Interview with CEO of Vivid Games: Vivid Games assumes that 2021 will bring stable growth and will test 10 games.
- A few days ago, probably for the first time in the company's history, someone informed about exceeding 5% in the share capital. Do you know who this shareholder is and where his decision came from?
We do know the new shareholder is, but this is where our knowledge ends. We don’t know the motives or what further plans Mr. Sominka have.
- Maybe this investment signals market believes that the worst is behind you?
I think investors should change their perspective on how they see Vivid Games. The period of problems is behind us and for the past 6 quarters we have been delivering net profit and significantly higher sales revenues than in previous years.
- The court approved the arrangement procedure. Please explain to the bondholders what it is means for them.
This means that after the judgment becomes final - which is what we expect in the upcoming weeks, we will be able to start paying off liabilities.
- Does it mean that the validation is just a formality?
This is how you should see it, we've gone through all the steps in the process and the risks at this stage is close to zero.
What is the company's current financial situation. Will the bond installments payments not be threatened by anything?
The company's situation is stable and the bond repayment is not in danger. Sales revenues in the third quarter amounted to PLN 7.5 million, and by the end of October they exceeded PLN 23.5 million. The amount of cash held increased from PLN 2 million at the beginning of the year to nearly PLN 7 million at the end of September. The arrangement approved by the Court provides for the repayment of 10.5 million bonds with interest in the form of 12 quarterly installments. The company has no other indebtedness.
- This year is almost behind us. It is already known that on the level of revenues the forecast will be significantly exceeded and on the level of net profit it will be close to the predictions. Let’s talk about upcoming year.
Next year will be a period of stable growth. We will focus primarily on the development and strengthening of our team, the development of the portfolio with more and more valuable games, as well as increasing marketing expenditure in the field of paid user acquisition.
Our goal is to have three large free to play mobile games that will generate at least PLN 1 million in revenues each month. We will also continue to search for a hit that will bring at least PLN 4 million in revenue per month.
- Will you be publishing financial forecasts for the upcoming years?
We do not intend to publish a forecast of results for 2021, but we will remain with monthly publication of expected results.
- Was it a good decision to go beyond free to play?
Our core business that is mobile free to play remain the same. What changed a year ago is the active commercialization of the game portfolio on other platforms in cooperation with external partners primarily on Nintendo Switch where 5 of our games are already available, including: Pocket Mini Golf, Space Pioneer, Zombie Blast Crew, Gravity Rider and the premiers of Real Boxing 2, Mayhem Combat, Calm Colors and Gear of Heroes are expected to take place in second half of 2021.
- What's next with the Real Boxing brand?
The Real Boxing brand since 2012 has brought us over PLN 80 million in revenues including as much as PLN 17 million in the last twelve months. We have a rich list of new features and changes that will appear in Real Boxing 2 in the coming months. 2020 is by far the best sales year for this brand but it looks like we still have a lot of space to use. If the work on the development of Real Boxing 2 brings the expected results next year we will be testing new game concepts based on the meta-game of this title.
- What are your portfolio development plans?
We already have several titles on the release schedule for next year these are mobile games Amusing Heroes a very extensive RPG from Korean developer of Amuzing Park Corp, the action game The Cash produced by Shori Games, producer of Knights Fight 2 and our original concept Right Swipes. In 2021 we want to test 10 new mobile games both those from the publishing program and our original productions. We assume that 4-6 of them may later be distributed globally.
- Are you looking for an industry investor?
It is too early for this kind of action. Right now our goal is to increase the scale of operations and systematically improve financial results.