Record full year revenue of $93.2M growing by 37% vs full year
2020
Record Q4 revenue of $28.6M increased by 49% vs same period last
year
Record Q4 player audience
Annual adjusted
EBITDA of $7.4M
The
Office: Somehow We Manage achieves Top 10 Most
Downloaded Games Ranking in the US on iOS*
All figures
are as reported under IFRS
*Source: Data Ai
VANCOUVER, BC, March 10, 2022 /CNW/ - East Side Games Group
(TSX: EAGR) (OTC: EAGRF) ("ESGG" or the "Company"),
Canada's leading free-to-play
mobile game group, today announced financial results for the
fourth quarter and full year ended December
31, 2021. All amounts are stated in Canadian dollars on an
as reported basis under IFRS unless otherwise indicated.
"This was a monumental year for ESGG and we capped it off with
significant growth in Q4, achieving record quarterly revenue,
annual revenue and record user numbers, in addition to launching
our first 'Super Marquee' title, RuPaul's Drag Race
Superstar. The marketing landscape continued to improve in the
fourth quarter, we have adapted well to Apple's IDFA changes and
have been successful in our marketing campaigns with
increased disciplined investing in user acquisition towards
the end of the year linked to new launches and sustained returns.
This contributed to an extremely successful launch of RuPaul's
Drag Race Superstar which, as we mentioned last quarter,
surpassed the 1 million download mark only weeks after launch. Our
core portfolio of games was a strong contributor to our performance
this quarter. We had no new game launches until late October and
still realized a strong recovery from the seasonally slow third
quarter," said Darcy Taylor, CEO of
East side Games Group.
"With a record setting FY2021 in the rear view, we have
continued to execute on our growth strategy. On January 27 of this year, we launched the second
of our 'Super Marquee' titles, The Office: Somehow We
Manage, in collaboration with Universal Games and Digital
Partnerships. This title has already ranked in the Top 10 Games in
Canada and the US, Top 10 Casual
Games in 6 countries, and was also featured as Game of the Day, on
the Apple App Store. February
15th marked another milestone for us as we
announced the achievement of $100
million revenue for the 12-month period ended February 5, 2022. We expect to build on this
$100 million milestone through Q1
2022 as we recognise a full quarter of revenue from RuPaul's
Drag Race Superstar and capture the first partial quarter of
The Office: Somehow We Manage as it begins to ramp up,"
continued Mr. Taylor.
Fourth Quarter and Full Year 2021 Highlights:
- Revenue was $28.6 million, a 49%
increase vs Q4 2020 revenue of $19.2
million.
- Annual revenue was $93.2 million,
an increase of 37% vs. 2020 revenue of $68.1
million.
- Q4 Adjusted EBITDA was $1.1
million, a decrease of 83% vs same period 2020 Adjusted
EBITDA of $6.6 million.
- Full year Adjusted EBITDA was $7.4
million, a decrease of 38% vs 2020 Adjusted EBITDA of
$12.0 million.
- Q4 net and comprehensive loss of $(0.8)
million, or ($0.01) on a per
common share basis.
- Full year 2021 net and comprehensive loss of $1.9 million or ($0.03) per share
- Adjusting for the lower US dollar in 2021 compared to 2020, in
constant dollars, Q4 revenue would have been $29.2 million and full year revenue on a pro
forma basis would have been $100.3
million.
- Cash on hand at December 31, 2021
was $9.2 million. In addition to the
cash on the balance sheet, the Company has access to $13.5 million in credit facilities, none of which
has been drawn upon in the reporting period.
- Record player audience with Q4 Daily Active Users (DAU)
reaching 348,154, up 21% year-over-year, and Monthly Active User
(MAU) of 1,526,246, up 53% over the same period.
- Average Revenue per DAU (ARPDAU) for the quarter was
$0.90, slightly up from the prior
year quarter.
- Launched RuPaul's Drag Race Superstar mobile game
on October 25th. This game
has since been shortlisted for Pocket Gamer's People's Choice Award
and secured Game of the Day feature on the Apple App Store
- Expanded and extended the partnership with Trailer
Park Boys to include more games
in expanded genres.
- Added new Game Kit partner, NoPowerup, for the development of
an idle business tycoon-style game to launch in 2022.
"Record quarterly revenue capped off a record year for us. The
breadth of our game portfolio allowed us to adapt to marketing
landscape changes in the previous 2 quarters and return to strong
growth in Q4. Adjusted EBITDA was impacted by increased investment
in user acquisition and development of new titles," continued Mr.
Taylor.
Significant events subsequent to fourth Quarter
2021:
- Launched The Office: Somehow We Manage, in collaboration
with Universal Games and Digital Partnerships, on January 27. This title has already ranked in the
Top 10 Games in Canada and the US,
Top 10 Casual Games in 6 countries, and was also featured as Game
of the Day, on the Apple App Store.
- Entered into a multi-year partnership with ViacomCBS Consumer
Products, for the worldwide release of a Star Trek: Lower
Decks-themed mobile game. The game will be available in 2022 on
both iOS and Android.
- Entered into a multi-year partnership with BBC Studios, for the
worldwide release of a mobile title based on the Doctor Who
franchise. The game will be available in 2022 on both iOS and
Android.
- Acquired Funko Pop! Blitz mobile game from N3TWORK.
Funko Pop! Blitz is a deeply engaging match-3 blitz
character collection game featuring Funko Pop! versions of lovable
characters across multiple iconic franchises in unique weekly
events.
- Expanded the Game Kit partnership with Mighty Kingdom, based in
Australia, for the world-wide
release of three additional free-to-play mobile games on iOS and
Android
"We've carried our momentum into 2022, executing on our growth
pillars of organic game growth, accretive acquisitions and
distributed growth through our proprietary Game Kit platform
licensing. We've added more 'Super Marquee' IP in the form of the
Star Trek and Doctor Who franchises,
acquired Funko Pop! Blitz, which fits perfectly into
our portfolio of top tier casual games, in addition to expanding
our Game Kit partnership with Mighty Kingdom," said Darcy Taylor.
Certain information provided in this news release is extracted
from the consolidated financial statements (the "Financial
Statements") and Management's Discussion & Analysis
("MD&A") of the Company for the year ended December 31, 2021 and should be read in
conjunction with them. It is only in the context of the fulsome
information and disclosures contained in the Financial Statements
and MD&A that an investor can properly analyze this
information. The Financial Statements and MD&A can be found
under the Company's profile on SEDAR and EDGAR.
Webcast and Conference Call Information
The Company will hold a conference call to discuss its
performance with the investment community at 2:00 p.m. PT today. Related earnings release
materials can be found on East Side Games Group website at
https://eastsidegamesgroup.com/investors/financial-information/.
Webcast and Conference Call Details:
Webcast URL:
https://onlinexperiences.com/Launch/QReg/ShowUUID=430F1BE3-50A0-491B-9382-04525977278D
Toll Free Dial-In
Number:
|
+1 (833)
772-0399
|
International Dial-In
Number:
|
+1 (236)
738-2279
|
Conference
ID:
|
4787454
|
A replay will be available starting at 6:30 a.m. PT March 11,
2022 until April 10, 2022 by
dialing +1 (800) 585-8367 or +1 (416) 621-4642 and entering the
conference ID 4787454.
ABOUT EAST SIDE GAMES GROUP
East Side Games Group (formerly operating under the name "LEAF
Mobile Inc.") is a leading free-to-play mobile game group, creating
engaging games that produce enduring player loyalty. Our studio
groups entrepreneurial culture is anchored in creativity,
execution, and growth through licensing of our proprietary Game Kit
software platform that enables professional game developers to
greatly increase the efficiency and effectiveness of game creation
in addition to organic growth through a diverse portfolio of
original and licensed IP mobile games that include: Archer:
Danger Phone, Bud Farm Idle Tycoon, Cheech & Chong Bud Farm, The Goldbergs: Back to the 80s,
It's Always Sunny: The Gang Goes Mobile and Trailer Park Boys
Grea$y Money, RuPaul's Drag Race Superstar and The
Office: Somehow We Manage.
We are headquartered in Vancouver,
Canada and our games are available worldwide on the App
Store and Google Play. For further information, please visit:
www.eastsidegamesgroup.com and join our online communities at
LinkedIn, Twitter, Facebook, and Instagram.
Additional information about the Company continues to be
available under its legal name, LEAF Mobile Inc., at
www.sedar.com.
Forward-looking Information
Certain statements in this release are forward-looking
statements, which reflect the expectations of management regarding
the proposed transactions described herein. Forward-looking
statements consist of statements that are not purely historical,
including any statements regarding beliefs, plans, expectations or
intentions regarding the future. Such statements are subject to
risks and uncertainties that may cause actual results, performance
or developments to differ materially from those contained in the
statements. No assurance can be given that any of the events
anticipated by the forward-looking statements will occur or, if
they do occur, what benefits the Company will obtain from them.
These forward-looking statements reflect management's current views
and are based on certain expectations, estimates and assumptions
which may prove to be incorrect. A number of risks and
uncertainties could cause our actual results to differ materially
from those expressed or implied by the forward-looking statements,
including factors beyond the Company's control. These
forward-looking statements are made as of the date of this news
release.
SOURCE East Side Games Group