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Next Games Corp. Half-year Review 2019 – Revenue grew 83%, profitability improved significantly 

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Next Games Corp. Half-year Review 2019
Revenue grew 83%, profitability improved significantly 

April-June 2019 in short

  • Revenue was EUR 9.4 million, an increase of 65% compared to Q2 2018 (EUR 5.7 million)
  • Gross profit % increased by 3 percentage points and was EUR 5.7 million, 60% of revenue (EUR 3.3 million, 58% of revenue)
  • Adjusted operating profit improved 75% and was EUR -0.5 million (EUR -2.0 million)
  • EBITDA improved  96% and was EUR -0.1 million (EUR -2.4 million)
  • EBIT improved 55% and was EUR -1.1 million ( EUR -2.4 million)
  • Product development costs were EUR 2.0 million euros (EUR 1.8 million).
  • Number of employees was 108 at the end of the quarter (132)
  • At the end of the review period, the company’s cash balance was EUR 4.7 million. The company’s longer term goal to consistently remain cash flow neutral has proceeded according to plan as the cash balance was EUR 4.8. million at the end of Q1
  • The company successfully renewed its credit limit guarantee during the review period. As a part of the full assessment of additional financing, the company is negotiating with credit providers about new terms for the credit limit.
  • The company announced a collaboration agreement with Netflix to develop a mobile game based on Stranger Things series for 2020

January-June 2019 in short

  • Revenue was EUR 19.2 million, an increase of 83% compared to H1 2018 (EUR 10.5 million)
  • Gross profit % increased by 1 percentage point and was EUR 11.2 million, 59% of revenue (EUR 6.0 million, 58% of revenue)
  • Adjusted operating profit improved 56%  and was EUR -1.8 million (EUR -4.1 million)
  • EBITDA improved 69%  and was EUR -1.5 million (EUR -4.8 million)
  • EBIT improved 29% and was EUR -3.5 million (EUR -5.0 million)
  • Product development costs were EUR 4.7 million (EUR 3.6M).

(Numbers in brackets refer to the corresponding year-on-year period unless otherwise mentioned)

Key Figures 

2019 2018 2019 2018 2018
EUR thousand 04-06/2019 04-06/2018 Change 01-06/2019 01-06/2018 Change Full year
Revenue 9,395 5,689 65% 19,224 10,477 83% 35,245
Gross Profit 5,670 3,273 73% 11,250 6,034 86% 21,294
Gross profit margin % 60% 58% 3ppt 59% 58% 1ppt 60%
Operating Result (EBIT) -1,100 -2,448 n/a -3,495 -4,954 n/a -16,915
Operating result margin % -12% -43% 31ppt -18% -47% 29ppt -48%
Adjusted Operating Result* -497 -2,007 n/a -1,809 -4,072 n/a -13,777
Adjusted operating result margin % -5% -35% 30ppt -9% -39% 29ppt -39%
Depreciations and Amortizations total 993 70 1,985 140 2,165
IFRS 16 256 512 512
Amortizations of R&D & Licenses 579 30 1,157 60 1,248
Other 159 40 316 80 405
Earnings per share, EUR -0.08 -0.12 -0.22 -0.30 -0.99
Earnings per share, dilluted EUR -0.08 -0.12 -0.22 -0.30 -0.99
Current Ratio 1.15 3.92 1.15 3.92 1.53
Employees (end of period) 108 132 108 132 143

*Adjusted operating result is an non-GAAP measure and differs from EBITDA as it excludes IFRS 16 depreciations and include IFRS 2 adjustments for share based payments. Management uses this Non-GAAP measure as an alternative to EBITDA to analyze the profitability of the business. Please see reconciliation of Non-GAAP measurements

Current ratio is an alternative measure which is calculated by dividing current assets such as cash and short-term receivables to current liabilities. Current ratio measures the liquidity of the company.

Reconciliation of Non-GAAP Measurements

Adjusted Operating Result and EBITDA

2019 2018 2019 2018 2018
EUR thousand 04-06/2019 04-06/2018 01-06/2019 01-06/2018 Full year
Operating Result (EBIT) -1,100 -2,448 -3,495 -4,954 -16,915
Depreciations total 993 70 1,985 140 2,165
EBITDA -107 -2,378 -1,510 -4,814 -14,749
IFRS 16 -256 -512 -512
IFRS 2 share based payments -134 371 213 742 1,483
Adjusted Operating Result -497 -2,007 -1,809 -4,072 -13,777

Current Ratio

EUR thousand 30.6.2019 30.6.2018
Current assets 10,598 23,300
Current liabilities 9,247 5,937
Current Ratio   1.15 3.92

Chief Executive Officer Teemu Huuhtanen

Next Games continued to strongly focus on renewing its operations during the first half. We successfully completed the first step of the three-step turnaround project; balancing and stabilizing the company’s cost structure to a new level.

The company previously communicated that it aims to achieve a monthly fixed cost level of approximately 1.1 – 1.2 million euros. The cost savings program was successfully implemented and we achieved a 1.2 million euro fixed cost level during the second quarter. The company’s profitability continued to improve during the second quarter. Adjusted EBITDA was -0.5 million euros during Q2 2019, whereas it was still -1.3. million euros in Q1 2019. The company’s long term goal towards remaining consistently cash flow neutral has therefore proceeded as planned.

Next Games revenue grew 83% compared to January-June 2018 and 65% compared to  April-June 2018 period. Our World achieved another record-breaking in-app purchase ARPDAU of 0.34 Euros in June. The game still experienced challenges with retention however, and thus the marketing investment level was on a higher level than the company’s objectives. The team now focuses on improving the game’s retention and further developing the product.

In order to achieve revenue growth, the company has actively developed it advertisement revenue model. The company implemented video ads, similar to No Man’s Land, to Our World mid-June 2019. Additionally, the company has piloted an innovative location-based ad solution for Our World with a significant global partner with promising preliminary results during the first half of 2019.

The second step of the turnaround plan, rebuilding the company’s product development pipeline according to its new focus, has started off well. Our new operating model focuses on reusing existing technology and code, which has the potential to significantly reduce product development times. The collaboration with Netflix on a mobile game based on the Stranger Things series, that received significant international media attention after its announcement in July, has been built utilizing the new practices. The company has continued active discussions over potential collaboration with other significant international license holders.

Thanks to the renewed game development process, the company has initiated multiple new projects in the prototyping and concepting phase. It’s important to have a robust early development pipeline, as it’s typical for the mobile games industry that only a portion of the games in development are published to the market. At the moment, 46% of the company’s personnel works on live games and 42% on new projects.

Third, and the final step of our turnaround project, is to secure additional funding for future investments such as new product development and marketing. Thanks to the stabilized business operations, the company is in a good place to continue assessing alternatives to strengthen its financial position.

I would like to warmly thank our staff and our board of directors for the extraordinary contribution to achieve the turnaround this far. I am especially pleased about the enthusiasm surrounding the building of our new product portfolio.

Business Outlook 2019

The company seeks moderate revenue growth during 2019 compared to 2018 and, as a result from the changes in its cost structure as a first step, strives towards remaining cash flow neutral in the longer term. As part of cost restructuring, the company estimates it will achieve monthly savings of approximately € 550 thousand in salaries, administrative costs and product development costs, totalling approximately € 6.5M on a yearly basis as compared to the second half of 2018.

Basis for Outlook 2019

The company’s estimates are based on the assumption that The Walking Dead: No Man’s Land and The Walking Dead: Our World maintain their current revenue levels. In addition, the outlook is based on game development staying on schedule and on target of launching one game per year.

January-June 2019 Audiocast

Next Games holds an English audiocast and phone conference on July 26 2019 at 10.30 EEST. You can join the audiocast by using the following link: https://nxtg.ms/2XVv9LU. More information about the audiocast and phone conference: https://nxtg.ms/2JFGXZU.

Next Games in Short

Next Games is the first publicly listed mobile game developer and publisher in Finland, specializing in games based on entertainment franchises, such as movies, TV series or books. The developers of the critically acclaimed The Walking Dead games redefines the way franchise entertainment transforms into highly engaging service-based mobile games. In summer 2018, Next Games launched The Walking Dead: Our World, which utilizes cutting edge AR technology and is powered by Google Maps. Currently Next Games is working on multiple new games based on popular entertainment franchises including, Blade Runner Nexus, for the popular Blade Runner franchise and a mobile game based on Netflix’s Stranger Things.

Additional information:
Saara Bergström
CMO
[email protected]
+358 (0)50 483 3896

Certified Adviser: Danske Bank A/S, Finland branch, tel. +358 10 546 7938

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Bacta encouraged by Gambling Minister support for White Paper

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The UK’s Minister for Gambling, Baroness Twycross, has provided the clearest indication yet that the industry will not have too long a wait before the proposals on gambling reform contained in the White Paper are implemented.

Speaking at the Labour Party Conference Baroness Twycross underlined the cross-party support that the White Paper enjoyed before it was side-lined by the snap general election. She said: “In opposition we (the Labour Party) were broadly supportive of the Gambling White Paper and we do not believe that gambling is wrong in and of itself and we do recognise that most people who gamble do so safely but we absolutely believe that we need to strengthen protections to protect those that are at risk of gambling addiction and of harmful gambling.”

Answering a question from the floor she stated: “I am clear that people have been waiting for things to proceed for some time and I know from Civil Servants that they have some things that have been ready to go for a long time.

“It would be wrong for me to not speak to those involved in the sector before proceeding but I am clear that this will not be years of conversation before we start outlining the direction of travel, that this is something that is my absolute priority as a new Government Minister.”

George McGregor, Executive Director (Government Relations) at UK trade association Bacta, who attended the Labour Party Conference alongside Bacta President John Bollom was encouraged by what the Minister had to say. He stated: “This was the first occasion that the Minister had spoken about the gambling brief. Her reference points in terms of the timetable for implementation were weeks and months and the feeling in the room was that we have a Minister who is both pragmatic and proportionate.”

He continued: “Bacta’s contributions to the White Paper were all evidence-based and I am confident that our arguments including the commitments to safer gambling and our ability to contribute to the government’s growth agenda will resonate with the Minister. I am looking forward to developing further our social and economic case when we meet with Baroness Twycross on 3 October.”

 

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Soft2Bet CEO and Founder Uri Poliavich recognised Leader of the Year Award by SBC Awards

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Uri Poliavich Recognized Among Industry Leaders for Exceptional Leadership, Obsession with Innovation, and Dedication to Philanthropy

Soft2Bet, the leading iGaming turnkey solutions provider, announced that during the SBC Summit in Lisbon, Portugal, on Sept. 26, founder and CEO, Uri Poliavich, won the Leader of the Year award from SBC Awards, a leading event organizer and publisher in the iGaming industry. Regarded as one of the most prestigious awards in the gaming industry, Poliavich was selected for this honor based on his exceptional leadership, passion for innovation, and dedication to philanthropy.

Uri Poliavich’s exceptional leadership has been at the core of Soft2Bet’s innovative spirit since he founded the company in 2016. With his clear strategic vision and a commitment to fostering a cohesive team culture focused on growth and innovation, Soft2Bet has evolved from a small team into a leading global B2B and B2C iGaming company, developing revolutionary industry solutions. Over the past year, Soft2Bet has made significant investments and experienced massive growth with its innovative Motivational Engineering Gaming Application (MEGA), which has been proven to enhance retention and engagement.

Poliavich’s commitment to innovation extends beyond Soft2Bet. The company recently launched Soft2Bet Invest, a fund aimed at supporting growth-stage and mature companies harnessing pioneering technologies in casual gaming, AI, and high-margin gaming software solutions. With an initial fund of over $55 million, Soft2Bet is looking to collaborate with companies and educate participants at G2E about its vision for revolutionizing the iGaming industry.

In 2020, Poliavich established The Yael Foundation — named after his wife — to support and build Jewish schools in the diaspora. The foundation, which fuels his commitment to business growth and success, currently supports nearly 13,500 children across 83 schools in 35 countries.

“It is a great honor to be named Leader of the Year and for Soft2Bet to be recognized for their Innovation in Mobile and Casino Entertainment by SBC,” said Poliavich. “This recognition highlights Soft2Bet’s significant achievements in product development and global expansion over the past year, as well as our team’s commitment to raising the bar as a forward-thinking iGaming platform provider.”

“Through our SBC Leaders initiative and events, leadership is something we like to highlight with our audience,” commented Rasmus Sojmark, CEO & founder of SBC. “It’s clear how much the Soft2bet employees have been inspired by Uri over the past 12 months, so he was an extremely worthy recipient of one of our Leaders of the Year Awards. Here’s to another successful 12 months for the company.”

Now in its eleventh year, the SBC Awards recognize the achievements of operators, affiliates, and suppliers across all major disciplines, including payments, marketing, platform providers, and data.

 

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Week 39/2024 slot games releases

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Week 39/2024 slot games releases
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Here are this weeks latest slots releases compiled by European Gaming

PG Soft has released Three Crazy Piggies slot, a modern twist on the classic fable that sees the tables turned on the cunning grey wolf. Three Crazy Piggies is a 5-reel (3 rows in reel 3, 4 rows in reels 1, 2, 4 and 5) video slot starring symbol transformations and x10 multiplier. A rocking soundtrack builds the atmosphere in Everloom Forest, as the youngest brother’s stone house is challenged to stand against the wolf’s might.

PG Soft debuts its Three Crazy Piggies slot

Get set for a party in the USA as Relax Gaming, the iGaming aggregator and supplier of unique content unveils its latest release, Quackin’ Reels. This 3×3 slot is populated by birds who are enjoying life at a backyard party in true American style! Quackin’ Reels’ cast ofcolourful characters enhances the feature-filled gameplay which can potentially see players win a maximum of 8,850x their stake.

Relax Gaming fits the bill with the release of Quackin’ Reels

Stakelogic invites players to enjoy the thrill of the Super Wheel™ once again with the launch of the Big Cash Super Wheel™ slot. From the moment Big Cash Super Wheel™ loads up, it is clear this isn’t your typical online slot. The title puts a unique spin on the standard game grid, using a 2x3x4x5x6 reel shape with a connected ways win system to captivate audiences, while also offering wins of up to 5,000x their stake.

Stakelogic Ups the Ante with the Release of Big Cash Super Wheel™

Inspired Entertainment, Inc. in partnership with William Hill announces the launch of William Hill Vegas Gold Cash Freespins™. This bespoke game combines renowned William Hill Vegas imagery with the engaging mechanics of Inspired’s popular Gold Cash Freespins theme.

INSPIRED AND WILLIAM HILL LAUNCH CUSTOM SLOT GAME – WILLIAM HILL VEGAS GOLD CASH FREESPINS

Nolimit City is back behind bars with San Quentin 2: Death Row. It’s been nearly 4 years since the OG San Quentin xWays® escaped into the world, and the fans have been hungry for more ever since. Well, the wait is over. It’s time to do hard time… again.

San Quentin 2: Death Row - NOW LIVE! - Nolimit City

Thunderkick has launched The Gunman of Goldwood, the latest addition to its distinctive product portfolio that places players at the heart of a duel on the American frontier. The titular Gunman is the game’s highest-paying symbol, surrounded by revolvers, knives, and whiskey bottles.

Thunderkick pulls the trigger on Wild West-themed slot The Gunman of Goldwood

Players can expect ghosts, ghouls and big wins in Boo, the frightening new slot from Big Time Gaming set to hit operator game lobbies in time for Halloween. Only the bravest of players will dare to gather around as the reels spin amidst the haunting air, conjuring excitement with every ghostly apparition. Spines will tingle as each winning symbol triggers a hair-raising reaction that promises to put players on the edge of their seats.

Everygame Casino‘s new Clue Chronicles: Mirror Mansion is a high-stakes whodunit with a Reel Copy feature and a choice of up to four modes for its Free Games bonus round. In the new Clue Chronicles: Mirror Mansion, players enter the world of candlesticks, daggers, and clues to solve the mystery of Mirror Mansion and spin their way to stacks of cash.

Clue Chronicles: Mirror Mansion

 

Play’n GO dares players to brave the inferno and uncover untold treasures in the newest slot adventure, Kingdom Below. Set in the blistering heart of Hell, Kingdom Below challenges players to join Ignis, the fearsome ruler of the underworld, in a quest for mystery prizes and hidden treasures. In this treacherous 5×4 grid slot, the line between danger and reward blurs, offering thrill-seekers a chance to face the flames and emerge victorious with the spoils of the inferno.

Descend into the Kingdom Below and Claim a Fiery Fortune!

 

 

Spinomenal has enhanced its Wildlife Slot Series with the release of Buffalo Rampage Hold & Hit. This latest title from Spinomenal is set across a vast landscape that stretches along a rugged tapestry of towering mountains and sweeping plains. The medium symbols include an Eagle, Black Bear, Wolf, and Big Cat. A powerful Buffalo represents the Wild and three or more pay when followed by a free spin or a bonus symbol. The Wild substitutes for any symbol except free spins and bonus symbols.

Spinomenal releases Buffalo Rampage Hold & Hit

 

Evoplay is taking players to the Colosseum in its new slot Chained Fighters, where wilds unlock the key to big wins. With a backdrop of Ancient Rome, the 5×4 slot sees wilds land in stacks of up to four per reel to boost reward potential in the base game whilst multi-coloured gladiators make up the high-paying symbols.

Roman combatants transform into sticky wilds in Evoplay’s latest release Chained Fighters

Booming Games’ latest slot title sets the gold standard with its gilded gameplay and shimmering big win potential. Gold Gold Gold 5000 is the follow-up to the hugely popular Gold Gold Gold, but with an even bigger max win potential. Gold Gold Gold 5000 is set across five reels and three rows with 20 paylines active in the base game.

Booming Games ups the ante in fan favourite Gold Gold Gold 5000

Playson marks the eagerly anticipated return of its iconic jester in Pink Joker: Hold and Win, offering a host of in-game jackpots, a special Pile of Gold feature and a lavish Bonus Game offering Stacked Multipliers. Donning a deep pink outfit in Playson’s refreshing take on its player-favourite Hold and Win series, the joker unleashes a thrilling adventure on the 3×3 matrix, accompanied by a feast of classic fruit, electric and jackpot-style coin symbols.

Playson’s renowned trickster marks stylish return in Pink Joker: Hold and Win

Blueprint Gaming’s player-favourite gorilla marks his comeback in style through the company’s latest release King Kong Cash™: Even Bigger Bananas 2, offering slot enthusiasts a host of new features to explore. The 4,096 ways to win slot sees the notorious Kong take centre stage on the 6×4 grid, accompanied by fellow jungle inhabitants and a series of specially themed-bonus icons.

Blueprint Gaming returns to the depths of the jungle in King Kong Cash™: Even Bigger Bananas 2

CryptoSlots proudly announces the launch of its latest title, Spartan Conquest, inspired by the heroic Spartan warriors of Ancient Greece. This cutting-edge Mega Matrix 5×4 video slot with 28 paylines is the first on CryptoSlots to introduce Colossal Symbols. Players can take advantage of enticing deposit bonuses until October 4. In Spartan Conquest, players can embark on a journey through ancient battlefields, where epic symbols such as war elephants, Spartan helmets, shields and crossed swords populate the reels.

CryptoSlots Unveils Exciting New Spartan Conquest Slot Featuring Colossal Symbols

The new release from MGA Games will take players to the top of Mount Olympus to accompany the mighty Zeus, king of the gods. This new 5×3 game with 25 prize lines also features an epic soundtrack that will immerse the player in a divine atmosphere as the reels spin and fortune is unleashed. The themed symbols on the reels are inspired by the myths of classical Greece.

TaDa Gaming is dishing out the treats with new release Lucky Doggy. Wilds, Scatters, Multipliers and generous Free Spins are further enhanced with a superb bonus game in this six rows, five reels, 50 fixed paylines slot. There are two Scatters in Lucky Doggy. The Bonus Scatter can only appear on reels two and three and the Gamble Scatter on reel four.

Would you dare to summon the most terrifying of Egyptian plagues? That is exactly what’s being asked of players in Fantasma Games’ latest blockbuster slot, Shadow Summoner Egypt, already showing outstanding player engagement KPIs from its initial limited market release. Shadow Summoner Egypt is scheduled for general market release in the very near future.

Discover ancient plagues and big wins in Shadow Summoner Egypt

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