LONDON, 14th of January 2021 – Flexion Mobile Plc (Nasdaq: FLEXM), the Android games distribution company today releases its quarterly trading update on the back of another record-breaking quarter ending December 2020.
Flexion expects a new revenue record in the 3rd quarter, combined with further improvement in gross profit. The continued rapid growth in revenue and gross profit are primarily attributed to a very strong end of year performance across all main channels and games.
Quarterly estimates for December 2020:
Revenue
- IAP revenue to increase by 175% (YoY) and 10% (QoQ) to GBP 6.8m
- Total revenue to increase by 176% (YoY) and 11% (QoQ) to GBP 6.9m
Gross Profit
- IAP gross profit to increase by 216% (YoY) and 7% (QoQ) to GBP 0.9m
- Total gross profit to increase by 223% (YoY) and 13% (QoQ) to GBP 0.9m
During the quarter 3 new developer agreements were announced and 1 game was launched. A loss-making multi-game contract expired on the 31st of December 2020 and Flexion is unlikely to extend the contract unless new improved terms can be agreed. These games represent approximately 10% of the total revenue and slightly less in terms of margin contribution. If not extended, the wind-down period is expected to commence in the 4th quarter. This is part of a wider portfolio review to optimise and strengthen Flexion’s financial performance in the new financial year.
Flexion currently has 20 live titles and 4 games pending launch including Illusion Connect signed on 7th January 2021. Flexion reaffirms its target of 27 live titles and positive EBITDA on IAP revenue alone by 31st March 2021.
Final numbers will be presented in the quarterly report on 11th February 2021.
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 January 14th, 2021.
About Flexion Mobile Plc: Flexion offers a distribution service for free-to-play Android games. The service allows developers to distribute their games in multiple channels such as Huawei, Amazon, Samsung, ONE store and Xiaomi. These are channels that developers are struggling to reach and support without Flexion. At the core of the service is Flexion’s patented enabling and enhancement software that converts existing Android games into specific game versions for each store 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.