LeoVegas unveils impressive quarterly performance.
The mobile-friendly online casino LeoVegas has revealed its financial results for the second quarter of 2017. This Swedish company's revenue surged by 60% compared to the same period in the previous year. The growth was attributed to their successful entrance into the Danish market and increasing their range of services.
In the second quarter, their total revenue reached approximately €50 million. The Danish market already contributes 9% of this figure, having only been available to them since the end of 2016, while their sports betting platform wasn't launched until July this year. Their Chief Financial Officer, Victor Fritzen, attributes this growth to effective marketing. The cost-per-acquisition is notably lower in Denmark than in the UK, prompting LeoVegas to expand their marketing efforts across northern Europe, with a focus on conquering the German market. However, Sweden still remains their biggest market, contributing 37% of their revenue.
Established in 2011 and going online in 2013, LeoVegas has been pursuing a unique strategy since its inception. Unlike other established gaming providers, the company prioritized a "mobile-first" approach right from the start. Their website and game selection were tailored for mobile devices, anticipating the growing trend of mobile gaming. Today, close to 70% of their deposits come from smartphones and other devices.
Despite prioritizing mobile gaming, LeoVegas postponed expanding their product range until they had established a solid foundation. Initially, they only offered a limited selection of slot machines, table and card games. They waited until they were firmly established before developing their own products. In 2016, they launched "Authentic Gaming," a subsidiary that produces live streams from brick-and-mortar casinos, allowing visitors to interact with players at the venue. In the same year, they also partnered with the Kambi Group, taking on the role of bookmaker by integrating their software.
Looking Ahead with Confidence
LeoVegas' strategy leans more towards sustainability and quality over quantity. The company aims to attract customers with high-quality gaming sectors rather than being the largest provider of gambling options. The annual report (PDF) mentions that the company is debt-free and has reserves of €60 million reserved for investments and acquisitions.
Gustaf Hagman, LeoVegas' CEO, expressed optimism about the company's future prospects. They plan to focus on expanding their sports betting business, particularly in the UK market, and have already signed sponsorship deals with Norwich and Brentford FC. Hagman even considers the opening of the Google Play Store for gambling apps a "game changer." LeoVegas has already submitted their app to the store and plans to advertise it more aggressively. Overall, the young company's prospects look bright, with one exception: Australia. The recent change in their legal landscape has led to LeoVegas' decision to exit this market, resulting in a projected drop in revenue of approximately 8%.
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Source: www.onlinecasinosdeutschland.com
