- EBITDA turns to plus 0.45 million Euros
- Continuation of the positive developments expected in the second half of the year
- Considerable organic and inorganic growth planned
gamigo AG, one of the leading publishers and distributors of free-to-play Massively Multiplayer Online Games (MMOGs), went back in the black in the first half of 2014. The operative company earnings (EBITDA), in accordance with HGB accounting regulations, turned sharply from minus 0.33 million Euros in the first half of the previous year to plus 0.45 million Euros. This continues the positive earnings trend after the company’s repositioning. A positive growth is expected to continue this year.
The revenue in the first half of 2014, after adjustment of the game portfolio, came to 6.8 million Euros. This is in contrast to the 7.7 million Euros in the corresponding period of the previous year. The EBIT (earnings before interest and taxes) improved considerably from -1.98 million Euros in the first half of 2013 to -0.90 million Euros. The difference in the already significantly positive EBITDA has resulted from planned amortizations of software and the gamigo platform, with the investments for the platform having already taken place the previous year. The annual net profit significantly improved from -2.72 million Euros in the first half of 2013 to -1.14 million Euros in the first half of 2014.
With the international marketing of attractive new online games such as “Asterix & Friends” and “Wickie Online”, gamigo has a considerable growth potential. gamigo anticipates that the positive effects resulting from the acceleration of the platform strategy will becomes very evident in the second half of 2014. In this platform, gamigo acts as an independent interface between providers of online games and distribution channels. The comprehensive modular range of services from processing to payment up to customer relationship management, is particularly attractive to distribution partners.
gamigo AG is also enjoying steady growth in the mobile games sector, and has already presented first license titles such as “Aircraft Empire,” “Conquest of Rome” and the brand new “Dino on Fire,” in cooperation with NetEase Games from China.
Theodor Niehues, Co-CEO of gamigo AG, explains: “For our shareholders it is especially important that our company is operatively earning money. The planned amortizations of software and platform infrastructure over a particular period of time do not of course affect liquidity and do not have any influence on gamigo’s financial power. In the upcoming quarterly periods, we intend to significantly increase our turnover through organizational and inorganic growth, thereby continuing to achieve above-average profitability.”
About gamigo AG
Founded in 2000, gamigo AG is a leading publisher and distributor of free-to-play Massively Multiplayer Online Games (MMOG) with a focus on Europe and North America.
Approximately 90 employees in Hamburg, Berlin, San Francisco (USA) and Seoul (Korea) are in charge of marketing, customer relations, IT, support, game optimization and community management for its comprehensive portfolio of titles. “Fiesta Online” and “Last Chaos” are just two examples of gamigo’s very successful multiplayer online role-playing games with a long-standing and loyal customer base. In addition to this, the existing portfolio will continue to be optimized with new titles, such as: “Asterix & Friends,” “Anno Online” and “Wickie Online.” gamigo has a total of more than 16 million registered game accounts worldwide. In addition to online multiplayer games, gamigo also plans to grow its offering of mobile games.
In case of questions, please contact:
Axel Mühlhaus / Werner Rüppel