LeoVegas Posts €391.2m 2021 Revenue

LeoVegas posts €391.2m 2021 revenue after revealing a flat Q4 that resulted in GGR of €98.2, almost identical to the same period in 2020. (Image from Lukas at pexels.com )

LeoVegas posted €391.2m revenue for the full 2021, which the firm claims is better than expected considering the ongoing pandemic and poor performance in Q4 because of re-regulation in the German and Netherlands iGaming markets.

The Swedish company that is celebrating its tenth year in the iGaming industry brought GGR (Gross Gaming Revenue) of €98.2 million in Q4, €100k lower than the same period in 2020. As mentioned in the firm’s Q3 report we reported on, the firm expected this because of the ongoing issues in Germany and Holland.

The report also revealed that revenue in Q4 would have increased by 25% without those issues.

If we look a little deeper into the numbers, the adjusted EBITDA looks a little better, with a minimal increase in the quarter. It improved 1% to 11.6 million euros compared to 11.5 million euros in 2020. The number of new customers who make a deposit has decreased by 5% from 181,592 in 2020 to 172,756 in 2021. The net profit during the reporting period amounted to 4.2 million euros, and this is where the greatest success can be booked. In 2020, the group had to record a minus of 1.9 million euros for this important value.

For the year, LeoVegas reported a 1% increase in revenue to €391.1 million. The previous year, the group reported sales of EUR 387.4 million, but net profit fell to EUR 11.8 million compared to the previous year, when it was EUR 19.3 million. With adjusted EBITDA, the percentage fell by 19% to EUR 44.6 million. For 2020, this figure was significantly higher at EUR 55.3 million. In the same period, the number of registered customers fell by 3% to 724,990 from the previous 749,344.

Where did the Q4 revenue come from?

So, we know that Q4 was flat compared to the rest of the year and previous years, but LeoVegas still made close to €100 million in revenue in Q4. Where did it come from? Well, the platform always does well at home and with its home country’s closest neighbours. Half of the GGR of LeoVegas in the 4th quarter came from the Nordics. Operations in the Nordics accounted for 50% of the firm’s full-year GGR (gross gaming revenue) with Sweden, in particular, performing well by delivering another all-time high quarter. Much of this was down to the purchase of Expekt, an online casino, sportsbook, poker room, and bingo hall that operates in the country. LeoVegas CEO Gustaf Hagman even commented that since LeoVegas acquired the firm, its sales have quadrupled.

As for the rest of Europe, this accounted for 29%, which is a drop of 39% year on year. A lot of this is because of re-regulation in Germany and the Netherlands in 2021. Germany has placed tougher restrictions on operators and players, such as limiting max spins to just €1. As for the Netherlands, usually one of the firm’s most profitable markets, a change in gambling laws at the end of September meant operators had to cease operations and apply for a new license, something LeoVegas plans to do during Q1 of 2022. The remaining GGR falls under the rest of the world category, which was 21% for 2021. That is an increase of 24% with offsets a lot of the poor performances across the rest of Europe.

LeoVegas Q4 Stats

74% of LeoVegas’ GGR in those regions came from classic online casino games such as video slots and other virtual casino games, while live casino accounted for a further 14%. The firm’s sportsbooks made up the remaining 12% of revenue throughout 2021

LeoVegas Remain Optimistic for 2022

With the issues in the Netherlands hopefully cleared up soon, the continued performance of Expekt, and the firm now securing a firm footing in the growing US markets, LeoVegas has reasons for optimism for the rest of 2022. The firm already has its foot in the door of New Jersey, with those operations to ramp up soon, and it plans to further expand into all other markets throughout the year. Alongside the pandemic and any restrictions easing as expected, 2022 certainly could prove to be a big year for the LeoVegas Group.

LeoVegas Mobile Gaming Group President and CEO Gustaf Hagman commented on the quarterly results:

“Throughout the quarter and throughout 2021, we as a company took several important steps that we expect will propel growth for many years to come. With the acquisition of the Expekt brand, we have strengthened our strategic focus on sports. The re-launch of Expekt was a great success as sales have almost quadrupled since the acquisition. We are now planning to expand into other markets. We have also started to operate in the US, where the online gambling market is still in its infancy. We see great potential for a smartphone-focused casino expert like LeoVegas in North America, where we already have a leading position in Canada.”