Enlabs remains in black despite Latvian shut-down

The Latvian operator saw revenue fall 9.9 per cent to €16.6m for H1.

Latvia.- Enlabs has reported a drop in revenue and profits but remained in the black despite Latvia’s suspension of gaming for two months during the pandemic.

The operator saw revenue for the six months ending June 30 fall 9.9 per cent to €16.6million. EBITDA fell 39 per cent to €3.2million.

Gaming accounted for €15.3million in revenue, which equates to a drop of 9.5 per cent year-on-year.

That was mainly due to the suspension of all forms of gambling, including iGaming, from April 8 to June 10 in Enlabs’ native Latvia, which remains its biggest market.

The operator made attempts to adapt to the shut-down by launching quiz games. These were played 40,000 times during the two-month period. 

Following the resumption of gambling in June, Enlabs launched Laimz, its second brand for Latvia.

In Lithuania, where iGaming was still permitted during the suspension of land-based operations, Enlabs aimed to mitigate the lack of sports by launching esports betting with EveryMatrix. It also saw a strong performance in online poker.

The operator took steps to expand from its core markets in the period, launching Optibet in Peru and Chile. It also acquired 29.9 per cent of Global Gaming, the operator behind Ninja Casino.

Affiliate marketing activities generated €880,000 in revenue, down 10 per cent, while direct costs rose 3.8 per cent to €5.2million, leaving a gross profit for the half of €11.4million, down 15 per cent.

Looking ahead, the company said it aims for EBITDA of over €20million in 2021 and a margin of at least 20 per cent. It aims for at least 25 per cent in organic growth supported by M&A.

It plans to launch Optibet in Sweden in the current half. It has also announced that after Ukraine’s legalisation of gambling it will aim to enter the country as soon as possible. It also has plans to enter Belarus.

Chief Executive George Ustinov said: “Enlabs believes market entry in 2021 is more reasonable. Currently there are three online gaming licenses granted under the new legislation and Enlabs aims to be among the top five companies to legally start online operations in Belarus.”