Next Games Corporation Company Release,
Company EBITDA positive as a result of record Publishing Profitability.
January-December in short
- Revenue was
EUR 27.2 (34.7) million - Gross Profit was
EUR 14.3 (19.7) million, 52% (57%) of revenue - Operating Result (EBIT) improved
EUR 4.0 million and wasEUR -3.4 (-7.4) million - Adjusted Operating Result improved
EUR 3.9 million and wasEUR -0.1 (-4.0) million - EBITDA turned positive and was (EUR) 0.5 (-3.5) million
- Publishing profitability doubled in proportion to revenue with EBITDA at
EUR 6.4 (3.8) million, 24% (11%) of revenue - Research and Development expenses were
EUR -5.6 (-6.6) million, 21% (19%) of revenue - The company had 104 (107) employees at the end of 2020
July-December in short
- Revenue was
EUR 12.8 (15.5) million - Gross profit was
EUR 6.7 (8.4) million, 52% (54%) of revenue - Operating Result (EBIT) was
EUR -1.7 (-3.9) million - Adjusted Operating was
EUR -0.2 (-2.2) million - EBITDA was
EUR 0.2 (-2.0) million - Publishing profitability measured by EBITDA doubled to
EUR 3.0 (1.5) million, 24% (10%) of revenue - Research and Development expenses
EUR -2.9 (-3.3) million, 23% (21%) of revenue
(Numbers in brackets refer to the corresponding year-on-year period unless otherwise mentioned)
EUR million | Jul- | Jul- | Change | 2020 | 2019 | Change |
Company | ||||||
Revenue | 12.8 | 15.5 | -17% | 27.2 | 34.7 | -22% |
Gross Profit | 6.7 | 8.4 | -20% | 14.3 | 19.7 | -28% |
EBITDA | 0.2 | -2.0 | 111% | 0.5 | -3.5 | 116% |
Operating Result (EBIT) | -1.7 | -3.9 | 56% | -3.4 | -7.4 | 54% |
Adjusted Operating Result | -0.2 | -2.2 | 91% | -0.1 | -4.0 | 97% |
Gross profit % | 52% | 54% | 2ppt | 52% | 57% | 5ppt |
EBITDA % | 2% | -13% | 15ppt | 2% | -10% | 12ppt |
Operating Result (EBIT) % | -14% | -25% | 11ppt | -12% | -21% | 9ppt |
Adjusted Operating Result % | -1% | -14% | 13ppt | 0% | -11% | 11ppt |
Publishing Operations' Profitability | ||||||
EBITDA | 3.0 | 1.5 | 100% | 6.4 | 3.8 | 70% |
EBITDA % | 24% | 10% | 14ppt | 24% | 11% | 13% |
Research and Development | ||||||
Investments | 1.9 | 1.0 | 85% | 3.5 | 2.4 | 48% |
Expenditure | 3.7 | 3.6 | 4% | 7.0 | 7.6 | -7% |
EUR million | Jul- | Jul- | Change | Oct- | Oct- | Change |
Revenue | 6.1 | 7.8 | -22% | 6.7 | 7.7 | -12% |
Gross Profit | 3.2 | 4.3 | -27% | 3.5 | 4.1 | -14% |
EBITDA | 0.2 | -1.1 | 118% | 0 | -0.8 | 100% |
Operating Result (EBIT) | -0.8 | -2.1 | 63% | -1.0 | -1.8 | 47% |
Adjusted Operating Result | 0.0 | -1.2 | 104% | -0.2 | -1.0 | 76% |
Gross profit % | 52% | 56% | 4ppt | 52% | 53% | 1ppt |
EBITDA % | 3% | -14% | 17ppt | 0% | -11% | 11ppt |
Operating Result (EBIT) % | -13% | -27% | 14ppt | -14% | -24% | 10ppt |
Adjusted Operating Result % | 1% | -15% | 16ppt | -3% | -13% | 10ppt |
Chief Executive Officer
2020: Ready for growth
“Our strategy to make games based on well known brands is the cornerstone of profitably growing our market share.“
Next Games’ year 2020 ended on a positive note, reaching EBITDA profitability of
Our revenue was
We benefit from our strong market position in the large and growing mobile gaming market; the fastest growing segment in gaming, reaching
Our strategy to make games based on well known brands is the cornerstone of profitably growing our market share. The use of well-known brands, enables us to attract players with lower user acquisition costs compared to publishers who rely solely on user acquisition. With our advanced analytics, we are both able to scale efficiently and to optimize the in-game experience for our players.
Over the past year, we have invested heavily in our own technology platform as well as in analytics and processes, i.e. our unified infrastructure. We continue strengthening our strategic partnerships with various partners, and our product development pipeline is working on a number of promising games based on well-known international brands. More than half of our staff worked on upcoming games, and at the heart of our development is our focus on tailoring a player-centric purchase and engagement experience in our games.
We strongly believe that the best people make the best games, which is why we have invested in both international recruitment and professional development. At the end of the year,
In many ways the past year has been challenging for all of us, due to the concerns of the COVID-19 pandemic. However despite this challenging situation, we have been able to improve the profitability of our business as well as further the development of our new games, in accordance with our strategy. Our efforts will bear fruits in 2021, and we will continue to develop our business for long term success in the incoming years.
I would like to thank our whole team at
CEO
Outlook 2021
Basis for outlook
The outlook is based on an estimate that Walking Dead games will generate revenue on a steady or slightly declining trend. Revenue for Stranger Things will be increased during 2021, and
Audiocast and phone conference
We will hold an audiocast and a phone conference in English. Next Games’ 2020 review will be presented by CEO
Phone conference details:
Dial in by calling your location’s phone number a couple of minutes before the start. Confirmation code: 69230062#
Additional information:
CFO
+358 (0) 40 588 3167
investors@nextgames.com
Certified Adviser:
About
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- NextGames_financial_statements_bulletin_2020
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