BoomBit Group financial results for 2023
- $58.7M revenue from sales (-11% y/y), incl.
$56.8M from mobile games and $1.9M from blockchain projects - $2.3M consolidated net profit and $3.8M EBITDA
- 17% revenue growth in Mid-Core and Casual games
- A rich publishing plan for Mid-Core games in 2024
- Development of BoomBit Services and the Mobile Esports joint venture.
The engine of our growth in previous years, as well as one of the foundations of our development, has always been the diversification of revenue sources and adapting to the current market situation. The downturn in mobile advertising in 2022, and thus lower profitability of marketing campaigns, prompted us to focus more on the development of Mid-Core and Casual game production and publishing. We are actively expanding our pipeline, which has resulted in partnerships with several experienced studios that have interesting products at an advanced stage of preparation. We ended 2023 with weaker results than the previous year, but it was an important period for us operationally, setting the stage for a record number of releases in 2024. Our publishing plan for 2024 currently includes over ten titles, along with the biggest update yet for Hunt Royale, our most profitable game in BoomBit Group history. A greater focus on Mid-Core and Casual games does not mean that we will phase out our Hyper-Casual segment. These games remain an important source of revenue, and we are particularly pleased with their performance improvement in the last quarter of 2023 and the beginning of this year.
CEO of BoomBit S.A.
BoomBit Group had total revenues of $58.7M in 2023, 11% less than the $65.8M in the previous year. Revenues from mobile games were $56.8M, 14% lower y/y, impacted by a 39% decrease in Hyper-Casual game revenues due to observed profitability declines in the mobile advertising market. At the same time, flagship titles in the Mid-Core segment, consistently popular with players, provided a stable revenue source: Hunt Royale ($18M), Darts Club ($7.1M), and Car Driving School Simulator ($3M). Revenues from Mid-Core and Casual games collectively rose by 17% in 2023 to $34.8M.
The result of intensive development in the Mid-Core and Casual game publishing activities begun last year is a rich publishing pipeline for 2024, including over ten games. Among the most important titles that the Group plans to release this year are Dawn of Ages, Loot Heroes, Train King Tycoon, as well as an enhanced version of Hero Legacy, and proprietary titles such as Bowling Club, released in April, and Clash of Destiny, a new game from the creator of Hunt Royale.
The Group’s results were positively impacted by the fair value valuation of shares in SuperScale s.r.o., which led to an upward revaluation of about $2.4M. Conversely, the appreciation of the PLN against other currencies had a negative effect on the results. After eliminating the impact of one-time events, consolidated adjusted EBITDA in 2023 amounted to $4.5M, while adjusted net profit was $1.1M. In the mobile games segment alone, these figures were $4.9M in adjusted EBITDA and $1.8M in adjusted net profit. The blockchain segment improved its results, with a net result of -$0.7M and an adjusted EBITDA of -$0.4M.
Last year also saw further development of our second business segment – blockchain projects. Actively running two different projects in the web3 area through our subsidiaries, BoomLand and PlayEmber, resulted in recognized revenues of 7.8 million PLN in 2023. The blockchain segment still generates significant costs, hence its negative impact on the Group's results is noticeable but significantly smaller than in 2022. Plans for 2024 particularly include listing the $BOOM token on a decentralized cryptocurrency exchange and issuing the $EMBR token.
CEO of BoomBit S.A.In 2023, the Group began generating revenue from blockchain projects, totaling $1.9M. Revenues came from BoomLand NFTs for the game Hunters on Chain amounting to $0.3M and from the sale of $BOOM tokens under previously concluded SAFT agreements amounting to $0.9M. Additionally, PlayEmber received a total of $0.7M from grants from the NEAR Foundation. Another milestone was achieved by PlayEmber in January 2024, resulting in recognized revenue of $0.5M. Including a steady grant from the Immutable network agreement, which BoomLand has been receiving since February 2024, the Group had $0.7M in revenues from blockchain projects in Q1 2024. In 2023, blockchain project costs amounted to $3.4M, 44% more than the previous year, with $2.3M reflected in the income statement.
As part of new initiatives started in 2023 and planned for further development in 2024, further commercialization of proprietary tools and development of a cross-promo module allowing mutual advertising of BoomBit Group games and its partners’ games is planned. The Mobile Esports joint venture, established in 2023, which develops a free-to-play platform offering users participation in competitions with real prizes, may also become an interesting alternative channel for user acquisition.
