LeoVegas sees profits double in first half

Profit was boosted by record revenue in the second quarter.

Sweden.- Online casino operator LeoVegas has reported record revenue for the second quarter and a rise in profits of 132 per cent for the first half.

Revenue for the six months ending June 30 hit €200.2million, up 10.8 per cent from €180.7million in the same period last year. 

Cost of sales totalled €35million, gaming duties €30.6million, while personnel cost remained steady at €25.3million and marketing spend rose 5.1 per cent to €64million.

EBITDA leaped 43.5 per cent from €22.3million to €32million and operating profit more than doubled to €18.5million. Subtracting minor costs and €1.1million in income tax, the iGaming operator’s profit for H1 was €17.2million, up 132.4 per cent on H1 2019.

The second quarter was particularly strong, seeing a record €110.7million in revenue, up 17.3 per cent on last year, and record customer growth with 195,329 new depositing customers in the quarter. 

Deposits totalled €355million in Q2, up 23.4 per cent on Q2 2019, mainly through the core casino business, and 74 per cent via mobile. 

Rest of Europe accounted for 51 per cent of net gaming revenue, followed by the Nordics (34 per cent) and Rest of the World (15 per cent).

LeoVegas Chief executive, Gustaf Hagman, said: “I am very satisfied with how we at LeoVegas are handling the Covid-19 situation so that we can conduct our business without noticeable disruptions, despite challenges such as not being able to meet in our daily work.

“Our industry, like many other sectors, is experiencing a structural shift from offline to online. Owing to LeoVegas’ online position, appreciated brands and proprietary technical platform, we stand strong in an increasingly digital world.

“LeoVegas has delivered continued solid growth and profitability during a period of exceptional circumstances in the world around us.

“Supported by the record-large customer base that we entered the quarter with, together with our ability to quickly adapt to new conditions, the positive trend from the first quarter is continuing.”

The operator expects to see the trend continue, noting that revenue for July was up 4.8 per cent on last year. 

Hagman said: “We continue to focus on delivering sustainable and profitable growth for our shareholders and on offering an entertaining and safe gaming experience for our customers around the world. LeoVegas’ long-term vision is to be king of casino.”