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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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Leading gaming and esports media company NODWIN Gaming and renowned video game publisher Riot Games has announced that the upcoming OMEN VALORANT Challengers South Asia 2024: Split 1 – Cup 2 LAN Finals will be hosted in Delhi. This announcement follows the successful conclusion of Cup 1 in Pune.

The decision to host the finals in Delhi is part of a strategic effort to expose a broad audience to high-stakes esports competition, capitalizing on the region’s rising enthusiasm for esports. The inaugural Cup of the  OMEN VALORANT Challengers South Asia 2024: Split 1 successfully captured significant attention, drawing an impressive crowd of over 25,000 attendees who watched the champions being crowned at the venue. The event also enjoyed robust online engagement, accumulating more than 700,000 views and more than 100,000 hours of gameplay streamed across various digital platforms. OMEN by HP served as the tournament’s title partner and Philips as the styling partner.

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Akshat Rathee, Co-Founder and Managing Director of NODWIN Gaming, commented on the choice of Delhi, “The successful completion of the Split 1 is a testament to the growing popularity of esports in the region. We are excited to host Cup 2 Grand Finals in Delhi and aim to provide fans in the region a top notch esports competition where the best teams from across regions compete for the championship title. I would like to sincerely thank our partners for their continued support and for sharing our vision to elevate esports in the region.”

Sukamal Pegu, Esports Lead, India & South Asia, Riot Games, said “The OMEN VCSA is an important platform for us to identify top VALORANT Esports talent from India and showcase them. This year we have seen the competition get more intense with international athletes such as SK Rossi playing in the circuit, giving the fans non-stop entertainment and excitement. The Delhi event will be a cracker!”

Arun Rajappa, Country Manager, India & South Asia, Riot Games, said “We are absolutely elated by the support and enthusiasm that the fans, players and teams of the region have shown to VALORANT. After an exciting Cup 1, we are thrilled to bring Cup 2 to Delhi. We are committed to the growth of esports in the region by fostering the ecosystem and providing more opportunities to fans and players alike.”

This announcement coincides with the conclusion of the VCT Game Changers South Asia Split 1, also hosted by NODWIN Gaming, where MLT Esports was victorious. This tournament is part of a broader initiative to promote inclusivity and provide competitive opportunities for women and other marginalized genders within the VALORANT community.

The Delhi grand finals promise to be a highlight for the VALORANT esports community, offering another chapter of high-level competition in the region.

For further updates and information about the VALORANT Challengers South Asia, follow NODWIN Gaming on social media:YouTube/Instagram/Twitter/Facebook

The post OMEN VALORANT Challengers South Asia 2024: Split 1 – Cup 2 Grand Finals To Be Hosted In Vegas Mall Dwarka In Delhi appeared first on European Gaming Industry News.

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Golden Matrix Group Joins Rio Grande do Sul Flood Relief Program

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Golden Matrix Group (NASDAQ: GMGI), a leading B2B and B2C gaming technology company utilizing proprietary technology and operating globally across 17 regulated markets, today announced its participation in the global coalition initiative for flood relief efforts in Rio Grande do Sul, Brazil.

This partnership aims to provide substantial support to the communities in this Brazilian state that have been most devastated by the recent severe flooding.

This initiative is part of the gaming industry’s larger collaboration with local NGOs and humanitarian organizations, marking a significant expansion of our intensive CSR efforts, which saw over 225 community impact campaigns last year alone, primarily through the actions of its subsidiary Meridianbet.

The past week has witnessed unprecedented rainfall in Rio Grande do Sul, turning streets into rivers and isolating entire towns. The current situation remains dire, with hundreds of individuals still unaccounted for, while rescue operations have successfully evacuated over 200,000 residents using boats and helicopters.

The floods have wreaked havoc on infrastructure, with numerous bridges destroyed, severely disrupting access to Porto Alegre. The aftermath of the disaster has also led to looting in supermarkets during the night, adding to the urgency of the relief efforts.

Golden Matrix Group invites its stakeholders and the global community to contribute to this cause.

About Golden Matrix Group

Golden Matrix Group, based in Las Vegas, Nevada, is a leading B2B and B2C gaming technology company utilizing proprietary technology and operating globally across 17 regulated markets. The B2B division of Golden Matrix develops and licenses branded gaming platforms for its extensive list of clients, and RKings, its B2C division, operates a high-volume eCommerce site enabling end users to enter paid-for competitions on its proprietary platform in authorized markets. The Company also owns and operates MEXPLAY, a regulated online casino in Mexico. In 2024, Golden Matrix completed the acquisition of MeridianBet, a well-established and B2B and B2C sports betting and gaming platform operating and regulated in multiple markets in Europe, Africa and LatAm, providing the combined entity with additional international operations.

The post Golden Matrix Group Joins Rio Grande do Sul Flood Relief Program appeared first on European Gaming Industry News.

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Sky Vegas to sponsor new ITV reality show

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Sky Vegas has been announced as the headline sponsor of The Fortune Hotel, a brand new ITV1 reality entertainment show hosted by comic actor, Stephen Mangan, and produced by Tuesday’s Child.

The new series, set in a five-star resort in the Caribbean, is a gripping new format which sees contestants work in pairs to compete against other hotel guests and get their hands on a briefcase containing a life changing amount of money.

10 pairs of contestants will arrive at The Fortune Hotel, where they will be given an all-important briefcase. Inside one case is the ultimate jackpot of £250,000 in cash, while eight are empty, and one contains the dreaded Early Checkout Card – whichever pair is left holding that case at the end of each show will see their stay brought to a dramatic, premature end.

​​G​uests will attempt to figure out who is in possession of the cash case, whilst trying to keep the contents of their own a secret, and viewers will be treated to a blend of suspense, subterfuge and glamour as the duos compete over eight episodes.

Airing on Monday 13 May on ITV1 and ITVX (and STV in Scotland), Sky Vegas’ sponsorship includes 80” of accreditations per episode, spanning Monday-Thursday over a two-week period.

The ​​​​sponsorship deal also includes 10” bumpers around free programme streaming ​ ​content on the ITVX and STV Player, including website and mobile ​​apps*.

​​​Sky Vegas also has rights to include The Fortune Hotel logo and reference to the sponsorship across​ their own​ platforms​,​ including website and social media.

Commenting on the sponsorship, a Sky Vegas ​​spokesperson said: “​The F​ortune ​​Hotel has the potential to be the next big TV hit, and we are incredibly excited that we are going to be a part of this new show with ITV.

“Our customers enjoy fun and entertaining games, so this sponsorship opportunity just made sense. We’re looking forward to watching the show and enjoying all of its twists and turns with the rest of the ​​​​nation.”

Bhav Chandrani, Director of BE Studios, added: “It’s brilliant to be bringing a brand new format to screens and The Fortune Hotel is real shout-at-the-telly fun. It’s going to be full of twists and turns as we get to watch the gameplay unfold.”

The post Sky Vegas to sponsor new ITV reality show appeared first on European Gaming Industry News.

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