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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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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 

George Miller (Gyorgy Molnar) started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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S8UL Launches 12-City Esports World Cup Watch Party Tour and Exclusive Creator Experience in Mumbai

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In a landmark moment for Indian esports, S8UL Esports, the country’s most celebrated gaming and content organization, has rolled out a nationwide fan and creator engagement campaign for the Esports World Cup (EWC) 2025. The dual initiative includes a 12-city Watch Party Tour across India and a parallel invite-only creator experience at the S8UL Gaming House 2.0 in Mumbai, both designed to bring the EWC excitement closer to home while uniting fans and creators around Team India’s journey on the world stage.

S8UL is the first and only Indian organization selected to be a part of the EWC Foundation’s Club Support Program, placing it among a global elite of teams competing in the tournament. The campaign is powered by iQOO, the official title sponsor.

A Fan-First Nationwide Tour

Bringing the thrill of Riyadh to Indian fans, S8UL is hosting the EWC x S8UL Watch Party tour- a multi-city celebration designed to give fans a front-row seat to S8UL’s EWC journey. The event will be held at one of each city’s top-tier restaurants or leading colleges, transforming the space into a vibrant celebration of esports culture. An open-invite, fan-first celebration of India’s run at the EWC 2025. The watch party will take place in 12 cities, where fans can enjoy the tournament’s action live alongside S8UL creators and community members. The experience will feature live match screenings, meet and greets with top S8UL creators, fun brand activations, gaming engagement zones, food and beverages, and themed photo spots perfect for content creation.

From Delhi to Kolkata, Bangalore to Jaipur and more, fans will experience esports like never before – not just as spectators, but as part of a nationwide movement to back Team India.

S8UL Gaming House Transforms for EWC 2025 While fans gather across India, the S8UL Gaming House 2.0 in Mumbai has been transformed into a private, content-driven creator space throughout the duration of the Esports World Cup. Starting this week, it will host weekly invite-only gatherings for top Indian gaming creators to come together and celebrate S8UL’s EWC matches. The vibe is casual yet collaborative, offering creators a chance to watch the matches as a squad, take part in in-house challenges and brand activations and capture real-time content including vlogs, reactions and social clips. This setup

allows creators to share authentic moments from real-time reactions to behind-the-scenes collaborations with millions of fans online, amplifying India’s EWC presence far beyond the venue.

“We’ve always believed in building the Indian esports community together – fans, creators, players, and partners,” said Animesh Agarwal, Co-Founder of S8UL. “The Esports World Cup is one of the biggest moments in global esports, and through this campaign, we’re making sure the whole country is part of the celebration. Whether you’re cheering from a college in Bangalore or vibing with creators in Mumbai, this is our time to unite and show the world the strength of Indian esports.”

EWC 2025 marks a defining moment for India on the global stage. With this campaign, S8UL invites every fan, every creator, and every supporter to be part of the journey. This dream was built together, now it’s time to cheer together as one united force for Indian esports.

The post S8UL Launches 12-City Esports World Cup Watch Party Tour and Exclusive Creator Experience in Mumbai appeared first on European Gaming Industry News.

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Betting That Works: DATA.BET’s Performance-First Approach to Sports Expansion

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We sat down with Otto Bonning, Head of Sales at DATA.BET, to understand the vision behind their expansion from esports dominance into sports, and what this evolution means for operators worldwide.

 

Why did DATA.BET choose to expand from esports into traditional sports?

Otto: It’s a natural evolution for us. Over the past three years, we’ve built exceptional performance in esports for our clients, and now we’re ready to bring this expertise to the broader market. We have around 150 trading professionals, time-tested models, and proven capabilities – it only makes sense to expand our product offering. This isn’t just an add-on, it’s the next revolution in DATA.BET’s history.

 

What market gaps led you to develop a unified solution for these betting verticals?

Otto: The market lacks robust sportsbook solutions. Most operators face a choice: either sign up for a complete platform that includes everything from casino to payments, or piece together multiple providers. We identified a massive opportunity for our high-quality, plug-and-play solution that works seamlessly whether you’re a betting operator or a platform provider.

To meet this market demand and ease the integration journey, the DATA.BET team developed a Single Page Application (SPA or iFrame). Its key strengths lie in its flexibility, deep customization options – both visually and technically – and seamless integration.

For casino operators, it’s a simple solution to add quality betting without creating additional pain. It is as simple as adding a new game provider and can be completed in under a month. For betting operators and platform providers, it’s not only an addition of high-quality traditional sports, but also premium esports coverage that will help them earn more. This is a convenient option because they can connect our Odds Feed via API, or our SPA (iFrame) to their platform.

We’re offering a high-quality, personalized solution that really works for both operators and platforms. The achievements that made us a top esports provider – performance, reliability, and ease of integration – now apply to our complete sportsbook offering.

 

How does DATA.BET differ from competitors when handling both esports and traditional sports?

Otto: Three key differentiators set us apart. First, our technical foundation is built by developers who excel at creating technically complex solutions that are actually easy to integrate and scale for clients. No headaches, just steady performance day after day.

Second, we don’t just provide odds – we create them. Our in-house trading team combined with our data scientists and sophisticated algorithms, delivers consistent, high-performance margins across all sports. We work with official data sources, and our models are continuously tested and improved. This ensures we provide the best coefficients and quality feed.

Third, our betting product suite is comprehensive. Just like with esports, we’re bringing Bet Builder, Widgets, Video Streaming, and full functionality to sports and virtual. It’s not about having separate systems – it’s one unified, high-performance solution powered by our technical expertise, official data, and data science capabilities.

 

What problems do clients typically face before switching to DATA.BET?

Otto: Integration nightmares are, unfortunately, common in our industry. What we wanted to do was make one product and make it exceptionally high-quality from a technical standpoint, so that integration becomes seamless.

If you’re a casino operator, you can be up and running within 10 days. For B2B integrations, we’ve seen major platforms go live in just five weeks.

Our partnership with NuBet is a great example – they chose us for our broad market coverage, fast and seamless user experience, and a strong feature set, including Bet Builder, Video Streaming, and detailed in-game Widgets. The integration was smooth and collaborative, with both teams working hands-on. As NuBet noted, feature delivery has been rapid, feedback is valued, and issues are resolved promptly, without being left hanging.

The key to success is our integration team – they work around the clock and take an extremely bespoke approach to each client. When our partners are ambitious to go live quickly, we make it happen. The speed ultimately depends on the their readiness, but we remove all the traditional technical barriers from our side.

 

How do you adapt your solutions for different markets, particularly emerging regions like LatAm?

Otto: Regional differences are significant, from sports preferences to regulatory requirements. Take Brazil, for example. It’s heavily football-focused, which is why we’re enhancing our football content and securing official data rights for major leagues, including the Brazilian Série A  and other Latin American competitions.

But here’s what’s interesting: esports ranks among the top three most popular betting categories in Brazil. Since we know how to do esports, combining that with top-tier football coverage creates a perfect solution for the LatAm market. We’re not just translating our product – we’re building it specifically for these markets.

 

What’s your approach for operators using separate providers for esports and sports?

Otto: We focus on demonstrating superior performance in specific areas. While we respect operators’ existing relationships with other providers, we can showcase our strengths in particular sports and esports disciplines. We’re exceptional at basketball and table tennis, for instance. Our models in these areas consistently outperform the competitors’.

The key is showing operators that consolidating with DATA.BET simplifies their operations and improves its margins and player experience. We work within the frameworks of our partnerships while finding ways to add value that others can’t match.

What’s particularly valuable is feedback from clients who initially were signed for esports, then also expanded to sports, and saw better performance than they had with their previous supplier.

 

What betting trends are you most excited about, and how is DATA.BET preparing?

Otto: The continued growth of live betting is transforming our industry. Players demand more engaging, responsive experiences – everything needs to happen in real-time. This is where our esports heritage gives us an advantage. Esports taught us that speed, accuracy, and synchronization are non-negotiable.

We’re building products where odds and game statistics visualization are timely matched. There’s no tolerance for a broken streaming feed with 30-second delays while odds update faster – that ruins the betting experience. Our unified approach ensures everything works together seamlessly. Widgets, Video Streaming capabilities, extensive markets – all synchronized and working as one cohesive system.

 

What’s the core message you want operators to understand about DATA.BET?

Otto: Simple: Betting that works. Stress-free, hassle-free, high-performance.

We deliver a fully functional, customizable sportsbook solution that adapts to your needs. Want to launch a new brand? Easy. Expanding to new markets? We have templates ready. Need to change your entire look and feel? It’s just a few clicks.

Our promise is steady performance, day after day, with all the tools you need to succeed. In an industry full of complexity, we’re the solution that works.

DATA.BET continues to expand its presence globally, with particular focus on emerging markets in Europe and Latin America. Their unified sportsbook solution represents a significant evolution from their esports roots, bringing the same performance-driven approach to traditional sports betting.

The post Betting That Works: DATA.BET’s Performance-First Approach to Sports Expansion appeared first on European Gaming Industry News.

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7777 gaming has taken a significant step in its international expansion strategy by partnering with Octavian Lab. This strategic alliance reinforces the company’s commitment to establishing a strong presence in regulated European markets and marks a key milestone in its international growth plans. Through this collaboration, 7777 gaming’s certified portfolio of innovative online casino titles will be seamlessly integrated into Octavian Lab’s advanced aggregator called Hub Casino, making the games accessible to a wide network of licensed Italian operators.

“Partnering with Octavian Lab is a landmark moment for 7777 gaming,” said Elena Shaterova, Chief Commercial Officer at 7777 gaming. “Italy is a market we view as both strategic and full of potential. Through Octavian Lab’s Hub Casino, our certified games will reach a broad audience of experienced operators and players. We are confident that our titles will bring fresh energy, variety, and innovation to the Italian iGaming landscape.”

The integration includes 7777 gaming’s newly certified Italian portfolio, which features standout titles such as Crazy 100 Bucks, Cash 100, Thracian Treasures and Devil’s Deal Soul for Sale.

Each title is built for strong player engagement, offering features like bonus games, free spins, WILD symbols, multipliers, and buy-bonus options – meeting the demand of Italian players for variety and excitement.

“We are delighted to welcome 7777 gaming to our Hub Casino,” said Andres Galan Chillon, Senior Partnerships Manager at Octavian Lab. “Their portfolio brings fresh and exciting content that aligns perfectly with our commitment to providing innovative, high-quality gaming experiences for operators and players in Italy. We look forward to a successful partnership that drives growth and delivers real value to the Italian iGaming market.”

7777 gaming is an innovative online casino games provider, committed to delivering unique, engaging content that meets the highest standards of compliance and player satisfaction. With a growing presence across Europe, Africa, and Latin America and a strong focus on regulated markets like Italy – the company builds long-term partnerships that drive sustainable growth and deliver localized, high-performing gaming experiences. By combining

regulatory trust, creative excellence, and a passion for innovation, 7777 gaming continues to strengthen its position as a trusted partner in the global iGaming industry.

About 7777 gaming:

7777 gaming is an innovative and data-driven B2B igaming provider, founded in 2020 with the mission to revolutionize and challenge the status quo in the industry by offering 360-degree platform, state-of-the-art online casino games, iLottery, Jackpot, and marketing solutions, draw-based games, scratch cards, and much more.

The product is built by a dedicated team of visionaries with over 20 years of experience. The games and the RNG are tested and compliant in several highly regulated jurisdictions worldwide. Besides, the company achieved and maintained ISO 27001 certification. 7777 gaming holds a gambling license in Bulgaria and Romania and an MGA Certificate to provide its online casino games to these markets.

7777 gaming is already partnering with the leading aggregators and platform providers in the igaming industry.

Contact us:

[email protected]

https://www.7777gaming.com

Social Media:

LinkedIn

Youtube

The post 7777 gaming builds on Italian certification with Octavian Lab deal appeared first on European Gaming Industry News.

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