February 13th, 2019 / Other Finance Press Release

Yggdrasil Q4 and FY 2018 financial update

Yggdrasil Q4 and FY 2018 financial update

Business highlights Q4 2018 (Q4 2017)

  • 11 new license agreements signed, including e.g. Svenska Spel, ATG and Veikkaus (6)
  • 7 new games launched (2)
  • First ever branded partnership game launched; Nitro Circus
  • Kick-off for all employees in Krakow, Poland
  • YGS Masters studio partnership with Fantasma Games
  • Record jackpot pay-outs of MSEK ~80 to a LeoVegas player and MSEK ~23 to a Bethard player
  • Number of FTEs 285 (191)
  • Player rounds increased by 42% to 1,686 million (1,184)
  • Mobile share of EGW was 66% (59%)

 

Financial highlights Q4 2018 (Q4 2017)

  • Total operating revenues increased by 53% to MSEK 78.5 (51.2)
  • EBIT increased by 13% to MSEK 19.8 (17.5)
  • EBIT margin amounted to 25% (34%)

 

Financial highlights FY 2018 (FY 2017)

  • Total operating revenues increased by 62% to MSEK 274.2 (169.1)
  • EBIT increased by 18% to MSEK 69.5 (58.8)
  • EBIT margin amounted to 25% (35%)

 

Notable events after the quarter

  • Live in the newly regulated Swedish market (January 2019)

 

Comment on Q4 and FY 2018 by founder and CEO Fredrik Elmqvist

“Growth, expansion and strategic business development.

 

With 2018 behind us I am proud to present yet another eventful year for Yggdrasil. We have reported solid growth and revenues reached all time high levels of MSEK ~274, +62% from the prior year. We have also managed to grow with a healthy underlying profit whilst being in high growth mode and EBIT amounted to MSEK ~70. Yggdrasil has made several important investments for the future and we have more development projects in the pipeline than ever before. The total number of employees increased to 285, up by almost 100 from the prior year. Retaining world-class talent coupled with a focus on innovation, creativity and quality remain our top priorities to build our organisation and company for the long-term. Yggdrasil has also reached a major achievement in 2018 by being able to release all new games with GGA (Global Game Availability), i.e. where Yggdrasil can manage to launch all new games in all environments, including regulated environments, at the same time.

 

During 2018 we have continued our tireless focus on expansion and strategic business development, including the announcement of two new product verticals and entry into several new markets. We have also launched a new business vertical; YGS Masters, which invites leading independent studios on a selective basis to develop and distribute gaming content on Yggdrasil’s platform. YGS has during 2018 signed three studios and we conclude strong interest in the market both among top quartile studios and operators. YGS, together with our own offering, enables us to provide the best games and end player user experience in the industry. I am thrilled on the outcome of these initiatives and how they will support us in creating synergies with our current product portfolio and in-game promotional tools. In addition to the new vertical announcements, we have also launched 18 new games, including the third game in the immensely successful Vikings series, Vikings Go To Hell, as well as our first branded game in collaboration with Nitro Circus.

 

2018 also marks as a commercially active year with entry into new markets and the signing of 48 new customers – more than any year before! We continue to focus on locally regulated market environments and push for global expansion. We have signed several notable customers during the year including Paf, Veikkaus, 888 in addition to Svenska Spel and ATG as part of the Swedish re-regulation. Despite a more competitive and complex market environment with a regulatory landscape changing at a faster phase than ever before, we have been successful in capturing further market share. We believe this is the ultimate proof of our concept and clearly demonstrates that our business is in the game for the long run. I also believe the on-going regulation trend is positive on the back of increased barriers to entry and an overall improved market quality, with a more responsible approach among industry stakeholders yielding a safer player environment and a larger addressable market.

 

Finally, in order to enhance our strategic alignment for 2019, we gathered all our employees in Krakow, Poland, for our annual kick-off during three action packed days in October. The journey was a great opportunity for all Yggdraslians to network and learn from each other as well as putting our creative minds together to partner up for the coming year.

With this said I am now looking with excitement on the challenges and opportunities that 2019 has to offer and where we will above all continue to prioritize growth in addition to our primary directive: commercial expansion, technological consolidation and global collaboration.”

 

 

Fredrik Elmqvist, CEO and founder

Malta, January 2019