Mr Green eyes new markets after H1 growth

Mr Green is perfectly positioned to ramp up its presence across Europe following strong H1 revenue growth of 23%, the firm’s CEO Per Norman (pictured) has told eGaming Review.

Speaking after last week’s results, Norman told eGR the firm was poised to make an impact in Italy and the United Kingdom after recent moves into those markets.

“We realise that the competition in Italy and the UK is really tough, but we’re coming from a very tough and competitive situation in the Nordics as well,” Norman said.

“We think we have the formula with the combination of a great product and a great brand. Of course we need to adapt to some of the local situations, but we have confidence in our product and brand to do what we’ve done successfully in other markets,” he added.

The operator has placed greater focus on markets beyond its Nordic core, which was reflected in last week’s results.

For the first six months of the year, Scandinavia contributed 45% of the firm’s total game win, down from 54% in H1 2014, with the rest of Europe accounting for the vast majority of other business.

eGR understands that a significant portion of the firm’s marketing spend, which was up year-on-year in H1 despite a tailing off in Q2, is now being directed to key European markets.

Norman said the Q1 marketing spend of SEK90.2m (£6.8m) was “in the high region” and expects continued fluctuation between quarters, but did say part of the Q2 total of SEK67.2m (£5.1m) was as a result of better efficiencies.

He also remains optimistic for further opportunities for the operator to diversify away from its core Nordic base as a result of regulatory progress elsewhere on the continent.

“We are encouraged by the regulatory progress in several European markets. I think you can see more and more countries have either started some kind of process or are at least discussing it. So I think you will see real regulation in most European countries over the coming years,” Norman said.

How Mr Green approaches these opportunities has yet to be decided – when moving into Italy the firm acquired mybet Italia and its accompanying licence to smooth entry.

Norman said further acquisitions were a possibility although added the caveat that there was still plenty of organic growth to be had and the firm wouldn’t be rushed into purchases.

“From a core Mr Green & Co AB perspective, the mission is to invest in online gaming companies. So if we find something that is interesting we will look at it,” Norman said.

“I think in the long term size will matter but you can gain size by growth and acquisitions. It doesn’t mean you need to panic. I think there’s a number of potential targets so I’m not worried when I see consolidation elsewhere in the industry. It’s about finding the right time and the right price for the right acquisition,” he added.