LeoVegas posts mixed Q3 results, details acquisition deal
LeoVegas has reported a mixed set of financial results for the third quarter, with revenue up, but operating profit down, while also confirming it has agreed a deal to acquire gaming operator Royal Panda.
Revenue in the three months to September 30 amounted to €55.6m ($65.4m), an increase of 40% on the €39.7m posted in the corresponding period last year.
Total deposits jumped 56% year-on-year to €193.1m while the overall number of depositing customers climbed 30% to 202,980.
However, earnings before interest, tax, depreciation and amortisation fell from €9.8m in Q3 of 2016 to €7.6m in the most recent three-month period, while operating profit also dropped from €9.4m to €6.9m.
In addition, earnings per share both before and after dilution fell to €0.06.
LeoVegas noted that its results were impacted by acquisitions and work with the listing on Nasdaq Stockholm.
Meanwhile, LeoVegas, via its wholly owned LeoVegas International subsidiary, has secured a deal to acquire all of the shares in Web Investments Limited, the company behind the Royal Panda brand.
LeoVegas will pay €60m to acquire the company, although the deal also includes a possible earn-out payment of an additional €60.
To support the deal, LeoVegas has obtained debt financing of €100m, of which €40m constitutes a revolving credit facility.
LeoVegas expects the acquisition to go through on December 1 this year.
Elsewhere, LeoVegas has made a series of changes to its senior management team as it seeks to strengthen its position in the market.
Co-founder Robin Ramm-Ericson will become managing director of LeoVentures, leaving the CXO role in the LeoVegas executive management team but remaining a senior executive of the Group.
In addition, Jarl Modén, who currently serves as head of product, will take on the new position of chief product officer on an interim basis while LeoVegas seeks a permanent appointment for the role.
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