Germany-based real-time social gaming platform Huuuge shared its financial results for the third quarter of 2022, posting a record EBITDA of $24.5 million. The game developer and publisher also showed 39% year-over-year growth and a hefty 79% growth compared to the previous quarter. The official press release says Huuuge reached record-high quarterly profitability with a Q3 2022 adjusted EBITDA margin of 32%.
Related: Huuuge Games reports $84 million in revenue for the first quarter of 2022
The game maker and publisher says its total sales bookings also reached $77 million, despite a visible decline in the mobile games market, per Sensor Tower’s H1 2022 report.
The gaming entity said its core titles generated approximately $71 million of bookings in the third quarter, a decline of 12% was seen year-over-year, but a 1% increase compared to the previous quarter this year. The company says it was able to increase sales despite lower marketing spending due to its new user acquisition strategy.
Anton Gauffin, Founder and Co-CEO of Huuge said, “The long-term outlook for the gaming industry looks very promising. While the world is experiencing turbulent times from the economic perspective, we believe one of our advantages is our ability to quickly adapt to changing market realities,” and added, “Our sales margin improvement in Q3 2022 exemplifies this. Huuuge is generating increasingly sizable profits, and has fuel to invest in the future, which positions the company well for times of economic stress.“
Rod Cousens, Co-CEO of Huuuge also commented and shared the following statement, “In a market which continues to throw off negative statistics, Huuuge is bucking the trend and the early initiatives we actioned are delivering over performance which we believe to be sustainable,”
He then added, “Our sales margin is improving and we are maximizing returns on reduced revenues, demonstrating the efficiencies of our strategies where we achieve more from less. We continue to be cost disciplined and our product enhancement strategy will only lead to more monetization opportunities in the future.“
Traffic Puzzle generated $5.6 million in Q3 2022
Traffic Puzzle, a flagship title for Huuuge, generated bookings of $5.6 million according to the financial statement. The game generated 36% less year-over-year, and 30% less quarter-over-quarter. Huuuge says the decline is due to the company lowering the user acquisition budget significantly.
In all fairness, the decline was expected as earlier this year the company declared that they’ll spend less on UA for Traffic Puzzle. The reduction in the UA budget was due to “the game undergoing architectural changes in order to build out a multi-SKU franchise.”
The game maker and publisher said with the September update they pushed, it has seen some improvements in early retention KPIs and it believes the game will have a better run with further updates.
