Huuuge Games Records an 80% Surge in Adjusted Net Profit for the Initial Three Quarters of 2023
Huuuge Games, a prominent mobile games publisher and free-to-play developer, has unveiled its Q3 2023 financial report, encompassing performance data for the first nine months of the year. During Q3, Huuuge's flagship titles, Huuuge Casino and Billionaire Casino, saw a 4.2% increase in revenue compared to Q2. This growth was attributed to an augmented marketing budget, an expanded loyalty program, and a game economy update in August.
Despite a notable 10.4% year-over-year rise in EBITDA during Q3, reaching its fifth consecutive quarter of such growth, overall revenues dipped by 8.2% compared to Q3 2022, totaling $71.2 million. However, the company experienced a positive shift in fortunes for Huuuge Casino and Billionaire Casino in the third quarter.
Net cash flows from operating activities over the past nine months showed a substantial increase, reaching $57.6 million, compared to $42.1 million in the same period in 2022. Notably, adjusted net profits soared by an impressive 80.32% year-over-year, reaching $66.6 million in the last three quarters—an unprecedented record for Huuuge's nine-month net profits.
Huuuge CEO Wojciech Wronowski expressed pride in the company's robust position, highlighting the generation of $112 million in adjusted EBITDA over the past year. He emphasized Huuuge's solid cash generation, surpassing the levels achieved in 2022. The CEO anticipates positive results for Q4 2023, citing changes in the gaming economy, a revamped loyalty program, and increased marketing expenditure as catalysts for optimism.
Marek Chwalek, Huuuge EVP of finance, shared that the company concluded a $150 million share buyback in Q3, retiring repurchased treasury shares. As a result, Huuuge held over $128 million in cash by the quarter's end, positioning them favorably for future investments or potential cash distribution to shareholders.
Looking ahead, Huuuge expressed optimism about the future of their loyalty program and direct-to-consumer webstore. CEO Wronowski highlighted plans for continuous enhancement of the loyalty program and significant progress in direct-to-consumer channels, with an anticipated 8% of revenue to be generated through the webshop by year-end.
The company teased ongoing developments, revealing that four development "pods" are actively working on four games, with two currently in testing. Further details will be disclosed once ongoing tests confirm commercial potential. As Huuuge Games anticipates the future, there is optimism that their evolving strategies and game development initiatives will lead to continued success in the competitive gaming market.
Source: adapted from an article by Aaron Astle, News Editor for PocketGamer.biz