Mr Green ends year on high with Q4 revenues up by a third
Strong growth outside of Nordics help full-year revenues rise 17% to SEK924.5 (£83m) but EBITDA below 2015 levels
Mr Green this morning posted a 17% increase in full-year revenues after strong growth outside of the Nordics helped the firm finish 2016 on a high.
Total revenues for the year ended 31 December were SEK924.5m (£83m), with Q4 having contributed SEK265.0 (£24m) of that total, a 32% increase on the final quarter of 2015.
However, Q4 EBITDA growth (before non-recurring items) of 10% to SEK31.9m wasn’t enough to alter the full-year picture with EBITDA down 33% to SEK91.4m (£8.2m).
Mr Green said the large bulk of Q4 revenue growth had come from European markets outside of the Nordics following its decision to focus marketing spend on Southern, Western, Central and Eastern Europe.
As a result, Western Europe revenues almost doubled (up 91%) to SEK93.4m (£8.4m), which was enough of an increase to make it Mr Green’s largest region with 35% of total revenues.
The firm also saw a 37% revenue increase in markets across Southern, Central and Eastern Europe during the quarter – a contribution of SEK75.3m (£6.8m) which equated to 28% of total revenues.
This meant the Nordics was relegated from the position of Mr Green’s largest region, with Q4 revenues down 1.6% to SEK88.9m (£8m), or 34% of total revenues.
Mr Green said the strong end of year had been due to a number of factors; favourable FX movements, a refocusing of marketing spend, the addition of sportsbook and live casino, and benefits felt from its new platform launch in the spring.
As a result, Q4 active customers were up 36% and customer deposits 48%, which Mr Green CEO Per Norman said was a vindication of the company’s growth strategy.
“The final quarter was one of our strongest ever quarters with revenue growth of 31.8% year-on-year,” Norman said.
“Also this quarter, the number of active customers and customer deposits were at a record-breaking high, and we can thus conclude that our new Mr Green 2.0 business strategy is starting to generate results.”
The chief exec also noted a number of EGR award wins over the past few months including Slots Operator of the Year at the EGR Operator Awards and Operator of the Year at the Nordics Awards.
“These awards are proof that we are at the forefront of the industry,” Norman said.
Earlier this month, Mr Green acquired Denmark-facing operator Dansk Underholdning, which the firm said formed part of its strategy to move into an increasing number of regulated markets.
Mr Green’s share price remained broadly unchanged this morning at SEK32.8 at the time of writing.