Q3 Results by LeoVegas and the Swedish gaps
LeoVegas introduced structural shifts from land-based gaming to online, to reduce long-term effect of Covid-19. Yet, several regulatory challenges in its Swedish home base undermine the overall optimistic results.
Through its operational markets LeoVegas ensured quick adaptation to the changing global conditions of the pandemic and gained solid results for the Q3 2020.
Strong business development led to 26% growth in LeoVegas’ depositing customer base, totaling to 438,691 in Q3 2020 compared to 347,464 in 2019.
LeoVegas has further strengthened its surge of prospects through focus on innovation and investment for the whole third quarter. For Gustaf Hagman, President and CEO of LeoVegas, this is an evidence for their strong long-term position.
As the Company continues creating the best product and experience for its customers LeoVegas’ customer base accounts for 26% of raise compared to 2019 results. Apart from the factors above “the structural shift from land-based gaming to online” is yet another reason behind this increase as seen by Gustaf Hagman.
Due to the growing numbers of sporting events during the period LeoVegas’ results on key numbers also demonstrate obvious progress in its sportsbook operations.
Net revenues in 2020 for Q3 totaled to €88.9 million compared to €88.2 million for the same period in 2019. Yet, there was small decrease in digits from 50% in 2019 to 44% in 2020 for the same Q3.
LeoVegas explains this drop-off as reaction to the temporary restrictions introduced in Sweden in July. Nevertheless, the situation is in balance by 30% of total increase for the rest of Europe despite the Covid-19 lockdown. As evidenced, normal player behavior was maintained throughout the Q3 due to the special conditions of the earlier quarter.
In terms of the world market, Leo Vegas recorded 21% of increase in its NGR demonstrating positive picture on development.
Hagman thinks that the enlarged customer pool is one of the drivers for LeoVegas’ improvement in the rest of the markets noting double-digit growth for Q3 compared to the results in 2019.
As for the special case in Sweden, it is explained by the unlicensed market presence that target Swedish players, among them players blocked by Spelpaus, the self-exclusion tool.
Organizations in charge of assistance to people with gambling problems also speak of this evidencing that people in need of help are mostly users of unlicensed operators.
LeoVegas’ view on the situation is that solid measures are needed by Swedish authorities to counter the gaps “in the entire Swedish license system” to ensure balanced operations in the Swedish gaming market.