LIMASSOL,
Financial highlights:
Fourth quarter 2023:
- Revenue of
$109 million increased by 10% year-over-year. - Bookings of
$106 million increased by 4% year-over-year. - Profit for the period of
$11 million in Q4 2023 vs. loss of$77 million in Q4 2022. - Adjusted EBITDA of
$10 million in the fourth quarter 2023 compared to negative$9 million in the fourth quarter of 2022.
Full year 2023:
- Revenue of
$465 million declined by 3% year-over-year. - Bookings of
$422 million declined by 6% year-over-year. - Profit for the period of
$46 million in 2023 vs.$7 million in 2022. - Adjusted EBITDA of
$43 million in 2023 compared to$96 million in 2022.
Fourth quarter and full year 2023 financial performance in comparison
US$ million | Q4 2023 | Q4 2022 | Change (%) | FY 2023 | FY 2022 | Change (%) | ||||||
Revenue | 109 | 99 | 10 | % | 465 | 480 | (3 | %) | ||||
Platform commissions | (25 | ) | (25 | ) | (0 | %) | (109 | ) | (130 | ) | (16 | %) |
Game operation cost | (13 | ) | (13 | ) | (4 | %) | (52 | ) | (44 | ) | 17 | % |
Selling and marketing expenses | (54 | ) | (40 | ) | 33 | % | (226 | ) | (153 | ) | 48 | % |
General and administrative expenses | (7 | ) | (8 | ) | (7 | %) | (30 | ) | (36 | ) | (18 | %) |
— | (63 | ) | (>100%) | — | (63 | ) | (>100%) | |||||
Impairment loss on trade receivables and loans receivable | (0.4 | ) | (24 | ) | (98 | %) | (6 | ) | (30 | ) | (80 | %) |
Profit/(loss) for the period, net of tax | 11 | (77 | ) | (>100%) | 46 | 7 | >100% | |||||
Adjusted EBITDA1 | 10 | (9 | ) | (>100%) | 43 | 96 | (55 | %) | ||||
Cash flows generated from operating activities | 10 | 17 | (41 | %) | 18 | 116 | (85 | %) |
Fourth quarter 2023 financial performance
In the fourth quarter of 2023, our revenue increased by
Platform commissions remained relatively stable at the level of
Game operation costs were stable at the level of
Selling and marketing expenses in the fourth quarter of 2023 increased by
General and administrative expenses remained relatively stable decreasing by only
As a result of the factors above, together with: (i) the effect of an impairment of goodwill and investments in equity accounted associates recorded in Q4 2022 in the amount of
Cash flows generated from operating activities amounted to
Full year 2023 financial performance
In 2023 our revenue decreased by
Platform commissions decreased by 16% in 2023 compared with 2022. The decrease in platform commissions was primarily due to a 6% decrease in the revenue generated from in-game purchases when compared to the prior period. This was amplified by an increasing share of revenue being derived from our PC platform which is associated with lower commissions in comparison with other platforms.
Game operation costs increased by
Selling and marketing expenses in 2023 increased by
General and administrative expenses decreased by
As a result of the factors above, together with (i) the effect of an impairment of goodwill and investments in equity accounted associates recorded in 2022 in the amount of
Cash flows generated from operating activities amounted to
Fourth quarter and full year 2023 operational performance comparison
Q4 2023 | Q4 20223 | Change (%) | FY 2023 | FY 20223 | Change (%) | |||||||
Bookings ($ million) | 106 | 102 | 4 | % | 422 | 449 | (6 | %) | ||||
Share of advertising | 6.5 | % | 4.3 | % | 2.2 p.p. | 7.2 | % | 4.5 | % | 2.7 p.p. | ||
MPU (thousand) | 359 | 316 | 13 | % | 377 | 335 | 13 | % | ||||
ABPPU ($) | 92 | 103 | (11 | %) | 86 | 107 | (19 | %) |
Bookings increased by 4% year-over-year in the fourth quarter of 2023 and decreased by 6% year-over-year in 2023. This can be attributed to the fact that 2022 was characterized by significantly lower marketing investments into the acquisition of new players who could potentially provide support to bookings in 2023. However, our significant investment into marketing in 2023 resulted in an increase in MPU by 13% both in the fourth quarter and full year 2023, which in turn is expected to positively impact our bookings in the future. As a result, we recorded a moderate growth of bookings in the fourth quarter of 2023 vs. the same period of 2022.
The share of advertisement sales as a percentage of total bookings increased in both the fourth quarter and full year 2023 to 6.5% and 7.2% respectively, compared to 4.3% and 4.5% in the respective periods of 2022. The increase was driven by substantially increased monthly active users (due to increased investments into new players) as well as by the successful implementation of advertisement functionality in Island Hoppers from the start of the second quarter of 2023.
Split of bookings by platform | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | ||||
Mobile | 57 | % | 60 | % | 62 | % | 63 | % |
PC | 43 | % | 40 | % | 38 | % | 37 | % |
In 2023, the share of PC versions of our games increased by 1 p.p., while the distribution of bookings across platforms changed by 3 p.p. in favor of PC versions in the fourth quarter of 2023.
Split of bookings by geography | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | ||||
US | 34 | % | 34 | % | 35 | % | 33 | % |
24 | % | 24 | % | 24 | % | 26 | % | |
27 | % | 22 | % | 25 | % | 21 | % | |
Other2 | 15 | % | 20 | % | 16 | % | 20 | % |
Our split of bookings by geography both in the fourth quarter and 2023 as a whole vs. the respective periods in 2022 remained broadly similar, with a certain increase in the share of
Note:
Due to rounding, the numbers presented throughout this document may not precisely add up to the totals. The period-over-period percentage changes are based on the actual numbers and may therefore differ from the percentage changes if those were to be calculated based on the rounded numbers.
The figures in this release are preliminary and unaudited. The Company’s 2023 Annual Report on Form 20-F, which will include the Company’s audited financial statements as of and for the year ended
About GDEV
GDEV is a gaming and entertainment powerhouse, focused on growing and enhancing its portfolio of studios. With a diverse range of subsidiaries including
Contacts:
Investor Relations
Roman Safiyulin | Chief Corporate Development Officer
investor@gdev.inc
Cautionary statement regarding forward-looking statements
Certain statements in this press release may constitute “forward-looking statements” for purposes of the federal securities laws. Such statements are based on current expectations that are subject to risks and uncertainties. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.
The forward-looking statements contained in this press release are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those that the Company has anticipated. Forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the Company’s 2022 Annual Report on Form 20-F, filed by the Company on
Presentation of Non-IFRS Financial Measures
In addition to the results provided in accordance with IFRS throughout this press release, the Company has provided the non-IFRS financial measure “Adjusted EBITDA” (the “Non-IFRS Financial Measure”). The Company defines Adjusted EBITDA as the profit/loss for the period, net of tax as presented in the Company's financial statements in accordance with IFRS, adjusted to exclude (i) goodwill and investments in equity accounted associates' impairment, (ii) loss on disposal of subsidiaries, (iii) income tax expense, (iv) finance income and expenses other than foreign exchange gains and losses and bank charges, (v) change in fair value of share warrant obligations and other financial instruments, (vi) share of loss of equity-accounted associates, (vii) depreciation and amortization, (viii) share-based payments expense and (ix) certain non-cash or other special items that we do not consider indicative of our ongoing operating performance. The Company uses this Non-IFRS Financial Measure for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that this Non-IFRS Financial Measure is a useful financial metric to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. This Non-IFRS Financial Measure is not intended to replace, and should not be considered superior to, the presentation of the Company’s financial results in accordance with IFRS. The use of the Non-IFRS Financial Measure terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures.
Reconciliation of the profit/(loss) for the period to the Adjusted EBITDA
US$ million | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | ||||
Profit/(loss) for the period, net of tax | 11 | (77 | ) | 46 | 7 | |||
Adjust for: | ||||||||
Income tax expense | 1 | (0.7 | ) | 4 | 4 | |||
Loss on disposal of subsidiaries | — | — | — | 5 | ||||
Adjusted finance (income)/expenses3 | (3 | ) | (0.8 | ) | (5 | ) | (1 | ) |
Change in fair value of share warrant obligations and other financial instruments | (1 | ) | (0.3 | ) | (11 | ) | (3 | ) |
Share of loss of equity-accounted associates | — | 4 | 0.5 | 10 | ||||
Depreciation and amortization | 2 | 2 | 6 | 7 | ||||
Share-based payments | 0.3 | 0.7 | 2 | 4 | ||||
Impairment of intangible assets | — | 0.1 | — | 0.5 | ||||
— | 63 | — | 63 | |||||
Adjusted EBITDA | 10 | (9 | ) | 43 | 96 |
1 The Adjusted EBITDA for the full year and the quarter ended
2 Starting from the second quarter of 2022 the “FSU” category was merged with the “Other” category due to the substantial decrease of its share in the total bookings and lower strategic importance as a result of user acquisition investment suspension as of
3 Adjusted finance income/expenses consist of finance income and expenses other than foreign exchange gains and losses and bank charges, net.
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