Next Games - Earnings flash - EBIT deep in the red
Next Games’ Q3 results fell significantly off expectations, with EBITDA at EUR -10m (EUR -2.0m Evli/cons.), driven by investments into the Our World -game. Revenue beat expectations, at EUR 13.4m (EUR 11.5m Evli/cons.). Next Games is considering options to strengthen its financial status.
- Next Games’ revenue in the second quarter came in at EUR 13.4m (EUR 11.5m Evli&cons). Revenue growth y/y on was 110 %. Q3 was the first quarter with Our World significantly contributing to revenue.
- EBITDA in Q3 was as expected negative, but the magnitude of the loss was significantly larger than our and consensus expectation, at EUR -10.0m and EBIT EUR –10.7m. Development costs during Q3 amounted to EUR 2.0m. The No Man’s Land -game remained profitable, with EBITDA of EUR 1.0m, while the large negative results were mainly affected by investments into promoting the Our World -game, with the game’s EBITDA at EUR -7.7m. According to management both games are currently operated at positive EBITDA but the combined revenue is not enough to cover games in development.
- The company is considering options to strengthening its financial status as a part of its risk-management plan.
- The number of employees grew to 143.
- DAU during Q3 was 669k compared to Q3/17 figures of 371k. MAU was 3.2m compared to 1.14m during Q3/17. ARPDAU (EUR) was 0.26 compared to 0.21 during Q3/17. Key metrics saw significant growth due to the launch of the Our World -game.
- Next Games announced that it has signed a new license agreement with a leading partner in the entertainment industry.