Ahead of publishing its interim report for Q4 2019, online gambling group LeoVegas has outlined a number of strategic changes that it plans to make, which will impact its UK-facing brands and future strategy.
LeoVegas has reiterated that it plans to ‘fully use economies of scale in technology, product and organisation’, and has confirmed that its planned relocation to new offices in Malta has been called off.
“The strategic initiatives we are now carrying out will create optimal conditions to be successful in the large, but at the same time complex, UK market,” commented Gustaf Hagman, Group CEO.
“The consolidation of brands into one and the same platform will contribute to large economies of scale in the Group – both by allowing us to fully utilise our multibrand technology and through a more efficient organisation. Already during the second half of last year, the LeoVegas and Rocket X managed brands in the UK began to perform favourably, and the new structure gives us a good starting point to increase both growth and profitability in the UK market during 2020.
“At the same time, Royal Panda – which has struggled with weak performance in the UK but has performed well in other markets – can now focus fully on growth outside of the UK and also launch the brand in a couple of new markets in and outside of Europe.”
The mobile gaming operator also confirmed that during 2019, the marketing organisations for LeoVegas UK and Rocket X had been integrated into a single unit, and plans are in place to migrate the Rocket X brand portfolio into the LeoVegas multi brand platform, Rhino.
In a statement, LeoVegas added: “Parallel with this, Royal Panda is leaving the UK market, which entails that all operations coupled to the UK going forward will be driven on the same technical platform and with a joint organisation for technology, products, customer service, marketing and compliance.”
The strategic initiatives were begun during the fourth quarter of 2019 and are expected to be largely completed during the first quarter of this year. The measures are expected to generate cost synergies in areas such as marketing, products, payments and customer service, and will result in reduced complexity in compliance.