Mr Green publishes financial targets and prospectus in conjunction with its listing on Nasdaq Stockholm
On 18 November Mr Green & Co AB (publ) announced that Nasdaq Stockholm’s Listing Committee had approved Mr Green’s shares for listing on Nasdaq Stockholm’s main list. The
Board of Directors has in conjunction with the listing adopted financial targets and filed a prospectus which is published today on Mr Green’s web site www.mrg.se.
Trading on Nasdaq Stockholm will commence 30 November 2016 and the final day of trading on AktieTorget is 29 November 2016. Shareholders do not need to take any action in conjunction with the listing on Nasdaq Stockholm. The shares will be traded under the same ticker symbol and ISIN code as before the listing, MRG and SE0006963682.
Financial targets
The financial targets are in line with the new business strategy Mr Green 2.0. The new business strategy Mr Green 2.0 is built on five cornerstones: brand, user experience, product offering, geographic expansion and being the leader in sustainability and Green Gaming (responsible gaming).
Growth in revenue
Mr Green’s medium-term target (two to three years) is to achieve an annual average growth rate of 20 per cent. In the long-term, the company aims to achieve annual organic growth that exceeds the online gaming industry.
Profitability
Mr Green’s medium-term target (two to three years) is to achieve an EBITDA margin of 20 per cent. In the long-term, the company aims to achieve at least 15 per cent EBITDA margin assuming 100 per cent locally regulated markets with betting duties.
Dividend policy
Mr Green’s aim is to pay a dividend and/or repurchase shares in an amount of up to 50 per cent of consolidated free cash flow unless it is deemed that the Group’s liquid assets are needed to realise the company’s strategy, future tax payments or need to be set aside to secure additional reserves when warranted by conditions in capitals markets.
About Mr Green
Mr Green is a well-established online gaming company with broad customer offering and a strong brand that is globally viable. Mr Green operates in 13 countries and is growing strongly in several of these markets. Mr Green has established a particularly strong position in the Nordic region and Austria.
The European online gaming market has grown rapidly in recent years, mainly driven by increased gaming on mobile phones and tablets. According to market data consulting team
H2 Gambling Capital, the online gaming market is expected to grow with a compound annual growth rate of 8.5 per cent up to 2020 and mobile gaming by 17.6 per cent. The online gaming market will then represent gross game wins of EUR 26.6 billion of which mobile gaming will account for 40.2 per cent.
The fastest growing product category in Europe is casino games on mobile phones and tablets. This category is expected to grow 18.2 per cent per year to EUR 3.7 billion 2020. Sportsbook (betting and odds) on mobile devices is expected to grow 16.3 per cent per year to EUR 6 billion 2020.
The market for sportsbook online, both on computers and mobile devices, is expected to grow 9,6 per cent per year to EUR 10.4 billion 2020. Online casino is expected to grow 8.3 per cent per year to EUR 7.9 billion 2020. Within the category online casino, the fastest growing product is live casino with an expected annual growth rate of 11.2 per cent.
Mr Green initiated a comprehensive change process in 2015 and has since developed a new flexible technology platform and strengthened the organisation and its management teams. The company has, among all, developed new apps and broadened its product offering with a sportsbook in June this year. At the end of September, Mr Green launched its new live casino with exclusive real-time environments with interactive croupiers.
The new technology platform provides major improvements, such as responsiveness and opportunities to personalise the gaming experience. At the same time, operational efficiency is improved, enabling greater economies of scale when integrating new gaming platforms, geographies, product categories and domains for new and existing brands, as well as data-driven marketing. The new technology platform has given Mr Green greater control and operational flexibility while reducing its dependence on third parties. The technology platform has also been designed to facilitate adaptation to requirements in locally regulated markets.
In last year, Mr Green started the process to strengthen its organization and management teams. With the new technology platform in place in spring 2016, the new business strategy Mr Green 2.0 was initiated. The five cornerstones of the strategy are:
Strong brands
One of the main strengths is the Mr Green brand. Through the Mr Green character and consistent marketing campaigns a strong and globally viable brand has been established. The brand is attracting new customers and is crucial to the creation of long-term customer relationships.
Offer a unique, personalised user experience
Mr Green defines its product as the user’s overall experience. Using data-driven models developed by the new technology platform, Mr Green can create and offer its customers a personalised environment. The goal is to offer each customer a tailored homepage, based on their gaming preferences and behaviours.
Offer a broad product offering
Mr Green aims to continue developing the product offering by consistently improving the existing offering and launching new product verticals. A broader product offering with more options will increase attractiveness and loyalty.
Geographical expansion
Mr Green has identified a number of countries with potential for continued expansion and has a well-established process and strategy for entering several markets in the coming years. The company is continuously evaluating opportunities to enter new markets, primarily markets that are – or are expected to become – locally regulated. Historically, own-financed organic growth has accounted for most geographic expansion. The company also intends to enter new markets through acquisitions.
Be the leader in sustainability and Green Gaming
The new technology platform enables the integration of analytics, and creates clear, measurable targets for maintaining a safe gaming environment. To confirm its position as a leader in Green Gaming, Mr Green is working on the development of digital tools and algorithms to enable early identification of customers with potentially addictive behaviours.
Comments from the CEO and Chairman of the Board of Directors
”We have already started to implement and deliver on our new business strategy and there is no doubt that our customers like the new Mr Green”, says Per Norman, CEO of Mr Green & Co AB. ”We achieved our target of becoming a Nasdaq Stockholm listed company before year-end. I am happy and proud of that our organization had achieved in such a short pace of time and look forward to our journey of change towards continued growth. Growing revenues combined with improved operational efficiency, cost awareness and scalability will contribute to achievement of the profitability target.”
”Mr Green is a strong brand in a market with impressive growth”, says Kent Sander, Chairman of Mr Green & Co AB. ”The Company has a highly competent and motivated organisation and the management teams comprise people with long track records in both the online gaming industry and other digital industries. Mr Green is well positioned to grow faster than the market at increased profitability and becoming the leader in sustainability and Green Gaming.”
For further information, please refer to the prospectus for the listing on Nasdaq Stockholm, which has been approved and registered by the Swedish Financial Supervisory Authority. The prospectus is available on Mr Green’s web site www.mrg.se.
For further information:
Per Norman, CEO Mr Green & Co AB, phone +46 (0) 72 230 91 91
per.norman@mrg.se
Mr Green is a leading online gaming company with operations in 13 countries. The business concept is to offer entertainment and a first-class gaming experience in a responsible environment. The business was founded in 2007 and has developed into a well-established online gaming company with a broad customer offer and a strong globally viable brand. During 2015 Mr Green’s revenues was 793 MSEK and the company has over 190 employees. The headquarters and technical development are based in Stockholm, and operations in Malta. Mr Green has gaming licenses in Malta, UK and Italy.
This information was prior to this release inside information and is information that Mr Green & Co AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 29 November CET on 08.30am 2016.