LONDON, 8th of October 2020 – Flexion Mobile Plc (Nasdaq: FLEXM), the Android games distribution company today releases its first regular quarterly trading update on the back of strong positive momentum in the 2nd quarter ending September 2020.
Flexion expects a new revenue record in the 2nd quarter, combined with a significantly improved gross profit. The continued rapid growth and gross profit improvement are primarily attributed to strong portfolio performance in Huawei’s App Gallery, where many of the top titles have been promoted during the 2nd quarter.
Quarterly estimates for September 2020:
Revenue
- IAP revenue to increase by 173% (YoY) and 32% (QoQ) to GBP 6.2m
- No material Non-IAP revenue to be recorded during the quarter
- Total revenue to increase by 168% (YoY) and 28% (QoQ) to GBP 6.2m
Gross Profit
- IAP gross profit to increase by 238% (YoY) and 51% (QoQ) to GBP 0.8m
- IAP gross profit includes GBP 0.1m of favourable historical adjustments
- Total gross profit to increase by 190% (YoY) and 15% (QoQ) to GBP 0.8m
Three new games were signed during the period and four games were launched. Flexion anticipates that the Yoozoo agreement will not be extended beyond 1st October 2020 due to internal restructuring within Yoozoo. The two titles Legacy of Discord and Saint Seiya will therefore not be distributed by Flexion going forward. In the short term, this will have some impact on revenue growth and an approximate 10% reduction in the gross profit margin.
Going into the 3rd quarter, Flexion has 18 live titles, including the newly launched game Dragon Raja.
Flexion reaffirms the target of 27 live titles and positive EBITDA on IAP revenue alone by 31st March 2021 as sales and integration pipeline remains strong. Two games are pending launch in the 3rd quarter.
Flexion intends to release a trading update each quarter going forward. Final numbers will be presented in the quarterly report on 5th November 2020.
For more information
Niklas Koresaar CFO, Email: ir@flexionmobile.com. Tel: +44 207 351 5944
This is information that Flexion Mobile Plc is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on October 8th, 2020.
About Flexion Mobile Plc: Flexion offers a distribution service for free-to-play Android games. Using the service games can be distributed in multiple channels such as Amazon, Huawei,Samsung, ONE store and Xiaomi. These are channels that developers are struggling to reach and support. At the core of Flexion’s service is the patented enabling and enhancement software that converts developer’s existing Android games into specific game versions for the new stores without any work required by the developers. Flexion Mobile Plc is listed on Nasdaq First North Growth Market, Shortname: FLEXM. Certified Adviser is FNCA Sweden AB, +46(0)8-528 00 399, info@fnca.se.