Stockholm-based online gambling operator Mr Green saw revenue jump double-digits in Q3 following the introduction of its new sportsbook.
Figures released Friday show Mr Green’s revenue rising 14% to SEK 230m (US $25.4m) in the three months ending September 30 thanks to increased growth outside the company’s core Nordic markets.
However, earnings fell 57.5% to SEK 17.8m due to higher betting duties and increased costs, including a 51% rise in marketing and 28.4% more on personnel. The company’s ongoing provisions for its potential Austrian tax liability also took their toll.
The extra marketing costs were in part due to Mr Green branching out into sports betting in June with a product supplied by Kambi Sports Solutions. Costs also got a boost from preparations for the September 30 launch of Mr Green’s new live dealer casino.
But active customer ranks spiked 39% during the quarter and the volume of customer deposits grew 21%, each category representing all-time highs for the company. Mr Green CEO Per Norman said the gains reflected the effectiveness of the company’s new business strategy, which he dubbed “Mr Green 2.0.”
Mr Green changed its method of accounting for its revenue split, breaking the results into four geographic regions rather than three. Nordic revenue fell 7% to SEK 86.6m in Q3 thanks to reduced marketing, while the Rest of the World column was down 62.4% to SEK 2.5m.
But Western Europe revenue rose 37.2% to SEK 76.9m and the Central, Eastern and Southern Europe category jumped 39.4% to SEK 69m. Nordic markets now make up 38% of revenue, while Western Europe isn’t far back at 33%.
In related news, Mr Green co-founder and former CEO Mikael Pawlo says he’s taken a “significant” stake in Swedish startup Football Addicts, which operates the Forza Football affiliate business and live score app. Pawlo said he took the plunge after seeing “vast potential in developing relationships between Football Addicts and iGaming companies.”