LeoVegas bolsters tech muscle as MGM buyout looms

LeoVegas AB has praised the performance of its product portfolio and investment strategy in outriding industry-wide European headwinds, as the Stockholm-listed online gambling group becomes an acquisition target of MGM Resorts. 

Publishing its Q1 trading results, LeoVegas registered corporate revenues of €98.5 million, up 2% on corresponding 2021 results of €96.7 million.

Excluding Dutch market restrictions, LeoVegas revenue growth increased by 9%, despite its brand portfolio recording a 1% drop in depositing customers to 455,000.

Period growth was attributed to ‘solid performance’ across Nordic markets, which generated 51% of group NGR helping offset continued Euro market declines (NGR -3%).

Of significance, LeoVegas outlined its ‘continued capture of market-share in Sweden, in which the company declared that it had become the market’s ‘argest commercial operator’.

Helping to diversify its product portfolio, LeoVegas underscored the successful re-launch of the Expekt sportsbook brand, which helped its sports betting vertical achieve an NGR contribution of 12%.

Company Co-Founder and CEO Gustaf Hagman commented on performance – “LeoVegas began the year in solid fashion with revenue growing 2% in the first quarter. Excluding the Netherlands, growth was 9%. Growth in the sport vertical was a full 44% during the quarter, mainly driven by the Expekt brand.

“The majority of our markets continue to perform well. Once again, Sweden sticks out having reached new record levels and we are entrenching our position as the largest private company in our home market.”

Period trading saw LeoVegas achieve group EBITDA of €14 million, up 35% on corresponding 2021 results of €10.4 million – reflecting a period EBITDA margin of 14.4% (10.8%).   

The group’s improved earnings results saw LeoVegas declare a 2.5x jump in operating profits to €9.6 million (Q12021:€3.6m).

During Q1, LeoVegas accelerated its technology investment strategy, in which the company opened two new tech hubs in Warsaw (Poland) and Malaga (Spain) – “The plan is to recruit up to 100 developers to these offices in the coming two years,” Hagman asserted.

“To ensure that we possess the necessary resources to continue to deliver on our ambitious growth plans, we are opening two new tech hubs, one in Warsaw and one in Malaga, where we plan to recruit up to 100 new developers in the coming two years.” – the CEO commented on tech developments.

“These investments ensure that the group will continue to offer the best gaming experience moving forward with the latest innovations in areas such as casino, sport, payments and personalisation.”

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