LeoVegas Revenue Prospers in Q1 Despite Regulatory Changes in the UK

One of the most prominent operators in the industry, LeoVegas has quite positive results regarding the overall revenue. Having in mind numerous key events for the company which took place in the previous period…

…as well as turbulences with regulations in the UK, the achievements are even more significant. The corporation has reported more than a solid start, posting revenue of €86.3m in the first three months of 2019. This represents a 12 percent year-on-year rise.

Revenue Goes Up, EBITDA Goes Down

Showing the overall organic growth of 19% for Q1, Gustav Hagman, Leo’s CEO, pointed out the result did not encom statistics from the UK. The regulatory changes and stricter rules have influenced the numbers, but despite that, the trend remained positive. As for the players’ metrics…

…the results showed growth as well, with 370,209 depositing customers in Q1, which is an increase of 23 percent. In addition to this, the number of returning depositing customers was 196,863, which is also an increase of 26 percent. On the other hand…

… Earnings (EBITDA) were down to €7.2 m from €9.5m in Q1 2018, corresponding to an EBITDA margin of 8.3 percent (down from 12.3 percent).

Key Projects for Leo

The corporation itself has numerous significant developments in the business in the period behind, including the launch of GoGoCasino as well as gaining the license to operate in Sweden. Hagman pointed out as follows:

“We are seeing positive effects from our highlighted focus on efficiency and cost control within the group. We continue to work on renegotiating supplier agreements in gaming, payments, and marketing, among other areas, where we are benefiting from our size and position as one of Europe’s leading casino operators.”

However, the UK has proved to be a challenging market for numerous operators and LeoVegas is no exception. The company is making gradual progress on that market and customer acquisition is growing at group level compared with the preceding quarter. This particularly goes for the brands gathered under Rocket X which are showing clear improvements, with sequential revenue growth paired with good profitability.

Positive Predictions for Q2

The officials are quite optimistic that the trend will maintain a positive direction and keep on growing in the next trimester. According to the current numbers, the preliminary revenue for April is €30.5 m (up from €29.1), which is already a five-percent increase. Having in mind all the efforts…

…the brand put in launching new products and adjusting to the tough regulations, they predict smaller marketing costs compared to the previous period. This will logically have a significant impact on revenue and reflect on its growth.

Source:

“LeoVegas prospers in Q1 despite UK regulatory pinch”, casinobeats.com, May 2, 2019.