LeoVegas grew a 4% in income in the first quarter but would rise 23% with the April data thanks to "having taken away market shares from the land-based sector for the Covid-19"
Starting with an appeal to responsible gaming by Gustaf Hagman, LV Group CEO, LeoVegas has published the financial report detailing its numbers for the first quarter of 2020, the period from January 1 to March 31 of this year. Revenues grew just 4%, but the first data for April show a spectacular increase for the second quarter, which they acknowledge is due to "having achieved market share in the land-based sector due to the Covid-19 crisis."
Revenue during the first quarter amounted to EUR 89.4 m (86.3), representing organic growth of 4%. EBITDA was EUR 9.0 m (7.2), corresponding to an EBITDA margin of 10.0% (8.3%). Unfavourable currency movements resulting from turbulence in our operating environment had a negative earnings impact of EUR 1.4 m.
LeoVegas operating profit grew 24% compared with the same period a year ago despite negative currency effects and a high level of investment, which confirms that our focus on operational efficiency and cost control is generating the desired results.
By region, LeoVegas shows a solid performance with profitable growth in most of their markets. Above all, are proud that they succeeded at attracting a record-large depositing customer base during the quarter, with sequential growth of 11% versus Q4.
Regarding product, the income division would be as follows:
Despite LeoVegas is in the beginning to see a clear effect of the measures we have taken in the UK, and the remaining brands grew in total compared with both the same period a year ago and with the fourth quarter. With all brands now operating on the same platform, LeoVegas have created a good position to grow in the UK.
Germany continues to grow and is nearly back to the same levels as in September last year, when LeoVegas was negatively affected by the decision by a key payment services provider to put restrictions on gaming payments.
The Nordics region had a slightly weaker quarter, which was partly affected by a decrease in sports betting activity at the end of the period and greater restrictions on bonus and deposit limits in the Danish market. In Sweden LeoVegas continued to gain market share during the quarter. Following the successes in Sweden, a launch of the GoGoCasino brand is planned for the Finnish market during the second quarter.
In regards next quarter, revenue for the month of April amounted to EUR37.6 m (30.5), representing annualised growth of 23%.
According the report, LeoVegas’ favourable performance in April was driven by the successful migration in the UK, a number of improvements in the payment flow in a number of markets, and by a record-large customer base at the start of the period. Moreover, LeoVegas’ assessment is that the company has taken market shares from the land-based gambling industry, mainly in markets where the land-based industry has been totally shut down due to the COVID-19 crisis.
