The leading mobile gaming innovator LeoVegas revealed that the strong launch in Denmark late in 2016 brought the company an extremely successful performance over the first fiscal quarter of 2017 and an excellent start of Q2.
The Group Chief Executive Officer and a Co-Founder of LeoVegas Gustaf Hagman commented on the provider’s performance, saying that the launch in Denmark which took place at the end of the fourth quarter of 2016 has been extremely successful. According to Mr. Hagman, the combination between product and technological innovation, primary focus on its Mobile First as well as the effective marketing has helped LeoVegas to become one of the gambling companies with most successful presence in Denmark.
As revealed by the company in its financial report, the revenue of LeoVegas generated in the first three months of 2017 increased by 49% to €43.9 million. The organic growth on the other hand, was 46%. The regulated markets in which LeoVegas operates accounted for a total of 18.3% of the company’s overall revenue.
When it comes to the operations’ launch in Denmark, it resulted in the net gaming revenue generated in the Dannish market to represent 3% of the total net gaming revenues of the company over the first three months of 2017. The EBITDA (earnings before interest, taxes, depreciation and amortisation) rose to €6.0 million, while the EBITDA adjusted for items affecting comparability amounted to €6.2 million. The operating profit of LeoVegas, on the other hand, was €5.5 million.
Mobile deposits made by the company’s customers over the first fiscal quarter of 2017 represented 67% of all deposits made over the period. In addition, there was a 86% increase in the total deposits which rose to €149.6 million. The number of paying customers also experienced a solid 42% growth that took the number to 172,338. There was also a 23% increase in the number of new depositing customers who amounted to 75,017. The number of returning paying customers also rose by 61%.
Apart from the purely mathematical part of the financial report, LeoVegas also highlighted a number of events which happened after the end of the first financial quarter of 2017. First, a dividend amounting to SEK 1.00 was proposed to be paid to the company’s shareholders for the past fiscal year. Also, there was a managerial change over the period, as the current Chairman of the company’s Board of Directors Robin Ramm-Ericson decided to leave the Chairman position. The one proposed to take over Ramm-Ericson’s position was Marten Forste, while Tuva Palm was proposed as a new member of the board.
CEO Hagman also made a commentary on the company’s second quarter, saying that LeoVegas had a good start in April, with its Net Gaming Revenue amounting to €16.5 million after increasing by 79%. Also, the regulated markets accounted for a total of 26% of the company’s Net Gaming Revenue in April 2017. As mentioned above, the strong performance of LeoVegas in the Dannish market continues and is expected to become even better in the months to come.
- Author
Olivia Cole
