November 10th, 2016 / Finance Press Release
Yggdrasil Gaming Q3 Update
- Revenues for the period increased by 299 percent year-on-year to MSEK 21 (Q3 2015: 5.3)
- The EBITDA margin for the period amounted to 44%
- EBITDA for the period increased to MSEK 9.2 (1.9)
- EBIT for the period increased to MSEK 5.8 (0)
- Number of player transaction (rounds) increased by 427 percent year-on-year to 438 million
- Mobile gaming has now grown to be 54 percent of total gross game win
- Two new licence agreements were signed, including one with Casumo
- Three new games were released: Legend of the White Snake Lady, Big Blox, Double Dragons
- Granted two licences by Romania’s National Gambling Office permitting the hosting of gaming platforms and the distribution of gaming software in recently regulated market
- Launched industry-first social sharing tool BRAG
- Launched innovative slots development concept, Yggdrasil White Label Studios
- Paid out Yggdrasil’s largest ever jackpot of €2.9m on Joker Millions progressive jackpot slot
- Appointed first dedicated CFO, Frida Gustafsson
Notable events after the quarter
- Two games launched in October: progressive jackpot slot Empire Fortune and Super Heroes
- Launched Missions, a new feature that is part of the BOOST™ collection of promotional tools
- Announced plans to establish a new parent company and expand Stockholm office
Comment from Fredrik Elmqvist, CEO of Yggdrasil:
It has been yet another hugely successful and action-packed three months for Yggdrasil, and we now have a fantastic team in place that is fast establishing us as the industry’s number one online casino supplier.
Yggdrasil remains in a phase of rapid expansion, as displayed by the quarter’s surging revenue growth. While the immediate results have been impressive, it is equally important that we lay the foundations for sustainable, long-term growth. We are expected to continue growing much faster than the market and we will carry on investing in our business while also delivering results moving forward.
The success of Yggdrasil has always been driven by the excellence of our team, and we continue to recruit the very best. During Q3, we added our first dedicated CFO, Frida Gustafsson, as part of a broader revamp of our finance department. After the quarter, we also announced plans to establish a new parent company that will help form a new Yggdrasil epicentre in Stockholm.
In Malta, we have finally moved into our new offices, while the Poland tech hub will move into new premises in Q2 2017.
The start-up culture that Yggdrasil has fostered has helped us grow into the industry’s most innovative and agile supplier, and by ensuring the correct corporate structure is in place, the challenge we now face is continuing our growth without impairing what has made us successful so far.
To remain ahead of the field in the competitive environment of online casino, creativity is essential. During the quarter, Yggdrasil unveiled two new concepts that displayed our approach to the challenges of our industry.
Firstly, we announced the launch of our industry-first social sharing tool BRAG, which helps improve operators’ organic social media volume by encouraging players to share replays of winning spins on Facebook and Twitter.
We have also launched Yggdrasil White Label Studios, an ambitious new project that will ultimately revolutionise the way slots are developed by fostering closer relationships between operators and providers.
White Label Studios is a strategic commitment from both us and the customer and we are very happy to have landed our first partner. There are several other negotiations ongoing, but given the strategic commitment, at this point we can only on-board one more partner, who we would begin collaborating with in the summer of 2017.
These exciting developments have not distracted us from our core mission, and we continue to add fast-growing operators to our roster, including Casumo during this quarter. We still have a number of signed deals with operators who are yet to go live, as well as further deals in the pipeline.
Our commitment to regulated markets saw us acquire licences to provide our content to operators in Romania, where we will go live shortly. We are a relatively late-mover in terms of regulated markets, but we are catching up fast, and will continue to enter regulated markets that make commercial sense.
From a technology perspective, we are well prepared to take advantage of the fast-changing landscape as Google moves to phase out support for Flash in Chrome. The KPIs of our broader tech operations are improving by the quarter, despite the extra strain caused by above-expectations take-up of new features. We continue to invest heavily in technology, and will not let this area stunt innovation.
Looking forward, we have some strong releases in the final quarter, and with the support of our range of market-leading promotional tools, we anticipate another impressive showing for Q4.
All in all, this is an extremely exciting time for Yggdrasil. We are still a relatively small company taking on supplier giants who are much bigger than us, so we need to bring our A-game every day. We must now ensure that the rapid growth we are enjoying transforms us into the best supplier in this industry. With a host of innovative new games, features and products on the horizon, I am confident we will do exactly that.