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LeoVegas, the number one ranked online casino group for its live dealer offerings, has exceeded second quarter expectations for 2018.
The Stockholm-listed betting firm reported approximately EUR 15 million (approximately 17% EBITDA margin), which is higher than the company's internal expectations.
Revenue for the second quarter amounts to approximately EUR 87 million.
This all equates to great news for LeoVegas.
The company issued the following notice:
"Our data-driven marketing model works so that we only invest if we see good enough returns in our marketing channels. 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 EUR at least 600m in revenue and EUR 100m in EBITDA results in 2020, " comments Gustaf Hagman, CEO of LeoVegas Mobile Gaming Group.
In the quarterly report for the first quarter is 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%. 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."
The company also reported that marketing costs in relation to revenue are approximately 35%.
- Aaron Goldstein, Gambling911.com
