LeoVegas flags UK redundancies after successful Rocket X migration
Roles across fraud and risk, key accounts and CRM move from Newcastle to Malta as Q3 redundancies cost operator €500k
LeoVegas has made double-digit redundancies across its UK staffing unit having successfully migrated the acquired Rocket X brands onto its proprietary tech platform.
The Stockholm-listed operator’s UK business – which was formerly powered by the Bede Gaming platform – is now managed in-house from Malta after a 10-week migration project in April 2020.
EGR understands around 25 job roles were made redundant in the operator’s Newcastle office in October across fraud and risk, key accounts (VIP) and CRM, with the positions being moved to Malta.
When asked about the redundancies, LeoVegas CEO Gustaf Hagman told EGR: “The structure naturally changes [after a migration] because you don’t need so many people. The structure is now clearer and faster and everything is on the same platform which also makes it more stable.
“It showed that we are able to migrate businesses quite quickly, so it gives us confidence if we look to acquire something in the future. It is a good strength for the group as having everything on the same platform makes things a lot easier.
“Then when it comes to payment providers and gaming suppliers, you get scale, which leads to better rates with those suppliers,” he added.
LeoVegas formally addressed the reduction in headcount during last week’s Q3 financial results, where operating revenue remained flat after a 1% year-on-year increase to €88.9m (£80.3m).
“During the quarter, among other measures, we realised synergies from previous acquisitions and instituted a clearer organisational and group structure,” said the operator.
LeoVegas said the redundancies hit operating profit by €500k, although the restructuring should lead to annual net savings of €1.5m, starting from 2021.
Personnel costs in relation to revenue increased to 14% from 12.8% in the prior corresponding period, while the number of full-time employees at the end of Q3 reached 867.
“Our efficiency improvement work equips us for continued profitable growth and makes us – combined with greater diversification of the revenue base – more resilient to rapid fluctuations in individual markets,” reported the operator.