LeoVegas airs strong first quarter report

Mobile gaming operator LeoVegas has returned to profit with strong growth and a confident start to its Danish operations, first quarter 2017 results report.

Key performance indicators for the 12 week period ending March 31, 2017 – include:

– Revenue increase of 49 percent to Euro 43.9 million (Q1/2016: Euro 29.5 million). Organic growth was 46 percent.

– Revenue from regulated markets accounted for 18.3 percent (Q1/2016: 17.6 percent) of total revenue.

– Mobile deposits accounted for 67 percent (Q1/2016: 61 percent) of total deposits.

– Total deposits increased by 86 percent to Euro 149.6 million (Q1/2016: Euro 80.5 million).

– The number of depositing customers was 172,338 (Q1/2016: 121,615), an increase of 42 percent. New depositing customers amounted to 75,017 (Q1/2016: 60,989), an increase of 23 percent. Returning depositing customers reached 97,321 (Q1/2016: 60,626), an increase of 61 percent.

– EBITDA was Euro 6.0 million (Q1/2016: Euro -1.3 million), corresponding to an EBITDA margin of 13.7 percent (Q1/2016: -4.4 percent).

– EBITDA adjusted for items affecting comparability was Euro 6.2 million (Q1/2016: Euro 4.0 million), corresponding to an adjusted EBITDA margin of 14.0 percent (Q1/2016: 13.5 percent).

– Operating profit (EBIT) was Euro 5.5 million (Q1/2016: Euro -1.6 million). EBIT adjusted for items affecting comparability was Euro 5.7 million (Q1/2016: Euro 3.7 million), corresponding to an adjusted EBIT margin of 12.9 percent (Q1/2016: 12.6 percent).

– Earnings per share before and after dilution were Euro 0.05 (Q1/2016: Euro -0.02).

The geographical split of net gaming revenue over the quarter was Nordics – 56 percent, UK – 14 percent, Rest of Europe – 17 percent and Rest of the World – 13 percent.

A trading update from the end of the first quarter to date revealed a 79 percent increase in net gaming revenue during April 2017, of which Denmark accounted for 5 percent and regulated markets 26 percent.

“The tremendous launch in Denmark shows the strength in LeoVegas when we deliver at our best: a combination of technological and product excellence combined with effective marketing that we quickly scale,” Gustaf Hagman, group CEO and co-founder of LeoVegas, remarked.

“In summary, the first quarter was stable and represents yet another step on the path to our financial targets of EUR 300 m in revenue and a 15% margin by 2018”.

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