Stockholm listed LeoVegas AB has presented its Q2 2018 preliminary results early (period ending 30 June), detailing that the company has benefitted from marketing efficiencies recorded during the trading period.
Updating investors, LeoVegas governance anticipates delivering a trading period EBITDA of circa €15 million, an earnings figure above the firm’s current expectations.
The improved EBITDA guidance is a result of LeoVegas operations sustaining ‘marketing costs in relation to revenue at approximately 35%’ – significantly lower than the firm’s anticipated target marketing-to-revenue cost rate of 42%.
The Marketing efficiencies have further bolstered LeoVegas group revenue performance which is anticipated at approximately €87 million.
Detailing corporate performance Gustaf Hagman, CEO of LeoVegas Group stated
“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.”
Last April, Hagman and LeoVegas governance launched the firm’s ‘2020 corporate vision’, seeking to become a Stockholm-listed enterprise generating €100 million in EBITDA through its organic and acquired channels
“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, ” Hagman added