East Side Games Group (TSX:EAGR, OTCQB:EAGRF) Inc said it finished the financial year ended December 31, 2022, on a strong note with both revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in the final quarter rebounding from the previous three-month period.
In the final quarter of 2022, revenue was $25.9 million, taking full-year revenue to $116.4 million, a 25% increase from the year ended December 31, 2021. Fourth-quarter 2022 adjusted EBITDA was $2.5 million, taking the full-year adjusted EBITDA to $7.5 million.
The company also said that it invested $9.6 million in new game R&D and its GameKit platform in 2022.
Cash at December 31, 2022, was $5.7 million compared to $5.2 million at September 30, 2022, while cash flow from operations for 2022 was $10.0 million.
READ: East Side Games and its Star Trek: Lower Decks game both shortlisted for Pocket Gamer's Mobile Game Awards
"With the recent award nominations and success of our releases, in addition to a number of major IP and developer partnerships on the horizon, we expect great things for ESGG. As fans first, we're thrilled for these upcoming titles in large part because we know they'll be fun to play," Jason Bailey, CEO of ESGG, said in a statement.
"Moving forward, we will continue to focus on our goal of providing creators the tools to successfully deliver mobile gaming experiences that engage players every day."
The company said the launch of Star Trek: Lower Decks - The Badgey Directive (September 2022), Milk Farm Tycoon (February 2023) and Doctor Who: Lost in Time (March 2023) sets it up for a strong performance in 2023.
The company added that it anticipates launching new games based on various intellectual properties from recognized names in film, television, toys, music and sports, continuing to build and expand its partnerships with leading global studios around.
It noted that the strength of its GameKit platform continues to fuel growth as it launches more successful titles.
“Four of our seven unique titles have been launched in the past 18 months using this tech. Partners continue to clamour to get into this program and as the GameKit product gets more and more extensive, we will be able to embrace more of these partnerships,” the company said.
It noted that the number of daily active users in Q4 were 277,000 while the average revenue per daily active user was $1.04.
In August, the company announced its intention to buy back up to 4,076,819 shares and through March 30, 2023, the company purchased 386,927 shares and intends to purchase more shares under its buy-back program.
The company said it considers as meritless Truly Social Games’ filing of claims against the company with respect to a membership purchase agreement and publishing agreements.
East Side Games is a leading free-to-play mobile game group, creating engaging games that produce enduring player loyalty. Its proprietary Game Kit software platform enables professional game developers to greatly increase the efficiency and effectiveness of game creation in addition to organic growth through a diverse portfolio of original and licensed IP mobile games that include: The Office: Somehow We Manage, Star Trek: Lower Decks – The Badgey Directive, Doctor Who: Lost in Time, RuPaul's Drag Race Superstar, Trailer Park Boys Grea$y Money, Bud Farm Idle Tycoon and Cheech & Chong Bud Farm.
Contact the author at jon.hopkins@proactiveinvestors.com