Mr Green's Q1 revenues rise 26.6%
Heavy marketing spend in new markets sees a drop in EBITDA at Swedish operator
Mr Green this morning reported a 26.6% year-on-year increase in revenues to SEK195.2m (£15.2m), but heavy marketing investment in contributed to a 34% drop in EBITDA in the first three months of 2015.
The online casino operator said the decline in EBITDA to SEK24.4m (£1.9m) was primarily down to a sharp 45% increase in marketing spend versus the first quarter of 2014, as the firm pushes into European markets outside of the Nordics.
“The first quarter represented a period of investment and the effect of the investments we have made in marketing, products and establishment in new markets is expected to yield results in forthcoming quarters,” Per Norman, Mr Green’s CEO, said.
The period saw Mr Green gain an Italian licence through its acquisition of Mybet Italia as it continues its expansion into markets outside of its core Nordic base.
Revenues from the rest of Europe now account for more than half of the group total, the company said.
The firm’s mobile arm also grew sharply, and now account for 30% of total revenues, up from 20% in Q1 2014.
The results are the first quarterlies to be reported since Per Norman succeeded Mikael Pawlo as CEO last month.
The firm is currently appealing against an £8.5m tax charge in Austria, but has made provision for the payment in a move which ate into its 2014 year-end EBITDA.