Revenue for the three months to 31 March grew to €89.4m, of which 41% came from Nordic markets, up two percentage points from Q1 2019, thanks to a 10% rise in net gaming revenue for the region.
The rest of Europe, including the UK, saw its share of revenue decline to 46% of the group total, with net revenue down 3% year-over-year. For the rest of the world, revenue was up 12%, despite a decrease in Canada, and now accounts for 13% of group revenue, up one percentage point.
Of all revenue, 53% came from locally regulated markets, up from 50% in the prior year, but down marginally quarter-over-quarter. This was a result of land-based players in international markets shifting online as a result of the novel coronavirus pandemic, LeoVegas explained.
The company’s CEO, Gustaf Hagman, said that cancelled and postponed sporting events during the quarter and into Q2 had resulted in a sharp drop in sports betting revenue.
“LeoVegas has likely taken market shares in casino mainly from the land-based industry as well as from competitors that are more sportsbook oriented. Our assessment is that the Covid-19 crisis thus far has had a neutral to slightly negative impact on the group’s Swedish revenues,” he said.
“Moreover, the assessment is that international revenues have increased somewhat relating to market shares moving from land-based to online gaming,” Hagman explained. “At the same time, we are cognizant of the risk for a global recession, during which people’s leisure budgets would likely decrease, in turn affecting the company.”
Hagman also said that regardless of the economic situation, LeoVegas remained focused on protecting customers, actively promoting responsible gambling practices and using algorithms to identify early warning signs of unhealthy play. “This allows us to act before a customer’s gaming becomes a problem,” he said.
Finally, Hagman said that “it is hard to predict the long-term effects for LeoVegas, but the longer the crisis continues, the greater the risk is that revenue will be negatively impacted by consumers’ reduced purchasing power. At the same time, an accelerated structural shift is expected from land-based to online gaming, which makes LeoVegas well-positioned for the future.”
Source: GMB
