Leovegas: Casino Postpones Financial Goals

Just recently LeoVegas was awarded the prize for the best online casino in 2018 at the International Gaming Awards in London, there is a quite surprising news from the company. The latter announced that the financial targets for 2019/20 will not be reached, which is mainly due to difficult situations on different gaming markets. The Group’s financial targets have therefore been postponed until 2021.

600 million euros in sales by 2021 planned

Aside from the coveted award at the International Gaming Awards, the start to the new year for LeoVegas was actually very pleasing. The player numbers and conversions develop well, nevertheless the quoted company decided to shift its own financial goals to the year 2021. The parent company officially announced this in a statement, but also stated that it wanted to remain true to its own strategy. In concrete terms, this involves a turnover of around 600 million euros, which is to be generated by the end of 201. In addition, the group is planning an EBIDTA of 100 million euros – targets that should actually already be reached in 2019/20.┬áNevertheless, there is also reason for positive prospects, after all, in the last quarter of 2018, was able to achieve a sales increase of 25 percent compared to the previous year.

Unknown challenges encountered

The Swedish company with a Maltese gambling license stated in detail that numerous measures had to be implemented and that sales in various projects had declined at the same time. CEO Hagman explained in detail: “We encountered challenges we had never encountered before. As a result, we saw a slowdown in growth. Much remains to be done and there is no doubt that we can and will improve in many areas. We have learned a lot and are well positioned to achieve our long-term vision of world market leader in the mobile casino sector“. This does not necessarily sound like negative headlines, especially since the Group can nevertheless report a certain amount of growth. This was not reached however evenly by numerous changes and problems in the height, which one would have wished with LeoVegas.

Mainly in the Swedish homeland however Hagman sees some possibilities for successful times in the coming years. “We are the most valued brand in our home market of Sweden, where we are well positioned with our own technologies. We have also made great strides in responsible gaming and compliance and are planning to bring new brands to the market,” said the CEO. In fact, a look at the home market shows that business is still pretty good here. LeoVegas was able to increase its revenues to around 328 million Euro in 2018, an increase of more than 50 percent. In the last quarter of 2018 alone, the Swedish market was responsible for almost 77 percent of the company’s earnings.

Increases can certainly be convincing

The financial correction is surprising above all because subsidiaries of LeoVegas have repeatedly been able to write positive headlines in recent months. So for example on-line Casino of Royal Panda, which was taken over in the year 2017. Here the conversions increased around 13 per cent, it looks similar with the enterprise Rocket X, which was taken over few months later in March 2018. Rocket X generated a turnover of around 33 million euros – and thus almost ten percent of the total turnover. In addition, was able to convince in particular fourth quarter and increased the sales in quarter three and many compared to the previous year by 21 percent. However, the fourth quarter was once again five percent more successful than the third quarter in 2018.

The developments in the area of live dealer games, where LeoVegas can show an increase in sales of 14 percent, are also pleasing. Sports betting increased its revenues by nine percent, while classic casino games alone accounted for 77 percent of revenues in the fourth quarter. There have been significantly more changes on the management level of the Group, where Avshalom Lazar will in future act as Compliance Chief and Legal Officer. Lazar has numerous experiences in the industry and was particularly successful as an employee responsible for compliance in several companies.

2019 begins with an IGA award

Also, the start into the new year 2019 can also be described as successful. As already mentioned, sales have picked up again, so that sales could be increased by 16 percent to more than 28 million euros. In addition, LeoVegas was also able to enjoy one of the coveted IGA awards , which was presented a few days ago in the British capital London. LeoVegas cleared thereby the price for the best mobile Casino, which underlines the outstanding work of the enterprise within this range again. The price, which is hotly desired in the Casino industry, is assigned annually by a specialized jury. The jury reviews all nominees and evaluates their performance against various criteria. LeoVegas and the competitors were evaluated in such a way for example within the range of the mobile play selection, the mobile representation and overview or the mobile Design . Beside the assignment of the IGA Awards for the best mobile offer still further prices in approximately 25 different categories were assigned. Among them for example the price for the best on-line Casino, the best developer or the best innovation in the past year.