Valletta, 28 February 2019: blockescence plc (Securities Identification Number WKN: MT0000580101; symbol: BCK, "blockescence") main portfolio company gamigo AG, one of the leading publishers of online games in North America and Europe, yesterday published its fourth quarter and full year 2018 preliminary, unaudited results.
The 2018 full year preliminary consolidated revenues increased by 8 percent to EUR 45.3 million (2017: EUR 42.1 million) and in the fourth quarter by 26 percent to EUR 13.5 million (Q4 2017: EUR 10.7 million). Full year consolidated EBITDA also increased significantly by 56 percent to a total of EUR 11.0 million (2017: EUR 7.0 million), while the fourth quarter EBITDA amounted to EUR 3.4 million, an increase of 112 percent compared to the same quarter of the previous year (Q4 2017: EUR 1.6 million). EBIT also developed well and increased to EUR 2.4 million during the year 2018 compared to EUR -3.4 million in the previous year. In the fourth quarter EBIT amounted to EUR 0.8 million (Q4 2017: EUR -3.1 million). In 2018 gamigo recorded preliminary consolidated net earnings of EUR 1.6 million (EUR -5.0 million in 2017).
The gamigo group has shown a steady and continuous growth of revenues and profits in the previous years, acting as a consolidator in the strong growing gaming market, with over 20 M&A transactions in the previous 5 years. gamigo’s 2018 earnings were also positively impacted by further efficiency and cost improvements as well as by the acquisition of the Trion assets in October 2018, despite substantial one-time transaction and M&A costs. In 2018, the number of active monthly users of gamigo's top 10 Massive Multiplayer Online Games rose significantly by 230 percent from 0.42 million users to 1.39 million users. A further milestone for gamigo was the issue of a senior secured corporate bond of EUR 32 million in October 2018, within a total framework amount of EUR 50 million. The bonds carry a floating interest rate of 7.75 percent p.a. (above the 3-month EURIBOR, with a floor of 0.00 percent) and mature 11 October 2022. The bonds are listed on NASDAQ Stockholm and Frankfurt Stock Exchange (gamigo bond ISIN: SE0011614445). Also, for 2019 gamigo plans to continue its organic and M&A growth path, based on a good pipeline for new licensed games as well as for further acquisitions.
The gamigo 2018 year-end report is available on https://corporate.gamigo.com/investoren/. The audited 2018 consolidated financial statements are expected to be published by the end of April 2019.
blockescence holds 53,1 % of the voting rights and 38,7 % of the capital of gamigo AG. Being the current main portfolio company, the positive development of the gamigo revenues and earnings will also positively impact the consolidated financials of blockescence. blockescence is planning to further increase its stake in gamigo AG. The acquisition of ReachHero GmbH by blockescence that was announced yesterday is synergetic with gamigo.
blockescence is planning to publish its preliminary 2018 results by end of March and final financials by end of May 2019.
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About blockescence plc:
blockescence is a strategic investment-holding, that focuses on a buy, build & sell strategy of fast-growing companies in consolidating TMT sectors. The blockescence portfolio companies are growing via acquisitions and organic growth and new technologies are actively used to create USP’s and further efficiency within the portfolio companies. An example is the implementation and roll-out of distributed ledger technology (DLT or blockchain-technology) to create competitive advantages in the portfolio companies. blockescence is based in Valletta (Malta), has subsidiaries in Switzerland and Germany and is listed on the Frankfurt Stock Exchange as well as on XETRA.
This release may contain forward-looking statements based on current assumptions and forecasts made by the management of blockescence or its affiliated companies. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of blockescence and its affiliated companies and the estimates given here. Neither blockescence nor its affiliated companies assume any liability to update these forward- looking statements or to adapt them to future events or developments.
For further information, please contact:
Axel Mühlhaus / Dr. Sönke Knop
Tel. +49(0) 69/905505-52
St. Christopher Street 168
Valletta VLT 1467