LeoVegas Profits Nosedive in 2019

Leading online betting operator LeoVegas has announced their 2019 full-year financials, noting that profits for the period dropped severely.

Key financial indicators for the year ending December 31st, 2019 were:

  • Revenues up 9% to €356 million
  • Marketing costs down to €118.5 million
  • Personnel costs up 20.5% to €49.4 million
  • Other operating expenses down to €34.5 million
  • Depreciation and amortization costs up 108.2% to €10.2 million
  • Operating profit down to €12.7 million
  • Pre-tax profit down 76.9% to €10.3 million
  • Taxes paid of €730,000
  • Net profit down from €43.2 million to €9.5 million

Commenting on the results LeoVegas CEO Gustaf Hagman said, "During 2019 we worked hard to reduce complexity in the group, be more efficient and adapt to the changes taking place in the gaming industry.

"In parallel with this we have enhanced the attraction of our product through new functionality and greater personalisation. We have launched new brands, focused more on Casino, and expanded to new markets.

"Towards the end of the year we intensified the integration of our previous acquisitions, which is expected to contribute to cost savings and increased economies of scale."

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About the author

Therese Williams // UK Correspondent
Therese Williams
Therese is a fervent fan of slot machines and pub fruities, often trying her luck at some of the top online casinos. She covers news for Casino Listings with a focus on the UK and Europe. Therese studied arts and creative writing at university and has written for newspapers in the UK.
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usbarbadosslim93 Recently online: 30 min ago
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14 February 2020 - 5:29pm
#1

I think it's pretty clear that tightening regulations on the advertising in Sweden is hitting these operators hard up front. Will be interesting to see how they adjust to bolster positions moving ahead.

auCL - klaw
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17 February 2020 - 12:07am
#2

That and the UKGC regulations. Don't think new markets can make up for the now tightly regulated markets

usbarbadosslim93 Recently online: 30 min ago
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17 February 2020 - 1:57pm
#3

Yeah, unless they can hit into India or the Asian markets and get a large player base, I think these results may be the "new normal" for operators.

lvblck
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17 February 2020 - 8:17pm
#4

That's quite the drop for their revenues. But it's not surprising, given the fact how regulations are changing, new requirements are coming in place. If the new rules about 2pound bet in the UK will take place, it will mean even smaller revenues for the big operators in my opinion. I also believe that taking away bonus buy feature option for the UK market had an impact in these numbers.

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