LeoVegas Posts Third Quarter 2020 Financials

Online casino operator LeoVegas has posted their third-quarter 2020 financial results, noting that revenues for the period were €88.9 million, up 0.8% from last year.

Standard casino products accounted for 77% of revenues, while live casino revenues were 16%, and sportsbetting came in at 7%. The numbers are a rebound from the second quarter, when Covid hit hard and caused restrictions in key markets like Sweden.

New depositing customers were up 23.6% from last year to 178,995, although this number was lower than the first two quarters of this year. Returning depositing customers was up 28.2% to 259,696, which is a record for the company.

European operations outside of the Nordic region generated 47% of revenues, while the Nordic region brought in 35%. Other markets generated 18%.

Cost of sales were down 10.3% to €15.7 million, with gaming duties level at €12.4 million. Gross profits were €60.9 million, up from €58.4 million last year. Pre-tax profit was €4.7 million, down 14.6% from last year. Income taxes paid were €607,000, and net profits were down 19.6% to €4.1 million.

Concerns moving forward for the company are unlicensed activities in Sweden, which LeoVegas CEO Gustaf Hagman addressed, noting: "In Sweden we are seeing a troubling development in which the unlicensed market continues to grow unhindered. A growing number of operators without licences are actively targeting Swedish players, including those who have been barred by the self-exclusion tool Spelpaus."

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