LeoVegas Q3 2021 report shows 12% growth, but Germany and Netherlands markets a cause for concern (Image from Mediamodifier on pixabay.com)
LeoVegas, one of the worlds most prominent online casinos have recently released its report for the third quarter. In the LeoVegas Q3 2021 report, the company has recorded a 12% increase in revenue compared to the same period in 2020, however, Q4 is not looking good due to re-regulation in the Netherlands and Germany iGaming markets.
In fact, Q3 performance was inhibited due to those markets, with the report claiming growth would have been 31% without the losses incurred in Germany and the Netherlands.
The report shows that LeoVegas brought in revenue of €99.4m during the third quarter this year. That is compared to the €88.9m recorded in Q3 of 2020. While revenue increased, the EBITDA (earnings before interest, taxes, and depreciation) the company pulled in was down on the same period last year. The EBITDA for Q3 in 2021 was €11.5m compared to €11.9m during the same period in 2020. The company did see an increase in people depositing on its platform during the quarter. This was up 7% from 438,691 to 469,721.
LeoVegas has a lot to thank the Swedish market for, as this was its strongest performance by far. Mainly due to its acquisition of Expekt back in March, the firm was able to post record revenues in the Swedish market. Those revenues accounted for 44% of all revenues brought in during Q3. LeoVegas also performed well in Italy, Spain and Canada as those markets enjoyed growth of between 40 and 70%.
LeoVegas is one of the most renowned online casino and sports betting platforms in the world. It operates in numerous markets including the UK and many other countries across Europe. The platofrm is also a regular winnier of industry awards such as winning the 2021 Global Gaming Awards ‘Online Casino of the Year Award’ for the past four years.
Swedish Performance Offsets German and Netherlands Markets
The well-documented regulation of both the German and Netherlands gambling markets has led to LeoVegas losing valuable revenue in the regions. I already mentioned that Q3 revenue would have been 31% without the losses accrued in Germany and Holland. It is looking bleak for Q4 too, as a preliminary report for October has already shown that LeoVegas has suffered negative 5% growth for that period. This is set to continue until the new regulations in each market settle down.
In Germany, strict new regulations have been put in place by the German State Treaty on Gambling. Similar to how the UKGC governs gambling in the UK, the treaty has put in place regulations including a max bet of €1 per spin on video slots. This will certainly have a negative effect on the revenue at LeoVegas. As for the Netherlands, online casinos and sports betting sites have had to apply for a new license as part of new policy changes in the country. LeoVegas has had to stop all operations within the country and will re-apply for a license at some point during the final quarter.
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