LeoVegas records further growth in Q2 2022

August 15, 2022

LeoVegas Group reported a one percent year-over-year growth of $101.1 million in Q2 2022 and a revenue increase of nine percent, as confirmed via the company's Q2 report. The positive trend was attributed to business growth in the Nordic region and previous efforts to enter new markets.

In terms of revenue growth by region in Q2 2022, the Nordic market recorded the highest growth (53 percent) compared to Europe (26 percent) as well as the rest of the world (21 percent). It is also important to note that the group made these numbers after it withdrew from the Netherlands market, plus its dwindling market performance in Germany.

The company remains optimistic and is planning to intensify its presence primarily by focusing on sports betting through Expekt and BetUK to reap revenue in the quarter. The group was also keen to expand its businesses into football as a series of sponsorship agreements will be greenlighted in the coming future.

LeoVegas' growth in Q2 2022

LeoVegas has made several notable efforts to ensure growth in Q2 2022. Two of which, perhaps the most significant, were the Netherlands' market exit in October last year and the group's most recent entry to Ontario's iGaming and sports betting market that took place earlier this year on April 4. Entering Ontario has made LeoVegas among the first few operators in the east-central Canadian province.

Following the Q2 report release, LeoVegas CEO Gustaf Hagman noted that the majority of the group's main markets "continue to develop well". However, Hagman also acknowledged that Germany remains quite a troublesome market for LeoVegas as revenue loss prevails in the country.

"Most of the main markets continue to develop well and we cannot see any signs to date that the current macro situation with high inflation and rising interest rates is impacting the habits of our players," Hagman said.

Growth by product type, LeoVegas made the highest percentage in classic casinos (73 percent), followed by live casinos (15 percent), and sports betting in third (12 percent).

Business plans, problems

The group has already devised plans to ensure its Q2 growth continues in the coming quarters this year by focusing on the UK's sports betting market as well as a whole and entering the football scene via sponsorship agreements.

More about the U.S., LeoVegas has reportedly put its expansion plan to an indefinite halt, waiting for a potential business takeover by MGM International. The American betting giant was reportedly keen to purchase the group for $607 million in May, which LeoVegas' CEO and co-founder welcomed with open hands. Hagman's is the group's largest shareholder.

The takeover deal would likely take place since LeoVegas' board of directors had unanimously recommended its shareholders accept the bid, as per iGaming NEXT's Conor Mulheir. Mulheir also reported the deal currently "is still proceeding", with an acceptance period valid until August 30.

It remains unknown, however, whether the ongoing Swedish Economic Crime Authority investigation into suspected insider trading in the group's shares would ultimately affect the deal.

LeoVegas has previously issued the following statement regarding the matter: "No employee, member in the management team or board member in the company has been notified about any criminal suspicion. The company has no further information to provide. All questions concerning the preliminary investigation need to be directed to the Swedish Economic Crime Authority."

Jake Williams
Jake Williams is a sports gambling expert. He's been writing in the sports betting and DFS industry for over a decade. He specializes in MLB and NBA, along with College Basketball and College Football.