Mr Green: Case intact; the new Mr Green is coming

Research Update

2016-08-09

12:15

The Q2 report was almost exactly as we had expected. The company reported revenues of SEK 211m (estimate of SEK 209m) and an EBIT of SEK -3m; we had anticipated SEK -2m. We only make minor adjustments to our estimates following the report. We expect to see a continued increased marketing the following quarters; due to the now launched sportsbook and the new platform. We expect the marketing activity should lead to higher growth rates in Q3 and Q4. This is an updated version of our special report published 2016-06-16. We make no adjustments to our valuation and reiterate our fair value estimate of 63 SEK per share. The “new” Mr Green is coming! Some of the areas where we see triggers for growth and value enhancement are; mobile gambling, structural online gambling growth, expansion into new geographical regions, new web and app platforms, listing on Nasdaq Stockholm and more.

KL

Kristoffer Lindström

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