LeoVegas revenue slides 1% in third quarter

Finance News

LeoVegas reported revenue of EUR 98.7 m during the third quarter, corresponding to a decrease of 1% compared with the preceding year.

Organic growth in local currencies was unchanged. In the Nordic countries, NGR increased 20% year-on-year. Sweden posted another good quarter driven by new all-time highs for the brand Expekt.

Finland declined substantially due to a change in legislation from the beginning of the year.
In the Rest of Europe region, NGR decreased 19% compared with the year-earlier period.

The Netherlands continued to slow the region’s development. LeoVegas ceased to provide its services in the country as from 30 September 2021. Germany also continued to negatively impact the region’s sales. In the rest of world region, NGR decreased 10% year-on-year.

The trend was favourable in most markets in the region, but was adversely impacted in the short term by the new regulation in Ontario, Canada as well as by the company closing a couple of smaller markets in the region during the quarter.

Gross profit for the third quarter was EUR 64.0 m (66.3), corresponding to a gross margin of 64.8% (66.8). Gaming taxes totalled EUR 19.3 m (15.9), corresponding to 19.5% of revenue (16.0) and included an item affecting comparability of EUR 1.3 m.

Adjusted EBITDA for the third quarter was EUR 7.1 m (11.5), corresponding to an EBITDA margin of 7.2% (11.6).
Reported EBITDA was EUR -2.6 m (11.5) during the period and included, as mentioned above, a number of items affecting comparability totalling EUR 9.7 m (0.0), which were primarily attributable to transaction related costs for the recently completed acquisition of the company’s shares.