Mr Green posts record revenue quarter
Operator continues to grow above market rate despite slow growth in the Nordics but EBITDA hit by extraordinary costs
Mr Green this morning reported a 20% increase in revenues for Q3 with the online casino operator reporting growth had been primarily driven from outside of its core Nordics market.
Total revenues of SEK201.6m (£15.4m) were up from SEK168.5m for the same period last year, but revenues from Scandinavia grew just 3% compared to a 33% hike from markets elsewhere in Europe.
The Nordics accounted for just 46% of total revenues, compared to 54% during Q3 2014, following Mr Green’s launches in the UK and Italy and extended activity elsewhere on the continent.
“The Nordic market is a very crowded market and when we look at marketing investment, we see we have a lower acquisition cost in other markets, but the Nordic market is still a very important market for us,” Per Norman, Mr Green CEO, said.
There was also strong mobile growth during the period, up 72% year-on-year to SEK62.6m (£4.8m), with the channel accounting for 31% of total gaming revenues.
The firm also decreased its marketing spend as a share of revenues to 28%, compared to 35% in Q3 2014, and while it said this should match the longer term trend, marketing spend could increase in Q4 due to a push of the firm’s new product suite.
Despite the strong revenue growth, EBITDA was hit by a SEK25.9m (£2m) write down of the firm’s social casino operation Social Thrills and a SEK81.6m (£6.2m) Austrian tax bill which was booked during the period despite the firm continuing to fight it in court.
Norman added that underlying profitability was good, with EBITDA up 37% to SEK58.1m when excluding the Austrian tax provision.
However, with the Austrian consideration and the Social Thrills write down included, the firm reported EBIT of negative SEK82.7m (-£6.3m).
Mr Green’s share price was down 8% to SEK39 after early morning trading.