LeoVegas Sees Third-Quarter Growth but CEO Wants More

LeoVegas is on course to meet its two-year financial targets despite recent regulatory unrest within the UK and European gaming industry.

LeoVegas CEO Gustaf Hagman

LeoVegas CEO Gustaf Hagman (left) remains positive about his company’s future despite a challenging third quarter. (Image: gpbullhound.com)

Publishing its latest quarterly report on November 7, LeoVegas noted a revenue increase of 41 percent to £68.6 million. Delving further into the data for the period between July 1 and September 30, net gaming revenue from regulated markets now stands at 35.5 percent, while organic growth improved by 14 percent.

UK Opens Up New Potential

The number of depositing customers also grew year-on-year from 202,890 to 318,189. The growth was fuelled, in part, by an increased presence in the UK market.

Within the last three months, LeoVegas subsidiary Authentic Gaming received a B2B licence and partnered with live casino operator Aspers. Additionally, the company launched BetUK, giving it an additional revenue stream within the UK.

Commenting on the latest results, LeoVegas CEO and co-founder Gustaf Hagman noted that improvements came despite increasing regulatory pressure in the UK and Europe.

“The third quarter was a quarter of transition for LeoVegas as a group, during which we have focused on compliance measures, completion of platform development projects and other long-term investments to enable the next major steps in the company’s development,” Hagman said in the November 7 report.

Despite going on to say that he was “not satisfied” with the recent figures, Hagman and his team are still confident they will meet their 2020 targets.

LeoVegas Thriving As Others Falter

Assessing the revenue report in context, the fortunes of LeoVegas sit in stark contrast to William Hill’s. As announced on November 6, the UK operator is facing a potential shortfall of £65 million this year due to changing regulations.

In issuing a profit warning, William Hill CEO Philip Bowcock said that changes to fixed odds betting terminals (FOBTs) and remote gaming duty have forced a revised forecast.

While a recent move to buy Mr Green will bolster the company’s bottom-line, it’s financial team have downgraded profit projections from £291 million+ to between £225 million and £245 million.

For LeoVegas, a strong presence outside have helped to offset the latest legal changes in the UK. However, as controls continue to tighten across the industry at large, there may be more challenging months ahead.

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