LeoVegas outlines steady Q2 despite challenges

LeoVegas has completed another quarter and published its latest financial reports covering the period from April 1 through June 30, 2022. The company highlighted the main financial performances and developments that determined the quarter. Revenue increased to €98m, up 1%. Organic growth in local currencies was 1%, the company said in the official report published on its website.

Revenue excluding the Netherlands was up 9%, the company confirmed. Depositing customers though fell by 4%, down to 442,647. Net gaming revenue in the meantime from regulated markets and where the company pays local gaming taxes stood at 79% of the company’s total net gaming revenue.

The company delved into the other financial metrics defining its financials for the three-month period, saying that EBITDA stood at €9m. Adjusted EBIT was posted at €5.5m. Earnings per share the company reported stood at €-0.01. Among the key events for LeoVegas was the entry into the re-regulated market in Ontario, Canada.

LeoVegas embraced this as an opportunity to break ground in North America and prepare itself for a more ambitious pivot towards the remainder of the continent. BetMGM made an offer for LeoVegas, prompting the company to pause its ambition to launch in New Jersey, United Sates. The report said:

"It seems likely that the bid will be accepted, which would lead to the company’s shares being delisted from Nasdaq Stockholm later in the year."

However, the Annual General Meeting in May approved the proposed resolution with the deal very likely to complete successfully. The company further noted that it had won the Online Casino of the Year at the Global Gaming Awards and the Online Gaming Operator of the Year at the International Gaming Awards.

LeoVegas also noted down several important events that took place after the company’s second quarter. Revenue for July remained unchanged, the report informed. Meanwhile, the company reminded that it had been fined by the UK Gambling Commission €1.6m over deficiencies in procedures that date back to October 2019 and October 2020.

While the number of depositors had indeed fallen during the period, the company said that most of its markets were developing well during the period. There were no visible signs yet of customers withdrawing from specific markets or being discouraged to participate in the gambling experience as per usual by raising costs of living or inflation.

Sports betting posted strong results, though, with the company’s BetUK and Expekt brands performing well during the quarter.

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