LeoVegas had a first quarter of 2021 marked by its expansion and growth strategy. In this regard, the financial report for the period ended March 31 shows that revenues increased by 8% to 96.7 million euros (89.4), while organic growth in local currency was 8%.
LeoVegas has explained through a press release that the adjusted EBITDA was 10.9 million euros, the number of depositing clients was 462,386 (+ 12%), and that its organic growth excluding Germany was 19%.
Regarding these results, Gustaf Hagman, CEO of the LeoVegas Group, highlighted that growth “has been driven mainly by our loyal customer base, which reached a new record level during the period. We have maintained a high pace of investment, and despite this we achieved adjusted EBITDA growth of 22%, driven by our scalability and good cost control”.
Likewise, Hagman stressed that the Swedish customer base set a record during the quarter and confirmed that in March growth on a yearly basis was possible for the first time since the temporary restrictions due to the Covid-19 pandemic were implemented in July 2020.
On the other hand, the company highlights these events during the first quarter:
Acquisition of Expekt from Betclic Group for 5 million euros. Expekt is one of the most well-known sports betting brands in Sweden and the Nordic markets, and strengthens LeoVegas ’brand portfolio ahead of the intensive sport event years in 2021 and 2022. The acquisition of Expekt is expected to be completed in May 2021.
Through LeoVentures, LeoVegas invested EUR 1.1 m for 25% of the shares in SharedPlay, a company that makes it possible for players to share their gaming experiences with others through the industry’s first multiplayer solution.
Also, LeoVegas anticipates important subsequent events that will be part of their next financial report:
Preliminary revenue in April amounted to EUR 32.7 m (37.5), representing negative growth of 13%. Excluding Germany, revenue grew 4%.
The Royal Panda brand has been migrated to the Group’s proprietary technical platform, Rhino. All of the Group’s wholly owned brands are now run on the Rhino platform.
LeoVegas has started its own game studio, Blue Guru Games, to develop exclusive games for LeoVegas and other operators. The first games are scheduled to launch in late 2021.
LeoVegas received a penalty fee of SEK 2 million from the Swedish Gaming Authority. The company intends to appeal the decision.
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