Nordic Leisure posts Q2 loss as company shifts focus
Malta-licensed operators shifts focus to Eastern Europe following Redbet sale
Escalating operating expenses at Nordic Leisure have contributed towards a Q2 loss of SEK0.2m as the company prepares for life after the sale of its egaming subsidiary Redbet.
The company announced its intention to sell Nordic-facing Redbet to Bonnier Gaming in May, a deal which was completed in early July as the company looked to shift its focus to Eastern Europe.
CEO Claes Hallen said the sale would allow the company to progress with a “well planned and balanced expansion plan” into Eastern Europe from its operational headquarters in Riga.
Operating expenses increased by SEK2.8m, mostly incurred by the recruitment of new developers at Nordic Leisure’s Eastern European subsidiary Optibet in Riga.
Group revenue fell 7.2% year-on-year to SEK22.8m, contributing towards a 14% slide year-on-year for H1 revenue to SEK42.2m.
Revenue from the company’s casino operations continued to increase, up SEK2.8m as the vertical followed up on the growth recorded in Q1. Poker fared considerably worse as revenue from the vertical fell SEK3.8m.
Marketing expenses also rose, up SEK0.6m year-on-year, with active player accounts up 16% to more than 23,000. The increase failed to drive player deposits however, with that figure down to SEK92.6m for the period.
In light of the loss, Hallen said the company was to “make further decisions about the group’s overall future development and direction”.