Against the background of strong organic growth and several acquisitions that are contributing to LeoVegas' success as a growth company, the Board of Directors has adopted new financial targets for the Group. LeoVegas is targeting at least EUR 600 m in revenue by 2020 and at least EUR 100 m in EBITDA by 2020. The targets apply for the entire Group.
Financial targets for 2020
Growth and revenue:
LeoVegas' target is to achieve revenue of at least EUR 600 m by 2020.
Profit:
LeoVegas' target is to achieve at least EUR 100 m in EBITDA by 2020.
"Following our acquisitions we have now drawn up new financial targets. In 2015 we set the target to achieve EUR 300 m in revenue by 2018. The new revenue target entails a doubling to at least EUR 600 m by 2020 and does not include potential major acquisitions. At the same time, we are aiming for EBITDA of at least EUR 100 m, which implies adjusted* earnings per share of at least SEK 8** by 2020. The new targets confirm our continued focus on strong growth combined with a sound view of profitability. The targets create transparency regarding where we are headed, both internally and externally," comments Gustaf Hagman, CEO of LeoVegas Mobile Gaming Group.
Long-term financial targets
Long-term organic growth that outperforms the online gaming market
Long-term EBITDA margin of no less than 15% assuming that 100% of revenue will be generated in regulated markets subject to gambling tax
To pay a dividend of at least 50% of profit after tax
LeoVegas' financial report for the first quarter of 2018 will be published on 2 May. In connection with a presentation the same day at 9:00 CET there will be an opportunity to ask questions and obtain more in-depth information about the targets. The webcast will be accessible at the address: https://edge.media-server.com/m6/p/nzryq6n6
The information in this release is such that LeoVegas AB (publ) is required to make public in accordance with the EU Market Abuse Regulation (596/2014). The information was submitted, by the agency of the contact persons below, for publication at 8:00 a.m. CET on 19 April 2018.
For further information, please contact:
Gustaf Hagman, Group CEO: +46 (0) 8 410 367 66, gustaf.hagman@leovegas.com
Viktor Fritzén, Group CFO: +46 73 612 22 67, viktor.fritzen@leovegas.com
Philip Doftvik, Head of Investor Relations and Corporate Finance: +46 73 512 07 20, philip.doftvik@leovegas.com
About the LeoVegas mobile gaming group
LeoVegas' passion is "Leading the way into the mobile future". LeoVegas is Sweden's premier GameTech company and is at the forefront of using state-of-the-art technology for mobile gaming. In 2017 the company passed the threshold for being classified as a unicorn, i.e., a start-up valued at more than USD 1 billion. A large part of this success can be credited to an extreme product and technology focus coupled with effective and data-driven marketing. Technology development is conducted in Sweden, while operations are based in Malta. LeoVegas offers casino, live casino and sport gaming, and operates two global and scalable brands – LeoVegas and Royal Panda – as well as a local, multibrand operator collectively referred to as Rocket X. The company's shares are listed on Nasdaq Stockholm. For more about LeoVegas, visit www.leovegasgroup.com.
* Adjusted items exclude consulting costs associated with the implementation of acquisitions, divestments of assets that have an earnings impact and excess amortisation of intangible assets related to acquisitions that do not have a cash flow impact.
** Assuming that depreciation/amortisation is 1.7% of revenue, that net financial items are EUR -0.8 m, that the tax rate for the Group on pre-tax profit is 12%, that 102 million shares are in issue, and an exchange rate of SEK 10.38/EUR 1.