LeoVegas posted revenue of €98m ($101.1m / £82.7m) in the second quarter as it aims for a fall launch date for its re-entry into the Netherlands.
Revenue increased by 1.1% compared to Q2 2021. Excluding the Netherlands, revenue increased 9%, according to LeoVegas.
Reflecting on the quarter, LeoVegas said MGM’s acquisition of the business is proceeding “as planned” and the acceptance period for the transaction will end on August 30.
MGM Resorts agreed to acquire LeoVegas in May in a transaction valued at an estimated $607 million. This is ongoing, even though the Swedish Economic Crime Agency launched an investigation into insider trading of his LeoVegas shares the following month.
Gustav Hagmann, Operator’s President and CEO, said:
While clarifying that LeoVegas’ U.S. expansion was put on hold until the MGM deal was approved, Hagman said, “It seems likely that the bid will be accepted. The shares will be delisted from the Nasdaq Stockholm later this year.” .
“Expansion projects in the United States and New Jersey were put on hold at the end of the quarter due to ongoing tenders and the initiatives and commitments MGM has already made in the U.S. market,” Hagman said.
“Therefore, it is assessed that the most responsible course of action is to pause the expansion until we know if the bid for LeoVegas is acceptable. We will be able to resume our expansion in the US.”
Also during the quarter, LeoVegas was launched in Ontario when the market opened on April 4th.
Hagman added that LeoVegas has applied for a license in the Netherlands and the operator plans to launch in the Netherlands in October. LeoVegas withdrew from the Netherlands last September, complying with rules outlined by the country’s regulators.
bad influence
Looking at its second quarter results, LeoVegas said its customer base, particularly new deposit customers (NDC) and redeposit customers (RDC), was “negatively impacted” by its withdrawal from the Netherlands.
New deposit customers in the business decreased by 10.9% to 158,149, while re-deposit customers increased slightly.
At €15.3 million, cost of sales for the quarter was €1.5 million lower than in the previous year.
The game’s tariffs amounted to €17.3 million and the gross margin was €65.2 million, similar to the previous year’s figure.
Marketing expenses, down 17.4%, made up the quarter’s highest operating costs at €31 million. Other operating expenses were €17.2 million for him and personnel costs were €16.1 million for him. After taking into account these costs and taking into account capitalized development and other income of €4.2 million and €306,000 respectively, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was €5.3 million, compared to the previous year. decreased by 45.1%.
Following depreciation charges of 4.8 million euros, the operating profit was 570,000 euros. Finance costs and profit sharing after tax combined amounted to €773,000, leaving him with a pre-tax loss of €203,000.
Income tax totaled €204,000 and total net profit for the second quarter was €407,000, down 62.4%.
Revenue for the six months ended 30 June was €196.4 million, an increase of 1.5%.
First-half gross profit was €131.7 million and EBITDA halved year-on-year from €43.3 million to €20.2 million.
Following the financial loss and income tax, the total net profit for the six months was 4.6 million euros, down 70.5%.
