LeoVegas sees 25% revenue increase in Q4 2018

Starting page of LeoVegas' website. (source: LeoVegas Media)

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LeoVegas booked year-on-year 25% revenue increase in Q4 2018, totalling €84.5m, according to the quarterly report the online gaming firm published on Tuesday.

During the last quarter of 2018, organic growth in local currencies was 7% on total, and excluding the UK it was 14%. EBITDA was €8.1mm (6.1), corresponding to an EBITDA margin of 9.6%, according to a press statement announcing the quarterly report. Net Gaming Revenue (NGR) from regulated markets was 33% of total NGR.

The number of depositing customers increased year-on-year 29% to 327,156, while the number of returning depositing customers grew by 46% to 181,747. Earnings per share were €0.22 before dilution and €0.22 after dilution.

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During the last quarter, LeoVegas applied for a gambling licence for the Spanish market, as Business Malta reported earlier. Approval and implementation of this application are expected during the first or second quarter of 2019. During Q4, LeoVegas also received a licence for both casino and sports betting in Sweden.

Following Q4 2018, due to developments in the UK market, LeoVegas postponed its financial goals from 2020 to 2021. Despite this, the direction remains unchanged with business targets in absolute numbers to reach €600m in revenue and €100m in EBITDA, the company says. Also, LeoVegas Group’s Pixel.bet brand was granted a licence for online casino and sports betting in Sweden.

The Board proposes a total dividend of SEK 1.20 per share, to be paid out on two occasions during the year, the press statement says. Revenue amounted to €28.7m in January, representing growth of 16%.

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Gustaf Hagman, CEO of LeoVegas Group, tags 2018 as the most challenging year in the group’s history, challenges of which hindered growth. “It was also a year in which we carried out a number of strategically crucial projects that have taken us large steps forward on our growth journey … Our multi-brand strategy is in place, enabling us to launch new casino brands rapidly, and we are ready to expand in more markets in 2019 with an overall focus on cost control and increased profitability,” the CEO says.

This year has had quite a strong start for the group, according to the CEO. Revenue hit €28.7m in January, growing by year-on-year 16%. Underlying customer activity strengthened by a 42% growth in depositing customers compared to the same period last year.

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“We have now forged ahead through both an eventful and challenging year with several acquisitions, accolades, higher regulatory requirements, a number of major platform projects and a change in listing to the Stockholm Stock Exchange’s main market list,” the CEO adds.