Organic growth drives LeoVegas 60% revenue increase in Q2
Operator hails “outstanding performance” of Danish launch as Denmark accounts for 7.6% of total revenues
Mobile-first operator LeoVegas recorded a 60% year-on-year increase in revenues to €49.7m for the three months ended June 2017, driven by organic growth of 53%.
After launching sportsbook in Denmark in July, and its casino product in Q4 2016, the jurisdiction counted for 6% of LeoVegas’ total revenues, and 9% in July.
Group CEO Gustaf Hagman said this was “outstanding performance” for the newly launched market, and it should help to mitigate the impending closure of LeoVegas’ Australian operations.
The firm has announced it will pull its casino product from Australia, which accounted for 7.6% of LeoVegas revenue, due to the new gambling amendment bill.
The quarter also saw EBITDA reach €6.1m with EDITDA margin increasing to 12.4% from -7.9%.
But the number of depositing customers flat-lined with a 49% jump in returning customers and a 33% drop in new customers during the quarter, while the firm saw 67% of deposits coming through mobile, a YoY increase of 2%.
Hagman attributed this flat customer growth to a flurry of new sign-ups during the launch of LeoVegas’ sportsbook and live casino products last year, and an “unusually large number of customers who played only with bonus money”.
Hagman also pointed to new opportunities during the quarter with the purchase of the LiveCasino.com domain, which has been launched as a stand-alone affiliate site.