The online betting operator had a record fourth quarter that pushed comprehensive profit in 2020 by 103.2% to reach €19.3 million.
LeoVegas Reports Growth Despite Pandemic and Changing Market Regulations
For the 12 months ending 31 December 2020, LeoVegas posted overall revenue of €387.5 million (£340 million/$469.8 million), an 8.9% increase from €356.0 million in the previous year.
Cost of sales for the full financial year amounted to €67.9 million and gaming duties stood at €57.3 million, which resulted in a gross profit of €262.3 million for the year, up 10.6% compared to 2019.
The online casino operator incurred €210.5 million in operating expenses for the year, with the main category being marketing expenses (€132.6 million), followed by personnel costs (€50.5 million). These figures induced €51.9 million in earnings before interest, tax, depreciation, and amortization (EBITDA), up 4.9% year-on-year.
Earnings before interest and tax (EBIT), but after including depreciation and amortization, reported a 79.5% increase to €22.8 million. The group’s CEO Gustaf Hagman was positive about the company’s results and described 2020 as “yet another record year for LeoVegas with a strong close”.
Profit before tax almost doubled from the €10.3 million reported in 2019 to €21.5 million. LeoVegas paid €2.2 million in income tax, and despite the negative impact of currency translation, it ended the year with €19.3 million in profit, up 103.2% compared to 2019.
New Depositing Customers Drive Growth in 4Q2020
During the fourth quarter of 2020, revenue was up 13% to €98.4 million, while organic growth in local currencies gained 14%. Key performance indicators show that the Nordic countries accounted for 36% of the group’s net gaming revenue (NGR), led by the rest of Europe with 47%. The remaining 17% share came from countries in the rest of the world.
LeoVegas said 75% of gross gaming revenue in Q4 came from classic casino games, including slots, while live casino and sports betting contributed 16% and 9% respectively. The number of depositing customers increased by 24% to reach 461,983.
LeoVegas highlighted that in the last quarter it became the first company in the gaming industry to offer payments via Open Banking and also launched the record-large LeoJackPot. The operator also issued senior unsecured notes worth SEK500 million, thus securing long-term financing.
LeoVegas’ expansion plans include working in locally regulated markets or markets that will implement local regulation soon. The trend of adopting online gaming regulations is gaining momentum outside of the EU as well with Latin America and the USA, and despite the stricter requirements in some countries, such as Sweden, Germany, and the Netherlands, the long-term outlook is positive.