Huuuge Games 2023 earnings report

Huuuge Games has revealed a significant rise in adjusted net profits and adjusted EBITDA for the year 2023, marking an increase of 35.1% and 31.5%, respectively, compared to the previous year.

According to the company’s latest financial report, adjusted net profits totaled $87.3 million for the year, while adjusted EBITDA reached $108.2 million. The company’s improved financial performance contrasts with a decrease in the number of daily players in its games. Despite this decline, Huuuge attributes its success to organizational changes, a focus on margins, and staff layoffs. The record profits achieved in 2023 surpassed the fiscal results of 2022, even before the fourth quarter of 2023 began.

Structural changes within the company have played a significant role in this success, particularly evident when comparing revenues. Although revenue decreased by 11% from 2022, largely due to the cessation of development on Traffic Puzzle, Huuuge managed to increase profits substantially through cost-cutting measures.

Despite a $0.40 rise in spending per daily active user and an increase in conversion from player to payer, the overall decline in daily active users from 610,500 to 429,700 and a decrease in daily per user spending from 22,300 to 16,700 persisted.

Wojciech Wronowski, CEO of Huuuge, highlighted the company’s prioritization of profitability over revenue growth, stating, “In 2023, we prioritized profitability over revenue growth and achieved a record level of adjusted EBITDA, at $108.2 million, while operating cash flows totaled over $82.4 million.”

Huuuge’s flagship games, Huuuge Casino and Billionaire Casino, remained top earners in the social casino gaming segment, increasing average revenue per daily active user (ARPDAU) and average revenue per paying user (ARPPU). Despite reducing marketing spending, the number of daily active users continued to rise.

Additionally, direct-to-consumer revenue grew as a channel for revenue generation in 2023, accounting for $16.6 million of Huuuge’s revenue across the year. This marked a significant increase from the previous year, with revenue from direct-to-consumer tripling in 2023 compared to 2022. You can access the full version of the report here.

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