Games accounted for 38% of revenue Mail.Ru Group in the second quarter of 2019
The gaming business becomes for Mail.Ru Group is increasingly important. By the end of April-May, the Russian IT giant earned 7.5 billion rubles (about $ 117 million) from the games. This is 38% of the company’s total revenue for the quarter.
Left to Survive
The main financial results of the segment for the quarter, in addition to those mentioned, are as follows:
- the annual growth of quarterly revenue was 33.7%;
- the share of revenue from the global market has reached 69% (plans to increase to 80% by 2022);
- the largest markets for Mail.Ru The group remains the USA, Germany and Japan;
- of the 7.5 billion rubles earned, 60% was received from mobile;
- of the above amount, operating expenses amounted to 6.1 billion rubles ($95 million);
- gaming profit before interest, taxes and other expenses (EBITDA) amounted to 1.4 billion rubles ($21.8 million);
The main game results for the quarter for Mail.Ru Group:
- the highest-grossing internal development remains Hustle Castle, and its downloads by the end of June reached 47 million (by the way, in the wake of the success of this game Mail.Ru The Group announced a similar American Dad! Apocalypse Soon, based on the popular American IP);
- According to the report, War Robots with 133 million installations has reached a “more mature phase in its lifecycle”, so the company is now focusing on maximizing its EBITDA;
- the report does not say anything about the revenue of Warface, but it is mentioned that the project continues to lead in the segment of free-play games by downloads on PlayStation 4 in the USA;
- The internal development of Left to Survive became the fourth most profitable game a year after its launch Mail.Ru Group. Her downloads have reached 15 million;
- The company is also pleased with the results of the acquired Tacticool, whose installations have exceeded the mark of 7 million installations.
- total MAU of all MMO projects Mail.Ru Group for the first half of 2019 amounted to 1.1 million.
The company has big plans for the future. It plans to double EBITDA from games in four years. In Mail.Ru The Group hopes that one of the growth drivers will be the recent partnership between ESforce and Modern Pick.
The company also announced plans to launch its new gaming and media platform, as well as a desire to continue to hold gaming festivals and esports competitions.
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