LeoVegas Q4 revenues up 3% after restructuring plan and strong Nordic performance
Stockholm-listed operator reveals strategic measures to generate annual cost savings of €3.7m
LeoVegas has posted a 3% year-on-year rise in its Q4 2019 revenue figures, with revenues for the last three months of 2019 hitting €87.1m (£72.4m).
The Malta-headquartered company’s EBITDA rose sharply during the quarter, increasing from a Q4 2018 figure of €8.1m to a 2019 high of €14.5m (£12m), corresponding to a margin of 16.7%.
Adjusted EBITDA also increased during the period, rising to €9.2m (£7.6m), and a corresponding margin of 10.6%.
The number of depositing customers rose by 7% year-on-year during Q4 to 351,613, while the number of returning depositing customers hit a record-high of 207,982, an increase of 14%.
Online casino operations accounted for 72% of the group’s overall gross gaming revenue (GGR) during the quarter, while its live casino division generated 19% in the same period. Sports betting accounted for 9% of overall GGR.
The group’s Nordic operations generated the largest share of net gaming revenues during Q4 with 45%, while the rest of Europe accounted for 42%. Revenues from the rest of the world made up 13% of revenues.
LeoVegas confirmed that the strategic measures carried out in the UK, together with the decision to abort a move to new offices in Malta, would generate annual cost savings of €3.7m (£3m). The sale of its Authentic Gaming subsidiary generated a capital gain for the business of €11.4m (£9.4m).
In addition, LeoVegas said it will abandon a pre-existing financial target to reach sales of €600m and an EBITDA of €100m by 2021.
At the same time, the company has reaffirmed its long-term financial target to achieve organic growth that outperforms the online gaming market and an EBITDA margin of no less than 15%.
LeoVegas Group CEO Gustaf Hagman said the firm had entered 2020 with good underlying growth and profitability, highlighting an “ever-stronger” company balance sheet.
“During 2019 we worked hard to reduce complexity in the group, be more efficient and adapt to the changes taking place in the gaming industry. In parallel with this we have enhanced the attraction of our product through new functionality and greater personalisation.
“We have launched new brands, focused more on casino, and expanded to new markets. Towards the end of the year we intensified the integration of our previous acquisitions, which is expected to contribute to cost savings and increased economies of scale,” Hagman added.
LeoVegas full-year revenues rose by 9% year-on-year during 2019 to €356m (£296m) from a previous 2018 high of €327.8m. Company EBITDA jumped to €49.5m (£41.1m) during 2019, however EBITDA margin fell slightly to 12.4%.