LeoVegas posts revenue down by 1% in last quarter before MGM takeover

Online gaming group LeoVegas has posted its financial report for the third quarter of the year. For the period ended September 30 – its last quarter before being acquired by MGM Resorts International – the Sweden-headquartered operator posted a slight revenue decline of 1%, amounting to EUR 98.7 million ($96.3 million).

The latest quarterly report follows an announcement on August 31 that US-based gaming giant MGM had acquired approximately 96% of all shares in LeoVegas through its MGM Casino Next Lion subsidiary, and that intended to delist LeoVegas from Nasdaq Stockholm. An additional 2% of the company’s shares were later acquired during the extended tender offer acceptance period, and LeoVegas saw its last day of Nasdaq Stockholm trading on September 22.

MGM’s proposal was worth $604 million and was unanimously backed by the LeoVegas board and 98% of the company’s shareholders. In September, LeoVegas elected a new three-member board ahead of the acquisition, now comprising LeoVegas chief executive Gustaf Hagman; MGM Resorts CEO Bill Hornbuckle; and Gary Fritz, head of gaming at IAC, a major LeoVegas shareholder.

Bill Hornbuckle

For its latest quarter, LeoVegas has also reported an EBITDA loss of EUR 2.6 million ($2.5 million). The company also posted higher costs expenses across several areas of its business, including marketing, which was up by 4.4% to EUR 37.8 million ($36.8 million). Gaming duties cost was up 21.4% to EUR 19.3 million ($18.8 million); while personnel costs were 31.5% higher and operating expenses jumped 71.7% to EUR 17 million ($16.6 million).

While LeoVegas’ revenue from Nordic countries was up by 20%, boosted by a record performance of the company’s Expekt brand in Sweden, the growth was offset by a 19% drop in European revenue and a 10% decline in rest-of-world revenue. The Europe fall was majorly attributed to a decision to halt operations in the Netherlands, while the rest-of-world performance was negatively impacted by new regulation in the market of Ontario.

While up to September 2021 LeoVegas had reported a yearly EBITDA of EUR 31.7 million ($30.9 million), so far in 2022 it has managed around half of that figure, at EUR 16.8 million ($16.4 million). However, Q3 also saw the company sign a number of major partnerships, including with Inter Milan FC and Manchester City FC.

See LeoVegas' full Q3 2022 results here.