- Platform strategy leads to growth and clear increase in efficiency
- Consolidated revenues in 2015 up to EUR 21.6 million (+ 43%)
- Consolidated EBITDA in 2015 up to EUR 4.3 million (+ 184%)
- Consolidated profit in 2015: EUR 0.9 million; Positive outlook for 2016
gamigo AG (“gamigo”, bond ISIN: DE000A1TNJY0), a leading company within the fast-growing games market in Europe and North America, further continued its positive growth trend in the fourth quarter of 2015 and closed the fiscal year 2015 with a significant growth of revenue’s and a positive consolidated net result. This positive trend is based on the low-risk platform-based growth strategy that was introduced in 2013.
The consolidated revenue grew by 43% in 2015, reaching EUR 21.6 million (compared to EUR 15.1 million in 2014). Various acquisitions (Piraya GmbH, GameSpree GmbH, Infernum Games GmbH and Looki Publishing GmbH) as part of the platform strategy combined with organic growth enabled this increase.
The strong increase in consolidated revenue in line with the central platform strategy also resulted in substantial improvements in cost efficiency, and this in turn is reflected in the EBITDA. The company’s EBITDA improved substantially from EUR 1.5 million in the previous year to EUR 4.3 million in the fiscal year 2015 (+ 184%).
In the fiscal year 2015, positive consolidated net earnings of EUR 0.9 million have been achieved which is a substantial improvement compared to the negative net earnings in 2014 (EUR -1.2 million). gamigo AG has thus clearly achieved its target of concluding the fiscal year 2015 with revenue growth as well as positive net earnings.
The consolidated figures have been calculated according to IFRS and are final. The annual report will be published end of April 2016.
The positive trend continued in the first quarter of 2016 for both revenues and earnings. Both of the gamigo group’s business areas showed positive revenue growth. The acquisition of the global rights to the successful brand “Fiesta Online”, concluded in the first quarter, as well as the increase of the shareholdings in Intenium Technologies GmbH to 100% (previously 51.0%) will already show a positive impact on the operating result in the first half of the year.
The positive development of the business of the gamigo group shows the success of the low-risk platform strategy which combines revenues from both B2C and B2B. Further revenue growth which is based on low-risk, organic growth as well as non-organic growth – by using acquisition opportunities offered as a result of market consolidation – will have a positive effect on further improving profitability. Additional acquisitions are planned for the fiscal year 2016.
Remco Westermann, gamigo AG’s CEO: “In 2015 the gamigo team has again succeeded in focussing on our established games and services, while at the same time also successfully integrating various acquisitions into the group and thus bringing the gamigo group further ahead. We are working profitably, growing and generating sustainable positive operational cash flows. Based on this, we are confident that the gamigo AG will further continue its positive development in 2016 and in the years to come.”
About the gamigo group
The gamigo group is one of the leading gaming companies in Europe and North America. Over 100 staff members in Hamburg, Berlin, Münster (Germany) and Chicago (USA) are in charge of managing the platform (including Software as a Service and gaming portals) and the publishing of free-to-play mobile and online games. Fiesta Online and Dragon’s Prophet are just two examples of gamigo’s very successful multiplayer online role-playing game titles with a long-standing customer base. At the same time, the existing portfolio of games is constantly expanded with new titles, such as: Wickie Online, Kings and Legends, Desert Operations and Empire Universe 3. The gamigo group has a total of more than 65 million registered user accounts worldwide. In addition to online multiplayer games, gamigo is also stepping up investments in mobile games, including games such as Dino Empire and the cross-platform game The Rats. gamigo was one of the first few companies to discover the booming market segment of online games, and published the first MMOG that was completely localized into German as early as 2000. Besides organic growth, the gamigo group also performed 10+ M&As since 2014 and further strives to grow its business through the acquisition of companies specializing in games and technology.