Coronavirus has "neutral to slightly negative impact" for LeoVegas; Q1 revenue up 4%

By Tim Poole

LeoVegas grew its Q1 revenue by 4% year-on-year, to €89.4m ($96.5m), despite a €0.9m loss after tax for its parent company.

The online casino operator was also able to report an increase in EBITDA of 25%, to €9m, with an EBITDA margin of 10%, up from 8.3%.

LeoVegas' new deposting customers rose 6% to 413,269, although it fared particularly well in the retention department, recording a record-high returning depositing customers (219,841, a rise of 10%).

Cash flow from operating activities totalled €10.5m, almost double in terms of yearly growth, while gross profit shows a marginal increase from €57.9m to €59.8m.

For LeoVegas' parent company, net profit was €2.3m and €0.9m loss after tax.

Reflecting on the operator's results and ongoing efforts during the pandemic, CEO Gustaf Hagman explained that, consistent with the rest of the industry, online gaming has increased for LeoVegas but sports betting has seen a sharp drop (representing 9% of revenue).

He said: "Our assessment is that the COVID-19 crisis thus far has had a neutral to slightly negative impact on the group’s Swedish revenues; moreover, the assessment is that international revenues have increased somewhat relating to market shares moving from land-based to online gaming.

"At the same time, we are cognisant of the risk for a global recession, during which people’s leisure budgets would likely decrease, in turn affecting the company."

Hagman also added his name to the growing list of public dectrators against Sweden's proposed new restrictions during the COVID-19 pandemic, suggesting they are on "weak grounds."

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