LeoVegas EBITDA drops 68% in Q4 amid rising costs and market exits
LeoVegas has reported a 68% year-on-year decline in adjusted EBITDA for Q4 2022 to €3.7m.
This corresponds to an EBITDA margin of 3.8%, down from 11.8% last year.
The operator, now owned by MGM Resorts, cited transaction-related costs as well as a management incentive programme as contributing factors for the EBITDA decline.
Specifically, personnel costs rose during the quarter, totalling €17.6m, up from €13.9m in Q4 2021.
The company also experienced an uptick in other operating expenses, which climbed to €16.5m from €10.6m.
LeoVegas said a “major proportion of the increase was the result of provisions for player claims in two markets”. However, the company provided no further details.
LeoVegas’ reporting obligations have changed after the company’s shares were delisted from Nasdaq Stockholm as a result of the sale to MGM Resorts.However, LeoVegas AB still has bonds listed on the Nasdaq Stockholm, and its Q4 report therefore reflects those reporting requirements.
In terms of regional performance, LeoVegas said NGR in Nordic countries increased by 9% year-on-year, with Sweden achieving a strong quarter due to new records set by betting brand Expekt.
Meanwhile, in the Rest of Europe, NGR rose by 4% year-on-year, with the UK and Spain reporting healthy growth during the period.
NGR growth in the region was negatively impacted by Germany, however.
In the Rest of the World segment, NGR decreased by 15% year-on-year. The company’s decision to exit some smaller markets earlier in the year had an adverse impact on growth in the short term, it said.
For the full year 2022, LeoVegas reported revenue of €394.7m, a slight increase on 2021 when it generated €391.2m.
Adjusted EBITDA came in at €34m in 2022, down nearly 24% year-on-year.