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Next Games Corp.: Preliminary Information on 2021 Financial Result and outlook for 2022
Next Games Corporation Company Release March 2, 2022 at 09:25 a.m. (EET)
Next Games releases preliminary information on the company’s 2021 financial results. Additionally, the company publishes its outlook for 2022. Next Games publishes its full-year financial statement on March 14, 2022. The figures in this release are preliminary and unaudited.
January – December 2021 key figures:
- Revenue was EUR 25.2 (27.2) million
- Gross Profit was EUR 13.5 (14.3) million, 54% (52%) of revenue
- EBIT was EUR -5.6 (-3.4) million
- EBITDA was EUR -0.6 (0.5) million
- Publishing profitability EBITDA was at EUR 5.6 (6.4) million, 22% (24%) of revenue
- Research and Development costs were EUR 6.7 (5.6) million, 27% (21%) of revenue
- The company had 121 (104) employees at the end of 2021
(Numbers in brackets refer to the corresponding year-on-year period unless otherwise mentioned)
| EUR million | Jul-Dec 2021 | Jul-Dec 2020 | Change | 2021 | 2020 | Change |
| Company | ||||||
| Revenue | 12.9 | 12.8 | 1% | 25.2 | 27.2 | -7% |
| Gross Profit | 7.2 | 6.7 | 7% | 13.5 | 14.3 | -6% |
| EBITDA | -0.7 | 0.2 | -471% | -0.6 | 0.5 | -226% |
| Operating Result (EBIT) | -3.4 | -1.7 | 102% | -5.6 | -3.4 | 64% |
| Adjusted Operating Result | -0.9 | -0.2 | 342% | -1.2 | -0.1 | 1083% |
| Gross profit % | 56% | 52 % | 4ppt | 54% | 52% | 2ppt |
| EBITDA % | -6% | 2 % | 8ppt | -3% | 2% | 5ppt |
| Operating Result (EBIT) % | -27% | -14 % | 13ppt | -22% | -12% | 10ppt |
| Adjusted Operating Result % | -7% | -1% | 6ppt | -5% | 0% | 5ppt |
| Publishing Operations’ Profitability | ||||||
| EBITDA | 2.7 | 3.0 | -9% | 5.6 | 6.4 | -13% |
| EBITDA % | 21% | 24 % | 3ppt | 22 % | 24% | 2ppt |
| Research and Development Key Figures | ||||||
| Investments | 3.4 | 1.9 | 79% | 5.5 | 3.5 | 56% |
| Expenditure | 5.6 | 3.7 | 52% | 9.4 | 7.0 | 34% |
Outlook for 2022
The company will aim to improve the performance of key games and continue developing new games in 2022. Next Games expects R&D and Administration costs to maintain a similar level to 2021.
Events after the reporting period
Next Games reached an agreement with its partner Alcon Entertainment to discontinue the Blade Runner Rogue game project after the reporting period in February 2022. The game did not meet mutually agreed targets. The game will be removed from Apple App Store and Google Play Store, but will remain online for existing players until June 2022.
TABLES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| EUR million | Jul-Dec 2021 | Jul-Dec 2020 | 2021 | 2020 |
| Revenue | 12.9 | 12.8 | 25.2 | 27.2 |
| Cost of revenue | -5.7 | -6.1 | -11.7 | -12.9 |
| Gross profit | 7.2 | 6.7 | 13.5 | 14.3 |
| Other operating income | 0.4 | 0.3 | 0.8 | 0.7 |
| Research and development | -3.6 | -2.9 | -6.7 | -5.6 |
| Sales and Marketing | -5.6 | -4.5 | -9.9 | -9.5 |
| Administrative | -1.7 | -1.3 | -3.2 | -3.2 |
| Operating result (EBIT) | -3.4 | -1.7 | -5.6 | -3.4 |
| Finance costs, net | -0.1 | -0.4 | -0.0 | -0.5 |
| Share of associates’ result | – | -0.1 | – | -0.2 |
| Profit before taxes | -3.4 | -2.2 | -5.6 | -4.1 |
| Current income taxes | – | – | – | – |
| Change in deferred tax | 0.1 | 0.1 | 0.3 | 0.2 |
| Total income tax expense | 0.1 | 0.1 | 0.3 | 0.2 |
| Result for the period | -3.3 | -2.1 | -5.3 | -3.9 |
| Total comprehensive result for the period | -3.3 | -2.1 | -5.3 | -3.9 |
| Result attributable to the owners of the parent | -3.3 | -2.1 | -5.3 | -3.9 |
| Shares | Jul-Dec 2021 | Jul-Dec 2020 | 2021 | 2020 |
| Result per share for profit attributable to the owners of the parent | ||||
| Non-Diluted earnings per share, EUR | -0.11 | -0.08 | -0.18 | -0.14 |
| Diluted earnings per share, EUR | -0.11 | -0.08 | -0.18 | -0.14 |
CONSOLIDATED BALANCE SHEET, SUMMARY
| EUR million | 31 Dec 2021 | 31 Dec 2020 |
| Non-current assets | 26.3 | 21.9 |
| Current assets | 7.2 | 8.2 |
| Total assets | 33.5 | 30.1 |
| Equity | 18.6 | 19.4 |
| Total liabilities | 14.9 | 10.7 |
| Long-term liabilities | 4.4 | 2.7 |
| Short-term liabilities | 10.5 | 8.0 |
| Total equity and liabilities | 33.5 | 30.1 |
Additional information:
Saara Bergström, Chief Communications Officer
+358 (0) 40 588 3167
Media: press@nextgames.com
Investor relations: investors@nextgames.com
Certified Adviser: Alexander Corporate Finance Oy, tel. +358 (0) 50 520 4098
About Next Games
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 redefine the way franchise entertainment transforms into highly engaging service-based mobile games. Next Games works on multiple new games based on beloved global IPs. The company’s latest game, Stranger Things: Puzzle Tales, is based on Netflix’s hit 80s horror drama series. www.nextgames.com
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