LeoVegas Minor model adjustments
On Friday, LeoVegas announced the following for Q4 (results due at 08:00 CET on 14 February): 1) a EUR10m writedown (Panda); 2) a EUR11m capital gain (Authentic Gaming); and 3) efficiency initiatives (EUR6m one-off charge) to generate annual savings of EUR3.7m. The company also stated that UK revenue grew by 15% QOQ in Q4, excluding Panda, in line with our estimate of a recovery for the continuing UK business. We believe this indicates that the worst is now behind LeoVegas as regards UK issues. We have updated our estimates to reflect the announcements, but have left our Q4e adj. EBITDA (EUR9.0m, up 10% YOY) and 2019–2020e adj. EPS unchanged. We do not consider these changes to be material, and we keep our BUY recommendation and SEK50 target price.LeoVegas is engaged in mobile gaming entertainment. Co. offers primarily casino games played on mobile devices. The product offering is also available on desktop computers and tablets. The product portfolio includes Casino, Live Casino and Sport. Casino Classic - Co. offers more than 760 online games in five categories from more than 35 game providers. Of these games, more than 620 are available on mobile devices. Most Casino Classic games are slots, whereby the player bets on a winning combination of various symbols. Sport - Co. offers opportunities in the sports betting market. Live Casino - Live casino offers live gaming and streamed casnino games from land-based casinos.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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