Tax weighs on Mr Green online casino results

Online casino operator Mr Green posted weaker third quarter results for the period to end September 2015 this week, reporting a loss of SEK 75.95 million (approx. GBP 5.8 million), a decline when compared with the same period in 2014, when the company achieved a profit of SEK 27.4 million in the corresponding period last year.

Explaining the loss, chief executive Per Norman said the results were mainly impacted by “recognition of an amount corresponding to SEK 25.4 million in tax compared with SEK 400,000 in the year-earlier period”.

He added that the company continues to dispute its Austrian tax liability following the implementation of a 40 percent tax on gross gaming wins for online gaming, and the third quarter provision was a precaution against a worst-case scenario.

Other elements in the company’s report included:

* EBITDA before items affecting comparability was SEK 40.8 million, down slightly year-on-year from SEK 42.4 million; however, items affecting comparability of SEK 81.6 million resulted in an overall negative EBITDA of SEK 40.8 million;

* Negative EBIT, including depreciation and amortisation as well as an impairment, totalled SEK 82.7 million.

* Total revenue in the quarter rose 20 percent year-on-year to SEK 201.6 million, with the mobile channel rising 72 percent to deliver revenue of SEK 62.6 million;

* Active player numbers rose from 66,266 in the same period in 2014 to 73,689 in Q3-2015;

* Year-to-date revenues are currently up 22.1 percent y-o-y at SEK 591.5 million;

Norman commented that the company has laid the foundations for success going forward with good growth.