Next Games Corporation, Half-Year Review 2018

Focus on preparing The Walking Dead: Our World for global launch

NEXT GAMES CORPORATION COMPANY RELEASE 20 JULY, 2018 AT 08:00 EEST

This release is a summary of the half-year 2018 report. The complete report is attached to this release and available at www.nextgames.com/ng/reports

Next Games Corporation, Half-Year Review 2018: Focus on preparing The Walking Dead: Our World for global launch

January-June 2018 in Short:

• Revenue was 10.5 million euros, a decrease of 46% compared to H1 2017 (€19.5M)
• Gross margin declined by 10 percentage points and was 26% (36%)
• EBIT was -8.0 million euros (€0.0M)
• Development costs amounted to 3.9 million euros (€1.0M). The company does not capitalize game development costs
• The organization grew to 132 employees (12/2017 119 employees)
• The company globally released The Walking Dead: Our World, based on The Walking Dead license, after the reporting period. The game based on Blade Runner franchise has moved from production to soft launch phase during the reporting period. The game project with NBCUniversal moved from pre-production to production phase.
  (January-June 2017 comparison in brackets)

KEY FINANCIAL FIGURES:

(EUR 1000)		01-06/2018	01-06/2017
Revenue		10 477	19 452
Gross bookings		10 449	18 288
Gross margin		2 693	7 078
Operating profit (-loss) (EBIT)		-7 990	-7
EBITDA		-7 301	649
Adjusted EBITDA		-7 307	523
Earnings per share, undiluted (€)		-0.48	0.00
Earnings per share, diluted (€)		-0.46	0.00
As percentage of revenue
Gross margin (%)		26 %	36 %
EBITDA margin (%)		-70 %	3 %
Operating result (%)		-76 %	0 %
As percentage of gross bookings
Adjusted EBITDA margin (percent)		-70 %	3 %