Financial Statements Bulletin January-December 2020

Published February 19, 2021

Toimisto 3

Next Games Corporation Company Release, 19 February 2021, 8:00 a.m. EET

Company EBITDA positive as a result of record Publishing Profitability.

January-December in short

  • Revenue was EUR 27.2 (34.7) million
  • Gross Profit was EUR 14.3 (19.7) million, 52% (57%) of revenue
  • Operating Result (EBIT) improved EUR 4.0 million and was EUR -3.4 (-7.4) million
  • Adjusted Operating Result improved EUR 3.9 million and was EUR -0.1 (-4.0) million
  • EBITDA turned positive and was (EUR) 0.5 (-3.5) million
  • Publishing profitability doubled in proportion to revenue with EBITDA at EUR 6.4 (3.8) million, 24% (11%) of revenue
  • Research and Development expenses were EUR -5.6 (-6.6) million, 21% (19%) of revenue
  • The company had 104 (107) employees at the end of 2020

July-December in short

  • Revenue was EUR 12.8 (15.5) million
  • Gross profit was EUR 6.7 (8.4) million, 52% (54%) of revenue
  • Operating Result (EBIT) was EUR -1.7 (-3.9) million
  • Adjusted Operating was EUR -0.2 (-2.2) million
  • EBITDA was EUR 0.2 (-2.0) million
  • Publishing profitability measured by EBITDA doubled to EUR 3.0 (1.5) million, 24% (10%) of revenue
  • Research and Development expenses EUR -2.9 (-3.3) million, 23% (21%) of revenue

(Numbers in brackets refer to the corresponding year-on-year period unless otherwise mentioned)

Key Figures

EUR millionJul-Dec 2020Jul-Dec 2019Change20202019Change
Gross Profit6.78.4-20%14.319.7-28%
Operating Result (EBIT)-1.7-3.956%-3.4-7.454%
Adjusted Operating Result-0.2-2.291%-0.1-4.097%
Gross profit %52%54%2ppt52%57%5ppt
EBITDA %2%-13%15ppt2%-10%12ppt
Operating Result (EBIT) %-14%-25%11ppt-12%-21%9ppt
Adjusted Operating Result %-1%-14%13ppt0%-11%11ppt
Publishing Operations' Profitability      
EBITDA %24%10%14ppt24%11%13%
Research and Development Key Figures      

Key Figures per Quarter      
EUR millionJul-Sept 2020Jul-Sept 2020ChangeOct-Dec 2020Oct-Dec 2020Change
Gross Profit3.24.3-27%3.54.1-14%
Operating Result (EBIT)-0.8-2.163%-1.0-1.847%
Adjusted Operating Result0.0-1.2104%-0.2-1.076%
Gross profit %52%56%4ppt52%53%1ppt
EBITDA %3%-14%17ppt0%-11%11ppt
Operating Result (EBIT) %-13%-27%14ppt-14%-24%10ppt
Adjusted Operating Result %1%-15%16ppt-3%-13%10ppt

Chief Executive Officer Teemu Huuhtanen

2020: Ready for growth

“Our strategy to make games based on well known brands is the cornerstone of profitably growing our market share.“

Next Games’ year 2020 ended on a positive note, reaching EBITDA profitability of EUR 0,5 million. The main theme of the past year was our turnaround in profitability. Publishing Operations profitability doubled as compared to the previous year. We also held a successful Capital Market Day for investors in the fall, where we refined our strategy and announced our new, mid-term financial targets of achieving yearly revenues of EUR 250 million, reaching EBITDA of over 23 % and an EBIT level of over 18%. Our growth goals are supported by our games as a service focus, and continued development and support of our full portfolio of games. The spearhead of new releases is our latest game based on the well-known brand; Stranger Things.  We will grow revenues through scaling marketing investments in the upcoming year.

Our revenue was EUR 27,2 million (34,7). Our Publishing Operations, i.e. the profitability of published games as measured by EBITDA, improved to EUR 6,4 (3,8) million and the corresponding EBITDA margin to 24% (11%): Our published games enable a stable and profitable business, as well as investments in the future.

We benefit from our strong market position in the large and growing mobile gaming market; the fastest growing segment in gaming, reaching 100 billion dollars in revenues within a few years. Interest in games is steadily growing with the global gaming market already larger than the film and music industry combined. Next Games benefits from this market development and we are already one of the largest publishers in our genres (Geolocation and Turned Based RPG) in our main market area; North America.

Our strategy to make games based on well known brands is the cornerstone of profitably growing our market share. The use of well-known brands, enables us to attract players with lower user acquisition costs compared to publishers who rely solely on user acquisition. With our advanced analytics, we are both able to scale efficiently and to optimize the in-game experience for our players.

Over the past year, we have invested heavily in our own technology platform as well as in analytics and processes, i.e. our unified infrastructure. We continue strengthening our strategic partnerships with various partners, and our product development pipeline is working on a number of promising games based on well-known international brands. More than half of our staff worked on upcoming games, and at the heart of our development is our focus on tailoring a player-centric purchase and engagement experience in our games.

We strongly believe that the best people make the best games, which is why we have invested in both international recruitment and professional development. At the end of the year, Next Games employed more than a hundred professionals from 22 different countries. Our newly appointed (end of 2020) and strengthened management team is also a key factor in supporting and accelerating growth.

In many ways the past year has been challenging for all of us, due to the concerns of the COVID-19 pandemic. However despite this challenging situation, we have been able to improve the profitability of our business as well as further the development of our new games, in accordance with our strategy. Our efforts will bear fruits in 2021, and we will continue to develop our business for long term success in the incoming years.

I would like to thank our whole team at Next Games, all our partners and our shareholders for the past year. In particular, I would like to thank our players for their continued commitment to our games. We will continue to invest in players first, now and in the future.

Teemu Huuhtanen


Outlook 2021
Next Games expects revenues to grow to at least EUR 40 million in 2021. The company is targeting profitable growth with full year EBITDA positive in 2021.

Basis for outlook
The outlook is based on an estimate that Walking Dead games will generate revenue on a steady or slightly declining trend. Revenue for Stranger Things will be increased during 2021, and Blade Runner will be released in key markets.

Audiocast and phone conference

We will hold an audiocast and a phone conference in English. Next Games’ 2020 review will be presented by CEO Teemu Huuhtanen and CFO Annina Salvén. The English audiocast starts on 19, February, 2021 at 10.00 EET. You can join by using the following link: or by phone.

Phone conference details:

Dial in by calling your location’s phone number a couple of minutes before the start. Confirmation code: 69230062#

Finland: +358 981 710 310
Sweden: +46 856 642 651
United Kingdom: +44 333 300 0804
United States: +1 631 913 1422

Additional information:
Annina Salvén
+358 (0) 40 588 3167

Certified Adviser: Alexander Corporate Finance Oy, puh. +358 50 520 4098

About Next Games
Next Games (Helsinki Nasdaq First North Growth Market: NXTGMS) is the first publicly listed mobile game developer and publisher in Finland, specializing in games based on entertainment franchises, such as movies, TV series or books. Our critically acclaimed The Walking Dead games redefines the way franchise entertainment transforms into highly engaging service-based mobile games. For more information head to