for the second quarter of the year.

The second quarter of the year brought major challenges for Enlabs related to the consequences of the Covid-19 pandemic. In Latvia, all gaming licenses were temporarily suspended, with the result that all online gaming operations were closed from April 8 to June 10. All land-based gaming operations in Latvia were closed from March 22 to June 10, and in Lithuania, land-based gaming operations were closed from March 18 to May 18.

Enlabs is the largest online gaming operator in Latvia and the top four in Lithuania. Enlab’s land-based operations consist of thirty-one (31) gaming stores in both countries.

Enlabs estimates that the Group’s total sales for the second quarter amounted to EUR 6 million with a profit on both EBITDA and net profit level of EUR 0.5 million. Enlabs further assesses that the quarter’s operating cash flow was positive.

The closure of operations, as well as the drastically reduced range of sporting events during the quarter, entailed significant challenges which Enlabs handled by implementing a number of operational and cost-reducing measures. Enlabs is of the opinion that these measures will contribute positively to the company’s future results from the third quarter of the year.

All of Enlab’s operations are back where they were before the Covid-19 pandemic. All Enlab’s offices are open and approximately 75% of the staff now work from these. The option to work from home remains for most employees.

The twenty-21 (21) days in June that Enlabs operated online in Latvia, from the reopening, show an increase of 10% in average gaming revenue per day compared to the same figure for Q1 2020, and an increase of 21% compared to Q2 2019.

The gaming stores in Latvia and Lithuania show a decrease of 3% for the same period compared to the same figure for Q1 2020 and a decrease of 19% compared to Q2 2019. The gaming stores accounted for a total of 4% of Enlab’s total sales in Q1 2020.

During the first two weeks of July, Enlab’s gaming revenues were at the same level as during the same period in 2019, despite the fact that the period 2020 showed a gaming margin of less than last year by 25% due to a number of major casino winnings. The number of active customers increased by 15% and deposits increased by 14%.

“Enlab’s customers have welcomed the reopening in Latvia with very high activity in all product verticals as a result. Enlab’s team has navigated in a fantastic way through the challenging period that the second quarter of the year came to be as a result of the extraordinary circumstances that came to be. It is my opinion that we as a company have emerged from the ongoing crisis stronger, more welded together and with an even clearer goal-oriented focus. With this behind us, we are now looking forward to the second half of the year with a strong assurance that the measures we implemented during Q2 will contribute positively to our operations from many different aspects, ”comments George Ustinov, Enlab’s President and CEO.