LeoVegas, one of the trailblazers in mobile casino gaming, has experienced a decline in growth in 2018 amidst challenges in the UK market.
The results released by the Swedish outfit still showed growth but at a slower rate than anticipated, which has led to the decision to postpone financial targets from 2020 to 2021.
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What Were the Figures?
LeoVegas contended with many new challenges in 2018, making it the toughest year in the company’s history. Consequently, growth slowed down.
These difficulties came at a time when LeoVegas was investing in different areas and projects, looking to build the foundations for growth.
Here are the main figures from the fourth quarter of 2018 (1st October – 31st December)
- Revenue increased by 25% to 84.5 million euros (67.8)
- Organic growth in local currencies was 7%
- Excluding the UK, organic growth was 14%
- EBITDA was 8.1 million euros (6.1), corresponding to an EBITDA margin of 9.6% (9.0%)
- The number of depositing customers was 327,156, an increase of 29%
The figures don’t exactly make for grim reading, but they have still caused LeoVegas to postpone financial targets from 2020 to 2021.
LeoVegas Remain Confident
Still, LeoVegas have emphasised that their general direction remains unchanged. The group are aiming for 600 million euros in revenue and 100 million euros in EBITDA in absolute numbers.
The problems encountered in the UK market were particularly challenging for LeoVegas in the year of 2018.
However, in spite of the difficulties, LeoVegas chiefs remain upbeat about the company’s future within the UK market and are still confident that the UK holds massive potential for growth moving forward.
LeoVegas CEO, Gustaf Hagman (pictured), had this to say about LeoVegas’s UK troubles:
“Our revenue continued to decrease sequentially during the fourth quarter, but with gradual improvements in both revenue and KPIs. This positive development continued on Group level during January. It is still too early to declare that we have turned the corner yet in the UK, but we are confident with the plan we have charted out.”
Also, Hagman remains very confident of LeoVegas’s overall vision and future in the industry:
“There is much left to do, and there’s no doubt we can and will improve in many areas. We have learned a lot, and our position for achieving our long-term vision – to be the global market leader in mobile casino – is good”.
New Challenges in Sweden
The newly regulated market in LeoVegas’ native Sweden has presented the company with some more challenges, but they have risen to them with aplomb.
LeoVegas are at the forefront of the commitment to compliance requirements, putting them in a position from which they can begin to dominate the Swedish gambling scene.
LeoVegas believe that these moves will ensure long-term profitable and sustainable growth.
LeoVegas’ stuttering 2018 was a cause of concern for the group but it seems they have the measures in place and vision moving forward to achieve their objectives.
LeoVegas’ strength in the mobile casino arena is unlikely to be severely weakened anytime soon and the firm remains one of the leaders in mobile gaming worldwide.