February 22nd, 2017 / Finance Press Release
Yggdrasil Gaming Q4/FY 2016 Update
- Revenues for the period increased by 207 percent year-on-year to MSEK 31.8 (Q4 2015: 10.4)
- EBITDA for the period increased to MSEK 13.2 (4.9)
- The EBITDA margin for the period amounted to 42%
- EBIT for the period increased to MSEK 9.3 (2.1)
- Number of player transaction (rounds) increased by 210 percent year-on-year to 633 million
- Mobile gaming is now 51 percent of total gross game win
- 10 new licence agreements were signed, including with Tain, Gaming Innovation Group, SuprNation and Lottoland
- Three new games were released: Empire Fortune, Super Heroes and Vikings Go Berzerk
- Launched industry-first gamification tool Missions
- Decided to established a new parent company and planned expansion to Stockholm office
- Launched €200,000 Christmas Calendar campaign for operators
- Paid out largest ever progressive jackpot of €3,291,513
2016 Full Year Highlights
- For the full year, revenues increased by 332 percent to MSEK 86.9 (20.1)
- EBITDA improved significantly by 670 percent and amounted to MSEK 40.1 (5.2)
- EBITDA margin for the period amounted to 46 percent
- Number of player transaction (rounds) increased by 418 percent to 1.8 billion rounds
- Released 13 new games
- Signed 20 new operators, including Bet 365, Casumo and Bwin
- Signed 11 operators for the UK market
- Signed jackpot agreements with three operators
- Won Slot Provider of the Year at the 2016 EGR B2B Awards and iGaming Software Supplier of the Year at the 2016 International Gaming Awards
- Awarded licences in Gibraltar and Romania, and went live in the UK
- Appointed first CFO, Frida Gustafsson
- Launched a number of industry first promotional tools, including BRAG and Missions
- Launched new business concept Yggdrasil White Label Studios
Notable events after the quarter
- Made two senior appointments, with Andrew Pegler named chief commercial officer for Gibraltar and Krzysztof Opalka promoted to chief product officer
- Began process of certifying games for Italian market
- Launched new title, Alchymedes
- Signed two new operators: William Hill and Marathonbet
- Announced new business development initiative, Yggdrasil Dragons, to enter mutually beneficial partnerships with entrepreneurs and gaming businesses
- Crowned Innovator of the Year at the International Gaming Awards
- Announced new game mechanic Fusion Realms™
- Displayed at the industry’s largest trade show, ICE
Comment from Fredrik Elmqvist, CEO of Yggdrasil:
Yggdrasil Gaming continues to go from strength to strength during yet another quarter which has seen excellent growth, new operator signings, new games and new industry firsts.
The figures for the quarter are particularly pleasing, with revenues up 207 percent and EBIT hitting a new quarterly high of MSEK 9.3.
However impressive these numbers are, they only tell part of the Yggdrasil story.
When we founded Yggdrasil in 2013, we had a very clear mission to become the industry’s best games supplier, and we continue to make rapid progress towards this goal.
While we may be an underdog compared to some of the industry’s titans, we are now very much established as a force in this sector.
Our team is now more than 100 strong, with an international management group consisting of people from Sweden, the UK, Italy and Poland.
We continue to develop a series of industry firsts because we believe that without innovation and inspiration, this industry will stagnate.
During the quarter, we launched Missions, an exciting new gamification promotional concept that has already proved hugely popular among our operators.
This joins, BOOST™, our stable of in-game promotional tools and BRAG, our game-changing social media sharing tool that was launched last year.
I am delighted to report that we have the full confidence of our operator partners, in large part because they trust us to continue to deliver the innovations and games they require to keep their players engaged.
We remain committed to doing things our own way. Yggdrasil White Label Studios, our strategic collaborative partnership programme which was launched in Q3 2016, continues to make progress, and we now have two customers on board. We firmly believe it will transform the way slots are developed.
We also hired our first ever chef in the Malta office, because we understand the value of nurturing the right type of company culture.
To this end, we are planning to move into a new permanent office in Stockholm by the end of the year, while our Poland operation moves into a bigger office by the end of February.
Looking forward, respected industry veteran Andrew Pegler joined as chief commercial officer in Gibraltar in January, and we are already seeing encouraging progress in the jurisdiction.
We also continue to promote from within, with the hugely impressive Krzysztof Opalka elevated to chief product officer in January.
We expect to launch in Italy in Q2, having begun the process of certifying our games. As we are later into the market compared to some of our competitors, we will need to make an immediate impact, and we are laying the groundwork to do exactly that.
We also have several interesting projects in the works for later this year, including Yggdrasil Dragons, which launched ahead of ICE.
It would be an understatement to say this an exciting time for Yggdrasil. The growth in recent years has been fantastic, but more importantly, we have laid the foundations to build a sustainable, world class gaming supply that will continue to push this industry forward.