Mobile-focused online gaming operator LeoVegas expects earnings (EBITDA) for the second quarter to be around €15m, higher than forecast thanks to lower-than-expected marketing costs in the period.

In a statement, the operator said the reason for communicating the preliminary result early is that marketing costs in relation to revenue in the period are approximately 35 per cent, lower than the 42 per cent that had been anticipated. Revenue for the second quarter totals approximately €87m.

“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,” the said CEO Gustav Hagman.

“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.

“We continue to act in line with achieving our financial targets, which is to reach at least €600m in revenue and €100m in EBITDA results in 2020,” said Hagman.

The preliminary results indicate that Q2 marketing costs are expected to amount to approximately €30m and revenues around €87m. Earnings (EBITDA) will be approximatley €15m, at a margin of about 17 per cent.