LeoVegas Group informed that revenue for the three months to 30 September was €99.4m, up from €88.9m in the corresponding period last year. Classic casino games accounted for 76.0% of all revenue in the period, ahead of live casino on 14% and sportsbook with 10%.
In terms of geographical performance, the Nordics remained the operator’s core market, accounting for 44.0% of all revenue in Q3. Net gaming revenue in the region increased 39.0% year-on-year, helped by the acquisition of the Expekt brand in May, and its subsequent relaunch.
Sweden in particular had a good quarter with record revenue and customer numbers, president and CEO Gustaf Hagman noted, aided by a better than expected performance from Expekt and a stronger performance from the core LeoVegas brand.
“All key markets performed well during the quarter, where our home market in Sweden was the brightest star. It is positive that the company can show strong performance in one of the world’s most competitive and strictly regulated gaming markets,” Hagman said.
Revenue from the rest of Europe represented 34% of all revenue for the quarter, with net gaming revenue in the region up 19.0% on last year due to growth in both Spain and Italy. However, legal changes in Germany, coupled with the ongoing regulation process, stunted growth.
Revenue from the rest of the world increased 42.0% year-on-year and accounted for 22% of all revenue in Q3. LeoVegas said development was particularly strong in Canada, where it posted double-digit growth for the period.
“The company today is more diversified than ever, and we have succeeded in compensating for the sharp drop in revenue in Germany,” added Hagman.
Looking ahead, the fourth quarter kicked off with revenue falling 5.2% to €31.1m in October, with the ongoing struggles in Germany exacerbated by LeoVegas withdrawing from the Netherlands.
“In pace with growing revenue, the share of marketing investment is expected to gradually decrease from the current levels. At the same time, we have continued to invest in product and technology ahead of forthcoming market expansions, including the upcoming US launch,” Hagman concluded.
Source: GMB / iGB
