Mr Green: Digital marketing yielding effect

Research Update

2017-11-02

07:33

The positive revenue growth momentum we have seen in the previous quarters continued during Q3. The company grew their sales by 28% compared to last year. What impressed us the most was the strong profitability, which was an effect from the improving marketing efficiency. Mr Green has since 2016 had a clear focus on improving their digital marketing, which has been visible the last quarters. The now more effective marketing should lead to improved profitability with higher operational leverage. During Q4 Mr Green will be launched in Denmark, enhanced their live offering and expanded with a bingo product. Our Fair value estimate in Base-case is reiterated at 73 SEK per share. We regard the valuation as attractive and believe that the current share price implies a far too pessimistic future fundamental performance of Mr Green, despite the strong prospects.

KL

Kristoffer Lindström

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