LeoVegas reports Q2-2018 numbers

Online and mobile gambling group LeoVegas AB has reported its unaudited, preliminary Q2-2018 numbers, noting that the results were better than expected, and flagging the following high points:

* EBITDA approximately Euro 15 million (17 percent EBITDA margin), which is higher than the company’s internal expectations.

* Marketing costs are expected to amount to approximately Euro 30 million. Marketing costs in relation to revenues are expected to be approximately 35 percent.

* Revenues of approximately Euro 87 million are anticipated.

“Our data-driven marketing model works so that we only invest if we see good enough returns in our marketing channels.” said Gustav Hagman, CEO. “During the World Cup there are many gaming companies that are advertising, which means that the effectiveness of marketing and the value of customers can be more uncertain.

“Our models have indicated that we should not advertise in some channels due to the low return, which in turn led to a significantly higher EBITDA than expected. We continue to act in line with achieving our financial targets, which is to reach least Euro 600 million in revenue and Euro 100 million in EBITDA results in 2020.

“In the quarterly report for the first quarter it was communicated that: “Marketing in relation to revenue for the Group in the second quarter of 2018 will be higher than the average for 2017, which was 42.3 percent. Due to the marketing opportunities surrounding the World Cup, the total amount of marketing is more difficult than usual to anticipate in advance. LeoVegas will act opportunistically with marketing on the opportunities we see.”

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