Q Interim Report

Transcription

1 Q Interim Report May 3 rd, 2018 Stockholm, Sweden Vlad Suglobov, CEO 1

2 Q1 HIGHLIGHTS EBIT grew 134% year-over-year to 49.4 M SEK EBIT margin of 13.3% the highest margin yet since the shift to a free-to-play business model Revenue growth of 59% year-over-year while spending the same % of revenue on user acquisition as Q1 17 Sequential growth of 4% despite lowering the user acquisition spend from Q4 17 Healthy geographic revenue mix as growth continued across all geographic regions MAGRPPU grew 24% year-over-year to $44.3 USD, another record figure for the company Cash on hand increased to 97.7 M SEK and cash flow was 6.2 M SEK for the quarter 2

3 FINANCIAL SUMMARY Revenue SEK M, growth 59% Sequential growth of 4% from Q4 17 Core games reached all time high revenue levels following strong game updates MAGRPPU increased to $44.3 which helped drive revenue growth Operating profit (EBIT) SEK 49.4 M, EBIT-margin 13.3% EBIT margin returned to higher levels from last quarters booster quarter, while revenues still grew 4% sequentially EBIT margin before UA costs also expanded to 39% from 34% at this time last year Cash flow SEK 6.2 M Cash and cash equivalents increased to SEK 97.7 M at the end of the quarter Cash flow remains stable and positive despite increased investing activities 3

4 EBIT GROWTH & A HIGHER EBIT MARGIN EBIT, SEK K EBIT SEK 49.4 M 50,000 14% EBIT for the quarter increased 134% year over year on 59% revenue growth 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 EBIT EBIT-margin 12% 10% 8% 6% 4% 2% 0% EBIT margin for the quarter was 13.3%, the highest margin yet for the company since the shift to a free-to-play business EBIT margin before costs for UA was 39%, compared to 34% in Q1 last year, demonstrating the expanding margins and the inherent leverage in the business model EBIT Margin before costs for UA Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 EBIT UA Ebit Margin before UA 40% 35% 30% 25% 20% 4

5 HEALTHY GEOGRAPHIC REVENUE MIX 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Geographic Revenue Distribution Q2 16' Q3 16' Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 North America Asia Europe ROW Revenue has continued to grow across all regions in absolute terms, creating a healthy revenue mix Finding opportunities in high ARPU countries which supported both revenue growth and MAGRPPU growth ($44.3 USD) during the quarter The company will continue to pursue growth opportunities in the regions with the most attractive ROI on marketing spend Total Revenue by Region (SEK M) Q1 17 Q1 18 Y-0-Y North America % Asia % Europe % ROW % 5

6 GROSS REVENUE 400, , , , , , ,000 50,000 0 Gross Revenue, SEK K Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 59% top-line growth in Q1 Revenue grew 4% sequentially from Q4 despite lowering the user acquisition spend to 25% of revenues, the same level as this period last year Both MAGRPPU growth (24% y-o-y to $44.3) and audience growth (37% y-o-y to 8.9M MAU) supported revenue growth in the quarter Strong year-over-year and quarter-over-quarter revenue growth demonstrates the company s continuous ability to grow the business sustainably while spending reasonable amounts on user acquisition Strong game updates to Mahjong Journey, Pirates & Pearls, Twin Moons Society and Hidden City drove revenues in each game to higher levels and attributed to the strong top line growth during the quarter 6

7 OPERATIONAL COSTS Operational Costs, SEK K 180, , , , ,000 80,000 60,000 40,000 20,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Administration Research and development Sales and marketing 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Operational Costs as % of revenue 22% 19% 19% 27% 35% 27% 27% 26% 13% 11% 13% 10% 8% 7% 8% 7% 27% 6% 7% 7% 7% 5% 4% 4% 4% 5% 3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Administration Research and development Sales and marketing 7

8 NET CAPITALIZATION Net Capitalization, SEK K 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Capitalization net of amortization amounted to SEK 9.0 M Capitalization increased significantly compared to 2017 with the increase in development staff as the company is working on existing games and a number of new wholly owned games for release this year and next Amortization has increased due to the increased size of the games portfolio, but did not compensate for the higher capitalization Games portfolio SEK M Value of F2P games portfolio has increased from 2017 Capitalized development costs of The Secret Society contributed to the increase in value 8

9 CASH & CASHFLOW 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Cash & Cash Equivalents SEK K Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Cash Total Cash flow SEK 6.2 M Total Cash increased to 97.7 M SEK compared to 67.5 M SEK in Q Investing activities increased year over year with the increase in development staff and the ongoing development of both new and existing games The group made a 4.5 M SEK payment as part of the purchase of The Secret Society The group made a 10.5 M SEK payment for Japanese VAT during the quarter Financing activities were impacted by the settlement of the employee warrant program Underlying cash flow remains positive and stable 9

10 Q&A

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