gamigo AG expects positive net result for 2014
– Positive Group EBITDA in the second half of 2013
– Equity ratio rises to 38.9%
– Strategic Realignment 2014 leads to profitable growth
Hamburg, 26 June 2014. gamigo AG 2013 stabilized consolidated sales over the previous year with 15.1 million euros (2012: 15.3 million euros). The consolidated operating result (EBITDA) has improved to -0.04 million euros (2012: -3.1 million euros after adjusting for non-recurring income from loan waivers). A positive underlying trend which established itself in the second half of 2013 is responsible for the improvement: while the Group EBITDA in the first half of 2013 due to transformation was still -0.33 million euros, the profitability grew by 0.62 million euros to +0.29 million euros in the second half of 2013. Particularly the profitability-oriented clean-up of the games portfolio and the increased focus of the organization has contributed to this positive development. Due to a special effect from the repurchase of bonds and positive tax effects arising from deferred taxes in the amount of 3.94 million euros, gamigo AG achieved in 2013 a net consolidated profit of 0.2 million euros (2012: 0.8 million euros). For 2014, the Management Board expects double-digit revenue growth, a significant positive EBITDA and a net profit. The interest burden from the bond issued in 2013 will fall sharply from 1.03 million euros to 0.4 million euros per year, as gamigo AG has used the low bond prices to buy back bonds with a nominal value of EUR 7.2 million. Thus as of December 31, 2013 only bonds with a nominal value of EUR 4.9 million were still outstanding. The equity ratio rose to 38.9% as of December 31, 2013 (June 30, 2013: 11.9%). “The profit-oriented realignment and the start of the Mobile Business will exert their beneficial effect in 2014. Since bond prices did not reflect this positive perspective of the company, and due to the fact that we are able to finance our planned organic growth from operations, we decided to buy back a significant portion of the bond, “says CEO Remco Westermann. In the event of an acquisition, the company will put stronger focus on a combination of shares and cash, than originally planned. “Through the consolidation of the market attractive opportunities for acquisitions arise – especially if we are willing to use gamigo shares as acquisition currency,” says Remco Westermann.
“In 2014 we will switch to growth”
As part of the strategic realignment gamigo will strongly expand the online games portfolio in 2014, will establish the business unit Mobile Games, will expand and optimize the platform for new games to be integrated faster and more efficiently and will launch a new portal as well as further develop the advertising business. The business unit Mobile (Piraya GmbH) has launched a first game in May 2014 with Aircraft Empire, more games have already been signed. “On this basis, we will switch to growth in 2014, increase our profitability and achieve a positive net result according to plan,” says Remco Westermann.
The audited Annual Report 2013 gamigo AG and the consolidated figures will be available (in German) latest until Monday, June 30, 2014 on the following website: http://www.gamigo-anleihe.de/finanzberichte-gamigo-anleihe.html
gamigo AG (founded 2000), headquartered in Hamburg, is one of the leading online game publisher and distributor of free-to-play massive multiplayer online games (MMOGs) in Europe and North America. Around 100 employees in Hamburg, Berlin, San Francisco (USA) and Seoul (Korea) take care of marketing, customer relations, technology, support, optimization and game community management of the comprehensive portfolio. With multiplayer online role-playing games such as “Fiesta Online” and “Last Chaos” gamigo AG has very successful games with long-time loyal customer base. Overall, gamigo AG has more than 15 million registered player accounts worldwide. In addition to online multiplayer games, gamigo will increasingly offer mobile games.
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Tobias M. Weitzel
BSK Becker+Schreiner Kommunikation GmbH
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