Online casino group MRG reports strong Q3 growth

Online casino group MRG, which operates the popular Mr Green brand, has posted Q3-2018 figures that it claims are the best in revenue growth terms for the last five years. The company reported the following highlights:

* Revenue up 50.9 percent y-o-y at SEK 445.2 million;

* Marketing spend below 30 percent of revenue for the first time at 29 percent;

* Organic growth of 36.4 percent, driven by a 72.3 percent rise in customer deposits;

*,Earnings before interest and deductions rose 49.4 percent y-o-y at SEK75.5 million;

* Western Europe was the most lucrative region, contributing SEK178.9 million of total revenue, with.the Nordic nations contributing a further SEK160.7 million;

* Regulated markets were responsible for 17.1 percent of total revenue, whilst markets in the process of regulating generating 24.5 percent and other markets making up 23.1 percent;

* Sports betting revenue soared 439 percent y-o-y (from a low base) to account for almost 10 percent of Group revenue;

* Overall customer deposits for the quarter grew 72.3 percent year-on-year to SEK1.48 billion, with depositing punters up 47.3 percent to 193,273;

* New depositing customers rose by 38.9 percent to 73,174, and returning depositing customer numbers were up 52.9 percent at 120,099;

* Cost of services rose 65.6 percent to SEK155.1 million, with marketing spend at SEK129.6 million;

* After tax profit was up 31 percent y-o-y at SEK 40.4 million;

Chief executive officer Per Norman said Friday that management has focused on marketing efficiencies with a strong emphasis on digital marketing, player communication and effective business processes, backed by the popular Mr Green brand.

“The deposits growth is a great achievement considering the decreased marketing cost ratio in the quarter,” he noted. “This is the first quarter ever that we have reported marketing spend of below 30 percent of revenue.”

Norman reported progress on the company’s Strategy 2020 initiative, observing that after six months the strategy is clearly robust, enabling the company to build scale for a solid foundation that empowers innovation and investment in new products and services.

He said that the increased economies of scale help MRG to offset rising tax and compliance costs.

Norman said that MRG’s new Green Jade studio is scheduled to release its first game before the end of 2018, and already has a viable pipeline of products that will roll out in 2019.

The company has reiterated its projection for turnover growth of 40 percent for this year, and 25 percent for 2020.

MRG is among the 60 companies that has applied for Swedish licensing in preparation for the liberalisation of the market early next year.

On a YTD basis (to end September) the company reported revenue up 44.2 percent at SEK 1.214 billion.

Looking ahead, CEO Norman said that strong growth momentum continues.