LeoVegas CEO hails ‘strong end to the year’ as firm releases Q4 results

LeoVegas AB CEO, Gustaf Hagman, has hailed a “strong end to the year with many growth initiatives,” as the company released its financial results for the final quarter of 2021, reflecting figures largely in line with those recorded in the same period a year earlier.

During the quarter, the company achieved a revenue of €98.2 million, a slight decrease on the €98.4 million recorded during Q4 of 2020.

Over the same period, organic growth in local currencies was negative four per cent.

Net Gaming Revenue (NGR) from regulated markets and markets where the company pays local gaming taxes increased rather substantially, from 67 per cent a year earlier, to 74 per cent.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) reached €11.6 million during the quarter, corresponding to an EBITDA margin of 11.8 per cent.

The number of depositing customers decreased slightly during the quarter, by around one per cent, falling from 461,983 to 456,063.

Adjusted earnings earnings per share were €0.07, down slightly from the €0.08 in the year before.

Like several other key European operators that released their financial report this week, the company was hit by abrupt policy changes in the Netherlands.

LeoVegas stopped providing its services in the country as from the end of September, and as such had no revenue from the region, which the quarter before contributed six per cent of the company’s total revenue.

In a statement accompanying the financial report, Mr Hagman said: “I am proud of how we concluded 2021 and how we offset the revenue loss related to the ongoing regulatory changes in Germany and the Netherlands.

“In the fourth quarter, sales were unchanged compared with the preceding year. However, excluding the two abovementioned markets, growth was some 26 per cent, which demonstrates our strong underlying growth.”

He also reflected on LeoVegas’s ten year anniversary, saying: “The company, our product and the entire industry has developed enormously since my co-founder Robin Ramm-Ericson, and I, started LeoVegas.

“Today, the industry is much more complex with more stringent requirements and tougher competition. At the same time, LeoVegas has taken tremendous strides and matured in many areas, making us stronger than ever before.”

Looking to the future, he affirmed that LeoVegas, with all its employees, will “continue to drive the industry forward with the mobile gaming experience in the spotlight.”