LeoVegas Q1 2017: Record launch in Denmark and strong start of Q2

"The tremendous launch in Denmark shows the strength in LeoVegas when we deliver at our best: a combination of technological and product excellence combined with effective marketing that we quickly scale, which also has given us a strong start of Q2" - Gustaf Hagman, Group CEO and co-founder ...

London, 03/05/2017 (informazione.news - comunicati stampa - turismo)

Revenue totalled EUR 43.9 m (29.5) during the first quarter, representing growth of 49%. Organic growth was 46%. Revenue from regulated markets accounted for 18.3% of total revenue.

EBITDA adjusted for items affecting comparability increased to EUR 6.2 m (-4.0), corresponding to an adjusted EBITDA margin of 14.0%. The main reason that the EBITDA margin in the first quarter was lower than in the fourth was due to increased marketing costs in mainly Denmark and the UK.

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. 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. A great kudos to our phenomenal team, who made this successful launch in Denmark possible.
During the quarter, we received a licence for Sports in the Irish market and launched sports in New Zealand.

On 1 March, we completed the acquisition of the Italian gaming operator Winga, which is yet another milestone in LeoVegas' history, as Winga is the Company's first acquisition. The LeoVegas brand will be gradually introduced in the Italian market. With LeoVegas as the new owner, above all our data-driven work approach in marketing, our product strength and our mobile technology will bring strong value-added to the business. 

April got off to a strong start, with Net Gaming Revenue (NGR) of EUR 16.5 m (9.2), representing growth of 79%.

In the first quarter, we started scaling our marketing efforts to continue to drive growth. In the second quarter, we expect our marketing to revenue ratio to be slightly higher than in the first quarter as we see positive return on investment on many new marketing efforts as well as opportunities to try new marketing channels that have the potential to scale up in the future. 

We continue to actively evaluate acquisition opportunities, and with a cash position of more than EUR 60 m, we have resources to carry out additional strategic acquisitions going forward. 

In summary, the first quarter was stable and represents yet another step on the path to our financial targets of EUR 300 m in revenue and a 15% margin by 2018.

To participate in the conference call, and thereby be able to ask questions, please call one of the following numbers: SE: SE: +46 (0) 8 5065 3937, UK: +44 (0) 20 3427 1918, US: + 1646 254 3360 code: 3156710 or join at the web http://edge.media-server.com/m/p/rhbrwhti

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
Visitors address: Sveavägen 59, Stockholm
Corporate identity number: 556830-4033

www.leovegas.com www.leovegasgroup.com