Enlabs reports record revenue again in Q3

5 November 2019

Sweden-based, Baltic-facing operator Enlabs posted record revenue for the third consecutive quarter, breaking the €10m(£8.6m/$11.1m) barrier for the first time.

The operator’s total revenue was up 32% year-on-year. Of this, €9.2m came from gaming revenue, up 39% year-on-year, on €194.8m worth of wagers.

Robert Andersson, chief executive and group president at Enlabs said he was proud to again see a record quarter for the company after similar success in the first and second quarters of this year.

“It never gets old starting with my opening line ‘Our best quarter yet,’” Andersson said.

Casino gaming made up the majority of gaming revenue, at €5.7m, up 58% year-on-year, on €146.2m worth of stakes. Betting revenue came to €2.9m on a €32.6m handle, a 7.4% revenue increase from Q3 of 2018, which included the latter stages of the 2018 FIFA World Cup. Poker revenue doubled to €600,000.

Of the company’s remaining revenue, €603,000 came from media revenue, consisting of advertising revenue and revenue shares for players directed to other operators. The figure marked a 12% year-on-year decrease.

Solutions revenue came to €271,000, a 15% decrease, with €287,000 from external sales but a loss of €16,000 through internal sales.

The Baltic region made up the vast majority of the company’s revenue, at 94%.

Enlabs paid €2.7m in direct operating costs, a 35.2% year-on-year increase. Costs of services sold were the largest direct operating cost, up 34.6%. The company paid €939,000 in gaming taxes, up 36.3% from last year, leaving a gross profit of €7.4m.

Other operating expenses came to €4.3m, up 34%, with staff costs the largest contributor at €2.1m, up 17.8%. Marketing costs increased 62.7% to €1.7m while other expenses increased 7.6% to €995,000. However, the company made a profit of €597,000 on capitalisation, also counted as an operating expense, bringing earnings before interest tax depreciation and amortisation to €3.1m, a 27.2% increase.

Enlabs lost €541,000 to depreciation, down 7.5%, bringing operating profit to €2.6m, up 38.2%. The company posted a €20,000 net financial loss for a pre-tax profit of €2.5m, up 37.8% from 2018.

After receiving a net tax refund of €20,000, Enlabs’ total profit came to €2.6m, a 39% increase from 2019.

Andersson said that the operator’s success was especially pronounced in September and so he anticipates further growth in the fourth quarter of the year and into 2020.

"Now, we are preparing the organisation for the next phase of aggressive growth – executing plans to launch new brands on our new platform and entering new markets,” Andersson said. “2020 will certainly be an even more exciting year in company history.”