LeoVegas Talks Financial Targets

2019 was a turbulent year for all of iGaming. However, LeoVegas reported on its strong Q4 and its strength as it steps into 2020. In these reports, LeoVegas stated that its quarterly revenue went up 3% to £72.28 million.

Plus, the EBITDA was £12.03 million with a margin of 9.6%, which equates to an adjusted EBITDA of £7.64 million with a 9.6% margin. As well as this, they reported an increase in the number of depositing customers, up 7% to 351,613 with returning depositing customers up 14% to an all-time high of 207,982.

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What Made Quarter 4 Such a Success

Firstly, LeoVentures, the LeoVegas investment branch, sold Authentic Gaming to Genting. They sold it for £12.61 million with a capital gain of £9.46 million. As well as this, they have taken measures in the UK to minimize the impact of the difficult market. Additionally, they chose to halt their move to newer premises in Malta. Overall, this will save the company around £3.07 million early.

However, there are restructuring costs of £5.06 million which will affect the comparability for Q4. Also, there has been an impairment cost of £8.46 million linked to the Royal Panda brand.LeoVegas Talks Financial Targets

Going out of 2019 into 2020

At the end of the quarter, the company boosted the growth of 5% with preliminary revenue of £25 million. However, that being said, they have chosen to remove financial sales targets of £500 million as they are choosing to focus on profitability in this ever-changing industry. Meanwhile, they have said that the long-term target is to achieve growth that outperforms the iGaming market. The company is also aiming for an EBITDA margin of at least 15%. Hopefully, this will mean a 17% increase in dividends, up to 11p (SEK1.40) per share, paid twice a year. Leading the way for this will be the new COO, Martin Forste.

Recently, LeoVegas’ CEO, Gustaf Hagman said that their main focus was to be efficient and adaptable. As such, they should see the strong 2019 end of the year see them through to a strong and healthy 2020.