BoomBit Group financial results for Q1 2022

BoomBit NewsInvestor news
26 May 2022

BoomBit, top mobile games developer and publisher, summarizes Q1 2022:

  • $15.9M revenue from games (+41% y/y) and 59.5M downloads in Q1 2022
  • $0.5M adjusted net profit, a decrease by 46% from $1M in Q1 2021
  • Cash increased by 48% from $6.0 million at the end of March 2021 to $8.9M at the end of March 2022
  • The management board proposes to pay a $2.8M dividend for 2021
  • BoomPick – a new joint venture
  • Very good results in April: $6.3M revenue from games and 28.5M downloads

“In the first three months of this year, we focused on further development of the BoomBit Group’s game portfolio and looked for new opportunities to increase and diversify our revenue. In the January-March period, our revenue increased by over 40% y/y and we generated $0.5M adjusted net profit. This result is 41% lower compared to the same quarter in 2021, which was influenced by investments in the organic growth of the Capital Group and new initiatives, including the development of BoomHits, new joint venture companies (ADC Games, SkyLoft, BoomPick) as well as the development of Play And Earn projects. We believe that in the long run, these actions will result in improved results in the future and they are beneficial to our shareholders. The Mid-Core games, Hunt Royale and Darts Club, generated the best earnings, but more than a dozen games from our strong and well-balanced portfolio brought in good revenue. Our financial situation is very good. We generated positive cash flows, and the cash balance increased by 48% Q1 2021 vs Q1 2022. We decided to propose a dividend payment, which, together with the advance dividend already paid in November, will amount to nearly $6.3M. We are constantly developing operationally. We are preparing new titles on which we will work internally, as well as within BoomHits and JV companies. In February, we founded BoomPick, a Joint Venture that will be publishing mostly merge games. We strongly believe in our new area of activity, i.e. Play And Earn projects based on blockchain technology”, says Marcin Olejarz, Co-CEO of BoomBit S.A.

The revenue of the BoomBit Group amounted to $15.9M and were 41% higher than the year before. The driving force behind the revenue growth were Mid-Core games, and the two main titles in this segment, Hunt Royale and Darts Club, which generated $4.1M and $1.9M in revenue, respectively, were the highest-earning titles in Q1 2022. The five most profitable games in our portfolio accounted for half of all revenue, while the share of revenue from Hyper-Casual games amounted to 50%, i.e. $8.0M, similar to the total of Mid-Core and Casual games, which confirms that the BoomBit Group’s game portfolio is well diversified. The total number of downloads in Q1 2022 was 59.5M. So far, in 2022, the Group has released a dozen or so games for iOS and Android platforms, prepared as part of all three pillars of the Group’s activity (In-house production, BoomHits and JV companies). The most successful titles published this year are Grass Master, Dog Life Simulator, Baseball Club, Try to Fly and Train Ramp Jumping.

Changes in the revenue structure were also visible at the cost level, which increased the importance of Mid-Core and Casual games. In Q1 2022, the total amount of User Acquisition and revshare as well as platform fees in the Hyper-Casual segment amounted to approximately $6M, and for Mid-Core and Casual games – $5.7M. The estimated results for April, in which the BoomBit Group had $6.3M in revenue and 28.5M downloads, confirms that the publishing and marketing activities undertaken with the use of User Acquisition tools are well thought out and effective. The company is working on updating and marketing the most promising games and supplementing the portfolio with new titles

Adjusted EBITDA was $1.5M, which was 32% lower compared to $2.1M in the corresponding period of 2021, and adjusted net profit was $0.5M, which is 46% less than $1M in the previous year . The cash balance at the end of March 2022 was $8.9M, which is 9% more than at the end of 2021 and 48% more y/y. Due to our stable financial situation and good prospects, the management board proposed a dividend payment for 2021 in the amount of $2.8M, which is over 86% of the standalone net profit for 2021. The total dividend amount includes a $0.8M dividend advance that was paid in November 2021.

The primary activity of the BoomBit Group is the internal production and publishing of mobile games, and the second pillar is the external publishing activity, for which BoomHits is responsible. Joint Venture companies are the third source of revenue. Currently, the BoomBit Group has four JVs: TapNice, SkyLoft, PlayEmber, and BoomPick, which was established in February 2022 in cooperation with the Polish studio Cherrypick Games. A new area of ​​activity are Play and Earn games based on blockchain technology. The company sees high potential in blockchain gaming as an alternative to traditional revenue generating methods such as advertising or micropayments.

“Games based on blockchain technology will be one of the fastest growing segments of the gaming market in the future. The work on our Play and Earn projects, especially BoomLand, is going as expected. The biggest challenge is to make games of this type attractive and easily accessible to the largest possible group of users. We want BoomLand to become the leader of the blockchain market in the future”, adds Hannibal Soares of BoomBit S.A.