gamigo with profitable revenue growth in the 1st half of 2019 – EBIT up 149 percent
- Revenue grows by 32 percent to EUR 28.4 million (H1 2018: EUR 21.5 million)
- EBITDA increases by 59 percent to EUR 8.3 million (H1 2018: EUR 5.2 million)
- The cash flow from operating activities amounts to EUR 6.5 million and thus grows by 19 percent (H1 2018: EUR 5.5 million).
- Organic growth and successful integration of the acquired TrionWorlds assets (Q4 2018) and WildTangent assets (Q2 2019) contribute to growth
All figures in this release relate to unaudited consolidated group figures in accordance with IFRS
Hamburg, 30 August 2019 – The gamigo Group (“gamigo”, bond ISIN: SE0011614445), one of the leading publishers of online games in North America and Europe, continued to show strong and profitable growth in the second quarter and the first half of 2019 according to unaudited consolidated IFRS Group figures. Driven by organic growth in combination with the revenue and earnings contributions of the successfully acquired TrionWorlds and WildTangent assets, consolidated revenues increased by 32 percent to EUR 28.4 million in the first half of 2019 (H1 2018: EUR 21.5 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) also developed very positively, rising by 59 percent to EUR 8.3 million (H1 2018: EUR 5.2 million), while earnings before interest and taxes (EBIT) rose by 149 percent to EUR 3.2 million (H1 2018: EUR 1.3 million). Operating cash flow improved by 19 percent to EUR 6.5 million (H1 2018: EUR 5.5 million).
Second quarter, April – June 2019
The positive business development also continued in the second quarter of 2019. Group revenues increased by 26 percent to EUR 15 million (Q2 2018: EUR 11.9 million), EBITDA grew by 49 percent to EUR 4.3 million (Q2 2018: EUR 2.9 million). EBIT improved by 67 percent to EUR 1.7 million (Q2 2018: EUR 1 million).
A major part of the focus in the first half of the year was on the integration of TrionWorlds assets and WildTangent assets. Both assets developed very positively and the integration processes were largely successfully completed by the end of the first half of 2019. The considerable synergy potential at various levels is now beginning to show its first positive effect on the Group’s results. Both acquisitions are proof that the strategy of gamigo AG to take advantage of the potential of the consolidating market at a low risk is working.
The critical mass now achieved by this strategy enables gamigo to focus on organic growth without having to take the usual industry-specific risks.
In this context, gamigo also used the first half of 2019 to build the basis for stronger organic growth in the second half of the year by preparing three major game launches that could become milestones for the company in the second half of 2019.
Commercial Launch Ironsight
After taking the necessary time to further optimize Ironsight in the open beta phase in order to exploit the full potential of the promising multiplayer shooter, it was announced at Gamescom 2019 that the commercial launch is planned for the fourth quarter of 2019. The preparations are currently in progress.
Relaunch Desert Operations
Another very important launch will be the new version of the online strategy game Desert Operations. Desert Operations is one of the older gamigo game titles that has a very loyal and long-lived gaming community. Although the game has been on the market for about 10 years, it has currently increased its revenue by 16 percent YoY. Since the graphics of the game are getting older, a relaunch of the game was decided. The special aspect of the relaunch is that the development team involved the players of Desert Operations in the development and thus chose a Game as a Service approach. In this way, the experience and knowledge of the players are integrated into the development of the game. The result is very promising and much more than a pure re-skin and will be launched in the second half of the year.
On Sep 30, 2019 “ArcheAge: Unchained” will be published. This game is a new version of the very successful MMORPG “ArcheAge”. While the original “ArcheAge” is a highly monetised free-to-play game, the “Unchained” version will be a buy-to-play version, making the entire world of “ArcheAge” available to players through a single purchase. This game is highly targeted at a certain part of the MMO audience: Players of ArcheAge and similar MMOs, who typically invest small to medium amounts in the game. For this market “ArcheAge: Unchained” offers a significant added value. To announce the launch, gamigo has started a mystery reveal campaign for the new game with a countdown website that has led to many positive reactions from both players and the press alike
Remco Westermann, CEO of the gamigo Group: “Following the successful integration of the recently acquired assets, we have once again focused on organic growth by optimizing our games portfolio. In addition to smaller and already launched updates, e.g. in the games Trove, Defiance 2050, ArchAge and Fiesta, three major launches are planned for the second half of the year, whose preparations are currently in full swing. Due to the positive development of our operating business and the increase of our bond by a further 18 million Euro in the course of the first half of the year, we have substantial financial resources available to continue our strategy of market consolidation in the second half of 2019. Our acquisition pipeline is accordingly well filled with interesting targets. All in all, gamigo is in a very promising position. We are showing strong growth and the capital market demonstrates confidence in our business model. In addition, we are well funded and our pipelines for organic and inorganic growth are well filled. Players, investors and shareholders as well as gamigo employees can look forward to a promising second half of 2019”.
The Q2 and H1 2019 report of gamigo AG is available as of today on the gamigo AG homepage in the Investors section of the website: https://corporate.gamigo.com/investoren/
This Corporate News is information that gamigo AG is required to publish pursuant to the Market Abuse Ordinance 596/2014 and the Securities Markets Act (2007:528). This information was published by the issuer below on 30.08.2019 at 08:00 hours.
About the gamigo group:
Since its founding in 2000, gamigo has developed into one of the leading publishers of free-to-play online and mobile games in Europe and North America. The gamigo group has over 400 employees at its headquarters in Hamburg, Germany, with offices in Berlin, Münster, Darmstadt, Cologne (Germany), Warsaw (Poland), Istanbul (Turkey), Chicago, Redwood City, Austin, Bellevue (USA), Toronto (Canada) and Seoul (Korea). The company’s core portfolio includes successful games titles such as ArchAge, Aura Kingdom, Defiance, Fiesta Online, Rift and Trove. gamigo is growing organically and through acquisitions and has made over 20 acquisitions since 2013, including games, media and technology companies as well as selected game assets.
This press release contains possible forward-looking statements that are based on the current assumptions and forecasts of the company management of gamigo AG or companies associated with it. Various known and unknown risks and uncertainties, as well as other factors, could mean that the actual results, financial circumstances, the development or performance of gamigo AG and the companies associated with it may deviate significantly from the estimations presented here. Neither gamigo AG nor the companies associated with it are obligated to update this sort of forward-looking statement or adjust them to future results or developments.
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