Yggdrasil Gaming Q1 2018 Update
- Revenues for the period increased by 73% year-on-year to MSEK 57.6 (Q1 2017: 33.3)
- FX tailwinds affecting revenue development positively and growth in local currency EUR was 65% year-on-year
- EBITDA for the period increased to MSEK 18.1 (13.3)
- The EBITDA margin for the period amounted to 31% (40)
- EBIT for the period increased to MSEK 13.8 (10.7)
- Number of player transaction (rounds) increased by 90.2% year-on-year to 1,333 million
- Three new games were released: Ozwin’s Jackpots, Gem Rocks and Easter Island
- 9 new licence agreements were signed including bet25.dk and two new partners in Italy, Lottomatica and Stanleybet
- Mobile gaming 61% of total estimated gross game win
- Announced entry into the table games vertical
- Announced plans to enter Spain with a GVC deal
- Launched the new studio partnership program, YGS Masters
- Previewed table games at ICE Totally Gaming at a spectacular new stand
- Crowned Innovator of the Year for the second time in row at the International Gaming Awards
Notable events after the quarter
- First exclusive Yggdrasil White Label Studios game, Royal Family, launched with LeoVegas
- Northern Lights signed as the first partner to join Yggdrasil’s YGS Masters
- One new slot game was released, Lucha Maniacs
Comment from Fredrik Elmqvist, CEO of Yggdrasil:
Once again, I am proud to be in a position to present another action-packed quarter for Yggdrasil Gaming.
Let’s start with the numbers, which make for impressive reading. Total player rounds increased by 90.2% compared with Q1 2017, underlying the scale we are adding to our operations. This corresponded with revenues hitting MSEK 57.6, up 73% on the same period last year. Operating profitability as measured by EBIT was up 29% year-on-year to MSEK 13.8, yielding a margin of 24%. The decline in margin is accounted for by the additional investment at London’s ICE trade show, as well as costs taken in conjunction with the on-going expansion of the business.
On the subject of ICE, we enjoyed another hugely successful show this year. ICE is always the year’s biggest marketing event, and we received unprecedented feedback from customers and industry stakeholders this year. Ahead of the show, we once again received the prestigious Innovator Supplier of the Year at the International Gaming Awards. As ever, innovation remains at the very core of Yggdrasil’s DNA.
Innovation is on show in everything we do, but particularly in the strategic initiatives either progressed or launched during the quarter. We began the year announcing our upcoming table games product, which we are confident will revolutionise the vertical when it launches later this year. The product is based on a new, proprietary technological framework, REDUX, which combines the best aspects of live and RNG casino, allowing players to immerse themselves in a fully 3D environment. Similarly, our bingo product, announced at the end of 2017, continues to progress. Bringing the Yggdrasil spark to these new verticals presents us with a significant growth opportunity.
We also launched a new strategic partnership initiative, YGS Masters, in reaction to the increasingly fragmented gaming value chain. An invite-only, semi-open platform, YGS Masters will enable us to curate content from the world’s leading independent games studios and distribute via our platform.
Alongside these new initiatives, we continue to develop new, world-class casino slots content and expand our commercial operations. This quarter we announced our forthcoming entry in Spain, one of Europe’s fastest growing online gaming markets. Spain is a particularly exciting jurisdiction and a perfect match for Yggdrasil’s offering. Coming on the heels of our entries into Denmark and Italy, our commitment to expanding our footprint in Europe’s regulated markets is clear. Yggdrasil has also worked closely with our customers and I am very happy to announce that we have signed a number of high profile operators, adding to our strong customer list.
I believe the conditions are right for continued strong growth ahead. We see strong interest in our games and in-game promotional tools among both operators and end players. I am very excited regarding the opportunities laying ahead, and we will continue to prioritise growth and build upon our world-class offering.
Fredrik Elmqvist, CEO and founder of Yggdrasil