Vivid Games announced preliminary results for January. Real Boxing reported record revenues of nearly $ 0.45 million.
Vivid Games announced preliminary results for January.
Real Boxing reported record revenues of nearly $ 0.45 million.
Vivid Games generated PLN 2.8 million in sales revenue and PLN 0.25 million in net profit in January. At the end of January, there were PLN 3.43 million on the company's accounts.
In addition to the record revenues of Real Boxing 2, the result was also affected by depreciation lower than in 2021. The company wrote down the value of games and technologies that will no longer be developed, for the total amount of PLN 12.29 million. The write-offs charged the result for 2021. They will not affect the balance of cash and, at the same time, will positively affect the net result in 2022 and in the following years.
Real Boxing 2 is getting close to half of your strategic goal. “In January 2022, the game generated revenue of 443,000. USD, 160% higher than the year before. Increasing sales by ~ 10% compared to December, was possible, a.o. thanks to the already completed featuring in sales channels. We also see increases at the level of key metrics such as ARPU, and at the level of retention. This confirms the effectiveness of our actions. To maintain a high level of player involvement, we will launch other live ops this week. Thanks to the data collected during previous campaigns, we not only meet the expectations of users better and better, but we can also boast about the increasing effectiveness of user acquisition." - emphasizes Bartosz Biniecki, the product owner of the Real Boxing brand.
The write-offs significantly burdened Vivid Games' results for 2021. The management board of the company pays attention to the reasons for their decision and the benefits they bring. “During the annual tests for the loss of value of games and technologies, we assessed their commercial potential primarily through the prism of the implemented strategy. We know which games will allow us to meet the goal, and which have already lost their chance of success. Write-offs were necessary. Projects that no longer present commercial potential should not burden the Company's current results through depreciation. The project that burdened us the most was Mayhem Combat. The value of the write-off is as much as PLN 4.5 million. A year ago, we hoped that the port for the Nintendo Switch was a chance for a new life for the game. Unfortunately, the reality turned out to be different. The net result for January already includes depreciation lower than in 2021 and reflects our current situation much better. " - concludes Jarosław Wojczakowski, CEO of Vivid Games.
Due to the write-offs made, the annual value of depreciation will decrease by approx. PLN 2 million, which will translate into the Company's result for 2022.
“We are very consciously implementing the strategy presented in November and investing in exactly those activities that increase the probability of success. In addition to the development of Real Boxing 2, we are finishing initial conceptual work and later this quarter we will present an idea for a title based on the proven RB2 meta-game. At the same time, we are developing titles that are able to generate revenues of at least USD 0.3 million per month. The publishing department also conducts several talks, which may be significant for the company's standing in the coming periods. We will be able to reveal more details soon. " - adds Piotr Gamracy, board member of Vivid Games.