November 9th, 2017 / Finance Press Release
Yggdrasil Q3 2017 Update
We have had an action-packed third quarter, and once again, we have delivered an all-time high result.
- Revenues for the period increased by 110 percent year-on-year to MSEK 44.1 (Q3 2016: 21.0)
- The EBITDA margin for the period amounted to 42 percent (44)
- EBITDA for the period increased to MSEK 18.7 (9.2)
- EBIT for the period increased to MSEK 15.3 (5.8)
- Number of player transaction (rounds) increased by 132.6 percent year-on-year to 1,019 million
- Mobile gaming has now grown to be 59 percent of total gross game win
- 10 new licence agreements were signed, including Betfred and SkillOnNet
- Three new games were released: Rainbow Ryan, Valley of the Gods and Jungle Books
- Four games went live in the UK and Gibraltar
- Yggdrasil’s largest ever jackpot of €5.2m fell on the Empire Fortune progressive jackpot slot
Notable events after the quarter
- Entered Danish market with Jackpotjoy Group deal
- Yggdrasil games went live with another operator, Gaming Realms
- Signed a commercial agreement with Pinnacle
- A €3.5m jackpot fell on Joker Millions
- Released new game Pumpkin Smash
- Three games, including Vikings Go Berzerk, released in Italy; one game went live in the UK and Gibraltar
Comment from Fredrik Elmqvist, CEO of Yggdrasil:
As is always the case at Yggdrasil, it has been an action-packed quarter as the company continues to build upon the significant progress we have already made.
Once again, we have delivered an all-time high result, with EBITDA for the period hitting MSEK 18.7. It is a fantastic achievement which was only made possible by the hard work of the most dedicated and talented team in gaming.
This growth has been driven by an increase in traffic to our games. During the third quarter the number of rounds has increased by 132.6 percent versus last year, while we have also added 10 new licensees, including Betfred.
Our focus remains on laying solid foundations to ensure we can continue our growth trajectory off the back of these extremely strong results.
During September, we held an annual kick-off meeting in our Krakow office where we laid out a conditional roadmap that will form the basis of our 2018 strategy. The meeting was attended by a significantly bolstered management team that positions us well for the demands that our rapidly-growing company now faces.
On the product front, we released three new games during the quarter: Rainbow Ryan, Valley of the Gods and the much-anticipated Jungle Books. The latter was our headline game at ICE earlier this year.
Recruitment has also stayed at the top of the agenda during the quarter. Across the business we recruited or contracted 27 people during Q3, taking the Yggdrasil team to 170 by the end of September. I am looking forward to welcoming more over the coming months.
Due to our growing workforce, we have secured additional office space in Krakow and in Malta, are looking to move to a bigger space in Gibraltar, and have a new office operational in Stockholm.
As you’ll see by the growth in profit, this expansion has been achieved in a cost-efficient manner. As is natural for a fast-growing company, costs will continue to grow, but we remain focused to ensure additional spend helps spur further growth.