Mr Green profits double after European expansion
Growth in business outside of the Nordics and on mobile helps offset increased marketing spend
Mr Green has announced a doubling of profits during 2013 after the casino operator continued to expand its business outside of the Nordic region.
Profit for the year reached SEK59.3m (£5.4m) after revenues soared by 52% year-on-year to SEK483.5m (£44.2m) on the back of increased marketing expenditure and moves into other regulated markets across Europe.
Although the Nordic region was still responsible for the majority of Group revenue (61.9%), the rest of Europe’s share rose from 24% in Q4 2012 to 37.7% in Q4 2013.
The operator recorded a 35% year-on-year increase in Q4 revenue to SEK135.9m (£12.4m), however profit for the quarter tumbled 65% to SEK6.8m (£0.6m) after marketing expenditure almost doubled to SEK65m (£5.9m) or 47% of Q4 revenue.
Mr Green CEO Mikael Pawlo defended the spiralling marketing costs, claiming them to be part of the Group’s strategy when entering new markets.
“When we enter a new market our strategy is to build knowledge initially, which means that marketing is less effective at the early stage than it is in a more mature market,” Pawlo said.
“We will continue to expand into new regions and invest to grow organically into additional countries, which means that these type of effects can be expected to occur at times.”
The year ending December 2013 also saw Mr Green invest into new product channels with Pawlo stating the firm’s investment into mobile to be generating “serious momentum”, with further investment in the channel expected throughout 2014.
The year saw substantial change for Mr Green as it began to trade publicly in June before appointing a new head of casino and Malta CEO last month.