Enlabs Hopeful For Better Q3 Results

Entertainment Laboratories has “from all aspects returned to normal”  as the firm in its latest trading update celebrates a smooth management of the business through the difficulties of 2020 so far.

The company experienced a significant setback by briefly suspending all gaming licences in Latvia, which resulted in the suspension of all online operations between April 8 and June 10, as well as retail from March 22 to June 10.

In addition, all retail operations in Lithuania were shut down between the dates of 18 March and 18 May. Enlabs operates 31 betting stores in both countries.

Once the update is released ahead of its annual report on August 20, the group expects that sales in the second quarter will amount to € 6 million and that both net income and EBITDA will end at €500,000.

Despite the challenge posed by global sporting suspensions, Enlabs affirms confidence that from the third quarter onwards a stronger performance will be felt through a variety of operational measures and cost reduction actions implemented at group level.

George Ustinov, CEO of Enlabs said: “Enlabs customers have welcomed our return in Latvia with several daily records in activity proving that regulated local operators 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.”

The online average daily NGR in Latvia was up 10 percent over the same figure for Q1 2020 and 21 percent relative to the second quarter of 2019 for the 21 days following the restart in June.

In the last 21 days of June, the combined Latvian and Lithuanian retail sector average NGR was down 3 percent compared with the same amount for Q1 2020 and 19 percent compared to Q2 2019. Revenue from Retail betting contributed to four per cent of overall revenue from Enlabs in Q1 2020.

Enlabs consolidated gaming revenue was on par with the same duration a year earlier for the first two weeks of July, but with a gaming margin 25 percent lower. Annually, active customers are up 15 per cent, while deposit volumes have risen 14 percent.