Cellular video games distributor Flexion generated document quarterly income within the final quarter of 2023, making £24.3 million at a 12% year-on-year development price. That is up 64% quarter on quarter.
Gross revenue, in the meantime, elevated by 35% year-on-year to £5 million in This fall, though working revenue decreased to solely £0.2 million.
Adjusted EBITDA broke one other document for the corporate by climbing 38% to £2.1 million within the fourth quarter.
On the rise
The tail finish of 2023 proved a powerful one for Flexion with record-breaking outcomes and an enormous 64% improve in income over Q3, serving to push a profitable fiscal yr. This fall noticed the corporate triple its month-to-month energetic customers year-on-year, as much as 4.5 million individuals.
Offers had been signed with Neocraft’s Chronicle of Infinity and Immortal Awakening, Vizor Video games’ Klondike Adventures and Particular Gamez’s Wolf Recreation, whereas an earlier cope with Scopely to deliver its smash hit Monopoly GO! to different app shops paid off after which some; the sport launched lower than a yr in the past and has already generated $2 billion, presently averaging eight million gamers per day.
2023 as a complete, Flexion’s income grew 3% to £70.8 million and gross revenue elevated by 12% to £12.4 million. Nonetheless, a 12% rise reveals a lot slowdown after the 147% climb seen final yr. And simply because the fourth quarter fell in working revenue, so too did 2023 at massive, right down to -£0.3 million. Adjusted EBITDA for the fiscal yr fell too, down by 14% to solely £4.2 million.
“Wanting again at 2023, one of many defining moments was after we launched Monopoly GO! – the top-grossing cellular recreation on this planet – in our channels. Since then, our different distribution service has been gaining appreciable traction with prime builders. Because of this, our gross sales pipeline is stronger than ever, and we expect to transform a few of these leads within the subsequent few quarters,” mentioned Flexion CEO Jens Lauritzson.
“One purpose for the stronger developer curiosity is the troublesome person acquisition market, the place it’s more and more difficult to realize constructive returns on account of adjustments in person monitoring (IDFA) and excessive retailer charges. One other is that we proceed to see rising expectations from builders in relation to the brand new regulatory adjustments such because the Digital Markets Act in Europe, which got here into drive earlier this month geared toward opening up massive ‘gatekeepers’ equivalent to Google and Apple.
“Epic and Spotify are on the centre of this. They’ve been difficult Apple and Google for years and are actually beginning to win. This provides the market an additional enhance of confidence.”
After bringing Monopoly GO! to the Samsung Galaxy Retailer, Huawei’s AppGallery, Amazon’s retailer and others, Flexion set its sights on increasing one other Scopely recreation, Stumble Guys.
