Due to European retail betting shop suspensions, Enlabs has announced planned sales and EBITDA declines as increased restrictions are in place across various jurisdictions to tackle the spread of COVID-19.
As lockout measures are starting to be enforced, the Lithuanian and Latvian governments have imposed national closures of supermarkets , restaurants, pubs, bars, casinos, betting shops and other retail businesses as a result of further restrictions.
From 00:01 on Saturday 7 November 2020, Lithuania entered a new national lockout, while Latvia declared a State of Emergency from 9 November to 6 December 2020. In the former, Enlabs runs 20 betting shops and 11 in the latter.
As a result of the increased steps, the company estimates the approximate negative EBITDA effect of the full month suspension of betting shop operations, depending on the amount of state reimbursement and/or subsidies, to be between EUR 20,000 and EUR 70,000. The combined retail betting revenue in both regions accounts for three percent of the overall revenue of Enlabs.
This report follows Enlabs recording its latest quarterly results last week, with Q3 sales rising 42 percent to EUR 13 million (2019: EUR 9.2 million), as the casino took the lion’s share with EUR 10.2 million (2019: EUR 5.7 million), followed by betting EUR 2.7 million (2019: EUR 2.9 million) and poker EUR 100 000 (2019: EUR 600 000).
The regional distribution of gaming revenue was 80 percent from the Baltic markets, covering the regulated regions of Estonia , Latvia and Lithuania, and 20 percent from the rest of the country.
In addition , the group has also disclosed that it has formed a legal entity in Ukraine and expects the licence application process to begin in the latter stages of this year.
Enlabs anticipates that Ukraine, as well as Belarus, will become key business development priority jurisdictions in 2021, asserting a casino first strategy through the Ninja brand in an online gaming market that it estimates at EUR 300 m.