LeoVegas Profits Plummet in 2019, Annual Report Reveals

One of Europe’s leading online casino operators, LeoVegas, has published their entire financial report for 2019, revealing that it has suffered somewhat in the profits department, despite the slight revenue boost.

The full annual report notes that profits have dropped significantly compared to the same period last year – although signs have pointed otherwise in a report released during the previous year.

The Figures Reveal All

For the year that ended on December 31st 2019, the figures state as follows:

• Revenue rose 9% to €356 million
• Marketing costs dropped to €118.5 million
• Personnel costs rose 20.5% to €49.4 million
• Other operating expenses also fell to €34.5 million
• Depreciation and amortization costs went up a staggering 108.2% to €10.2 million
• Operating profit declined to €12.7 million
• Pre-tax profit also down 76.9% to €10.3 million
• Taxes paid of €730,000
• Net profit down from €43.2 million to €9.5 million

Working on Efficiency

Gustaf Hagman, company’s CEO, comments on these results:

“During 2019 we worked hard to reduce complexity in the group, be more efficient and adapt to the changes taking place in the gaming industry.

In parallel with this we have enhanced the attraction of our product through new functionality and greater personalisation. We have launched new brands, focused more on Casino, and expanded to new markets.”

He added that the team has, towards the end of the year, intensified the integration of previous acquisitions that will contribute to cost savings.

New COO

Earlier in January…

…LeoVegas has named its new Chief Operating Officer. That is Marten Forste, the former chairman of the board, who took on a new role on February 3rd.

Forste will be working from company’s Malta offices and he will replace Richard Woodbridge who left the company.

A Deal With Pragmatic Play

Pragmatic Play, content creator and aggregator, has signed a deal with LeoVegas regarding the delivery of live dealer games to all LeoVegas online casinos.

This addition will specifically extend to markets of Sweden, Malta, and Denmark.

Pragmatic’s Vice President, Lena Yasir, has said that the company is delighted to expand its partnership with LeoVegas which is one of the industry’s best-known operators.

The operator’s Head of Live Casino, Rokas Benetis, added:

“We’re excited to offer Pragmatic Play’s Live Casino games to our players. Pragmatic Play has done a great job to build a strong selection of classic table games, and I think it will be a great addition to our product portfolio”

Source:

“LeoVegas to refocus on casino amid “challenging environment””, Peter Amsel, calvinayre.com, February 14, 2019.