gamigo AG records positive operating earnings in 2014

Corporate News

  • EBITDA totals EUR +1.9 million according to preliminary figures (IFRS)
  • Positive growth in Q1 2015
  • Positive cash flow
  • Positive net earnings and at least 20 percent revenue growth anticipated in 2015

gamigo AG, a leading gaming company in Europe and North America, also continued the positive trend in its earnings in Q4 2014 and has concluded 2014 as a whole with substantially improved earnings. According to preliminary figures, which have been calculated according to IFRS for the first time (previously HGB), consolidated operating earnings (EBITDA) have improved greatly from EUR -0.04 million in 2013 to EUR +1.9 million in 2014. Consolidated operating revenues were stable in 2014 at EUR 15.1 million and were on a par with the previous year. However, the quality of revenues improved greatly as a result of the company’s repositioning with a capital-friendly platform strategy. Low-margin games and divisions that were not capable of growth were replaced by more profitable high-growth products in line with the growth strategy. This has created a solid basis for sustained growth in 2015 and the coming years.

The improved quality of revenues and also cost optimizations have contributed to the substantial improvement in profitability. The cash flow from operating activities has also improved significantly as a result of the substantial improvement in EBITDA.

Consolidated earnings before taxes and net earnings will still be negative in fiscal year 2014 as one-off extraordinary write-downs were performed due to the adjustment for game assets that were not highly profitable.

The final figures and the annual report will be published in June 2015.

According to provisional internal figures the positive trend for revenues and also earnings has continued in Q1 2015, which is a seasonally weaker quarter. Several new games such as The Rats (online, Facebook iOS, Android) and Wickie Online have recorded significant growth. In addition, the new platform “Gaming as a Service” is also meeting with great interest from users and exhibits major potential for growth. “Gaming as a service” platform services were recently presented in the USA, and received a very positive welcome from the market – the company is continuing to invest in expanding this division. gamigo is also planning to grow via further acquisitions in fiscal year 2015. It aims to grow its revenues by at least 20 percent. The company aims to record positive net earnings in 2015 as a whole.

Theodor Niehues, gamigo AG’s Co-CEO, explained: “We are still right on track. The company’s strategic reorientation is bearing its first fruit. In operating terms, the gamigo Group is earning money and we have been able to pay all of the interest on our bond from our own cash flow. Fiscal year 2015 has got an excellent start and our new products, games and services are promise great success. There are also excellent opportunities for acquisitions. As a result we are confident that both our revenues and also our earnings will improve substantially in 2015.”

About gamigo group:
The gamigo group is one of the leading gaming companies in Europe and North America. gamigo was one of the first 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.  Approximately 100 employees in Hamburg, Berlin (Germany), San Francisco, Chicago (USA) and Seoul (Korea) are focusing on the three business areas Platform Services (including GaaS), Publishing of free to play mobile and online games and running gaming portals.    gamigo has a wide range of highly-popular titles and a loyal customer base, including successful multiplayer online role-playing games such as “Fiesta Online” and “Last Chaos”. On top, the games portfolio continues to be further expanded with new titles, such as the recent additions “Guns & Robots”, “General War” and “Wickie Online”. The gamigo group has a total of well over 35 million registered game accounts worldwide. In addition to online multiplayer games, gamigo is also increasingly investing in mobile games, including games such as “Dino On Fire” and “The Rats Online”.

If you have any questions in this regard, please contact:

edicto GmbH
Axel Mühlhaus / Werner Rüppel
Tel.: +49 -(0)69-905505-52