LeoVegas revenue dips 3.6% in Q1 as macro factors reduce customer spend
The operator pointed out, however, that organic growth in local currencies excluding its closed markets was around 5%.
In Nordic markets, the operator said that net gaming revenue (NGR) fell by 3% year-on-year.
Although Sweden saw a record-high number of active customers during the quarter, macroeconomic conditions negatively impacted the brand’s revenue per customer, it said, while negative currency fluctuations also impacted its reported growth.
In the rest of Europe, however, NGR grew by 17% year-on-year, with the UK and Spain posting “healthy growth” for the quarter and helping to mitigate the negative impact of Germany.
Adjusted EBITDA came to a €1.1m loss, compared to €14.1m in positive adjusted EBITDA in Q1 2022.
After accounting for other items including tax, the business declared a net loss for the quarter of €8.6m, down from a €7m net loss in the prior-year period.
LeoVegas’ biggest news in recent times came after the end of Q1, when it announced it would acquire online casino developer Push Gaming via its LeoVentures subsidiary.The acquisition marks LeoVegas’ first major investment since it was acquired by MGM in a $607m deal last year.
LeoVegas said the acquisition “leapfrogs the exposure into the fast-growing slots content category and will bolster the group’s content production capabilities, and support plans for continued growth.”
Notable events taking place during Q1 included LeoVegas receiving its gaming licence from German regulator the GGL, and securing a buyer for the €1.9m sale of its 25% stake in B2B online casino startup BeyondPlay.
Since then, LeoVegas has relaunched its Expekt betting brand in Denmark, following the reintroduction of the brand in Sweden last year, with a view to continuing its expansion in key markets.
Also following the end of the quarter, parent company MGM increased its ownership share in LeoVegas from 98% to 100% via the buyback of all remaining shares.
Current trading and outlook
LeoVegas’ acquisition of Push Gaming is expected to complete during Q3 2023.
Following completion of the transaction, Push will remain under its existing management team, while its 100+ employees will continue to develop and distribute games via the company’s own platform and remote gaming server.
While LeoVegas was delisted from the Nasdaq Stockholm in September 2022 following its acquisition by MGM, the company still has bonds listed on the exchange’s corporate bond list.
It published its Q1 2023 results in accordance with the terms and conditions of the bonds, but has not held an earnings call with investors and analysts.