LeoVegas Q3 revenues jump 76%
Operator records a â¬9.8m profit after reducing its marketing-to-revenue ratio from 60% to 36% during the quarter
LeoVegas returned to profit in Q3 after recording a 76% year-on-year increase in revenues and an improved marketing-to-revenue ratio during the quarter.
The Stockholm-based operatorâs adjusted EBITDA was â¬9.8m during the three months ended 30 September, up from â¬1.1m last year, as the companyâs margin increased to 24.7%.
The firm, which last quarter reported a â¬2.5m loss, benefited from an improved EBITDA margin of 24.7% after it reduced its marketing-to-revenue ratio to 36%. The ratio was 60% in Q2 2016 and 53% in Q3 2015.
Revenue growth of 76% year-on-year to â¬39.7m during Q3 was entirely organic, according to LeoVegas, as the number of depositing customers increased 77% and number of deposits 87%.
On a geographical basis, the Nordics accounted for 58% of net gaming revenue (NGR), while the UK accounted for 13.2%, the rest of Europe 13.6% and the rest of the world 15.2%.
âLeoVegas continues to develop in line with our vision: to create the ultimate gaming experience and be number one in mobile gaming,â group CEO, Gustaf Hagman, said.
âThe launches of LeoVegas Sport and LeoVegas Live Casino have laid the foundation for strong growth in new customers and gave us considerable momentum into the autumn and third quarter.
“With strong momentum, new gaming categories and a leading position in mobile gaming, we look forward to an eventful winter.”
LeoVegas, which recently expanded into Denmark, said current trading in the fourth quarter was in line with its expectations with NGR in October up 63% year-on-year to â¬12.8m.