May 11th, 2017 / Finance Press Release

Yggdrasil Gaming Q1 2017 statement

Yggdrasil Gaming Q1 2017 statement

Great start to 2017. Yggdrasil revenues continue to rise, and a scalable infrastructure to the organisation is in place.

Q1 highlights

  • Revenues for the period increased by 134 percent year-on-year to MSEK 33.3 (Q1 2016: 14.2)
  • EBITDA for the period increased to MSEK 13.3 (7.9)
  • The EBITDA margin for the period amounted to 40%
  • EBIT for the period increased to MSEK 10.7 (5.5)
  • Number of player transaction (rounds) increased by 121 percent year-on-year to 701 million
  • Mobile gaming is now 52.3 percent of total gross game win
  • Launched Yggdrasil Dragons, a new initiative to enter mutually beneficial partnerships with entrepreneurs
  • Andrew Pegler appointed chief commercial officer Gibraltar while Krzysztof Opałka promoted to chief product officer
  • Announced plans to enter Italy
  • Announced the industry-first ground-breaking game mechanic Fusion Realms™
  • Crowned Innovator of the Year at the International Gaming Awards
  • Three new games were released: Beauty & the Beast, Alchymedes and Chibeasties 2
  • 10 new licence agreements were signed including William Hill and Yggdrasil’s first partner in Italy, bwin
  • Held a successful ICE event with a spectacular stand that stood Yggdrasil apart from the rest of the industry

Notable events after the quarter

  • Launched revamped platform iSENSE 2.0+
  • Launched new game Power Plant
  • New CTO signed in Poland
  • Hired our first CSO, Chief Studio Operations
  • Yggdrasil Gaming Sweden AB established
  • Signed a contract for a new office in Stockholm via Skanska

Comment from Fredrik Elmqvist, CEO of Yggdrasil:

Even by the high standards we have set ourselves at Yggdrasil, 2017 has kicked off with an incredibly busy and productive first three months.

Revenues continue to rise, and profitability (EBITDA) has exceeded 13 MSEK.

We began the year with organisational alterations on both the ordering and supplier side of the operation, with the intention of ensuring the correct foundations are in place to allow us to scale at a pace that matches our ambition, appetite and growth rate.

Krzysztof Opałka was promoted to the new position of CPO, Andrew Pegler was named CCO Gibraltar and we have also created a number of new positions across all entities.

Hiring Andrew to oversee our Gibraltar operation was a particular coup. We now have four Gibraltar operators live and there is more interest from the jurisdiction. Meanwhile, the UK remains a small but fast-growing market for us, and we believe that proposed regulations around how casino games are promoted will work in our favour.

Elsewhere, there are also exciting times ahead for us in the Italian market. We expect our first customer, bwin, to go live during Q2.

With the correct structure in place and encouraging growth in new markets, it is vital Yggdrasil continues to do what it does best: continue to disrupt the industry and search for game-changing innovations that have a commercial impact.

We are now in a clear market-leading position when it comes to in-game promotional tools, but we continue to invest in both these and similar product developments to ensure we stay ahead of the chasing pack.

To this end, it was a pleasure to launch our Yggdrasil Dragons initiative at ICE this year. Dragons invites individuals and other businesses to propose mutually beneficial partnerships with Yggdrasil, and we have already processed some 50 cases across the verticals and channels. While there has been no strategic fit yet so far, the process is ongoing.

On the subject of ICE, it was great to be back in London with a show-stopping stand, and we are already looking forward to coming back next year.

We continue to follow our own path here at Yggdrasil. It has brought us a great deal of success already, but we are only just getting started.