Q&A: Per Norman, CEO, Mr Green

Mr Green yesterday posted a double-digit rise in revenues for the first half of the year, although profits dipped following increased marketing costs, new products and local betting duties.

During Q2, Mr Green released its Kambi-powered sportsbook prior to Euro 2016 and is set to overhaul its live casino with new products launching later this year.

CEO Per Norman spoke to EGR to provide his thoughts on Mr Green’s performance during the first half of the year and an update on its aim to be listed on Nasdaq Stockholm.

eGaming Review (EGR): How do you assess the company’s performance during H1?

Per Norman (PN): In Q2, we started to see a lot of the effects from our updated strategy. We saw rapid mobile growth, the launch of a new sportsbook, the closing down of our old platform and moving to a completely new platform, and made further investments into new products, including the live segment of casino. We also saw new management in Q2, with our CEO [Jesper K?rrbrink] starting in April and a new team in Malta. I feel it was a quarter of investment.

Having said that, I’m not satisfied with the top line growth of 8.4% and to a certain extent a lot of the effects that we see in Q2 from the strategic review counts down also in the result. There were investments being made, and increased marketing costs. It’s a quarter where we see a lot of good news, we are building a strong platform for the coming quarters, and the other side is so-so.

EGR: Has the new sportsbook met expectations?

PN: We launched just ahead of the Euros, which was before we planned. We didn’t really plan for any extensive external marketing campaign. Also, with Euro 2016 a super crowded marketing period for all sportsbook competitors who have been there for years, it was a wise decision not to push the sportsbook during the Euros.

The reception from customers has been very positive and I think it works very smoothly. In such a short period of time we’ve been able to make it look and feel like Mr Green and I’m very satisfied with the product. Regarding revenues, that is something I expect to take off once we market it during Q3 and Q4. It’s also important to note that we still see sportsbook as a complimentary to casino and keep our customers on site.

EGR: You have invested in live casino, what was the reasoning behind this?

PN: Our new live casino offering will go live in Q3. We see the live segment growing very quickly and we want to make sure we have an offering which is keeping up with that growth. We needed to develop our offering on live casino.

EGR: What is behind the growth in mobile revenues?

PN: The mobile growth we have seen in both Q1 and Q2 this year proves our new mobile products are very well recognised by our customers. If you compare our growth to the industry’s growth, we are sky rocketing, and for me proves the investment in new products has really paid off.

EGR: Revenues increased by 16.7% in the rest of the Europe during Q2, is there any market that has been performing particularly well?

PN: You can see the growth in the rest of Europe compared to the Nordics is part of a strategy but also a constant review of where marketing pays off. We have for some time focused on the rest of Europe to spread the eggs and we see the Nordic market pretty crowded.

EGR: Local betting duties has hit earnings, will this have a continued impact on the company’s growth and are you concerned about this?

PN: I’m not concerned, as this is the reality and will be the reality going forward in Europe that you will have betting duties of 15-20%. Unfortunately, part of that is the 40% we pay in Austria, which over time we think once the market is re-regulated, it’s going to be similar to the rest of Europe, or at least the other reregulated markets.

From our perspective, it shows we can cope with that level of betting duties today because that’s what we are going to see in the future. But of course, seeing that it is the single biggest cost item that is affecting our result this quarter, it is a concern but that is more in the short term. In the long term, I’m not worried about it.

EGR: Does Mr Green have any plans to expand into new markets?

PN: Our main focus is Europe and re-regulated markets or markets looking to be regulated. Every market that is looking reasonable, we are looking into.

EGR: What did you make of the Netherland’s plans to tax operators at 29% GGR when the market opens next year?

PN: I think every external analysis will show that if you want to reach a high channelisation of around 80-90% that tax level is far too high. It’s important the regulators understand you need to find a balance between fair and reasonable tax levels in order to achieve a high channelisation.

EGR: Getting listed on the Nasdaq Stockholm is a high priority for you, how far away is Mr Green from achieving this?

PN: We are aiming to do this in 2016, the project is moving forward. The first half of the year has seen a lot of internal reviews and processes taking place. We have a new board with four independent directors in place with extensive experience in sitting in other boards of other Nasdaq listed companies. We are moving ahead with the project well, but always with this sort of process, it will take some time.

EGR: What are your plans for the rest of the year?

PN: A lot of things you will see will be the result of our new platform. We have much greater flexibility in providing personalised services, we’re also going to focus on the sportsbook and live casino vertical. That’s going to be more than enough for the coming quarters and I’m looking forward to what we can achieve.