LeoVegas AB: Preliminary results for the second quarter 2018 higher than expected
18 July 2018 - 4:00PM
The LeoVegas Group ("LeoVegas") EBITDA for the second quarter of 2018
amounts to approximately EUR 15 million (approximately 17% EBITDA
margin), which is higher than the company's internal expectations.
The reason for communicating the preliminary result early is that
LeoVegas' marketing costs in relation to revenue are approximately
35%. This is significantly lower than what was communicated by the
company in the quarterly report for the first quarter, where it was
expected that marketing costs in relation to revenue would exceed
42% in the second quarter. Revenue for the second quarter amounts
to approximately EUR 87 million.
"Our data-driven marketing model
works so that we only invest if we see good enough returns in our
marketing channels. During the World Cup there are many gaming
companies that are advertising, which means that the effectiveness
of marketing and the value of customers can be more uncertain. Our
models have indicated that we should not advertise in some channels
due to the low return, which in turn led to a significantly higher
EBITDA than expected. We continue to act in line with achieving our
financial targets, which is to reach EUR at least 600m in revenue
and EUR 100m in EBITDA results in 2020, " comments Gustaf
Hagman, CEO of LeoVegas Mobile Gaming Group.
In the quarterly report for
the first quarter is was communicated that: "Marketing in relation to revenue for the Group in the
second quarter of 2018 will be higher than the average for 2017,
which was 42.3%. Due to the marketing opportunities surrounding the
World Cup, the total amount of marketing is more difficult than
usual to anticipate in advance. LeoVegas will act opportunistically
with marketing on the opportunities we see."
Preliminary figures for the
second quarter of 2018
Work on the quarterly report for the second quarter is ongoing and
the figures presented below are only preliminary. Marketing costs
are expected to amount to approximately EUR 30 million and revenues
are expected to amount to approximately EUR 87 million. Marketing
costs in relation to the Company's revenues are expected to amount
to approximately 35%. This has a material effect on the Company's
EBITDA, which is expected to amount to approximately EUR 15 million
with an EBITDA margin of about 17%.
LeoVegas' quarterly report for the second quarter
of 2018 will be published on August 1st. In addition to what is
stated herein, the company will not comment on the results before
the quarterly report for the second quarter is published. In
connection with the presentation the same day at 9:00 CET there
will be the opportunity to ask questions. The webcast is available
at:https://edge.mediaserver.com/m6/p/zupwii5n
The information in this release
is such that LeoVegas AB (publ) is required to make public in
accordance with the EU Market Abuse Regulation (596/2014). The
information was submitted, by the agency of the contact persons
below, for publication at 8:00 a.m. CET on 18 July 2018.
For
further information, please contact:
Gustaf Hagman, Group CEO: +46 (0) 8 410 367 66,
gustaf.hagman@leovegas.com
Viktor Fritzén, Group CFO: +46 73 612 22 67,
viktor.fritzen@leovegas.com
Philip Doftvik, Head of Investor Relations and Corporate Finance:
+46 73 512 07 20, philip.doftvik@leovegas.com
About the LeoVegas mobile gaming
group
LeoVegas' passion is "Leading the way into the
mobile future". LeoVegas is Sweden's premier GameTech company
and is at the forefront of using state-of-the-art technology for
mobile gaming. In 2017 the company passed the threshold for being
classified as a unicorn, i.e., a start-up valued at more than USD 1
billion. A large part of this success can be credited to an extreme
product and technology focus coupled with effective and data-driven
marketing. Technology development is conducted in Sweden, while
operations are based in Malta. LeoVegas offers casino, live casino
and sport gaming, and operates two global and scalable brands -
LeoVegas and Royal Panda - as well as a local, multibrand operator
collectively referred to as Rocket X. The company's shares are
listed on Nasdaq Stockholm. For more about LeoVegas, visit
www.leovegasgroup.com.
Preliminary results for the second
quarter 2018 higher than expected
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: LeoVegas AB via Globenewswire
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