LeoVegas has lauded “continued solid growth and profitability during a period of exceptional circumstances,” as a sense of operational normality returned to igaming following the culmination of this year’s third quarter. As revenue for July amounted to €30.7m (2019: €29.3m), representing a growth rate of 5%t, the group says that “the gaming market has returned to a more normal environment in July.”
This is via an expected player shift from casino back to sports betting now that major sports leagues have restarted, however, temporary restrictions imposed in Sweden are having a negative impact on revenue.
Revenue in the six months to 30 June totalled €200.2m, up 10.8% from €180.7m in the corresponding period last year.
“I am very satisfied with how we at LeoVegas are handling the COVID-19 situation so that we can conduct our business without noticeable disruptions, despite challenges such as not being able to meet in our daily work,” LeoVegas Chief Executive Gustaf Hagman said.
“Our industry, like many other sectors, is experiencing a structural shift from offline to online. Owing to LeoVegas’ online position, appreciated brands and proprietary technical platform, we stand strong in an increasingly digital world,” Hagman added.
In his comments, Hagman also focussed on the Swedish restrictions and the associated risks posed: “During the quarter, several countries implemented measures to reduce the risk for problem gaming in connection with COVID-19. Spain, for example, introduced a temporary ban on gambling advertising.”
“On top of these restrictions, LeoVegas has chosen to implement its own proactive measures to strengthen player protection. Most of the temporary restrictions throughout Europe ended in June, and Spain and the UK, among other countries, have reverted to normal regulations once their respective societies opened up again. It is therefore remarkable that Sweden, despite massive criticism from most areas, has moved in the opposite direction and introduced new, temporary restrictions, effective 2 July, focused particularly on online casino,” Hagman explained.
Commenting on the group’s future performance, Hagman concluded: “We will maintain a continued high rate of investment during the third quarter, partly linked to the launch of new brands and market establishments. Our current assessment is therefore that marketing costs will be in line with – or slightly higher than – the level during the second quarter. We continue to focus on delivering sustainable and profitable growth for our shareholders and on offering an entertaining and safe gaming experience for our customers around the world. LeoVegas’ long-term vision is to be ‘King of Casino’.”