LeoVegas reported a preliminary EBITDA of €15 million for Q2 2018, more than its internal projections, after not investing in low-return marketing channels.
Not investing heavily on the World Cup proved to be a smart decision by LeoVegas Group, as its preliminary report showed the mobile casino game operator exceeded its expected earnings for the second quarter of 2018.
Initial figures released by LeoVegas show that the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) add up to approximately €15 million. Moreover, the revenue LeoVegas earned amounted to around €87 million. These numbers surpassed the company’s undisclosed internal predictions, the report revealed.
LeoVegas credits these unanticipated gains to its marketing strategy. Early tallies by the company showed that its marketing costs—around €30 million—are roughly around 35 percent in relation to revenue, seven points below its prediction of 42 percent.
The mobile gaming operator hinted that it did not advertise aggressively during the 2018 FIFA World Cup, the sports competition that betting analysts expected to entice millions of football fans into wagering. LeoVegas saw no great yield in spending a great amount on the football tournament since other online casino and sports betting operators spent in large amounts on football-related promotions during the summer event.
Gustaf Hagman, CEO of LeoVegas Mobile Gaming Group, explained:
“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.
LeoVegas’ head added that the Sweden-listed casino operator strives to reach its targets of more than €600 million in revenue and more than €100 million in EBITDA results after 2020.
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Stunning Wins to End Q2
This year’s second quarter could not get any better for LeoVegas. The company bagged significant wins during the prestigious eGaming Review (EGR) Marketing and Innovation Awards, which celebrated the “most innovative and creative operators in the online gaming industry” and acknowledged the operators that have brought something refreshing to the gaming industry in the last 12 months.
LeoVegas won three awards, including the top prize, during the ceremonies held last June 25, 2018. The mobile operator triumphed in both the Affiliate Marketing Campaign and Innovation in Mobile and Tablet categories. On top of those, LeoVegas was recognized as the Brand of the Year.
Louise Nyle, chief media officer of LeoVegas, said:
“We are proud of and happy about all three awards, but “Brand of the Year” really stands out, as it shows our will and drive to work with innovation and development of our brand. This award is the result of dedicated work from a very strong team.”
Hagman, LeoVegas CEO, added:
“Winning ‘Brand of the Year’ is proof that we are, constantly working towards our vision – “Leading the Way into the Mobile Future” and solidifies, LeoVegas as a serious company that is here to stay. I am very proud of this award. It gives us further, drive to continue to evolve and improve our brand.”
LeoVegas will publish its quarterly report for Q2 2018, including its revenue and achievements in that period, on August 1, 2018.