Trading update for the second quarter 2020
The team of Enlabs has calmly navigated the business through a challenging Q2 2020, mainly caused by the temporary suspension of all gaming licenses in Latvia which resulted in closure of all Latvian online operations between April 8 and June 10 and of all retail operations in Latvia between March 22 and June 10. In addition, retail operations in Lithuania were closed between March 18 and May 18.
Enlabs is the largest online gaming operator in Latvia, and top four in Lithuania. Enlabs operates thirty-one Betting Shops in the two countries.
Enlabs estimates revenue for the second quarter to amount to around 6 million EUR and that results at both EBITDA and net profit level will end up in the region of 0.5 MEUR. Enlabs also estimates a positive operating cashflow for the quarter.
The closure of operations, as well as the worldwide suspension of sport activities during the quarter represented a major challenge, which Enlabs took on by implementing a number of operational measures and cost reducing actions. Enlabs is confident that several of the actions taken will contribute to stronger performance on group level already from Q3, 2020.
Operations have from all aspects returned to normal. All Enlabs offices are open and around 75% of all team members have decided to work from the offices. People are also free to work from home.
For the 21 days from restart in June, the online average daily net gaming revenue in Latvia was up 10% compared to the same figure for Q1 2020 and up 21% compared to Q2 2019.
Combined Latvian and Lithuanian retail market daily average net gaming revenue during last 21 days of June was down 3% compared to the same figure for Q1 2020 and down 19% compared to Q2 2019. Retail betting revenue amounted to 4% of total Enlabs total revenue in Q1 2020.
For the first 2 weeks of July, Enlabs consolidated gaming revenue was on par with the same period a year ago, although with 25% lower gaming margin. Active customers are up 15% year over year, while deposit amount is up 14%.
“Enlabs customers have welcomed our return in Latvia with several daily records in activity proving that regulated local operator can always cater better for the customer demands. Enlabs team has been safe and is fully operational. It feels that we as a group have become stronger, more aligned and focused on execution. With the challenging Q2 behind us, we look forward to a rewarding second half of 2020.” comments George Ustinov, CEO.
All figures are estimated and unaudited. The interim report for the period January - June 2020 will as informed previously, get published on August 20, 2020.
For more information, please contact:
George Ustinov, CEO and Group president
[email protected] / +371 29424175
Adam Jonsson, CFO
[email protected] / +46 73 8200058
Enlabs stands for Entertainment Laboratories. We are a company that creates entertainment through innovative thinking within gaming. The corporate group has offices in Tallinn, Riga, Vilnius, Malta, Marbella, Minsk and Stockholm. The operating subsidiaries hold national licenses for their operations and the Group employs approximately 200 employees. Enlabs AB (NLAB) is listed at Nasdaq First North Growth Market with Redeye AB as Certified Adviser: [email protected], +46 (0)8 121 576 90.
For more information, visit enlabs.se
ENLABS AB is obliged to publish the above information in accordance with the EU’s Market Abuse Regulation. The information was provided by the above contact person for publication at 15:50 CET on 16 July 2020.