Online casino operator LeoVegas has decided to repurchase shares worth up to €10m ($11.8m) in an effort to create shareholder value and optimise the company’s capital structure.
The company’s board of directors authorised the measure at LeoVegas’ Annual General Meeting (AGM) on 8 May this year.
The board agreed to allow the company to repurchase up to 10% of total company shares before the next AGM in 2021. Up to 10,165,297 shares may be repurchased within this threshold.
The repurchase will be completed in accordance with Nasdaq Stockholm’s regulation for issuers.
For Q3 2020, LeoVegas’ revenue was up 1% year-on-year to €88.9m. The number of depositing customers also increased by 26% for the quarter, to 438,691.
Although the company praised its successful launch of GoGoCasino and Livecasino.com in Finland during Q3, Leovegas cited issues in the Swedish market for impeded growth. The operator said Swedish activity had been affected by restrictions introduced by the government on 2 July.
Commenting on the quarter, Gustaf Hagman, president and CEO of LeoVegas, said “Once again, we have shown our ability to quickly adapt to new, external circumstances, such as those related to the continuing pandemic and the constant regulatory changes in our various markets.
“During the third quarter we maintained a high pace of innovation and investment, which is strengthening our long-term position and growth prospects.”