gamigo AG: gamigo-Group achieved significant increase in revenues and earnings in 2018

  • Revenues increased by 8 percent to EUR 45.3 million
  • EBITDA increases to EUR 11.0 million despite M&A costs – a year-on-year increase of 56 percent
  • Successful continuation of the market consolidation strategy; acquisition of Trion Worlds Inc. assets, a leading US gaming group
  • Successful placement of a EUR 32 million bond with listing on NASDAQ Stockholm
  • Further significant revenues and earnings growth also expected for 2019

All figures in this release relate to consolidated figures in accordance with IFRS. The figures for the financial year 2018 are preliminary and unaudited.

Hamburg, 27 February 2019 – gamigo-Group (“gamigo”, bond ISIN: SE0011614445), one of the leading publishers of online games in North America and Europe, looks back at a very positive financial year 2018. Consolidated revenues increased by 8 percent to EUR 45.3 million according to preliminary, unaudited figures (2017: EUR 42.1 million). Consolidated revenues increased by 26 percent in the fourth quarter to EUR 13.5 million (Q4 2017: EUR 10.7 million). Consolidated EBITDA also increased significantly by 56 percent to a total of EUR 11.0 million (2017: EUR 7.0 million). The fourth quarter EBITDA amounted to EUR 3.4 million, an increase of 112 percent compared to the same quarter of the previous year (Q4 2017: EUR 1.6 million).

gamigo’s improved efficiency and also revenues in connection with the Trion acquisition that was completed in October had a positive impact on earnings, while substantial one-time transaction and M&A costs had a negative impact on earnings. Adjusted consolidated EBITDA excluding one-time costs amounted to EUR 13.4 million in 2018 (2017: EUR 10.5 million). In the fourth quarter, adjusted EBITDA increased by 147 percent to EUR 4.7 million (Q4 2017: EUR 1.9 million). EBIT also developed well and increased to EUR 2.4 million during the year 2018 compared to EUR -3.4 million in the previous year. In the fourth quarter EBIT amounted to EUR 0.8 million (Q4 2017: EUR -3.1 million). In 2018 gamigo recorded preliminary consolidated net earnings of EUR 1.6 million compared to EUR -5 million in 2017.
In 2018, the number of active monthly users of gamigo’s top 10 MMO games rose significantly by 230 percent from 421,000 users to 1.39 million users.

In October 2018 gamigo-group acquired the majority of Trion Worlds Inc’s assets – a leading US gaming group. This further strengthens gamigo’s market position on the international games market. gamigo also expects extensive synergies from the acquisition, which will be realized step by step through the already started integration in line with similar previous M&A transactions. The well-known online and console MMO games ArcheAge, Defiance, Rift and Trove are now also part of gamigo’s game portfolio as a result of the acquisition of the Trion Worlds assets.

A further milestone for gamigo was the issue of a senior secured corporate bond of EUR 32 million in October 2018, within a total framework amount of EUR 50 million. The bond was primarily placed on the Swedish and continental European bond markets. The bonds carry a floating interest rate of 7.75 percent p.a. (above the 3-month EURIBOR, with a floor of 0.00 percent) and matures 11 October 2022. The bonds are listed on NASDAQ Stockholm and Frankfurt Stock Exchange.

Also, for 2019 gamigo plans to continue its organic and M&A growth path. Both the pipeline for new licensed games and the acquisition pipeline for further market consolidation are promising. This is the basis for further significant revenues and earnings growth in 2019.

Remco Westermann, CEO of the gamigo-Group: “We are very happy with the fiscal year 2018. However, this does not mean that we are resting on our laurels. We are on a sustainable growth path and will continue to successfully expand our market position. The acquisition of Trion World assets will give us additional revenues and a further boost in efficiency and therefore additional profitability potential.”

The 2018 year-end report is available from today on gamigo AG’s website in the Investors’ section The audited 2018 consolidated financial statements are expected to be published by the end of April 2019.

This information is information that Gamigo AG is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014 and the Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person set out below, at 1:30 CET on February 27th, 2018.

About the gamigo-group:
Since its foundation in 2000, gamigo has developed into one of the leading publishers of free-to-play online and mobile games in Europe and North America. In total, the gamigo Group employs more than 350 employees at its headquarter in Hamburg and branches in Berlin, Münster, Darmstadt, Cologne (Germany), Warsaw (Poland), Istanbul (Turkey), Chicago, Redwood City, Austin (USA), Toronto (Canada) and Seoul (Korea). The company’s core portfolio includes successful gaming titles such as Rift, Trove, ArcheAge, Defiance, Aura Kingdom, Desert Operations, Dragon’s Prophet, Echo of Soul, Fiesta Online, Goal One, Last Chaos, Shaiya and Twin Saga. gamigo grows via organic growth as well as through acquisitions and has made over 20 acquisitions since 2013, including games, media and technology companies as well as individual game assets.

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