Vivid Games raises margins on key titles. The net result for November is an improvement of PLN 340 thousand over October's.
08.12.2022
Vivid Games raises margins on key titles.
The net result for November is an improvement of PLN 340 thousand over October's.
Vivid Games generated more than PLN 35 million in sales revenue this year, including PLN 2.1 million in November. Net profit, cumultatively, is close to PLN 1.4 million. Ebitda is PLN 5.2 million. The balance of funds in accounts was PLN 2.0 million at the end of November.
In addition to the improved profitability of Real Boxing 2 and Eroblast, great attention was paid to spending optimization, primarily in the UA campaign. As a result, the Company reduced its loss to PLN 592k, down PLN 340k from the October result. In November, the Management Board also decided to reorganize the team, which will be reflected in the results of Q1 2023.
The Company carried out several measures in November that will improve its profitability in the coming months. "The analysis of the profitability of the various titles and departments led us in November, to optimize costs, including a reduction in the workforce. By implementing savings at various levels, we will gain PLN several hundred thousand in the coming months. As a rule, the restructuring did not affect the product teams responsible for the Real Boxing and Eroblast brands. The Company intends to invest in this space and sees further growth prospects for both games" - Piotr Gamracy, Vivid Games board member, emphasizes.
In terms of Eroblast, the Company highlights not only improved profitability but also an increase in ARPU (average revenue per user) from the US to nearly $3. "The November updates to Eroblast are the result of the work of an expanded internal team. Thanks to the end of cooperation with an external developer, we not only accelerated but also increased the profitability of the title. Combined with the optimization of paid user acquisition campaigns, we increased profit by more than 24%, and this is despite a slight decrease in the number of new downloads. ARPU from the key market is now at a record level of nearly $3. The December update focuses, naturally, on the holiday season. Among other things, we are offering players an advent calendar and special Christmas packages. We assume that the biggest increase in revenue should come during the holidays" - says Łukasz Kamiński, product owner of Eroblast.
Real Boxing 2 is also counting on the effect of the so-called Christmas "golden day". "In November we decided only on the most effective UA campaigns. This allowed us to increase the profitability of the title, compared to October but took a toll on the amount of sales revenue. We are continuing this approach in December. We are counting on growth during the holiday season, for which we have been preparing for many weeks. In addition to new holiday characters like Rudolph and Bad Santa, in parallel we are developing functionalities dedicated to the most engaged and paying users like the new player profile and Career+ mode, which should be reflected in revenues in 2023" - states Bartosz Biniecki, product owner of the Real Boxing brand.