Next Games - Healthy earnings improvement
Next Games' net sales in Q2 amounted to EUR 9.4m, below our estimates (Evli EUR 10.4m). EBIT amounted to EUR -1.1m, in line with our estimates (Evli EUR -1.0m) and the adj. EBIT to EUR -0.5m (Evli EUR 0.1m). TWD: OW boasted an impressive ARPDAU of EUR 0.34 (from IAP’s) during the quarter, while challenges with retention led to higher than planned marketing investments levels.
- Net sales in Q2 were EUR 9.4m (EUR 5.7m in Q2/18), below our estimates (Evli EUR 10.4m). Growth in Q2 amounted to 65 % y/y.
- Operating profit in Q2 amounted to EUR -1.1m (EUR -2.4m in Q2/18), in line with our estimates (Evli EUR -1m), while adj. EBIT amounted to EUR -0.5m (Evli EUR 0.1m). Monthly fixed costs in Q2 amounted to EUR 1.2m following successful implementation of the savings program (co’s target EUR 1.1-1.2m).
- DAU during Q2/19 was 350k (Q2/18: 306k). MAU was 1.16m (Q2/18: 0.98m). ARPDAU was EUR 0.28 in Q2/19 (Q2/18: EUR 0.2).
- TWD: NML - DAU 190k (Q2/18: 287k), MAU 540k (Q2/18: 884k), ARPDAU EUR 0.22 (Q2/18: 0.21).
- TWD: OW - DAU 155k, MAU 602k, ARPDAU EUR 0.34 (from IAP’s).
- TWD: OW boasted an impressive ARPDAU of EUR 0.34 (from IAP’s) during the quarter, but challenges with player retention led to marketing investments being at a higher level than planned.
- With the new operating model, the company now has nine new concepts or prototypes in development.
- The company’s cash balance stood at EUR 4.7m at the end of the quarter compared to EUR 4.8m at the end of the first quarter of 2019.