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gamigo AG records positive operating earnings in 2014

DGAP-News: gamigo AG / Key word(s): Final Results
gamigo AG records positive operating earnings in 2014

21.04.2015 / 16:25

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Corporate News

gamigo AG records positive operating earnings in 2014

- EBITDA totals EUR +1.9 million according to preliminary figures (IFRS)

- Positive growth in Q1 2015

- Positive cash flow

- Positive net earnings and at least 20 percent revenue growth
anticipated in 2015

Hamburg, 21 April 2015 - gamigo AG, a leading gaming company in Europe and
North America, also continued the positive trend in its earnings in Q4 2014
and has concluded 2014 as a whole with substantially improved earnings.
According to preliminary figures, which have been calculated according to
IFRS for the first time (previously HGB), consolidated operating earnings
(EBITDA) have improved greatly from EUR -0.04 million in 2013 to EUR +1.9
million in 2014. Consolidated operating revenues were stable in 2014 at EUR
15.1 million and were on a par with the previous year. However, the quality
of revenues improved greatly as a result of the company's repositioning
with a capital-friendly platform strategy. Low-margin games and divisions
that were not capable of growth were replaced by more profitable
high-growth products in line with the growth strategy. This has created a
solid basis for sustained growth in 2015 and the coming years.

The improved quality of revenues and also cost optimizations have
contributed to the substantial improvement in profitability. The cash flow
from operating activities has also improved significantly as a result of
the substantial improvement in EBITDA.

Consolidated earnings before taxes and net earnings will still be negative
in fiscal year 2014 as one-off extraordinary write-downs were performed due
to the adjustment for game assets that were not highly profitable.

The final figures and the annual report will be published in June 2015.

According to provisional internal figures the positive trend for revenues
and also earnings has continued in Q1 2015, which is a seasonally weaker
quarter. Several new games such as The Rats (online, Facebook iOS, Android)
and Wickie Online have recorded significant growth. In addition, the new
platform "Gaming as a Service" is also meeting with great interest from
users and exhibits major potential for growth. "Gaming as a service"