LeoVegas acquires World of Sportsbetting ltd

News on 7 Feb 2018

LeoVegas has confirmed its acquisition of World of Sportsbetting Ltd, a Malta situated company who holds an online casino and sports betting licence in Schleswig-Holstein along with an approved application for sportsbetting from Hesse, under the stalled Interstate Treaty on Gambling.

Completion of the acquisition is expected by the end of February and comes at a price of Euro 2.6 million.

Gustaf Hagman, Group CEO, LeoVegas, said: “The licenses give increased credibility when we collaborate with, for example, media partners, which is important in order to get full effect on our market investments.”

“This is in line with our strategy to enter regulated markets and gives LeoVegas the best possible conditions to accelerate further in the German market.”

In related news, the company revealed its strongest quarter ever in a fourth quarter report ending December 31, 2017.

Key performance indicators include:

– Revenue increase of 65 percent to Euro 67.8 million (Q4/2016: Euro 41.2 million).

– Revenue from regulated markets accounted for 29  percent (Q4/2016: 11 percent) of total revenue.

– Mobile deposits accounted for 69 percent (Q4/2017: 67 percent) of total deposits, which increased by 62 percent to Euro 224.6 million (Q4/2016: Euro 139.1 million).

– The number of depositing customers was 253,299 (Q4/2016: 176,306), an increase of 44 percent.

– The number of new depositing customers was 128,409 (Q4/2016: 85,384), an increase of 50 percent.

– The number of returning depositing customers was 124,890 (Q4/2016: 90,922), an increase of 37 percent.

– EBITDA was Euro 6.1 million (Q4/2016: Euro 10 million), corresponding to an EBITDA margin of 9.0 percent (Q4/206: 24.2 percent).

– Earnings per share were Euro 0.02 (Q4/206: Euro 0.10) before dilution and Euro 0.01 (Q4/2016: Euro 0.10) after dilution.

LeoVegas’ board of directors has proposed a dividend of SEK 1.20 (Q4/2016: SEK 1.00) per share, for a total of SEK 119,634,564 (Euro 12.2 million).

Gustaf Hagman, Group CEO and co-founder, commenting on the results, said:

“Q4 2017 was one of our best quarters ever, with very strong underlying growth. Compared with Q4 2016 and excluding markets that we closed in 2017, our organic growth was an incredible 82% during the quarter. We even set a record for new depositing customers.”

Numerous staffing changes have been put into effect to support LeoVegas’ growth.  The newly created position of chief human resources officer has been filled by Caroline Palm who joins the group management team.

In addition, Jarl Modén has been promoted to the permanent position of Chief Product Officer (CPO) on the Group Management team.

“With several great acquisitions, awards, our change in listing and a strong start to the first quarter, all of us at LeoVegas are looking forward to an exciting 2018,” Hagman concluded.

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