Online casino operator Mr Green has revealed that despite having posted a year-on-year jump in revenue during the three months through to March 31, it suffered a heavy drop in profit.
Revenue in the first quarter amounted to SEK195.2 million (€21.1 million/$23.6 million), up 26.6% from the SEK154.2 million achieved in the corresponding period last year.
However, despite this growth, earnings before interest and tax plummeted from SEK25.3 million in the first quarter of 2014 to just SEK4.3 million in the same three-month period this year.
In addition, earnings before interest, tax, depreciation and amortisation (EBITDA) fell from SEK37 million in the opening period of last year to SEK24.4 million in the latest quarter.
Mr Green also noted earnings per share both before and after dilution dropped from SEK0.65 last year to SEK0.13.
Despite widespread losses, chief executive officer Per Norman was upbeat about the firm’s performance and cited the success of its ongoing investment strategy as one of the positive points from the first quarter.
“In the first quarter, earnings measured as EBITDA amounted to SEK24.4 million, down 34%,” he said.
“Investments in marketing, products and new establishments continued in the first quarter, bringing costs for the quarter to a relatively high level.
“The impact of these costs is expected to yield results in coming quarters, but we have already seen how deposits increased during the quarter.
“As communicated, Mr Green has acquired a gaming license for the Italian market.
“However, the launch has been slightly delayed and is expected to take place during the third quarter, instead of at the end of the second quarter, as planned, thereby adversely impacting earnings in the first and second quarters.
“The Italian operation is not expected to make a positive contribution to earnings until 2016.”
source : www.igamingbusiness.com
