Organic growth powers LeoVegas 49% revenue hike

LeoVegas this morning reported a 49% year-on-year rise in Q1 revenues, which the firm attributed to strong organic growth after making its most significant marketing investment to date.

The Stockholm-listed company recorded revenues of €43.9m for the three months ended 31 March 2017, up from €29.5m in the same period last year, which was driven predominantly by 46% organic growth.

Revenues were also boosted by what LeoVegas described as its “highest level” of marketing investment in its history, increasing from €12.5m in Q1 2016 to €18.8m this year – 43% of revenues.

LeoVegas’ adjusted EBITDA increased 55% year-on-year to €6.2m based on a margin of 14%.

Meanwhile, the firm also split out its regulated revenues for the first time, reporting a ratio of 18.3% compared to 17.6% last year, from its licensed territories of UK, Denmark, Italy, Ireland and Malta.

Last quarter, LeoVegas completed its expansion into Italy with the acquisition of Winga and also launched in Denmark for the first time. The Danish market accounted for 3% of revenues.

“The launch in Denmark that took place at the end of the fourth quarter has gone extremely well and is one of the most successful launches the company has ever made,” LeoVegas CEO, Gustaf Hagman, said.

“Owing to a combination of our mobile first focus, product and technological innovation and effective marketing, we have quickly established ourselves as a significant contender in Denmark.”

According to today’s results, LeoVegas has continued its strong growth into Q2 with revenues in April up 79% year-on-year to €16.5m and Denmark accounting for 5% of revenue.

Yesterday, LeoVegas announced the launch of a live betting event based on the spin outcomes of a live streamed slot game in partnership with games developer Big Time Gaming and rising internet streamer LetsGiveItASpin.

The operator’s share price was down 0.40% to €4.01 on the Nasdaq Stockholm at the time of writing.