The operator said Germany made up 6% of revenue in Q1 of 2021, suggesting it brought in around €5.8m. The reported 19.0% increase in non-German revenue, meanwhile, suggests that the market brought in €13.1m in 2020, meaning revenue dropped 55.7%, or by €7.3m.
In addition, LeoVegas said the market made up 15% of revenue, or €14.8m, in Q4 of that year, meaning German revenue dropped by €9m, or 60.9%, quarter-on-quarter.
Breaking down LeoVegas’ entire revenue performance geographically, rest of world was the largest region for LeoVegas in Q1, accounting for 42.0% of total revenue. Some 38.0% of revenue came from the Nordics, while the remaining 20.0% was attributed to rest of Europe operations, which include Germany.
“During the first quarter we saw the full effect of the changes taking place in the German market. Operators in the market are acting differently with respect to implementing the new restrictions, which unfortunately has led to a skewed competitive situation,” LeoVegas president and chief executive Gustaf Hagman said.
“The assessment is that up to 70%-80% of the German market for casino has temporarily been shifted over to operators that have chosen to not adapt to the coming market regulation. Our hope is that this will soon be sorted out by the German authorities, which is a prerequisite for the licence system’s success, with a high level of channelisation and consumer protection,” Hagman added.
Classic casino games remained by far the main source of income for the operator, with this segment representing 74.0% of all total revenue in Q1, ahead of live casino on 17.0% and sports betting with a 9.0% share.
Hagman commented that firm’s growth has been driven mainly by the company’s loyal customer base, which reached a new record level during the period.
“For a long time we have created successful, exclusive games with the help of external providers. We are now taking the next step by starting our own game studio – Blue Guru Games. This venture will give us full control and greater flexibility in developing new games, a unique offering to our players, and also a new revenue stream for the group,” Hagman concluded.
Source: GMB / iGB
