Q1 Financial Update: Trophy Games Achieves a 77% Revenue Growth, and EBITDA Surges to DKK 4.9m (+160% YoY)

*COPENHAGEN, DENMARK / ACCESSWIRE / April 25, 2024 /* Trophy Games Development (STO:TGAMES)

Company Announcement no. 6/2024 (April 25, 2024)

*Highlights Q1*

· Revenue was DKK 19.9m, a 77% YoY increase.
· EBITDA was DKK 4.9m, a 160% YoY increase.
· EBT was DKK 3.0m, a 472% YoY increase.
· Unique paying users was 89,194, a 101% YoY increase.
· Total transactions were 235,731, a 99% YoY increase.
· Total installs were 3.0m, a 31% YoY increase.

*CEO comment*

A record quarter boasting unprecedented growth and bottom-line performance. Let's delve into the details:

First and foremost, our marketing department has identified lucrative new markets for user acquisition. While we anticipate continued success, it's worth noting that this quarter enjoyed a honeymoon period, yielding exceptionally high margins on marketing efforts. Sustaining these levels in the future may prove challenging.

Secondly, our ongoing efforts to enhance the transport series continue to yield dividends, with the games maintaining strong performance. Excitement for the future remains high as there are still numerous features to be added to further enrich these games.

Thirdly, we've intensified our focus on ad monetization to complement in-game payments. Properly implemented, these ads should not cannibalise our regular sales. One significant advantage of ad monetization, particularly video ads for in-game rewards, is the avoidance of the 30% fees charged by Google Play and App Store.

For comparison, March witnessed ad revenue of nearly half a million DKK, compared to 92k DKK last year, and we anticipate continued growth in ad revenue.

Lastly, our legacy games continue to demonstrate robust financial performance. By attracting more users and including it in Play Pass, we've managed to boost the revenue of Tiny Titans.

Looking ahead, we anticipate an exciting rest of the year with the potential release of up to four new titles. First up is Energy Manager, launched on April 23rd, 2024. While its financial impact may be modest, it holds significant potential, paving the way for a series of smaller niche games, each with a yearly revenue potential of 1-5m DKK.

Following Energy Manager, we have Airport Tycoon, developed by the team behind Sky Haven, scheduled for Q3. We aim to leverage our experience from the first game to tap into a niche PC market.

Expectations are also high for Truck Manager, also slated for Q3. Additionally, we hope to launch Ranchers on Steam this year, rounding out an exciting pipeline of releases.

Within the organization, we're conducting two machine learning experiments, both in live game operations and user acquisition. More details will be shared during our investor day scheduled for May.

In Q1, we completed our share buyback initiative, acquiring a total of 626,930 shares, which accounts for 2.27% of our overall shares. These shares were purchased at an average price of 4.03, totaling DKK 2,524k.

Sincerely,
Søren Gleie
CEO, Trophy Games

*Contacts*
*Trophy Games Development A/S*
Søren Gleie, CEO
Office (+45) 7172 7573
Email: soren@trophy-games.com
Mikkel Bryggers Gade 4, 2. sal, 1460 Copenhagen K, Denmark

*Certified Adviser*
Norden CEF
John Norden
Email: jn@nordencef.dk
A/S Kongevejen 365, 2840 Holte, Denmark

*About Us*
Trophy Games is a data- and business-driven game company with a no-bullshit mentality. We build games around real-world interests to immerse players in their passion online!

*Attachments*
Trophy Games Q1 Report 2024

*SOURCE:* Trophy Games Development
View the original press release on accesswire.com