MGM’s LeoVegas posted their Q1 results. The company reported a difficult time. The group’s trading dropped as several metrics were lowered.
LeoVegas reported a total quarterly revenue (converted into USD) of $101 millions, which is a slight decrease of 4% compared to last year’s result. EBITDA for the company, on the other hand, fell further, to a loss $3.32million in Q1 2023. The adjusted EBITDA was $1.18m, representing a margin -1.2%.
The gross profit for the quarter ended March 31 fell to $65.92m. The company has also suffered an operating loss of nearly $8.8million, a dramatic drop from the positive results last year.
Operating expenses doubled to almost $290m. The company offset some of its negative impact when it sold its share of BeyondPlay for $2.04million to Bettor Capital.
LeoVegas ended the quarter with cash and cash-equivalents of $73 million, a decrease of $9 million compared to the results at the end Q1 2022.
The Operators Struggled in the First Quarter of 2023
LeoVegas declines can be attributed to a number of factors, including an increase in operating costs and suboptimal performances in certain markets.
The German regulatory regime was one of the main reasons for LeoVegas’ heavy losses. LeoVegas’ home market in the Nordics didn’t help matters either. The group’s local revenues have declined, but it remains optimistic about the potential of the market.
LeoVegas recorded increased net gaming revenues from the Rest of Europe area thanks to the United Kingdom and Spain. The company’s potential was demonstrated by its 17% growth, despite the setbacks.
Even so, Q1 was a difficult period for the operator. LeoVegas stated that the macroeconomic environment and unfavorable currency rates had a negative impact on its business. Rest of World sales fell by 28%.
LeoVegas is hoping that its new initiatives will improve its profitability. The company has just launched the Expekt Sports Betting brand and hopes to take advantage of opportunities in Denmark.
In the hope of increasing its international expansion, , a gaming operator, acquired Push Gaming at the beginning of the month.