LeoVegas posts flat revenue amid regulatory headwinds
LeoVegas reported revenue increase of 1% to EUR 88.9 m (88.2). Organic growth in local currencies was 2%.
EBITDA was EUR 11.9 m (12.7), corresponding to an EBITDA margin of 13.4% (14.4%). The number of depositing customers was 438,691 (347,464), an increase of 26%.
Gustaf Hagman, LeoVegas CEO said, once again,we have shown our ability to quickly adapt to new, external circumstances, such as those related to the continuing pandemic and the constant regulatory changes in our various markets. During the third quarter we maintained a high pace of innovation and investment, which is strengthening our long-term position and growth prospects.
During the quarter our customer base again reached a new record level. The number of depositing customers grew 26% compared with the same period a year ago, which confirms the strong development of our business. This is partly attributable to the ongoing structural shift from land-based gaming to online, but above all to our focus on creating the best product and experience for our customers. We continue to optimise scalability and reduce complexity in the organisation. During the quarter, among other measures we realised synergies from previous acquisitions and instituted a clearer organisational and Group structure.
This has led to a slight level of staff redundancy, and operating profit was charged with EUR 0.5 m for measures coupled to this. At the same time, we estimate that yearly net savings from these measures will amount to roughly EUR 1.5 m starting with next year. Our efficiency improvement work equips us for continued profitable growth and makes us – combined with greater diversification of the revenue base – more resilient to rapid fluctuations in individual markets.