gaming
Flexion Q4 Report – 31 December 2021
Flexion produces record results: 52% growth in revenue, 63% growth in gross profit and 163% growth in EBITDA
October 2021 to December 2021 performance
- Total revenue increased by 52% to GBP 10.5m (GBP 6.9m)*
- Gross profit increased by 63% to GBP 1.5m (GBP 0.9m)
- Adjusted EBITDA‡ increased by 163% to GBP 0.33m (GBP 0.13m)
- Operating profit increased to GBP 0.63m (GBP 0.06m)
- Earnings per share amounted to GBP 1.28 pence (GBP 0.13 pence)
- Cash amounted to GBP 14.5m (GBP 12.4m)
April 2021 to December 2021 performance
- Total revenue increased by 46% to GBP 26.1m (GBP 17.9m)*
- Gross profit increased by 43% to GBP 3.4m (GBP 2.4m)
- Adjusted EBITDA‡ increased by 68% to GBP 0.43m (GBP 0.25m)
- Operating result increased by 734% to GBP 0.56m (GBP 0.07m)
Important events during the quarter
- Launch of Evony: The King’s Return from Top Games Inc.
- Launch of The Ants: Underground Kingdom from StarUnion
- Launch of Puzzles & Survival from 37Games
- Signing of Mahjong Treasure Quest from Vizor
Important events after the quarter
- Strategic investment in mobile game influencer, Liteup Media UG
- Alignment of the financial year with the calendar year by closing the current financial year after 9 months in December 2021
* Comparable number for the same quarter of the previous financial year in brackets
‡ The Company defines adjusted EBITDA as earnings before interest, tax, depreciation, amortisation, finance costs, impairment losses and other income. Adjusted EBITDA (adjusting operating profit for several non-cash items) is used by the Company for internal performance analysis to assess the execution of our strategies. Management believe that this adjusted measure is a more appropriate metric to understand the underlying performance of the Company
Notes from the CEO
What a great quarter we had – our best so far! We entered the 4th quarter with three new top titles leading up to the important Christmas period and I am really pleased that we managed to launch all of them and benefit from store promotions during the festive season.
Evony: The King’s Return, The Ants: Underground Kingdom and Puzzles and Survival are some of the biggest titles in the market and generated more than USD 40m in Google Play during December. These are now part of our portfolio and contributed to our strong performance in Q4. We experienced 52% growth in quarterly revenue compared with the same period last year and an increase of 46% for the whole year, which was in line with our guidance. The strong performance can also be seen in gross profit and EBITDA, up 63% and 163% respectively.
In 2021, we reached critical mass on the platform, and that’s why we now see a positive effect on our EBITDA for each new game we launch. I am also very happy that we generated GBP 0.6m in net profit for the period partly thanks to the recovery of GBP 0.4m from the impairment write-down we made in March 2020. These titles performed better than expected and are now generating positive contribution.
We added one more leading developer during the quarter, Vizor Games, and we are preparing to launch their title Mahjong Treasure Quest. On the back of our current strong performance and growing portfolio, we are actively phasing out low performing titles. This will help us improve the overall portfolio’s performance and increase the average revenue per game. Our top-tier monthly average has improved from USD 560K in Q3 to USD 730K. This can be seen in our KPI section on page 12.
We have now started to invest in new strategic initiatives within paid user-acquisition, with focus on influencer marketing and performance marketing to support our core business and to expand our footprint into the game services market as previously announced. The plan involves acquisition of talent through investments and acquisitions, but we are also strengthening our development and product teams to support these new initiatives. Our first step into influencer marketing was the investment made in January 2022 in Liteup Media. Liteup Media is a promising German start-up that has set out to disrupt influencer marketing and make it more mainstream and accessible to mobile game advertisers. This investment is attractive to us as we get a foot in the door in influencer marketing, while we have the option to acquire the company.
Looking at the wider market, we can see some clear market trends in favour of new services such as influencer marketing. This is partly due to privacy changes such as deprecation of IDFA by Apple, which makes it more difficult to target and track users. Google have also announced that it will make similar changes adding to the problems for traditional performance marketing. In parallel, we are seeing new demand for influencer marketing from blockchain-based games and NFTs. New marketplaces outside the traditional app stores are evolving for these games, adding to more market fragmentation. This in turn will drive new trends in user acquisition which we want to capitalise on. Other interesting recent moves that will expand our market is Microsoft’s support for Android on Windows 11, through their Amazon Appstore partnership. This project is now publicly launched by Microsoft, and Flexion is already supporting it. In addition, Netflix has entered the overall games market principally to support their core business and recently announced it stepped up its push into gaming by acquiring Next Games, a NASDAQ First North listed game developer.
We are now entering a new financial year and the traditionally weaker Q1 period. Our performance has so far been in line with expectations, we are focusing on growing revenue and audiences for our new top titles. On the back of our strong momentum coming into the new year, we expect our annual revenue to grow with 40-60% and our staff cost by 8-12% during 2022. This growth is driven by our core strategy, while new initiatives are ramping up during 2022. Overall, it should set us up for another strong and exciting year.
I would also like to comment on Flexion’s exposure to the terrible events happening in Ukraine and our thoughts are with all those affected. As a company with business in global markets, we have to date not seen any political events where mobile games have been sanctioned and we do not foresee that happening here either. We are very fortunate that our staff have not been exposed to the region, none of our developer contracts are with Russian companies and our settlement structure is relatively well protected against payment freezes or delays. The risks we see lie within the highly volatile Russian Ruble and the ability of our channel partners to transfer funds out of Russia. So far, the effects on Flexion have been limited and in February less than 10% of our global revenue was generated in the Russian market. The situation is very fluid, and we are monitoring it closely.
Finally, I would like to thank all Flexion staff for a fantastic year and welcome our new colleagues at Liteup Media to the Flexion Group.
Jens Lauritzson – CEO
Flexion, the games marketing company, and Kabam, one of the world’s leading game developers, announced a new partnership to bring Marvel Contest of Champions to alternative app stores. Flexion will distribute the game on the Amazon Appstore, Aptoide, ONE store, Samsung Galaxy Store, and Digital Turbine Hubs in 2024.
“We are excited to partner with Flexion to bring Marvel Contest of Champions to even more players. Flexion’s expertise, experience and technology make them the ideal partner for us. This collaboration will help us reach new audiences by making Marvel Contest of Champions available on even more app stores. This is especially exciting ahead of the game’s upcoming 10-year anniversary,” SeungWon Lee, CEO of Kabam, said.
“We are delighted to partner with Kabam, one of the world’s leading game developers, to bring their hit game to more players around the globe. This partnership is a win for Kabam and the app stores, which we will connect to drive audience engagement,” Jens Lauritzson, CEO of Flexion, said.
Marvel Contest of Champions is an epic fighting RPG with over 260 iconic Marvel Super Heroes and Super Villains in the ultimate cosmic showdown. Players can collect and build a competitive team of Champions, compete against the world’s top Summoners, battle through an epic and deep Marvel story, and team up with powerful Summoners in alliances to become the Ultimate Marvel Champion.
“We’re delighted to add such a well-known and successful game like Marvel Contest of Champions to our portfolio. I am very positive about the growth potential of these alternative stores in 2024. There is no better time to expand to more audiences,” Jens added.
Marvel Contest of Champions will be available on the Amazon Appstore, Samsung Galaxy Store, Aptoide, and ONEstore Korea starting on April 29, 2024, with Samsung Gaming Hub, OneStore Global, and DT Games Hub following in the near future.
The post Flexion and Kabam Team Up to Bring Marvel Contest of Champions to the Alternative App Stores appeared first on European Gaming Industry News.
gaming
The German Games Industry Association congratulates all winners of the German Computer Game Awards 2024
• “EVERSPACE 2” by ROCKFISH Games is ‘Best German Game’ 2024
• Pixel Maniacs from Nuremberg wins in the ‘Studio of the Year’ category
• ‘Best International Game’ is Baldur’s Gate 3
• ‘Player of the Year’ is Maurice Weber
High-quality games, great entertainment and many well-known personalities from the games industry and the cultural, societal and political spheres – the German Computer Game Awards 2024 (DCP), presented this evening in Munich, featured all that and more. Numerous guests celebrated the best games from Germany and the creative minds behind them in person at Eisbach Studios in Munich. The award show, which was hosted by Katrin Bauerfeind and Uke Bosse, was additionally followed by hundreds of thousands of viewers via live stream. A total of 800,000 euros was awarded in cash prizes. “EVERSPACE 2” by ROCKFISH Games was chosen ‘Best German Game’. The ‘Studio of the Year’ award went to Pixel Maniacs from Nuremberg, which has made a name for itself with successful games like the party racing game “Can’t Drive This”, its multifaceted involvement in the game industry and its promotion of young talent, as well as with its innovations in the area of marketing. The ‘Special Jury Prize’ was awarded to the project “Gaming ohne Grenzen” (Gaming without Borders), an initiative that enables young people with disabilities to participate actively in game culture – for example, by assessing in inclusive game testing groups the accessibility of various games as well as the ability of certain technologies to help overcome barriers in video games. In voting by the community and the jury, Maurice Weber was selected ‘Player of the Year’. The games editor and Twitch streamer regularly analyses current developments in the games industry and takes a critical look at them, while at the same time formulating a clear stance for more diversity and against extremism in games and society.
The German Computer Game Awards, which honour the year’s best German-produced games, are hosted by the German Federal Government, represented by the Federal Ministry for Economic Affairs and Climate Action, and game – The German Games Industry Association.
‘Congratulations to all winners of the German Computer Game Awards 2024!’ says Felix Falk, Managing Director of game. ‘Even in these very challenging times for many German firms in the industry, German games companies have created high-quality and successful games that have deservedly been honoured on the big stage of the DCP. Around half of these outstanding games were developed with the support of federal game funding. This once again demonstrates the potential that we can leverage when the underlying policy framework for game development in Germany provides for truly predictable and internationally competitive conditions – conditions that allow games from Germany to shine even more brightly all over the world and achieve even greater success on the national as well as international stage. We must make this our goal!’
Overview of all winners:
Best International Game (not endowed)
Baldur’s Gate 3 (Larian Studios)
Best German Game (endowed with 100,000 euros)
EVERSPACE 2 (ROCKFISH Games)
The other nominees will each receive 30,000:
Atlas Fallen (Deck 13 Interactive/Focus Entertainment)
Fall of Porcupine (Critical Rabbit/Assemble Entertainment)
Best Family Game (endowed with 40,000 euros)
Spells & Secrets (Alchemist Interactive/rokaplay)
Newcomer Award – Best Debut (endowed with 60,000 euros)
Ad Infinitum (Hekate/NACON)
The other nominees will receive 25,000 euros each:
Fall of Porcupine (Critical Rabbit/Assemble Entertainment)
Lose CTRL (Play From Your Heart)
Newcomer Award – Best Prototype (endowed with 50,000 euros)
Misgiven (Symmetry Break Studio)
The other nominees will receive 25,000 euros each:
Bloodletter (Katharina “Mikey” Müller, David Cafisso, Marvin Braun, Alica Schneider/Hochschule für Technik und Wirtschaft Berlin)
EcoGnomix (Lars Hinnerk Grevsmühl, Lars Eble, Bahy Nguyen, Marcel Zurawka, Alec Shae)
Footgun: Underground (Eduard Dobermann, Theo Lohmüller, Georg Nimke, Robert Pistea, Lukas Salewsky)
REPLICORE (Sarah Inés Roeder, Rody Nawezi, Leonhard Gläser, Maximilian Götz/ HAW Hamburg)
Best Innovation and Technology (endowed with 40,000 euros)
Marble Maze (Fox-Assembly)
Best Serious Game (endowed with 40,000 euros)
Friedrich Ebert – Der Weg zur Demokratie (Playing History/Stiftung Reichspräsident-Friedrich-Ebert-Gedenkstätte)
Best Audio Design (endowed with 40,000 euros)
Ad Infinitum (Hekate/NACON)
Best Game Design (endowed with 40,000 euros)
Lose CTRL (Play From Your Heart)
Best Graphic Design (endowed with 40,000 euros)
The Bear – A Story from the World of Gra (Mucks! Games)
Best Mobile Game (endowed with 40,000 euros)
Cat Rescue Story (Tivola Games)
Best Story (endowed with 40,000 euros)
Ad Infinitum (Hekate/NACON)
Studio of the Year (endowed with 50,000 euros)
Pixel Maniacs
Player of the Year (not endowed)
Maurice Weber
Special Jury Award (endowed with 10,000 euros)
Gaming ohne Grenzen
The post The German Games Industry Association congratulates all winners of the German Computer Game Awards 2024 appeared first on European Gaming Industry News.
gaming
World’s Best Teams to Compete in UK’s First Professional Women’s VALORANT Tournament in 2024, Red Bull Instalock
The UK’s first professional women’s esports tournament of 2024, Red Bull Instalock, is set to take over the Bull Gaming Sphere in Shoreditch, London for two days of thrilling VALORANT action from April 20 to 21. Red Bull Instalock will invite four of the world’s best women’s VALORANT teams to battle it out to become inaugural champions.
Promising a thrilling experience for viewers worldwide, the invited teams list includes G2 Gozen, GIANTX, Karmine Corp and Shopify Rebellion. Boasting four of the best women’s VALORANT teams globally, Red Bull Instalock will be a must-watch for VALORANT fans.
The LAN tournament will be broadcast from London’s premier gaming and esports venue, the Red Bull Gaming Sphere in Shoreditch, which will be transformed to replicate the in-game atmosphere of the legendary VALORANT map “Icebox”.
A unique format will be deployed to shake up traditional team compositions. Each team will be required to use three duelists, the game’s dedicated offensive class, which will encourage aggressive plays while rewarding tactical expertise and clutch skills to promise viewers worldwide an exhilarating viewing experience.
The Semi-Finals on Saturday 20th will set the stage for a pulse-racing Final day on Sunday 21st. Red Bull Instalock will also host a one-of-a-kind exhibition match, featuring a star-studded cast of fan-favourite VALORANT creators.
Renowned British esports host, Yinsu Collins, will be headlining the broadcast, with commentary provided by Kieran “Kairo” Tulloch, Billie “BillieIDK” Purdie, Matt “Twiggy” Twigg, and Harry “Hazza” Chapman. British FNATIC content creator and partnered streamer Megan ‘Megsoundslikeegg’ Garner will host the creator showmatch on Sunday 21st.
Looking ahead to the tournament, Red Bull Player and member of G2 Gozen Michaela “mimi” Lintrup said: “It’s fantastic to see another event for women’s VALORANT come into play and Red Bull Instalock is another amazing step into making a really lively competitive scene. It’s also going to be great for fans, with the format twist bringing a really exciting and new edge to every matchup.”
Red Bull Instalock will be broadcast live on Red Bull’s Twitch and YouTube channels, featuring top talent from the UK and around the world.
AGON by AOC, a global leader in gaming monitors, returns to join the Red Bull Gaming universe once again as the official Monitor Partner for Red Bull Instalock. Bringing the event to life and providing cutting-edge hardware for the esports tournament, AGON by AOC is equipping the event with the AGON PRO AG254FG monitors, featuring a 360 Hz refresh rate and 1ms response time for the best in-game experience.
The post World’s Best Teams to Compete in UK’s First Professional Women’s VALORANT Tournament in 2024, Red Bull Instalock appeared first on European Gaming Industry News.
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