Profits at Mr Green fall despite revenue increase
Mr Green has posted its second quarter interim financial report showing a 13% drop in profits for quarter two (Q2) of 2018.
The fall in profits come despite a healthy 43.4% rise in revenues in the quarter compared to the same period last year, with 31.1% organic growth. Revenues for Q2 were SEK 412.8m (£35.5m).
For the first half of the year, revenue increased by 40.8% to SEK 793.8m (£563.9m). Shares in the operator fell sharply on the back of the news.
The Stockholm-listed operator has blamed the fall in profits on increases to both the cost of services and marketing efforts.
The figures mean that Mr Green, who recently completed a rebranding to MRG, have fallen short of their 2018 financial targets.
Customer deposits increased significantly by 64.3% throughout the period.
Despite the fall in profits, Per Norman, CEO of MRG, remains confident, saying:
We are securing our position as one of the rapidly growing companies of Nasdaq Stockholm.– Per Norman, CEO of MRG
Progress made with other significant events
The group posted the results online in a press release along with a number of other recent significant events.
Along with the new name and re-brand to MRG, the group took the opportunity to post new revised financial targets for 2018.
Progress also continues with an acquisition in the Baltics as the group looks to further its presence there. A 75% stake in the Latvian operator 11.lv was acquired by Mr Green in May for €2.8 million in cash. That move served to strengthen the existing presence the group had in the area via its Mr Green and Red Bet brands.
Progress continues to be made in a new esports venture by the group in collaboration with Gaming Zone. The move also began in May and the pair will seek to create a community for esports fans covering entertainment, news and gaming opportunities.
Speaking about that venture back in May, Norman said:
Esports is a global phenomenon that grows fast and more and more followers spend a lot of time playing both themselves and watching different types of moving content. Some assessors believe that esports will be as big as traditional sports. We want to join and create a presence among all these followers. In Gamin Zone, we have found a partner who can provide esports, content and entertainment.– Per Norman, CEO of MRG