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LeoVegas revenue dips in Q1 2023

| By Marese O'Hagan
LeoVegas reported a revenue decrease of 3.5% to €95.0m (£82.5m/$101.8m) during the first quarter of the year.

The quarter saw LeoVegas secure a new gaming licence in Germany and sell its 25% share in online gambling company BeyondPlay to Bettor Capital for €1.9m.

Since the quarter ended, LeoVegas has been involved in two major deals – its acquisition of Push Gaming and the finalisation of MGM’s bid to purchase the company.

LeoVegas said that gross gaming revenue fell by 3% yearly in the Nordic countries, compared to 17% in its Rest of Europe segment. Comparatively, in the Rest of World region, gross gaming revenue fell by 28%.

First quarter results

The cost of sales during the quarter hit €14.6m, down slightly by 6.1% yearly. Following gaming duties costs at €18.8m, the total gross profit for the quarter was €61.5m, a decrease of 7.5%.

Turning to expenses, the highest of the quarter came from marketing, which hit €33.7m. Personnel costs came to €19.1m, and other marketing expenses totalled at €17.0m.

Capitalised development costs added €5.3m to the total, while other income and expenses added €3.0m. Following this, the earnings before interest, tax, depreciation and amortisation (EBITDA) was €3.0m.

Depreciation and amortisation costs at €4.0m, plus amortisation of acquired intangible assets at €1.1m, brought the operating loss to €8.2m.

Various other costs affected the total further, resulting in an increased loss of €9.3m. After income tax of €784,000, the net profit for the period was €8.5m, an increase of 18.5% yearly.

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