Poland-based social casino games developer Huuuge Games has released its financial report for the first quarter of 2022. The company reported revenue of $84 million for the first quarter. This represents a 12.2% decrease from revenue of $95.7 million in the same period last year.
Huuuge Games held the largest IPO in Poland in the first quarter of last year. Huuuge Games, which has taken its share from the game market that has wholly risen during the COVID process, experienced one of its golden periods last year, like many other game studios. Although the company’s revenue this year decreased, this situation was interpreted as following the general trend of the entire game industry in the post-pandemic period.
The company saw a 38.5% increase in adjusted EBITDA. Adjusted EBITDA increased from $10.4 million in the same period last year to $14.4 million this quarter. Huuuge Games’ adjusted net profits grew 137% to $10 million. These figures indicate that things are improving for Huuuge Games, despite the decline in combined overall revenue.
A decrease was also observed in the number of DAU (daily active users) of Huuuge Games. The number of active users, 888,800 in the same period of last year, decreased to 701,600 this quarter. On the other hand, the percentage of users spending in-game in free-to-play games owned by Huuuge Games increased from 8.3% to 8.6%. This means that even though the company has lost active users, more than the remaining users make in-game purchases.
Huuuge Co-CEO’su ve kurucusu Anton Gauffin mali rapor ile ilgili olarak şunları söylüyor:
“During bear markets, companies need to adjust their playbooks as the whole industry is shifting its pricing model from growth to fundamentals. With our core games, this means driving cash generation and harvesting profits. In the long-term, we plan to continue seeking potential innovations in games, particularly in Web3 and blockchain technologies.”
Rod Cousens, Huuuge’s other Co-CEO, adds:
“Our core franchises are able to navigate market turbulence via responsible cost management and continue performing at high margins. Our core titles are also very cash generative. We believe the current market headwinds will result in a structural shift that should bring better revenues and margins in the longer term as we currently position the business for sustained future growth. We see potential in Traffic Puzzle and in our Publishing arm.”
