LeoVegas Group has reported a 1% revenue increase for Q2, but rising expenses contributed to a bottom-line loss of €407,000 ($420,346)
LeoVegas Group has reported a 1% revenue increment for Q2, but rising expenses contributed to a bottom-line deprivation of €407,000 ($420,346).
Overall, the company’s second canton revenue totalled €98m, upward year-on-year from €96.8m. However, this small increment was countervail past higher personnel costs and operating expenses.
The former constituted 16.5% of LeoVegas Group’s Q2 revenue, up from 14%, due in the first place to an enlarged workforce.
Meanwhile, operating expenses totalled more than 17% of the company’s sec canton revenue, up from nearly 8% in conclusion year.
This figure, which LeoVegas described as “abnormally high,” was attributed to costs associated with MGM Resorts’ takeover bid, alongside a supply for a regulatory amercement in the UK and the company’s US expansion.
Marketing expenses, however, in reality shrank year-on-year. These felled seam from €37.6m to €31m, though this wasn’t plenty to mitigate a drib in profitability.
For Q2, LeoVegas Group’s nett benefit decreased from €1.08m to a red ink of €407,000. EBITDA likewise fell, going from €9.8m to €5.4m – a 45% drop.
On a half-year basis, a similar trend is visible. While LeoVegas Group’s H1 revenue rosiness year-on-year, climbing by 2%, its half-year nett benefit amounted to a loss of €7.4m, down feather from an income of €3.5m.
LeoVegas CEO Gustaf Hagman described the billet as “eventful,” and said the companionship generated put down sports betting revenue.
“Most of the main markets continue to grow well and we cannot see any signs to appointment that the stream macro position with high-pitched inflation and rising involvement rates is impacting the habits of our players,” Hagman said.
“Once again, Sweden stuck out during the billet with strong performances for the LeoVegas and Expekt brands.”
He also commented on MGM Resorts’ takeover bid, remarking: “It seems likely that the press testament follow accepted, which would head to the company’s shares beingness delisted from Nasdaq capital of Sweden later in the year.
“Regardless of the outcome of the bid, business sector remains as usual, and we are continuing to work relentlessly to create the industry’s premium gaming have for our customers.”
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