Growth in 2018 slows for LeoVegas

News on 12 Feb 2019

LeoVegas Group CEO, Gustaf Hagman, has described 2018 as the most challenging the company has every encountered in its fourth quarter 2018 report, despite a welcome boost in December which delivered an all-time-high in revenue following three sequential quarters of slow growth.

Key performance indicators for the three month period ending December 31, 2018 include:

Revenue increased by 25 percent to Euro 84.5 million (Q4/2017: Euro 67.8 million).

Organic growth in local currencies was 7 percent. Organic growth in local currencies excluding the UK was 14 percent.

EBITDA was Euro 8.1 million (Q4/2017: Euro 6.1 million), corresponding to an EBITDA margin of 9.6 percent (Q4/2017: 9.0 percent).

Net Gaming Revenue (NGR) from regulated markets was 33 percent (Q4/2017: 29 percent) of total NGR.

The number of depositing customers was 327,156 (Q4/2017: 253,299), an increase of 29 percent.

The number of returning depositing customers was 181,747 (Q4/2017: 124,890), an increase of 46 percent.

Earnings per share were Euro 0.22 (Q4/2017: Euro 0.02) before dilution and Euro 0.22 (Q4/2017: Euro 0.01) after dilution.

”After a challenging 2018 we now see improved momentum with a record strong December and a positive start to 2019. Entering the new year we have full focus on expansion, cost control, increased profitability and to continue building the world’s best mobile casino,” Hagman said.

The company announced the postponement of its financial targets from 2020 to 2021 due to developments in the UK market. However, the direction remains unchanged with financial targets in absolute numbers to reach Euro 600 million in revenue and Euro 100 million in EBITDA.

A total dividend of SEK 1.20 per share (Q4/2017: SEK 1.20) has been proposed, to be paid out on two occasions during the year.

“2018 was the most challenging year in LeoVegas’ history,” Hagman concluded. “We bumped into challenges that we have not previously encountered and saw a slowdown in growth as a result.

“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. There is much left to do, and there’s no doubt we can and will improve in many areas.

“We have learned a lot, and our position for achieving our long-term vision – to be the global market leader in mobile casino – is good.”

Changes in the Group Management team will support LeoVegas’ strategy into 2019.  Richard Woodbridge was recruited as Chief Operating Officer, effective January 7, Avshalom Lazar was recruited as Chief Compliance & Legal Officer, and a new role has been added to the group of Chief Product and Technical Officer (CPTO).

Mattias Wedar has been appointed in the CPTO role and is tasked with increasing effectiveness and cooperation with the group in terms of product and technology.  Wedar will join the company from MRG GameTech where he serves as CEO.

A trading update for the month of January 2019 indicated a positive start to the year with revenue amounting to Euro 28.7 million (JAN17: Euro 24.8 million), representing growth of 16 percent.

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