Marketing spend is paying off, says Mr Green CEO
Per Norman says he'll increase spend further despite a drop in profits
Mr Green’s new chief executive has said the firm’s investment in brand-building could increase further, despite Q1 results showing a year-on-year 34% decrease in EBITDA caused in part by higher marketing spend.
As the Nordic-focussed online casino operator continues its expansion into new European markets – including Italy and the UK – marketing costs are set to keep rising but Per Norman pointed to the 26.6% rise in revenues as proof the strategy is paying off.
“Marketing share is on the higher level compared to where we have been before,” Norman told eGaming Review. “It has been a high marketing quarter, but if we see positive results continue to come out of it we could still increase the marketing again.”
Norman said the higher costs in the first three months of the year were also associated with product development and costs from entering new markets. With depreciation and amortisation accounted for, total profit for the period is down 80% to SEK 4.7m (£368,000).
But Norman said the higher spending was an important part of company’s long-term growth strategy.
During the period Mr Green gained an Italian licence via its acquisition of Mybet Italia and continued its UK marketing drive as it expands away from its Nordic base. More than 50% of its revenues are now derived from markets outside of the region.
“We are moving to be more independent from single markets and the Nordics and we are happy to see that strategy working,” Norman said.
“We also see that the brand really works in different markets. I would say we will see the trend continue, but we will also see a trend of more regulated revenues in the future,” he added.
Norman said the investment in brand would be accompanied by product enhancement, with mobile in particular a large area of focus.
Almost a third (30%) of revenues now come via the mobile channel and the chief exec said there was much more to come.
“We are working with an aggressive roadmap for deploying new products and you will see that happen during the rest of the year,” he said.
“The quick development of the mobile usage is something that we are very much on top of, and whenever we are thinking of new things we are thinking mobile first,” he added.