Gaming revenue Mail.Ru The Group grew by 20% in 2019, but EBITDA remained at the same level
Russian Internet giant Mail.Ru The Group has published a financial report for the past year. The company earned 87 billion rubles ($1.3 billion). Of this amount, the games accounted for 30.6 billion rubles ($ 472 million).
The company’s gaming business, which now operates under the MY.GAMES brand, has grown by 20.1% year-on-year since last year. At the same time, EBITDA, according to the document, did not show significant growth in rubles, and even fell slightly in dollars:
- EBITDA in 2018 — 5 billion rubles ($80.6 million, based on the weighted average exchange rate for 2018 of 62.7 rubles per dollar);
- EBITDA in 2019 is 5.2 billion rubles ($80.3 million, based on the weighted average exchange rate for 2018 of 64.7 rubles per dollar).
As for the rest of the numbers:
- the share of mobile revenue in the fourth quarter was 61% (a year ago it was 57%). It is planned to bring the ratio to the bar of 80% in the next two to three years;
- 68% of all revenue comes from foreign markets;
- the margin was 33% in the fourth quarter, the profitability of games for the whole year was 17%;
- the company earns the specified amount of 30.6 billion rubles with a monthly number of paying 1 million people. At the same time, the total number of all users of the company’s games in the fourth quarter reached 600 million.
There have been almost no changes in the central titles of the company over the year:
- The company still calls Warface a key brand for the company. The game brings the bulk of the revenue. MY.GAMES plans to launch a new mobile and console game under the franchise.
- War Robots, which has crossed the threshold of 150 million installations, shows an increase in EBITDA. It is expected that the game’s profit will continue to grow in the coming year.
- Hustle Castle‘s revenue grew by 36%. In addition, last year it was able to show a record daily revenue of 100 million rubles, and a record daily download rate of 55 million.
- The top five highest—grossing games of the company include the development of the WhaleKit studio – a zombie shooter Left to Survive with 15 million installations.
The report also told about the successes of American Dad! Apocalypse Soon. The game has collected 3.6 million installations since November and, possibly, by the end of this year, it will be among the top five highest-grossing titles of the company. The successful regional launch of the Korean Lost Ark (1.7 million players), a good start in Russia and the CIS Conqueror’s Blade (also 1.7 million) and 4 million installations of Love Sick: Interactive Stories since February 2019 were also mentioned.
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