Great Expekt-ations – but LeoVegas reports 13% Q2 revenue drop
The overall figure, however, was a daunting one, as Q2 revenue dropped 13% to €96.8m ($113.6m). This, according to the figures, was purely down to one market: Germany.
Excluding Germany, LeoVegas' revenue growth was a positive 3% – that's quite an impact from one region.
Adjusted EBITDA also more than halved, to €10.6m, although the number of depositing customers rose 6% to 460,697.
Despite these numbers, there was an all-time high from LeoVegas in Sweden, according to Hagman, and a strong start for its sports betting brand Expekt (hence the headline, not just a typo).
The acquisition of Expekt was completed and integrated on 19 May 2021, with the brand going on to almost double its market share in Sweden.
The operator additionally has plenty to look forward to in the US, following its partnership with Caesars Entertainment.
CEO Hagman commented: "Most of our markets have continued to develop well, with high, double-digit growth in key markets like Italy and Spain. The development in Sweden is encouraging, with record-high revenue during the quarter.
"We are also growing rapidly in North America, which now accounts for 10% of consolidated revenue. However, re-regulation in Germany continued to negatively impact figures during the period.
"Excluding Germany, group revenue increased by 3% to a new record level, despite tough comparison figures from the start of the pandemic during the second quarter of 2020, and greater competition from other entertainment activities as societies are now opening up again. We expect to see positive growth for the group on a yearly basis during the third quarter."
So it's a case of great expectations for LeoVegas. But its Q2 progress overall has been somewhat derailed by the German market. Enttäuschend.