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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
Attachment
Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Next Games Corp. Half-year Review 2019 – Revenue grew 83%, profitability improved significantly
Editor’s Take
Why this matters: Belatra has been a steady hand in the slots world for a long time, but 2025 marked a distinct shift in strategy. By entering the Crash vertical with Goose Boom Bang and winning big at SiGMA Africa, the studio is clearly pivoting to capture the high-growth, high-frequency players in emerging markets. They are no longer just a “classic slots” developer; they are diversifying the portfolio to ensure relevance in regions like LatAm and Africa.
The Full Story
Belatra Games, the specialist online slots developer, has issued a strategic review of its 2025 operations, celebrating a 12-month period defined by entry into new game verticals, significant franchise expansion, and high-profile industry recognition.
The year was characterized by a dual strategy: deepening engagement in established markets while aggressively expanding its content portfolio to suit local preferences in emerging territories.
Portfolio Evolution: Crash and Battles 2025 saw Belatra move beyond its traditional slot roots. The company made its debut in the high-demand Crash game vertical with the launch of Goose Boom Bang, a title designed to tap into the fast-paced gameplay preference of younger demographics.
Additionally, the studio introduced a fresh game concept with the launch of Battles, a new format unveiled for the first time in 2025, with further development planned for 2026.
The ‘Mummyverse’ Expands For fans of classic slots, the highlight of the year was the aggressive expansion of the Mummyverse. Belatra nearly doubled the size of this franchise over the year, making it the most extensive game universe in their entire catalog.
The developer also focused on B2B localization, releasing a number of exclusive bespoke games created specifically for selected operator partners to meet specific local market tastes.
Awards and Recognition The company’s strategic shifts were validated by industry accolades. Belatra secured over 30 nominations throughout the year, with standout wins including:
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Best Slot Provider (awarded by BitStarz).
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Most Played Game of 2025 for Make It Gold at the SiGMA Africa Awards.
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Player’s Pick Award.
Management Commentary Misha Voinich, Head of Business Development at Belatra, commented on the studio’s momentum:
“This year has truly defined who we are as a studio – ambitious, creative and focused on building long-term partnerships. We’ve expanded our universes, launched new ones and entered exciting new markets that will all help us carry this momentum into the New Year.”
The post From ‘Mummyverse’ to Crash Games: Belatra Reviews a Landmark 2025 appeared first on Gaming and Gambling Industry Newsroom.
Editor’s Take
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The Full Story
Ebaka Games, the fledgling studio that promises to bring “chaos and soul” to the iGaming sector, has outlined an aggressive growth strategy for 2026 following a landmark launch period in late 2025.
The studio, which officially debuted in November, reports that its initial rollout reached more than five million people worldwide. The launch saw its portfolio go live with the operator Menace, serving as the initial testbed for its mechanics and “Ebaka modes.”
The Product: Instant Games with Personality Ebaka is bypassing traditional slots to focus on the high-growth vertical of fast-paced, instant-win games. Their initial lineup includes:
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Plinko
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Mines
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Tower
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Limbo
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Crash
Differentiation is achieved through unique mascots and signature gameplay tweaks designed to offer high win potential and distinct visual identities, moving away from the generic interfaces often found in this genre.
Regulatory Milestone Crucially for its 2026 roadmap, Ebaka Games has confirmed it has secured certification from BMM Testlabs. This accreditation validates the fairness and integrity of its RNG (Random Number Generator) and game engines, removing a major barrier to entry for regulated markets. With this certification in hand, the studio plans to launch with a number of “major brands” in the coming year.
Management Commentary Vitalii Zalievskyi, CEO of Ebaka Games, commented on the studio’s unorthodox approach:
“It’s only been a few weeks since we first introduced Ebaka Games to the world. The feedback has been breathtaking, and it vindicates the decision for us to take a different path to the rest of the industry. You don’t need huge marketing budgets to grab people’s attention if you are building something truly innovative.”
Industry Backing The studio describes itself as being “created by players for players” but boasts significant industry firepower in its corner. The team includes Dmitry Belianin, a well-known figure in the sector who is the co-founder of Blask and Menace, as well as Managing Partner at Already Media.
The post ‘Chaos and Soul’: Ebaka Games Plots Global Expansion After Viral Launch appeared first on Gaming and Gambling Industry Newsroom.
Editor’s Take
Why this matters: British racing has a well-documented demographic problem; its core audience is aging. “Friday Night Live” is a direct attempt to fix this by blending high-stakes racing with the “experience economy” (DJs, nightlife vibes) that appeals to Gen Z and Millennials. Bringing SBK on board—a mobile-first, app-only sportsbook—is a perfect demographic fit, while the Racing Post adds the necessary credibility to ensure the actual racing product remains the focus.
The Full Story
Arena Racing Company (ARC) has unveiled the strategic commercial lineup for its upcoming Friday Night Live series, confirming SBK as the Exclusive Betting Partner and The Racing Post as the Official Media Partner.
Set to launch in January 2026, Friday Night Live is a new initiative created in collaboration with youth-focused events company INVADES. The series is designed to overhaul the traditional race day experience, featuring fast-paced fixtures under floodlights, DJ sets, and significant entertainment elements sandwiched between races.
The Commercial Deal
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SBK: As the exclusive betting partner, the Smarkets-owned sportsbook will take naming rights and on-course branding for all 35 races. Crucially, these races will be broadcast live on mainstream television via ITV Racing as well as Sky Sports Research.
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The Racing Post: As the Official Media Partner, the publication will provide content, coverage, and promotion across its digital platforms, aiming to bridge the gap between established racing purists and the new audience ARC hopes to attract.
A High-Stakes Experiment The series is not just a marketing exercise; it carries serious sporting weight. Each of the five scheduled nights will feature over £200,000 in prize money. The fixtures will rotate across three of ARC’s all-weather tracks: Wolverhampton, Newcastle, and Southwell.
Management Commentary David Leyden Dunbar, Group Director of Commercial Strategy at ARC, was clear about the target audience:
“We have been very clear that one of the aims of Friday Night Live is to engage the next generation of racing fans… Both [partners] have shown real enthusiasm to work with us… as well as using the platform that these fixtures will offer them to also engage with more established racing and sports fans.”
Adam Baylis, Marketing Director at SBK, added:
“Friday Night Live [is] a fresh and engaging concept that brings a new energy to British racing. SBK has always been built around sport… our focus is on enhancing the live race day experience in a fun, social and responsible way.”
The 2026 Schedule The series kicks off immediately in the new year:
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9th Jan: Wolverhampton
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6th Feb: Newcastle
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20th Feb: Southwell
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20th March: Wolverhampton
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27th March: Newcastle
The post Racing Meets Nightlife: SBK Backs ARC’s New ‘Friday Night Live’ Series appeared first on Gaming and Gambling Industry Newsroom.
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