Enlabs reports €2.64m net profit during the first half of the year despite the suspension of gaming in Latvia 

While Revenues totalled EUR 16.6 million, a 10% decrease compared to the previous year in the same period, total active customers increased by 14% to 48,950. It worth mentioning that Latvia suspended all gambling licenses for two month this spring.  During the period, Enlabs acquired 29.9 per cent of Global Gaming 555, introduced esports betting with EveryMatrix and joined Playtech’s iPoker network.

6-month period: 1 January – 30 June 2020

Revenues totalled EUR 16.6 million (18.4), a 10% decrease.
Sustainable revenues amounted to 91%.
Total active customers were 56,043 (48,950), an increase of 14%.
Deposits totalled EUR 53.5 million (54.4), a 2% decrease.
Gaming margin was 4.2% (4.6).
EBITDA totalled EUR 3.24 million (5.30), EBITDA margin was 19.5% (28.8).
EBIT was EUR 1.93 million (4.33), EBIT margin was 11.6% (23.5).
Net profit totalled EUR 2.64 million (4.33), net profit margin was 15.9% (23.5).
EPS decrease of 40% to 0.042 EUR per share (0.069).

“During Q2 2020 Enlabs demonstrating its ability to adapt and evolve. Due to the COVID-19 outbreak, the Latvian parliament suspended all gaming licenses in the country from 8 April to 10 June. Retail operations in Lithuania have also been suspended for the greater part of the quarter. We cut back on marketing communication in both Estonia and Lithuania. Despite these temporary disruptions, Enlabs recorded EUR 6.1 million revenue, EUR 0.5 million EBITDA, and EUR 0.5 million net profit with positive operating cash flow.

Enlabs’ customers have welcomed our return in Latvia with several daily activity records proving that regulated local operators can always better cater for customer demands. This also showed more broadly than ever that balanced regulation aligns the interests of players, operators and government authorities. The regulatory landscape has stabilized in all three Baltic countries with their COVID-19 related restrictions lifted. All Enlabs brands and retail betting shops are now fully operational. The Enlabs team stayed strong together. We avoided job cuts and calmly switched to remote work. Since June, all Enlabs offices are open with safety measures in place. People can choose to work from the office or from home with 75% opting to return to their offices. Only essential business travel is permitted.

Considering the market recovery in June, the return of sports activity, and our packed roadmap going forward, we are looking toward growth in Q3. In July Enlabs’ consolidated gaming revenue was up 11% compared to the same period a year ago. Business is back on a strong momentum! So, let’s play!” Says CEO and Group president George Ustinov.

Andriey Nabukhotnyi

Former editor-in-chief of Ukrainian specialized magazine catalogue Entertainment Industry. Andriey is E-Play's observer of Eastern European gambling market.

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