LeoVegas Q3 revenues soar 40% on strong organic growth
Operator’s revenues also benefit from Winga.it acquisition, while organic revenues climb 30% year-on-year
LeoVegas this morning reported a 40% year-on-year rise in Q3 2017 revenues, driven by strong growth in Denmark and the acquisition of its Italy-facing Winga business.
The Stockholm-listed operator recorded revenues of €55.6m in the three-month period, up from €39.7m in the corresponding period last year, with organic growth of 33%.
However, adjusted EBITDA fell slightly year-on-year from €9.8m to €8.9m due to a lower EBITDA margin as a result of marketing costs and gambling taxes.
The number of depositing customers in Q3 increased 30% year-on-year to 202,980, with new depositing customers of 97,210, while deposits during the quarter were up 56% to €191.3m.
The rise in deposits was fastest in Nordic markets excluding Sweden, which was boosted by the launch of LeoVegas in Denmark last year. The acquisition of Winga also led to a 113% rise in the ‘Rest of Europe’.
Meanwhile, in the ‘Rest of World’, deposits decreased as a result of LeoVegas’ decision not to accept new customers from Australia since December 2016.
The operator today announced it had since acquired Royal Panda for €60m, as well as an additional earn-out payment of up to €60m, which LeoVegas said will significantly strengthen its position in the UK market.
“With a great acquisition, a good start to the fourth quarter and a continued strong cash position, we continue to have tremendous opportunities going forward, and we are all looking forward to an exciting fourth quarter,” CEO Gustaf Hagman, Group CEO and co-founder, said.
And according to Hagman, growth also continued into Q4. “The first 23 days of October have begun with net gaming revenue of €14.9 m, representing growth of 70%,” he said.
“This fine start to the fourth quarter shows that even though we have closed Australia for business, it has not had an appreciable impact on our revenue.”
Yesterday EGR Intel announced LeoVegas was the biggest climber in its annual Power 50 rankings, rising from 31st place in 2016 to 14th this year.
The operator’s share price was €6.62 on the Nasdaq First North Premier at the time of writing.