LeoVegas Q3 2021 report shows 12% growth, but Q4 could prove a bumper quarter due to uncertainties surrounding the German and Netherlands markets. (Image from Frank Busch on unsplash.com)
While LeoVegas has posted a 12% increase in revenue in its 2021 Q3 Quarterly Report, life is not as rosy as it may seem. The leading iGaming online casino and sports betting platform claims that it would have posted a 31% increase if not for the uncertainties in the German and Netherlands markets.
Released a couple of days ago, the quarterly report revealed that LeoVegas has posted revenue of €99.4m for the third quarter of 2021. This is an increase of 12% over the same period in 2020. This corresponded to an EBITDA of €11.9m which was a profit margin of 11.6% over the quarter.
The number of customers depositing on the LeoVegas platform also increased compared to the same period last year. It was up from 438,691 to 469,721 which is an increase of 7%.
It was the home market of LeoVegas that proved the biggest star during the quarter. Partially due to the firm’s acquisition of Expekt from Betclic in March, the Swedish market brought record revenues. In fact, the Swedish market accounted for 44% of the companies total revenue in Q3. Other markets that performed admirably throughout the quarter we the Italian, Spanish, and Canadian markets. According to Group CEO Gustaf Hagman, those markets all grew between 40 and 70%.
LeoVegas continues to operate as one of the worlds leading online gambling and sports betting platforms. The firm has won numerous industry awards over the years that highlight its ability to provide safe, fair, and entertaining online gambling services. Just this year, LeoVegas scooped the Online Casino of the Year Award for the fourth year running at the 2021 Global Gaming Awards.
Those Markets Offset Poor Performance in Germany and the Netherlands
While LeoVegas performed well in several markets, re-regulation has led to poor growth in the German and Netherlands markets. It is also believed the company will lose out in these markets across the fourth quarter. Preliminary revenue reports for October show LeoVegas experienced negative 5% growth for the month. When the performance of the German and Netherlands markets are excluded, the firm would have posted 21% growth.
The newly created German State Treaty on Gambling has introduced strict new regulations, including a max spin bet of €1 per spin. These have limited the scope of gaming within the country. As the re-regulation in Germany continues to shake out, it is expected that LeoVegas and other operators will continue to struggle. At the end of September, LeoVegas also stopped providing online gambling services in the Netherlands. This was due to new policy changes within the country that requires online gambling entities to apply for a license. While this will continue to have a big effect on the revenue brought in by LeoVegas, the company is hoping that this is short-lived. The firm aims to apply for a new Netherlands license during Q4.
This all points to a rocky Q4 for LeoVegas, but the firm hopes that the Swedish market can continue to offset negative growth in Germany and the Netherlands. Starting November 14, Sweden will lift restrictions on online casinos, which is much-needed news for LeoVegas.
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