Gaming
Flexion Q4 Report – 31 December 2021
![Flexion Partners with Xiaomi to Bring More Value to Global Users and Game Developers](https://europeangaming.eu/portal/wp-content/uploads/2022/03/flexion.png)
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
Gaming
PopOK Gaming Unveils “First Balloon” in the Thrilling Crash Series
![PopOK Gaming unveils the first balloon in thrilling crash series](https://europeangaming.eu/portal/wp-content/uploads/2024/08/First-Balloon.jpg)
PopOK Gaming is excited to announce the release of “First Balloon,” the latest game in its popular Crash series. This new addition promises to take players on an exhilarating adventure, where they will soar through the skies and experience breathtaking moments and enticing rewards as their balloon ascends.
“First Balloon” offers a unique and thrilling gameplay experience that will keep players on the edge of their seats. As the game begins, players place their bets and watch as the multiplier starts increasing from 1x and continues to rise. The goal is to cash out at just the right moment to secure a multiplied payout. However, there’s a catch: if players don’t cash out in time, they risk losing their bet.
The excitement builds as players navigate the challenge of timing their cash-outs to maximize their winnings. With the potential to win up to x10,000, “First Balloon” offers the chance for massive rewards.
How does it work?
Place a bet
Watch the multiplier increase from 1x upwards
Cash out anytime to get your bet multiplied
“First Balloon” is designed to provide a thrilling and immersive gaming experience, combining the excitement of risk and reward with the beauty of a soaring balloon journey. It’s the perfect game for those seeking adventure and the thrill of high-stakes gameplay.
Don’t miss out on the latest addition to PopOK Gaming’s Crash series. Start your adventure today with “First Balloon” and experience the excitement for yourself!
Gaming
SimplePlay has launched a new Table Game: Beauty and Gorilla King !
![](https://europeangaming.eu/portal/wp-content/uploads/2024/08/SimplePlay-has-launched-a-new-Table-Game-Beauty-and-Gorilla-King-_20240808_125537_0000.png)
One day, the Beauty, whom Gorilla King is deeply in love with, gets captured and locked inside a tower. To save the love of his life, Gorilla King needs to avoid the deadly hunters on every floor of the tower and make his way to the top to win his precious back!
Beauty and Gorilla King” is a mini-game where players are given a tower with rows of covered squares with either beauties or hunters. Players need to start from the bottom row. Whenever a square of beauty is unveiled, players move one floor up and the winning multiplier increases. Players can choose to continue their progress to move upwards and win more, or to leave this round and take the accumulated winnings! However, if a hunter is unveiled, all the winnings will be lost and players have to start a new round. Get to the top of the tower to unravel huge riches!
Come and experience “Beauty and Gorilla King” now!
Gaming
Big Screen Gaming Summit Joins PG Connects Helsinki, Spotlighting PC and Console Development
![Big Screen Gaming Summit Joins PG Connects Helsinki, Spotlighting PC and Console Development](https://europeangaming.eu/portal/wp-content/uploads/2024/08/PG-Connects-Helsinki.png)
The Big Screen Gaming Summit, a new two-day event dedicated to PC, console, web3, VR, and AR games, will debut alongside Pocket Gamer Connects Helsinki on October 1-2, 2024. One ticket, two events!
This expansion of the world’s leading independent games conference series aims to provide a comprehensive forum for the evolving landscape of multi-platform game development.
The dedicated summit will feature eight specialised tracks covering crucial industry topics, including market trends, UGC, live service games, discoverability, practical AI, and more. Each track will offer in-depth discussions, panels, and presentations from industry experts, providing attendees with valuable insights into the latest trends, technologies, and business strategies shaping the future of games. The summit will also explore emerging markets in Latin America, Asia, and MENA, which are expected to drive future player growth on PC and console platforms.
“As the games industry continues to evolve, we recognise the continuing importance of PC and console platforms alongside mobile,” said Dave Bradley, COO of Steel Media. “The Big Screen Gaming Summit represents our commitment to serving the entire games industry, offering a unique opportunity for professionals to explore the challenges and opportunities across all major platforms.”
The event will also host The Very Big Indie Pitch (PC + Console Edition), providing indie developers with a platform to showcase their projects to a panel of experts. This competition offers valuable feedback and exposure for up-and-coming developers in the PC and console space. Indie developers are encouraged to apply early, as spots are limited.
Both the Big Screen Gaming Summit and Pocket Gamer Connects Helsinki will take place at Wanha Satama, Helsinki, as part of the Finnish Games Week. Finland is famous for its mobile games, but it’s also home to renowned studios like Housemarque and Remedy Entertainment, showcasing the country’s strength in PC and console game development.
Early bird tickets offering savings of over £300 are currently available, providing access to both events. Attendees will have the opportunity to network with industry professionals, gain insights from leading experts, and explore the expo area. The event will also feature a MeetToMatch online meeting platform, facilitating valuable connections among participants.
In addition to the main conference tracks, the summit will include roundtable discussions, networking events like Investor Connector and Publisher SpeedMatch, and a party in downtown Helsinki. As part of Finnish Games Week (30 September – 4 October), the Big Screen Gaming Summit and Pocket Gamer Connects Helsinki will join the IGDA Leadership Day, W In Games and more activities celebrating the regional games scene.
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