2023 Guidance for Trophy Games Development A/S Announced

Company Announcement No. 11-2022 

Copenhagen, 20 December 2022

*Contains Inside Information*

Trophy Games’ guidance for 2023 reflects a focus on the bottom line to keep a strong cash position because of the general economic uncertainty and freezing of capital markets.

Starting from 2023 Trophy Games will be guiding on a EBT level to match the focus on the bottom line. Our games typically take 1-2 years to develop, with costs being activated and then depreciated over 3-4 years upon release.

The 2023 guidance will no longer include acquisitions. It is expected that the publishing agreement with The Ranchers (signed in 2022) will start generating revenue in 2023. We are guiding DKK 10.0m in sales from August to December 2023 with The Ranchers. Some uncertainty is attached to this due to the continued development process. You can read more about this in our CEO Letter #1.

Revenue

Revenue guidance for 2023 is DKK 56-65m. 

EBITDA

EBITDA guidance for 2023 is DKK 8-14m.

EBT

EBT guidance for 2023 is DKK 3-8m.

Cash at Hand

Trophy Games expects to leave 2022 around DKK 28.5m cash and cash equivalent without debt and no intention to raise additional capital.

Impairment

Trophy Games have chosen to do full impairments on the game projects Five and Warhammer AoS: Soul Arena end of 2022. Our budget for 2023 reflects this decision. 

H1 vs H2 Expectations

H1 2023 is expected to be a period with no major releases, nor major growth drivers. In H2 2023, we have three major growth drivers for the year that should impact all revenue numbers; The Ranchers release, Shipping Manager’s user base increase and our Train Manager release. 

CEO Comment

The global mobile gaming market has taken a 15% drop over the past 15 months. Despite that, Trophy Games expects to attain a positive revenue growth rate of 16-23%, as well as positive EBITDA growth of 241-332% in 2022.

However, as a precaution due to the general economic uncertainty we have found it necessary to take a conservative approach towards our revenue expectations in 2023.  

Hence, our guidance for 2023 does not include acquisitions. We do however still have an ambition of furthering acquisitions in 2023 - should the right opportunity arise.

The year has three major Trophy Games events, with expected impact of success in 2023: 

- Continued roll-out of Shipping Manager, which has been released in December 2022. The game has had a very promising start with retention numbers matching Airline Manager 4. 

- Train Manager under development and expected to be released mid-year 2023. 

- The Ranchers expected to go live in H2 2023. 

Trophy Games Development A/S (publ) (Nasdaq First North Growth Market Denmark: Ticker TGAMES) is obligated to publish the above information in compliance with the EU Market Abuse Regulation act. 17.

Contact Information

TROPHY GAMES Development A/S

Søren Gleie, CEO

Office (+45) 7172 7573

Email: [email protected]

Mikkel Bryggers Gade 4, 2. sal, 1460 Copenhagen K, Denmark

Certified Adviser

Norden CEF

John Norden

Email: [email protected] 

A/S Kongevejen 365, 2840 Holte, Denmark

About Trophy Games

Trophy Games is an innovative, Denmark-based game studio who develops and publishes mobile and PC games.