LeoVegas posts stagnant Q4 revenues due to poor performance in Germany & the Netherlands but plans to push further into US markets in 2022! (Image Lukas at pexels.com )
The LeoVegas Group has posted its revenue for the fourth quarter of 2021, and as expected from the Group’s Q3 report, the results have proved flat compared to the rest of the year because of the effects of re-regulation in Germany and the Netherlands. The company which owns and operates LeoVegas Casino, one of the leading platforms in Europe and the UK, posted revenues in Q4 of €98.2m ($111.8m), similar numbers to the year before.
However, LeoVegas did say in the report that without the negative impact caused by the two aforementioned markets, revenue would have increased by 25%.
In the report, 74% of the firms’ Net Gaming Revenue (NGR) came from the NGR brought in from regulated markets or other markets where the group is taxed. As for EBITDA (earnings before interest, taxes, depreciation, and amortisation) totalled €11.6m, up 1% on Q4 in 2021, and the number of people depositing during Q4 was 1% down (456,063) on the same quarter in 2021.
As for the full year, the Stockholm Stock Exchange-listed betting and gaming operator LeoVegas reports growth of 1% to €391.2 million, despite the negative impact of regulatory changes in Germany and the Netherlands.
Regulatory Changes Among the Reasons LeoVegas Posts Stagnant Q4 Revenues
The report presented notes of many events that occurred throughout the quarter, the most positive being the extension of its licenses from the Danish Gaming Authority. However, it is the firm’s performance in Germany and the Netherlands that was highlighted as the reason for the flat Q4 revenues.
Widely reported, both countries have been reforming their gambling laws. Germany implemented strict new measures that have affected the iGaming market and revenues for platforms such as LeoVegas. This includes implementing a max spin bet of €1 when playing video slots and banning live casino games and progressive jackpot slots. With such new measures, it is easy to see why LeoVegas and other operators have struggled in the country. As for the Netherlands, the country has also undergone regulatory changes, which meant operators had to apply for licensing. LeoVegas ceased operating within the country, but it is believed they have since applied to re-enter the market.
With the above in mind, LeoVegas states that performance was still better than expected as they knew that the issues above would have a big bearing on the numbers they would post for Q4. As for events that took place just after Q4, LeoVegas submitted an application for a gaming license in Ontario, a move that would allow the group to strengthen its position in the blossoming US iGaming markets following similar licensing obtained in New Jersey.
LeoVegas Mobile Gaming Group President and CEO Gustaf Hagman commented on the quarterly results:
Throughout Q4 and the full year, we at LeoVegas made several changes that we feel will enable the company to increase its rate of growth in future years. The acquisition of Expekt has allowed us to strengthen our position in the sports betting industry and since that move, we have quadrupled sales on the platform. We also have plans to continue expanding into other markets, such as the US market, where we have already put processes into action.
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