Stockholm-based mobile gambling operator LeoVegas had its best revenue performance to date in Q3 thanks to an expanded product mix.
For the three months ending September 30, LeoVegas reported revenue of €39.7m, a 76% gain over the same period last year that it claims was entirely organic. Earnings soared to €9.8m from €1.1m in Q3 2015 after the company trimmed its marketing-to-revenue ratio from 53% to 36%.
LeoVegas CEO Gustaf Hagman credited the launch of the company’s new Kambi Sports Solution-powered sportsbook and expanded Live Casino options with giving the company “considerable momentum” in Q3, which saw new depositing customers rise 78% year-on-year.
Sadly, LeoVegas has yet seen fit to break out its revenue into separate casino and sports columns, so the true impact of the new sportsbook product – which arrived in time for the Euro 2016 football tournament – will remain a mystery for the time being. Hagman would say that the company is “focusing intensely” on developing the “fastest and most user-friendly mobile sportsbook” out there.
Nordic markets remain LeoVegas’ bread-and-butter, accounting for 59% of Q3 revenue. The Rest of Europe claimed a 13.6% share, just ahead of the UK’s 13.2%, while the rest of the world managed a 15.2% slice.
Growth in customer deposits was strongest in the Rest of Europe, which rose 329% in absolute figures. The rest of the world category was up a similarly impressive 244%. Growth was less dramatic but nonetheless strong in the Nordics and the UK, which were up 63% and 59%, respectively. Mobile deposits accounted for two-thirds of the quarter’s total.
Q4 has started off on a strong note, with revenue to date up 63% year-on-year and December is historically the quarter’s strongest month. Hagman warned that marketing spend would likely increase in Q4 but the company believes the time is right. The sequential growth of returning customers in Q3 was 22%, the highest level in seven quarters.
LeoVegas received an online gambling license in Denmark in October and the company says it’s looking forward to unleashing its “very knowledgeable” local team.