November 11th, 2015 / Finance Press Release
Yggdrasil H1 2015 Update
- Strong growth during the quarter, September was the first month with a positive EBIT
- In Q3 revenues increased by 339 percent YoY to SEK 5.3 million
- Bet turnover increased by 449 percent YoY to SEK 1,003.5million
- Mobile gaming accounted for 33 percent of the total gross game win
- Yggdrasil now has a total of 25 signed agreements with operators
- Application for UK license has been submitted
- Discontinued Curacao license and all clients will be migrated to MGA license by the end of the year
- First pooled progressive jackpot paid out on Joker Millions – €720,000 on EuroSlots.com
- Signed two new agreements for Joker Millions
- Launched three new games (Holmes And The Stolen Stones™, Vikings Go Wild™ and Chibeasties)
- 16 video slots in current portfolio, including Doubles which was launched in October, as well as additional lottery and keno games
- All games are released on the HTML5 platform iSENSE 2.0, meaning operators can launch them simultaneously on PC, tablet and mobile and utilize all the available promotional tools
Comment from Fredrik Elmqvist, CEO of Yggdrasil:
Yggdrasil has moved to another level in Q3. I’m thrilled that we were in the black with our EBIT in September for the very first time and EBITDA is positive on the full year so far.
This demonstrates that the business is flourishing and it’s a very exciting time for everyone involved.
We have an aggressive growth strategy and the investment we have made in our products and services has really come to fruition.
Our flexible platform iSENSE 2.0 has been a game changer, meaning that we can create not only better games, but also release them simultaneously across all devices.
Mobile revenue continues to increase and, as of September, it was 37% of our game win. These numbers keep rising as some of our clients haven’t launched our games in mobile yet.
The positive positions of our games on our partner operator sites is a clear reflection of how well they are received by the players and how well they are performing.
We are actually already seeing some of our clients using our game releases as the catalyst for their marketing strategies. This is a huge shift and something we’re very proud about.
The Yggdrasil team is growing quickly. We currently have 38 employees split across our Malta and Krakow offices with very little turnover in staff.
That is a jump of over 50% since Q2 and I predict the team will continue to grow by the end of 2016, as we become too big for our offices in Malta and Poland.
Our technical expertise is second to none. We are an agile company and we are quick at finding solutions to provide players with a brilliant experience while also giving our clients tools to expand their marketing creativity.
We have released three games in Q3 which have had excellent feedback from both the players and the operators.
Our promotional tool Super Free Spin has taken the market by storm, proving to be a great compliment to standard free spins and a great retention tool for high value players.
One of our partners has reported that uptake of Super Free Spins has been four times higher compared with normal free spins which is exactly what we were trying to achieve with this concept.
We will be launching some exciting new promotional tools at the end of November to all of our partners which will stir things up even more.
Much of 2015 so far has been focused on supporting our existing clients and adding more value to them, rather than signing new operators.
However, we expect to announce a number of new deals over the next few months and we will be looking to expand into new jurisdictions.
We have submitted our application to enter the regulated UK market ahead of schedule. There has been major interest from both existing customers targeting the UK and potential new clients, so we have big hopes for this market.
We made the decision in Q2 to discontinue our Curacao license. This fits with our strategy of working only in regulated markets moving forward. This will have no negative impact on the projected revenues.
Agility is a key part of Yggdrasil’s success story. With a ‘dance like a butterfly, sting like a bee’ approach, we are constantly moving forward and we have a committed and inspired team that is hungry for success.
We are not the cheapest supplier, but we bring value to everyone we work with and we are now gearing up for 2016 which I believe is the year when we will take pole position as the leading supplier in our sector.
The plan is already in place and we fully intend to capitalise on the giant strides we’ve taken in 2015.