Vivid Games presented the results for October. The company is feeling the effects of the deteriorating global economic situation.
14.11.2022
Vivid Games presented the results for October.
The company is feeling the effects of the deteriorating global economic situation.
Vivid Games has already generated PLN 34 million in sales this year, including PLN 2.4 million in October. Cumulative net profit is close to PLN 3 million. Ebitda is PLN 6.5 million. The balance of funds on the accounts at the end of October was PLN 3.9 million.
For October loss of 900 thousand zlotys was impacted, a.o. deteriorating global economic situation and high costs of UA. The Company's Management Board sees a chance to improve the result in the coming weeks. In addition to the rebound in Real Boxing 2 and Eroblast, which the Company recorded at the beginning of November, the distribution of Knight Fights 2 will resume later this month.
“The October result reflects the deterioration of the global economy. We have taken actions that should minimize the impact of this situation on the Company's profitability in the coming weeks. We take a more conservative approach to paid user acquisition. In addition, thanks to the implementation of our machine learning tool, we predict the effectiveness of individual UA campaigns more precisely every week and continue only the most profitable ones. We also analyze the cost structure and introduce the necessary changes. The first effects are already visible. Eroblast and Real Boxing recorded a rebound in margins at the beginning of November. In addition, Knight Fights 2 returns to the portfolio after nearly a year of absence, and Eroblast will soon start with the first re-skin of the title, which should positively impact the result in the coming months” - emphasizes the CEO of Vivid Games, Jarosław Wojczakowski. “The balance of funds in the accounts decreased compared to September, e.g. due to the need to pay VAT in October on the value of the total sale amount of Bidlogic, despite receiving only the first tranche of payment. Seeing how the global situation is shaping up, we decided to keep most of the funds from the sale of Bidlogic in the Company, which will strengthen its financial stability in the coming months” - adds Wojczakowski.
The first half of October was difficult for Real Boxing 2. However, the trend has started to reverse, which gives hope for an improvement in results in November. “October was difficult for the entire industry. UA campaigns often turned out to be unprofitable, despite the lack of a visible decrease in user engagement or other factors directly related to the game. Fortunately, at the end of the month, the situation, especially in the American market, began to change. We see a rebound and hope for an improvement ahead of the holiday season, which has historically seen substantial gains. We are pleased with the effects of Halloween campaigns and are already looking forward to the next ones related to Black Friday, Super Bowl, and Christmas. At the same time, we are also launching a new player profile, an extensive career path, and new marketing channels. We are counting on a successful end of the year” - emphasizes Bartosz Biniecki, product owner of Real Boxing 2.