LeoVegas, the renowned online casino group, recently received the prestigious Online Casino of the Year award at the Global Gaming Awards London 2023. In their Q4 2022 financial report, the company disclosed their adjusted EBITDA, gross profit, and net gaming revenue (NGR) figures across different regions. Additionally, LeoVegas shared noteworthy accomplishments, such as their partnership with Karolinska Institute and the sale of shares in BeyondPlay.
Financial Performance:
LeoVegas reported an adjusted EBITDA of €3.7m in Q4 2022, showcasing a decline compared to the previous quarter. The corresponding EBITDA margin stood at 3.8%. The company’s gross profit for the same period amounted to €65.8m, with a gross margin of 66.2%.
Regional Analysis:
2.1 Nordic Countries:
LeoVegas experienced a 9% year-on-year increase in net gaming revenue (NGR) in the Nordic countries. Notably, Sweden delivered another strong quarter, setting new records for the Expekt brand.
2.2 Rest of Europe:
The Rest of Europe region witnessed a 4% year-on-year growth in NGR. The UK and Spain exhibited healthy growth during this period. However, the German market continued to adversely impact sales within the region.
2.3 Rest of World:
In the Rest of World region, NGR decreased by 15% compared to the previous year. LeoVegas explained that the decline was primarily influenced by the closure of smaller markets earlier in the year. Despite this, the company observed a favorable trend in most markets within the region.
Highlights and Milestones:
3.1 Research Collaboration with Karolinska Institute:
LeoVegas announced a four-year research project in partnership with the renowned Karolinska Institute, one of the world’s leading medical universities. The company aims to contribute data and financing to enhance methods for identifying and preventing gambling problems.
3.2 LeoVentures’ Stake Sale in BeyondPlay:
Following the end of the quarter, LeoVegas divested its shares, totaling 25%, in the associated company BeyondPlay. The sale generated a total consideration of €1.9m.
LeoVegas’ Q4 2022 performance reflected a decrease in adjusted EBITDA compared to the previous quarter. However, the company demonstrated positive growth in net gaming revenue (NGR) across different regions. Sweden, the UK, and Spain emerged as key contributors to this growth, while the German market posed challenges. Despite a decline in NGR within the Rest of World region, LeoVegas observed promising market trends. Furthermore, the company’s strategic initiatives, such as the research collaboration with Karolinska Institute and the stake sale in BeyondPlay, underscore their commitment to innovation and expansion.