Trophy Games increases 2022 YoY revenue by 22% and EBITDA by 314%
22.2.2023 11.40 • Cision •
Company Announcement No. 1-2023
Copenhagen, 22 February 2023
Highlights
* Growth in every parameter:
* Group revenue 2022 was DKK 50.6m (+22% YoY).
* EBITDA 2022 was DKK 8.9m (+314% YoY).
* Unique paying users total 2022 was 150,779 (+42% YoY).
* Total installs 2022 was 7.3m (+20% YoY)
Management Commentary
As mentioned in the half-year report 2022, Trophy Games did a paradigm shift in 2022, changing focus from top-line to bottom-line growth. The macroeconomic environment caused us to scale with caution. The most significant impact in that regard was a reduction of our advertising spend. We now aim for a shorter period for breakeven than we did a year ago. This paradigm shift caused us to change our guidance, reducing revenue estimates and increasing EBITDA estimates. We are pleased to report we have managed to hit the updated guidance.
Our entire Sports and Arcade Series are in the retaining phase. That means they have very few employees maintaining them, and they will generate a solid cash flow for that reason. In 2022 these games generated DKK15.2m (2021: 7.8m) in EBITDA. The games have a very long life, so with, for example, a 15% decline yearly, they will generate DKK 47.2m in EBITDA for the next five years. Creating great games with a long lifetime is our philosophy. They will generate more profit once we stop scaling and developing the games.
The end year cash position is DKK 28.2m and no debt. This gives us excellent acquisitions and scaling opportunities the next couple of years.
Significant events for the year were Airline Manager scaling, signing the publisher deal with the much-anticipated PC Premium game The Ranchers (read my CEO letter #1 (https://trophygames.newsroom.cision.com/releasedetail.html?-1-letter-to-investors-from-the-ceo&releaseIdentifier=93A40694BD02CFA1) about publishing and The Ranchers here), and building and releasing Shipping Manager. We are starting to scale Shipping Manager and have already begun producing Train Manager and soon Truck Manager. The KPIs for Shipping Manager indicate the same potential as Airline Manager, but it is too early to say.
Most things went well in 2022 but we have decided to take impairment on Warhammer AoS: Soul Arena and Five as we recognize the games are unlikely to generate significant revenue. The whole impairment amounts to DKK 16.2m, but it is money we have already paid on development over the last couple of years. The development of FIVE and Warhammer AoS: Soul Arena will stop. Making games that do not hit their mark is a condition in the game industry.
2023 will be the most exciting year in Trophy Games history. The scaling of the Transport Series (Airline, Shipping, and Train) and at least the Early Access release of the Ranchers are all significant events, and we are very excited about the outcome.
Starting with the 2023 guidance, we have decided not to include potential acquisitions. We are still looking for good acquisition opportunities. Still, we are not happy with the current valuations, which have yet to adapt to our new financial reality, so we are patient. On that note, by the end of January 2023, 13 months after its acquisition, Tiny Titan Studios has had an ROI of 56%, and it looks like it will pass 100% this year.
Keep an eye out for our investor day and CEO letters that will give valuable insights into the company.
Guidance 2023
* Trophy Games maintains guidance of:
* DKK 56-65m in revenue.
* DKK 8-14m in EBITDA.
* DKK 3-8m in EBT.
Contact Information
TROPHY GAMES Development A/S
Søren Gleie, CEO
Office (+45) 7172 7573
Email: soren@trophy-games.com
Mikkel Bryggers Gade 4, 2. sal, 1460 Copenhagen K, Denmark
About Trophy Games
Trophy Games is an innovative, Denmark-based game studio who develops and publishes mobile and PC games.
https://news.cision.com/trophy-games/r/trophy-games-increases-2022-yoy-revenue-by-22--and-ebitda-by-314-,c3720585
https://mb.cision.com/Main/20400/3720585/1866048.pdf
https://mb.cision.com/Public/20400/3720585/a5daad3b137ae01d.pdf
Trophy Games har en betalt digtal IR-aftale med ProInvestor.com
22.2.2023 11.40 • Cision •
Company Announcement No. 1-2023
Copenhagen, 22 February 2023
Highlights
* Growth in every parameter:
* Group revenue 2022 was DKK 50.6m (+22% YoY).
* EBITDA 2022 was DKK 8.9m (+314% YoY).
* Unique paying users total 2022 was 150,779 (+42% YoY).
* Total installs 2022 was 7.3m (+20% YoY)
Management Commentary
As mentioned in the half-year report 2022, Trophy Games did a paradigm shift in 2022, changing focus from top-line to bottom-line growth. The macroeconomic environment caused us to scale with caution. The most significant impact in that regard was a reduction of our advertising spend. We now aim for a shorter period for breakeven than we did a year ago. This paradigm shift caused us to change our guidance, reducing revenue estimates and increasing EBITDA estimates. We are pleased to report we have managed to hit the updated guidance.
Our entire Sports and Arcade Series are in the retaining phase. That means they have very few employees maintaining them, and they will generate a solid cash flow for that reason. In 2022 these games generated DKK15.2m (2021: 7.8m) in EBITDA. The games have a very long life, so with, for example, a 15% decline yearly, they will generate DKK 47.2m in EBITDA for the next five years. Creating great games with a long lifetime is our philosophy. They will generate more profit once we stop scaling and developing the games.
The end year cash position is DKK 28.2m and no debt. This gives us excellent acquisitions and scaling opportunities the next couple of years.
Significant events for the year were Airline Manager scaling, signing the publisher deal with the much-anticipated PC Premium game The Ranchers (read my CEO letter #1 (https://trophygames.newsroom.cision.com/releasedetail.html?-1-letter-to-investors-from-the-ceo&releaseIdentifier=93A40694BD02CFA1) about publishing and The Ranchers here), and building and releasing Shipping Manager. We are starting to scale Shipping Manager and have already begun producing Train Manager and soon Truck Manager. The KPIs for Shipping Manager indicate the same potential as Airline Manager, but it is too early to say.
Most things went well in 2022 but we have decided to take impairment on Warhammer AoS: Soul Arena and Five as we recognize the games are unlikely to generate significant revenue. The whole impairment amounts to DKK 16.2m, but it is money we have already paid on development over the last couple of years. The development of FIVE and Warhammer AoS: Soul Arena will stop. Making games that do not hit their mark is a condition in the game industry.
2023 will be the most exciting year in Trophy Games history. The scaling of the Transport Series (Airline, Shipping, and Train) and at least the Early Access release of the Ranchers are all significant events, and we are very excited about the outcome.
Starting with the 2023 guidance, we have decided not to include potential acquisitions. We are still looking for good acquisition opportunities. Still, we are not happy with the current valuations, which have yet to adapt to our new financial reality, so we are patient. On that note, by the end of January 2023, 13 months after its acquisition, Tiny Titan Studios has had an ROI of 56%, and it looks like it will pass 100% this year.
Keep an eye out for our investor day and CEO letters that will give valuable insights into the company.
Guidance 2023
* Trophy Games maintains guidance of:
* DKK 56-65m in revenue.
* DKK 8-14m in EBITDA.
* DKK 3-8m in EBT.
Contact Information
TROPHY GAMES Development A/S
Søren Gleie, CEO
Office (+45) 7172 7573
Email: soren@trophy-games.com
Mikkel Bryggers Gade 4, 2. sal, 1460 Copenhagen K, Denmark
About Trophy Games
Trophy Games is an innovative, Denmark-based game studio who develops and publishes mobile and PC games.
https://news.cision.com/trophy-games/r/trophy-games-increases-2022-yoy-revenue-by-22--and-ebitda-by-314-,c3720585
https://mb.cision.com/Main/20400/3720585/1866048.pdf
https://mb.cision.com/Public/20400/3720585/a5daad3b137ae01d.pdf
Trophy Games har en betalt digtal IR-aftale med ProInvestor.com
