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Yggdrasil Q4 2015 and Full Year Update

  • 22 Feb 2016
  • David
  • 0

Q4 Highlights

  • In Q4 revenues increased by 696 percent YoY to SEK 10.4 million
  • EBITDA amounted to SEK 4.9 million (Q4 2014: SEK -1.4 million), corresponding to an EBITDA margin of 47 percent
  • Bet turnover increased by 991 percent YoY to SEK 2.28 billion
  • Mobile gaming accounted for 41.75 percent of the total gross game win
  • Number of bets increased by 792 percent YoY to 204 million
  • Awarded UK licences by the UK Gambling Commission
  • Signed three UK contracts: LeoVegas, Mr Green and Unibet
  • Signed deal with Hero Gaming
  • Went live with six new brands: BetClic, Expekt, Monte Carlo Casino, Casino Heroes, Sunmaker and Kaboo
  • Launched ‘BOOST™’ collection of promotional tools, including inaugural in-game leaderboard tournament and raffle
  • Released two new games: Doubles and Nirvana
  • Progressive jackpot Joker Millions dropped for the second time with a lucky customer winning €460k
  • Seven agreements in place for Joker Millions, with four live and the rest to be rolled out once regulatory approval has been received
  • Nominated for iGaming Software Supplier of the Year at the International Gaming Awards

2015 Full Year Highlights

  • For the full year, revenues increased by 357 percent to SEK 20.1 million
  • EBITDA improved significantly and amounted to SEK 5.2 million (2014: SEK -4.6 million)
  • During the full year bet turnover increased 544 percent to SEK 3.89 billion
  • Launched HMTL5 framework, iSENSE 2.0™
  • Launched first progressive jackpot, Joker Millions, which has achieved great liquidity and produced two big winners
  • Yggdrasil paid out EUR 4.3 million in jackpot winnings to players for the year
  • Launched Infinite API™ for Gamification
  • Launched industry first concepts: Super Free Spins and In-game leaderboard tournament and raffle
  • Set-up a tech centre in Poland to scale the business
  • Won Software Rising Star at EGR B2B Awards in May
  • As of 31 December, 2015, Yggdrasil had a total of 27 signed agreements with operators
  • Eight games released in 2015 so by the end of the year 17 video slots were in the portfolio, as well as lottery and keno games

Key events after the quarter

  • Won iGaming Software Supplier of the Year at the ninth International Gaming Awards
  • Invited to apply for remote gaming licence by Gibraltar Licensing Authority with application now submitted
  • Signed deal with bet365
  • Signed three new UK contracts with Vera&John, ComeOn and Betsson, bringing total number to six

Fredrik Elmqvist, CEO of Yggdrasil, comments:

Yggdrasil enjoyed an absolutely fantastic 2015 which has put us in a position to push on this year and firmly establish ourselves as a top-tier supplier.

It is tough to pick out just a handful of highlights in what was an action-packed year which saw stratospheric revenue growth, positive year-end EBITDA for the first time and several industry-first launches.

Last year the focus was on bringing new value to our existing clients, although by the end of it we had still brought our total number of operator sign-ups to 27.

We now offer these operators an unparalleled range of innovative products to maximise their return on popular games like our first progressive jackpot, Joker Millions.

There is the Infinite API™ for Gamification that helps operators to improve customer engagement, and BOOST™, our collection of promotional tools including Super Free Spins™, which has proven immensely popular with players and operators alike.

BOOST™ has shown that we understand one size does not fit all when it comes to marketing campaign mechanics, and we have an exciting roadmap in place to expand on the product in 2016.The rewards have been clear. Yggdrasil picked up Software Rising Star at the EGR B2B Awards in May, and games including Joker Millions have achieved impressive liquidity, already producing two big jackpot winners.

Joker Millions has grown extremely swiftly since launch, as evidenced by the SEK 25.5 million made in jackpot contributions in Q4 alone. As additional operators – including Mr Green and LeoVegas – sign up to the jackpot pool, so it will continue to grow at an even faster rate.

We continue to grow as a company, even faster than our own estimations. We expected to be a team of around 28 by the end of the year and come December we had already hit 45. As a truly multi-cultural employer, the Yggdrasil family now boasts staff of 17 different nationalities.

We are still recruiting, so expect these numbers to grow further across our office in Malta and tech centre in Poland.

In terms of games launches, we managed to produce eight new titles in 2015, which was slightly fewer than our target of 12, primarily because of a decision to switch off Flash development at the start of the year.

This has allowed us to fully embrace HTML5 through our iSENSE 2.0™ platform which has proved a complete game-changer, letting us release new games simultaneously across multiple platforms.

With a market-leading and flexible platform in place, we fully expect to hit our target of 12 new slot launches in 2016. Make sure you keep an eye out for some real blockbusters.

We’ve also made some big steps on the regulatory front, gaining a licence in the UK and closing our Curacao operation to underline our commitment to transparency.

The early signs for 2016 are looking extremely encouraging. We’ve launched a new slot, Incinerator, applied for a remote gaming licence in Gibraltar, signed up bet365 and won the prestigious iGaming Software Supplier of the Year at the annual International Gaming Awards. Not bad given it’s only February.

Our aim at Yggdrasil is not to become the biggest provider in the market, but we certainly aim to be the best.

Following a hugely successful 2015, it is clear we have an agile team in place with technical expertise which is second to none. We are all very excited about making further strides this year.

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