LeoVegas reports 7% rise in revenues amid challenging UK market
LeoVegas has announced a 7% organic growth rate in quarter 4 (Q4) 2018 despite being the most “challenging” year in the operator’s history.
Revenues in Q4 were up to €84.5m from €67.8m on the year, though they were given a boost by acquisitions and currency fluctuations.
Depositing customers at the group grew 29% to 327,156. That was outstripped by the number of returning depositing customers, which grew 46%, to 181,747.
The group increased its marketing spend to 37.9% of net gaming revenue (NGR), which grew from 35.6% a year ago. Advertising continues to be an effective means of growing the brand’s strength in Sweden.
Swedish revenues grew 18% on the year and its customer base also grew 28% in Sweden. The operator also made reference to performance in January 2019, with 16% growth in revenues.
Those figures represent a slowdown in growth at the firm. That stall is largely attributed to a poor UK performance, affected by increasingly stricter regulatory measures there. Not including the UK, NGR from regulated markets accounted for 33% of total NGR in the quarter, a rise from 29% a year ago.
That was one of the challenges that CEO Gustaf Hagman referred to, saying:
We bumped into challenges that we have not previously encountered and saw a slowdown in growth as a result. After a challenging 2018 we now see improved momentum with a record strong December and a positive start to 2019. Entering the new year we have full focus on expansion, cost control, increased profitability and to continue building the world’s best mobile casino.–Gustaf Hagman, CEO LeoVegas
Those developments in the UK have seen the group postpone its 2020 financial targets to 2021. Elsewhere, the group has applied for a Spanish licence, which is expected to be delivered and implemented in the first or second quarter of this year.
You can read the report in full at the group’s investor relations page.