Yggdrasil Moves Forward Faithful to Expansion Strategy in Q3 Returns

Lee R. - November 11, 2018

Games Industry

User data is confirming that the Yggdrasil strategy of expansion and growth is being faithfully implemented.

Yggdrasil has released its key business highlights for Q3, and shareholders as well as prospective buyers would do well to update themselves.

New Q3 Developments

Business highlights include 13 new license agreements signed, as well as the launch of three new games: Penguin City, Hanzo's Dojo and Wolf Hunters.

Another major development was the Nitro Circus Launch event marking the maiden branded game partnership for Yggdrasil.

Expanding Holdings

A key holding was established in the UK as well, with the partnership being created via UK legal entity, then certified to launch in Spain, then introduced to the hotbed Czech Republic through a Tipsport agreement, with the first segment of the launch concluding with entry into Taiwan via social gaming operator XSG.

Fan Site Launched

The Yggdrasil fan site Yggdrasil Casino was also launched.

Usage Data

The number of FTEs for 3 2018 reached 272, with player rounds increasing 51% to 1,534 million (1,019 million), with mobile share of EGW reaching 65% (59%)

Financial Performance Figures

Financial highlights for Q3 included a 62% increase in total operating revenue to MSEK 71.5 (44.1); EBIT increasing 26% to MSEK 19.3 (15.3); and EBIT margin gaining 27% (35%).

Year-on-Year Totals

Year-on-year, these gains translated to 66% for total operating revenues--to MSEK 195.8 (117.9); EBIT increasing 21% to MSEK 49.7 (41.2); and EBIT margin rising 25% (35%).

Post Q3 Positioning

Key events post-Q3 include Yggdrasil’s signing of ATG and Svenska Spel in Sweden ahead of re-regulation in 2019, putting the parent company in favourable position for pure revenue increases when the new market opens.

Other entries included a signing with Veikkaus in Finland, and an employee kick-off in Poland.

CEO Elmqvist Speaks

Yggdrasil CEO Fredrik Elmqvist Q3 called the quarter “eventful” while characterizing the quarter as one of “continued expansion and signing of several new partnerships.”

Elmqvist Figures

Elmqvist lauded end user activity data such as player rounds reaching 1,534 million during the quarter for a year-on-year improvement of 51% from Q3 2017.

Shareholder Outlook

Elmqvist’s continued effective expansion should comfort shareholders and attract new interest.