LeoVegas Q2 2017: Steady growth with profitability and strong start to Q3

"As the first gaming company, we now choose to break out revenue from Sweden. Sweden accounts for 37 percent which amounts to EUR 18 million in the second quarter. It puts us in the driver's seat before the coming regulation. The amazing development in Denmark continues and the UK has also had an...

London, 16/08/2017 (informazione.news - comunicati stampa - turismo)

Revenue totalled EUR 49.7 m (31.0) during the second quarter, an increase of 60%. Organic growth was 53%. 25.1% of the revenues was generated from regulated markets.

Transparency is one of our guiding principles. We believe that transparency promotes trust. It makes it easier for our customers and the stock market to understand what we do. We have therefore now decided, as the first gaming company, to show separately how large our revenues in Sweden are. Sweden alone accounted for 37% of our revenue during the second quarter - something we are very proud of.

EBITDA adjusted for items affecting comparability increased to EUR 6.2 m (-2.5), corresponding to an adjusted EBITDA margin of 12.6% (-7.9%).

The number of new depositing customers decreased during the second quarter of 2017 compared with the second quarter of 2016. This is explained by the record number of new customers in the second quarter a year ago in connection with the launch of LeoVegas Sport, LeoVegas Live Casino, and the UEFA European Championship.

During the quarter, we continued to work with our company culture and values, and we aspire to create the best company culture in the industry. LeoVegas has a very good reputation today as an employer, and we believe that a good company culture is important to maintain a high pace of activity and growth.

LeoVegas continues to be an industry leader with respect to responsible gaming. During the quarter, we launched a specially developed self-assessment tool for our customers along with an internal e-learning tool. This, combined with other tools designed to detect and manage problem gambling, makes the Leo Safe Play programme an industry vanguard.

Our Group company Authentic Gaming has been further developed and now streams from four different land-based casinos. More than 20 operators now include Authentic Gaming's streamed games in their offerings, and more are waiting for integration. We are experiencing a high demand for its products.

LeoVegas saw early that the mobile phone will create growth and new business opportunities within Live Casino. We are well positioned to take advantage of that potential. www.LiveCasino.com has now been launched as a stand-alone affiliate site within the Group.

Our success in Denmark continues, and during the quarter Denmark accounted for 6% of the Company's revenue. We estimate that LeoVegas had an approximate 5% share of the Danish casino market in Q2. In early July, we launched LeoVegas Sport and exclusive live casino tables. In July Denmark accounted for a full 9% of the Company's revenue. This is outstanding performance for a market that was launched roughly six months ago is a prime example of what can be achieved when products, marketing, branding and a strong team work in concert.

July got off to very strong start, with Net Gaming Revenue (NGR) of EUR 18.3 m (12.9), representing growth of 42%. During the third quarter, we do not expect marketing in relation to revenue to deviate meaningfully from the level in earlier quarters this year. 

In Australia, it has been decided to amend its current gaming legislation, which will adversely affect LeoVegas's revenues from Australia when the law comes into force. In the second quarter, Australia accounted for 7.6% of our total revenue.

LeoVegas has a strong cash position of approximately EUR 60 m and no debt in the Company. This means that we have resources to carry out acquisitions and investments going forward and that we see favourable opportunities in the market.

To participate in the conference call, and thereby be able to ask questions, please call one of the following numbers: SE: +46 (0) 8 5033 6539, UK: +44 (0) 20 3427 0503, US: + 1646 254 3364
code: 4071367 or join at the web https://edge.media-server.com/m6/p/m4uxmss7

Gustaf Hagman, Group CEO co-founder: +46 70-880 55 22, gustaf.hagman@leovegas.com
Viktor Fritzén, Group CFO: +46 73-612 26 67, viktor.fritzen@leovegas.com
Philip Doftvik, Head of Investor Relations: +46 73-512 07 20, philip.doftvik@leovegas.com
Visitors address: Sveavägen 59, Stockholm
Corporate identity number: 556830-4033

www.leovegas.com www.leovegasgroup.com