Global Gaming revenues up triple digits on Ninja Casino strength

Malmo-based operator Global Gaming has recorded Q2 revenues of SEK 227.8m (£19.5m), up 133% on the previous year.

The operator’s flagship Pay N Play casino brand. Ninja Casino accounted for 91% of revenues, with group profits up 54% to SEK 41m (£3.5m).

Operating costs rose 235% to SEK 95.1m (£8.1m) on the previous year, due to staff numbers increasing from 36 last year to 99 at the end of the reporting period.

Gross margin was up 4% on the previous quarter to 60%, which was attributed to the operator renegotiating its supplier deals.

Marketing expenses were also up 310% to SEK 69m (£5.9m) as the operator continued its bullish campaign in the Nordics through a number of digital and offline channels.

However, costs remained at around 30% of overall revenues.

Group CEO Joacim Möller hailed the World Cup and the wider marketing push across the industry for the operator’s continued growth in Q2.

“The quarter has been characterised by the World Championships in football during which we continued to market Ninja Casino to be able to stand out among all other betting advertising,” Möller said.

The company expects to see revenues from its recently launched Swedish brand, SpelLandet, in the coming quarter.

During the period, Global Gaming received its Estonian license to exclusively operate the Pay N Play no-registration process in the Baltic market.

It was also among the first operators to apply for a Swedish licence for upcoming regulations in 2019.

Stockholm-based analysts, Redeye, this morning said the operator’s Ninja Casino brand continued to show strong growth, despite several competitors launching Pay N Play products of their own.

“EBIT came in at SEK 41m (£3.5m) and was thereby somewhat better than our expectations of approximately SEK 38m (£3.2m). Further, Ninja Casino continues to show a strong growth Q/Q, which we see as a strength,” analyst Johan Svantesson said.

Global Gaming shares were up 4% at early trading this morning.