LeoVegas encountered a challenging 2018, the company stated as it released results showing a slowdown in growth amid difficulties encountered in the UK market.
The Nasdaq Stockholm-listed mobile gaming group increased its revenues in Q4 2018 by 25 per cent to €84.5m. Organic growth in local currencies was 7 per cent, with organic growth in local currencies excluding the UK at 14 per cent, while EBITDA was €8.1m (€6.1m), corresponding to an EBITDA margin of 9.6 per cent (9.0 per cent).
Since then, LeoVegas has postponed its financial targets from 2020 to 2021 due to developments in the UK market.
However, the firm says that its direction remains unchanged, with financialtargets in absolute numbers to reach €600m in revenue and €100m in EBITDA.
Group CEO Gustaf Hagman said: “2018 was the most challenging year in LeoVegas’ history. We bumped into challenges that we have not previously encountered and saw a slowdown in growth as a result.
“It was also a year in which we carried out a number of strategically crucial projects that have taken us large steps forward on our growth journey. There is much left to do, and there’s no doubt we can and will improve in many areas. We have learned a lot, and our position for achieving our long-term vision – to be the global market leader in mobile casino – is good.
“Today we are already the most appreciated brand in our home market in Sweden, and we are live in more markets than ever before. We are well-invested with our own technology, which makes us scalable and flexible, and we have taken large leaps in responsible gaming and compliance. Our multibrand strategy is in place, enabling us to rapidly launch new casino brands, and we are ready to expand in more markets in 2019 with an overall focus on cost control and increased profitability.”
On the difficult picture in the UK, where the group sees major growth potential in the long-term, LeoVegas and its brands including Rocket X and Royal Panda are working from a new, lower level from which to grow.
“Our revenue continued to decrease sequentially during the fourth quarter, but with gradual improvements in both revenue and KPIs. This positive development continued on Group level during January. It is still too early to declare that we have turned the corner yet in the UK, but we are confident with the plan we have charted out.”
LeoVegas has been granted a licence in the re-regulated Swedish market and grew by more than 200 per cent in Germany, while there were “good results” in Finland, Denmark and Canada.