Leovegas Growth Strategy Bearing Fruit

But bottomline impacted by launch and marketing costs associated with new sportsbook and live casino

Online gaming operator LeoVegas delivered a strong second quarter report for the period ending June 30, 2016 but growth was described as entirely organic due to the impact of costs associated with the launch of its new LeoVegas Sport and LeoVegas Live Casino verticals.
Key performance indicators for the 12 week period ending June 30, 2016 include:
– Revenue growth of 67 percent to Euro 31 million (Q2/2015: Euro 18.5 million). Mobile deposits accounted for 65 percent (Q2/2015: 55 percent) of the total.
– Customer deposits increased by 79 percent to Euro 100.6 million (Q2/2015: Euro 56.3 million) and 25 percent compared to Q1/2016.
– Depositing customers increased 147 percent to 176,635 (Q2/2015: 71,632.
– New depositing customers increased 235 percent to 109,718 (Q2/2015: 32,733)
– Marketing investments in relation to revenue increased 60.4 percent compared with 42.3 percent for the first quarter.
– EBITDA amounted to Euro -2.5 million (Q2/2015: Euro – 0.5 million), corresponding to an EBITDA margin of -7.9 percent (Q2/2015: -2.6 percent).
– Operating profit (EBIT) was Euro -2.8 million (Q2/2015: Euro -0.6 million).
– Earnings per share were Euro -0.03 (Q2/2015: Euro -0.01).
Interim period: January 1 – June 30 2016 :
– Revenue grew 76 percent to Euro 60.5 million (H1/2015: Euro 34.4 million). Growth was entirely organic.
– Operating profit (EBIT) was Euro -4.3 million (H1/2015: Euro -0.6 million). Adjusted for items affecting comparability, operating profit was Euro 0.9 million (H1/2015: Euro -0.6 million), corresponding to an adjusted EBIT margin of 1.5 percent.
– Earnings per share were Euro -0.04 (H1/2015: Euro -0.01).
"The quarter was eventful, with long-term marketing investments and the successful launches of LeoVegas Sport and LeoVegas Live Casino, leading to substantial growth in new customers and a strong start to Q3," Gustaf Hagman, group chief executive officer and co-founder of LeoVegas said.
"I can state that the long-term marketing investments in the second quarter were successful, with a record start to the third quarter and revenue of Euro 12.8 million in July, which is a growth rate of 68 percent.
"LeoVegas develops well in line with our long-term financial targets and our vision: to create the ultimate gaming experience and be number one in mobile gaming."

Online Casino News Courtesy of Infopowa