Connect with us


Flexion Q4 Report – 31 December 2021



Flexion Partners with Xiaomi to Bring More Value to Global Users and Game Developers
Reading Time: 4 minutes


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





Reading Time: < 1 minute


PUBG MOBILE Esports is thrilled to announce that the 2024 PUBG MOBILE Global Championship (PMGC) will be held in the UK, taking place live next December with a $3 million prize pool. The first time a major PUBG MOBILE event has been hosted in the UK, this tournament will bring local fans a unique opportunity to see the very best skill that the world has to offer. This news comes ahead of this year’s 2023 PUBG MOBILE Grand Finals in Istanbul.

James Yang, Senior Director of PUBG MOBILE Global Esports, announced the news during the opening ceremony of the 2023 PMGC Grand Finals, with the exact UK location to be revealed at a later date. This is the first time a major PUBG MOBILE event has been held in the country and the first in Western Europe since 2018.

The highlight of the PUBG MOBILE Esports calendar, the PMGC brings together dozens of teams from around the world to compete in the ultimate showcase of talent. This year’s Grand Finals are taking place this weekend in Istanbul, Türkiye, where the final sixteen teams remaining in the competition will battle it out to become PUBG MOBILE World Champion.

Joining next year’s PMGC in the top tier of PUBG MOBILE Esports events, as well as next year’s midseason tournament in Riyadh, Saudi Arabia, is the PUBG MOBILE Global Open (PMGO), which will take place in Brazil throughout March and April 2024 and feature a $500,000 prize pool.

Continue Reading


Gaming Innovation Group issues new EUR/SEK dual tranche senior secured bonds



Reading Time: < 1 minute


Reference is made to the press release dated 27 November 2023 regarding a contemplated bond issue.

Gaming Innovation Group Plc., a wholly owned subsidiary of Gaming Innovation Group Inc., has successfully completed the issuance of new 3-year EUR 75 million equivalent senior secured bonds, split in a EUR 45m and a SEK 350m tranche, and with a combined borrowing limit of EUR 100m equivalent. The net proceeds will be used to call the existing SEK 550 million bond with ISIN: NO0011017097 in full (including call premium), partly finance the acquisition of KaFe Rocks and for general corporate purposes. A call notice for the existing SEK 550 million bond will be sent shortly.

An application will be made for the new bond to be listed on Nasdaq Stockholm and Frankfurt Stock Exchange Open Market. The transaction was well received among investors across the Nordics, continental Europe and the US, with participation in the placement from existing as well as new investors.

ABG Sundal Collier and Pareto Securities acted as joint managers and bookrunners in connection with placement of the new bond issue.

Continue Reading


Nordcurrent turns players into fashion designers with UGC marketplace



Nordcurrent turns players into fashion designers with UGC marketplace
Reading Time: 2 minutes


Developer and publisher Nordcurrent has released a revolutionary update to its leading mobile fashion game, Pocket Styler, with the launch of a new creator platform, Pocket Styler Studio. The digital platform allows players to work like real-life fashion designers to create clothing, shoes and accessories to their exact specifications. Once finished, digital designers can market their creations under their own ‘designer label’ name and sell them in-game to millions of Pocket Styler’s players in return for in-game currency, which has never been possible in a mobile fashion game before.

The gaming skins market is a multi-billion dollar industry, with almost 50% of players buying skins with in-game currency and around 40% buying skins with real money, according to Newzoo. But, conceptualising, drawing and polishing collections takes time, and even with Nordcurrent artists supplying over 100 items every couple of weeks, Pocket Styler players still had a thirst for more items inspired by current fashion, movies, and celebrity looks, thus limiting the time players were spending in the game and subsequently Nordcurrent’s revenue.

The integration of user-generated content into Pocket Styler has revolutionized the in-game design process. It has provided players with a wider range of options to choose from while also allowing them to earn in-game currency. This feature has also addressed the creative burden faced by game artists and developers who previously struggled to keep up with the demand for fresh content. Designers now upload over 2,000 original items into the game every day, adding nearly 300 times more content than before the launch of Pocket Styler Studio.

Victoria Trofimova, CEO of Nordcurrent, said: “‘With over 100,000 daily active users, Pocket Styler is one of the world’s most popular fashion games, and now one of the most advanced thanks to the introduction of Pocket Styler Studio. It provides a platform for creators to become professional digital fashion designers who can build their brands and promote their designs globally.

“By empowering players and letting them design and sell their clothing, we hope to inspire the next generation of fashion designers while supporting them as active contributors to the game they love, helping us form a community of designers who play a genuine part in making the game even better.“

Pocket Styler Studio has been in beta since February. Currently, over 1,000 designers are creating items for the game, and another 5,000 designers are expected to upload daily in the first year of launch, creating trillions of outfit combinations and millions of new looks submitted weekly. Nordcurrent is also testing the option of designers earning real currency from their designs in the future.

Designs are saved into a designer’s profile until they are ready to be marketed. Once on sale, individual designers can track their brands’ success by ‘Publishing’ items and assessing how many sell. Players can choose a name for their designer label and earn ‘Gems’, the in-game currency, for every item sold to other players. Pocket Styler Studio is available globally; players must have Pocket Styler installed on their phones and have a free Nordcurrent ID to use Pocket Styler Studio, which can be accessed through a browser.

Launched in May 2021, Pocket Styler is based on attending different in-game events, creating looks based on the criteria of the events, submitting those looks, getting scores, and competing with other players to become “trendsetters” and climbing on top of the leaderboard. The game has 21 million downloads, with 100,000 players spending 10,000 hours on the app and giving 10 million votes to outfits daily.

Continue Reading


Prague Gaming and TECH Summit 2024


Get it on Google Play is a premier online platform that serves as a leading information hub for the gaming and gambling industry. This industry-centric media outlet reaches over 200,000 readers monthly, providing them with compelling content, the latest news, and deep-dive insights.

Offering comprehensive coverage on all aspects of the gaming sector, includes online and land-based gaming, betting, esports, regulatory and compliance updates, and technological advancements. Regular features encompass daily news articles, press releases, exclusive interviews, and insightful event reports.

The platform also hosts industry-relevant webinars, and provides detailed reports, making it a one-stop resource for anyone seeking information about operators, suppliers, regulators, and professional services in the European gaming market. The portal's primary goal is to keep its extensive reader base updated on the latest happenings, trends, and developments within the gaming and gambling sector, with an emphasis on the European market while also covering pertinent global news. It's an indispensable resource for gaming professionals, operators, and enthusiasts alike.

Contact us: [email protected]

Editorial / PR Submissions: [email protected]

Copyright © 2015 - 2023 - European Gaming is part of HIPTHER Agency. Registered in Romania under Proshirt SRL, Company number: 2134306, EU VAT ID: RO21343605. Office address: Blvd. 1 Decembrie 1918 nr.5, Targu Mures, Romania

We are constantly showing banners about important news regarding events and product launches. Please turn AdBlock off in order to see these areas.