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Flexion Q4 Report – 31 December 2021

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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

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Investment Opportunities in the Multi-billion-dollar Gaming Sector

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The Gaming industry is growing day by day. It has already become a global entertainment giant. From sweeping open-world quests to quick, addictive mobile games, the industry has expanded into a multi-billion-dollar giant.

The global gaming industry was valued at over £135 billion ($184 billion) in 2023 and is projected to reach £184 billion ($250 billion) in 2030. It is driven by cloud gaming, which eliminates the need for costly consoles, high-speed internet, and immersive technologies like VR and AR. Revenues from VR gaming alone in 2023 exceeded £1.9 billion ($2.6 billion), and the AR gaming business is set to grow at a pace of over 30% annually.

The transition from physical to digital is virtually complete: in large markets, over 90% of games sold today are digital, with downloads, live services, and subscriptions replacing cartridges and discs.

Alternative Ways to Invest in Gaming

The gaming industry is not merely a business of copying the most recent blockbusting release; it’s a rich, diverse ecosystem with several streams of revenue, from historic game publishing to aggressive esports and the burgeoning betting and online gambling sector. Today’s investors are able to access entertainment-oriented and wagering-led segments, each with their distinct risk and reward profiles.

Video Game Development & Publishing

Envision house brands behind the mega-franchises of Call of Duty, FIFA or The Legend of Zelda. These brands have enormous fan bases and generate revenue that stretches far past the initial buy, with in-game purchases, downloadable packs and subscription content keeping gamers engaged and expenditures year-round.

Esports

Esports have now evolved from casual living-room games to multi-million-dollar tournaments streamed live in front of a global audience. Internet gambling on esports competitions is also becoming a niche but growing market, offering a new source of revenue for both organisers and financiers.

Online Betting & Casinos

This segment is focused on convenience, accessibility and growing demand for real-money play. Online gaming sites and casinos are taking advantage of more lenient rules in key markets, so that they now represent a more mainstream and profitable part of the gaming economy.

Spotlight on Online Gambling

Online casinos are no longer merely whirring slot machines; they’re pushing boundaries. Some of the top 20 online casinos have gone beyond traditional slots and table games, incorporating esports betting, skill-based game challenges and interactive live dealer games.

Why does that matter to investors? Easy. It signals flexibility. These platforms are captivating players where they are: at their phones, on streaming websites, and in hybrid entertainment spaces that blur the line between socialising and gaming. This flexibility is what can keep revenue streams consistent even when trends shift.

Why Investors are Paying Attention

The gaming market has something that a lot of others envy: loyal consumers who are spenders on a regular basis. It’s £3 ($5) on a character skin or £36 ($50) on a new game, but the spend is cumulative, and it doesn’t evaporate during poor economies.

And gaming pervades everywhere. A hit title in Japan can find fans in Brazil in days. And for companies, that global reach means multiple streams of revenue and endless room to grow.

Risks in Investment

There is no investment without risk. Regulations change overnight, especially in online gaming. Game developers also come and go with their biggest hit; one flop can jerk their stock price. And in this competitive environment, being new is a never-ending struggle.

Gaming Investment Strategies

Diversify among multiple corners of the sector. That way, you’re not betting everything on one game or one trend. Gaming-focused ETFs deserve a look as well if you enjoy a pre-packaged solution that spreads the risk.

The post Investment Opportunities in the Multi-billion-dollar Gaming Sector appeared first on European Gaming Industry News.

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German Games Market Grows in the First Half of 2025

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The German games market has returned to growth: following a year in which revenue from games, games hardware and online gaming services declined for the first time after many years of growth, the first six months of 2025 have once again seen an increase in sales revenue. 4.6 billion euros in revenue was generated, which equates to an increase of 4% compared to the same period in the previous year.

This was announced by game – The German Games Industry Association at a press conference in advance of the opening of gamescom next week. The sources of this data are the market research firm YouGov and data.ai (a Sensor Tower company). Games hardware enjoyed the biggest increase during the first half of 2025. Propelled among other things by the launch of the Nintendo Switch 2, revenues in this area grew by 17%. The online gaming services market segment also increased, by 4%. Games, on the other hand, experienced a small decline of 2%, to 2.7 billion euros.

“The German games market’s growth in the first six months of 2025 sends a powerful signal for the start of gamescom. This year’s event has also set a new record for the number of exhibitors. Combined with the increase in exhibition space and the many top companies expected to attend this year’s event, gamescom is set to drive even more growth in the German and international games market. This year’s theme – ‘Games – perfect entertainment’ – is fully in keeping with this boost, as 44 million Germans view games as the entertainment of our age. And not just for themselves: the vast majority of video game players believe that games are particularly good for bringing people of all ages together. It is yet another way that gamescom will be the perfect place to be,” said Felix Falk, Managing Director of game – The German Games Industry Association, which is a co-organiser of gamescom.

The theme of gamescom 2025 – “Games – perfect entertainment” – reflects the reality in Germany, as was underscored by the findings of a representative survey conducted by the market research company YouGov: some two thirds of Germans consider video games to be the entertainment of our age. This equates to around 44 million people. It is a finding that is also supported by the experiences of the people playing video games. Nearly all of them say that they enjoy playing games (94%), find them entertaining (93%), and see them as a good way to relax (91%). In fact, 86% of video game players say that games put them in a good mood, and 8 in 10 players spend less time thinking about crises or worries thanks to games.

The average age of video game players in Germany is now nearly 40 – and it is continuing to rise. This is because the largest increases in the number of players are in the older age groups. Games have long since established themselves as a medium for all generations. The video game players think so, too: 85% of them say that games offer something for every age group, while 88% enjoy playing with other family members. 79% of players in Germany believe that games can help to bring younger and older people together, and three quarters of players think that playing games together as a family can help people to gain a better understanding of digital media.

The post German Games Market Grows in the First Half of 2025 appeared first on European Gaming Industry News.

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Avalanche and Helika Launch New Gaming Accelerator – Applications Now Open

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The Avalanche Foundation and Helika, a leading provider of technical and creative solutions for the video games industry, have officially launched their joint video game accelerator program and opened applications for the first cohort.

The newly announced strategic partnership is designed to engage both Web3-native studios and traditional game developers exploring blockchain integration. The accelerator aims to identify and support the next generation of studios building at the frontier of blockchain-based gaming.

The program is focused on product interaction and is designed to discover, support, and fast-track promising studios and projects building on the Avalanche blockchain. It will provide selected projects with unparalleled access to resources, mentorship from industry leaders, technical support, activations, and funding opportunities for qualifying or top-performing teams.

The accelerator is open to seasoned teams building high-quality, engaging experiences across platforms, from mobile to desktop and everything in between. Projects with prior traction or cross-platform aspirations are especially encouraged to apply.

The program will run for 3 months, with virtual onboarding and IRL showcases planned across major gaming and blockchain events.

What selected teams get:

Funding & Resources: $25,000 in initial support and up to $125,000 in additional funding for qualifying or top-performing teams.

Expert Guidance: Mentorship from game veterans, blockchain experts, and industry leaders through group sessions and 1:1 consultations.

Analytics Support: Comprehensive analytics solutions to track performance, improve retention, and optimize monetization strategies.

Blockchain Integration: Dedicated assistance for integrating with the Avalanche blockchain and optimizing technical performance.

Community & Growth: Activations with partner communities and platforms and support in player acquisition, community building, go-to-market strategies.

Helika Advisory Access: Access to specialized experts from Helika’s network for tailored support.

Ecosystem Access: Direct connection to a vibrant network of developers, investors, publishers, and Web3 enthusiasts.

Showcase Opportunities: A final Demo Day event to present games to investors, publishers, and ecosystem partners.

“We are excited to partner with the Avalanche Foundation to create a world-class accelerator for Web3 gaming. Avalanche’s robust and scalable infrastructure makes it an ideal environment for innovative game development. Studios need tools that work, data that matter, and real support from people who understand what it means to build in this space — this accelerator provides all of that, plus a direct line into a powerful Web3 ecosystem,” said Anton Umnov, Founder and CEO of Helika.

“Avalanche is focused on the long game. There’s no shortage of flashy ideas. What’s missing is the support that helps studios turn those ideas into real, playable, scalable games. Avalanche has long been the go-to chain for speed and innovation, and now we’re channeling that energy into the future of gaming, supporting teams who understand the nuance of player experience, community building, and long-term value creation,” said Parker Heath, Ava Labs Gaming Partnerships Lead.

Avalanche plays host to a vibrant lineup of video games, including Off The Grid and Maple Story Universe, all pushing the boundaries of what’s possible in blockchain-powered play. Thanks to its customizable Avalanche L1s, lightning-fast transaction speeds and low fees, developers can tailor unique environments for their games without compromising on user experience.

Helika has become a cornerstone for modern game studios, equipping developers with real-time insights into player behavior, on-chain economies, and engagement metrics. From Proof of Play and Parallel to Nexon, Ubisoft, and Com2Us, Helika’s platform is shaping how developers build, balance, and scale their games in real-time. This accelerator takes that impact further by embedding support into the earliest stages of development when it matters most.

The post Avalanche and Helika Launch New Gaming Accelerator – Applications Now Open appeared first on Gaming and Gambling Industry in the Americas.

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