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Your Elvenar Team
Interesting financial report about Innogames
- Thread starter Alram
- Start date
Ashrem
Oh Wise One
You appear to be misrepresenting the report with your subject. Organic revenues are down, not profits. Organic revenues are not profits, they are the revenue you get from things you already owned, as opposed to adding in revenues from new acquisitions. I can't see anything in that report which indicates a drop in profits.
Near as I can see, they divested of "ASL Gaming" and their actual revenue for the products they retained is up. quote:
"As a result of the lower marketing investment levels, MTG delivered higher than expected profitability both in the quarter and the year. We reported SEK 299 million in adjusted EBITDA for the quarter, with a margin of 22 percent. This also meant that MTG has outperformed its full year margin outlook slightly."
Near as I can see, they divested of "ASL Gaming" and their actual revenue for the products they retained is up. quote:
"As a result of the lower marketing investment levels, MTG delivered higher than expected profitability both in the quarter and the year. We reported SEK 299 million in adjusted EBITDA for the quarter, with a margin of 22 percent. This also meant that MTG has outperformed its full year margin outlook slightly."
Alram
Flippers just flip
@Ashrem
I edited the title. Is that better? I am certainly no financial whiz. I'm not trying to misrepresent, simply trying to share, an article about Inno that I found interesting.
"Our year-on-year sales decline in the quarter was driven by lower sales for InnoGames and Kongregate. It was partially mitigated by growing revenues in PlaySimple, Hutch and Ninja Kiwi.
InnoGames faced a challenging market in the fourth quarter. The mid-core segment, which includes Strategy & Simulation, has been particularly impacted by two factors.
2
The first was the broader slow-down in consumer spending. The second was Apple's IDFA regulation, which is restricting our ability for effective targeted marketing. InnoGames had planned a strong pipeline of new content updates and releases to mitigate the negative market drivers. Unfortunately, some of those anticipated releases did not perform in line with expectations, and revenues therefore declined year on year in the quarter. We do continue to see established players enjoy the games and spend money. However, this hasn't been enough to offset the decline, as difficult marketing conditions have reduced their ability to onboard new players. On a positive note, the studio successfully soft launched the browser version of Rise of Cultures in the quarter."
"InnoGames reported a revenue decline year on year in the quarter. Prevailing market conditions affected InnoGames' ability to effectively scale user acquisition as anticipated during the end of the year, and some of the content and live-ops in the period underperformed expectations. The studio continued to invest in scaling its new games and InnoGames launched a browser version of Rise of Cultures and added a season pass mechanic to the game in the quarter. Both Rise of Cultures and Sunrise Village grew by double digits year on year in constant currencies, but this was not enough to offset the decline from more mature titles and Forge of Empires in particular. InnoGames also took the decision to scale down investments in Lost Survivors and impaired the title, as it was not performing in line with expectations."
I edited the title. Is that better? I am certainly no financial whiz. I'm not trying to misrepresent, simply trying to share, an article about Inno that I found interesting.
"Our year-on-year sales decline in the quarter was driven by lower sales for InnoGames and Kongregate. It was partially mitigated by growing revenues in PlaySimple, Hutch and Ninja Kiwi.
InnoGames faced a challenging market in the fourth quarter. The mid-core segment, which includes Strategy & Simulation, has been particularly impacted by two factors.
2
The first was the broader slow-down in consumer spending. The second was Apple's IDFA regulation, which is restricting our ability for effective targeted marketing. InnoGames had planned a strong pipeline of new content updates and releases to mitigate the negative market drivers. Unfortunately, some of those anticipated releases did not perform in line with expectations, and revenues therefore declined year on year in the quarter. We do continue to see established players enjoy the games and spend money. However, this hasn't been enough to offset the decline, as difficult marketing conditions have reduced their ability to onboard new players. On a positive note, the studio successfully soft launched the browser version of Rise of Cultures in the quarter."
"InnoGames reported a revenue decline year on year in the quarter. Prevailing market conditions affected InnoGames' ability to effectively scale user acquisition as anticipated during the end of the year, and some of the content and live-ops in the period underperformed expectations. The studio continued to invest in scaling its new games and InnoGames launched a browser version of Rise of Cultures and added a season pass mechanic to the game in the quarter. Both Rise of Cultures and Sunrise Village grew by double digits year on year in constant currencies, but this was not enough to offset the decline from more mature titles and Forge of Empires in particular. InnoGames also took the decision to scale down investments in Lost Survivors and impaired the title, as it was not performing in line with expectations."
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defiantoneks
Well-Known Member
that makes it worse. corporate speak is designed to make bad things look less bad. so if it sounds bad in corpspeak, it's REALLY bad in regular language.I'm not sure what "impaired the title" means, but it does sound bad!
Ashrem
Oh Wise One
Revenue and Profit are different. Revenue is money you take in, profit is the difference between that and what you spend. When a company makes itself smaller (as in by selling off a division or letting people go) their revenue may drop, while their profit actually increases.
BrinDarby
Well-Known Member
CorpSpeak : we're squeezing enuff from current players, yet
we can't attract new players economically anymore......
( we're running outta "never tried elvenar" ppl to attract cheaply )
Ashrem
Oh Wise One
Divested would mean they sold it. Impaired it means they've reduced their plans for it. They probably aren't spending as much on it as they intended to and maybe aren't introducing as many platforms as they were going to originally. So there were probably layoffs, or maybe they didn't hire people they were planning to hire, or just cancelled the advertising plans.
SoggyShorts
Mathematician par Excellence
I can't be bothered to look, but I'd expect a bit of a post-covid dip for most game companies.
At least when compared to lock-down surges-- I know steam hasn't seen much love from me since the beach became an option
At least when compared to lock-down surges-- I know steam hasn't seen much love from me since the beach became an option
Alram
Flippers just flip
