LeoVegas hails “record year” as 2016 revenues soar 70%
Stockholm-listed operator lauds “effective” marketing strategy as profits also grow significantly
LeoVegas posted a 70% increase in full-year revenues this morning, backed by a particularly strong performance in H2 after what it describes as “effective marketing”.
Group revenues amounted to €141.4m (£120m) for the year ended 31 December 2016, with the company claiming the additional €58.5m (£49.7m) in revenue was some of the largest organic growth in the market.
EBITDA amounted to €16m, a significant rise from the €1.2m it reported last year, while operating profit (EBIT) increased to €14.6m (£12.4m) from €500,000 (£420,000).
The operator’s 70% growth was helped by a strong end to the year, which saw Q4 revenue increase by 58% to €41.2m (£35m).
EBITDA rose to €10m (£8.5m) from €400k during the three-month period, corresponding to an EBITDA margin of 24.2%.
LeoVegas said the increase in profitability was due to “relatively lower but very effective marketing” during Q3 and Q4, and will “continue to be volatile” in the year ahead.
“With a record year characterised by strong organic growth, innovation and high profitability in the fourth quarter, LeoVegas has taken yet another solid step toward our financial targets,” Gustaf Hagman, Group CEO and co-founder, said.
“During 2016 LeoVegas grew its revenue by more than €58m and thereby had what is likely the largest organic growth in the world of any listed gaming operator.
“Revenue for the full year was €141m, and with an adjusted EBITDA margin of 15.1%, we can truly say that these figures have developed well towards our long-term targets of SEK300m in revenue and a 15% EBITDA margin in 2018.”
The operator added it has applied for a gaming licence in the newly-regulated Czech Republic market, and as a result, has temporarily closed its business in the region.