Flexion Mobile publishes its annual report for the financial period ending 31 December 2021
LONDON, 1st of April, 2022 – Flexion Mobile Plc (Nasdaq: FLEXM), the Android games distribution company today published its report for the 9-month financial period ending 31 December 2021.
Words from the Chairman:
I am pleased to share Flexion’s annual report for the nine-month period to 31 December 2021. We set a target to grow our revenue by 40-60% during the year and we are very pleased that we generated 46% growth for the period when compared to the same period in the prior year. This is even more impressive when we consider that our cost base only grew by 23% for the same period, allowing us to drive adjusted EBITDA to GBP 0.4m. This shows the scalability of our platform and our low marginal cost for generating new revenue.
We started the financial year with focus on strengthening our portfolio of top games, while reducing the launch time for new games and we have clearly delivered on both points. During the year we signed some of the biggest titles in the market including Evony: The King’s Return, The Ants: Underground Kingdom and Puzzles and Survival. In addition, we secured a two-year contract on six existing games and a new leading title adding in total four new titles to our top-tier games portfolio. This has effectively doubled our revenue potential from our top-tier portfolio. Our second focus area was to improve delivery times which became even more important as we needed to quickly launch our newly signed top-tier games ahead of the very important Christmas period. I am very pleased with our shortened delivery times time which allowed us to add a lot of quality users to the games early in their ramp up period. This has been a real team effort and I am very pleased with how we executed on these focus areas.
On the channel side, we are getting closer and closer to our stores, allowing us to make more and more sophisticated marketing strategies for our games. This enables us to drive our existing revenue to completely new levels as can be seen in our average monthly revenue of top-tier games which grew from USD 400,000 in March 2021 to USD 730,000 in December 2021. The momentum on existing games in combination with the addition of new games makes a very powerful growth model, which makes me optimistic about the future. We have therefore also set a revenue growth target for 2022 of 40-60%, at the same time as we see costs from core strategies to only grow by 8-12%.
At a strategic level, we are now focusing our product development and related investments to paid user acquisition, which will allow us to drive our revenue to a new level. We are also investing in new strategic initiatives, with focus on influencer marketing and performance marketing to support our core business while expanding our footprint in the game services market. The plan involves acquisition of talent through investments and acquisitions, but we are also strengthening our development and product teams to support these new initiatives. Our first step into influencer marketing was the investment made in January 2022 in Liteup Media. Liteup Media is a promising German start-up that has set out to disrupt influencer marketing and make it more mainstream and accessible to mobile game advertisers. This investment is attractive to us as we get a foot in the door in influencer marketing, while we have the option to acquire the company.
On behalf of the Board, I would like to thank all our staff, board members, partners and shareholders for being so supportive.
Carl Palmstierna
Non-Executive Chairman of Flexion Mobile PLC
If you would like to order a copy of the report, please send an e-mail with your name and address to [email protected]. The web version of this annual report can be found at https://flexionmobile.com/investor-relations/financial-reports/.
