LeoVegas sharpens responsible gambling focus as revenues rise 76%
Operator is among the first to integrate GAMSTOP in the UK and continues to clamp down on affiliates following £600,000 UKGC fine
LeoVegas this morning reported revenue growth of 76% for Q1 to €77.4m with organic growth, excluding markets closed in 2017, up 61%.
Following the acquisitions of UK-facing brands IPS (Rocket X) during Q1 and Royal Panda in Q418, the UK accounted for 26% of total revenues during the first quarter.
Sweden accounted for another 26% of group revenues, with returning customers at a record high.
Group CFO Viktor Fritzen noted that average spend per customer dipped “a little bit”, adding “that could be an indication that the competition is out there doing something.”
He added: “When we compare ourselves to some of the bigger companies, the reason why I think we are able to stand our ground more is in part [because] we have a lot of faith our product offering is more competitive.”
Elsewhere the operator is looking to secure a Spanish licence during the year. CEO Gustaf Hagman said the market could be a “great opportunity” for the firm.
Speaking to EGR, Hagman said the company had made a concerted effort to improve its responsible gambling measures in the past year, after the UK Gambling Commission revealed today it had fined LeoVegas £600,000 on marketing and self-exclusion failings. Of the total fine approximately £500 000 was related to affiliate marketing.
Hagman said the firm continued to closely monitor its affiliates in the UK, following its announcement in December that it had cut ties with many of its affiliate partners for compliance reasons.
“It’s tough because it’s difficult to control all your affiliates, but now they all have to send marketing material to our marketing department and receive confirmation that we’re fine with it before they can market our brands,” he added.
The firm is also among the first to integrate the UK’s GAMSTOP self-exclusion scheme during the initial phase of its UK-wide roll-out.
An analyst note released by Regulus Partners this morning said: “Strong growth and operational momentum should buck both macro trends and tightening social responsibility, in our view.”