August 25th, 2017 / Finance Press Release
Yggdrasil Q2/H1 2017 Update
It has been another strong quarter for Yggdrasil, with further impressive growth.
Q2 2017 Highlights
- Revenues for the quarter increased by 103 percent YoY to MSEK 40.4 (19.9)
- EBITDA for the quarter increased to MSEK 18.0 (9.8)
- The EBITDA margin for the quarter amounted to 44 percent
- Number of player transactions (rounds) increased by 84 percent YoY to 801 million
- Mobile gaming has now grown to be 56 percent of total gross game win
- Launched for the first time in the Italian regulated market with GVC brands
- Four new games were released: Power Plant, Sunny Shores and Spiña Colada, as well as an exclusive game for Betsson Group: Trolls Bridge
- Yggdrasil Gaming Sweden AB established
- Hired a CTO and CSO for the first time
- 14 new licence agreements were signed with new operators
- Launch of revamped platform iSENSE 2.0+
- Named Slot Provider of the Year at EGR B2B Awards for second consecutive year
H1 2017 Highlights
- For the half year, revenues increased by 116 percent to MSEK 73.8 (34.1)
- EBITDA improved significantly by 76 percent and amounted to MSEK 31.2 (17.7)
- EBITDA margin for the period amounted to 42 percent
- Number of player transaction (rounds) increased by 99 percent to 1.5 billion rounds
- Released 7 new games
- Signed 24 new operators, including William Hill
- Launch of Yggdrasil Dragons, a business initiative to enter mutually beneficial partnerships with entrepreneurs and gaming businesses
- Crowned Innovator of the Year at the 2017 International Gaming Awards
- Andrew Pegler appointed chief commercial officer Gibraltar while Krzysztof Opałka promoted to chief product officer
- Announced the industry-first ground-breaking game mechanic Fusion Realms™
- Held a successful ICE event with a spectacular stand that stood Yggdrasil apart from the rest of the industry
Notable events after the quarter
- Yggdrasil signed agreement with Betfred
- Yggdrasil’s largest jackpot yet, €5.2m, dropped on the game Empire Fortune
- Shortlisted for Global Gaming Awards 2017 in the category Digital Supplier of the Year
- Released two new games, Rainbow Ryan and Valley of the Gods
Comment from Fredrik Elmqvist, CEO of Yggdrasil:
It has been another strong quarter for Yggdrasil, and I am thrilled to report further impressive growth as we continue to reap the benefits of our long-term strategy.
During Q2 2017, revenues grew 103 percent versus the same period last year, topping 40 million SEK for the first time ever. This is a fantastic result made possible by the hard work of gaming’s most talented and dedicated team.
Yggdrasil has been expanding its regulated footprint in recent months, and investments in new markets, including the UK, are now generating revenues. It is exciting to see that these investments have proven to be bang for our buck, and it underlines our commitment to these markets as part of our wider corporate strategy.
In June, we were honoured to win the prestigious ‘Slot Provider of the Year’ award for the second year in a row at the EGR B2B Awards in London. This unprecedented achievement highlights just how well respected we are within the industry. It also shows how far we have come in a short space of time, triumphing in this category over several much larger companies.
Investment was the focus during Q2, and we continue to invest in new markets, new games, new product features and new infrastructure, including the establishment of Yggdrasil Gaming Sweden AB.
We have also focused upon the reorganisation of the company to allow us to scale, with our CSO, CPO and CTO functions now restructured to clarify responsibilities and duties. This work has been fundamental in highlighting necessary recruitment.
On the subject of recruitment, we continue to look for new, talented people to join our world-class team, with several vacant positions waiting to be filled. During the second quarter, we successfully recruited or contracted 23 people, boosting the Yggdrasil team to 143 by the end of June, with more to follow in the coming months.
Costs are growing, which is necessary for us to deliver upon our ambitions, but to be able to deliver an operating profit of more than 15 million SEK for the second quarter shows that we remain focused on the bottom line.
The first six months of the year have exceeded expectations but we will once again aim to raise the bar for the remainder of 2017 and beyond, with new games and features on the horizon.