MY.GAMES CONTINUES STRONG PERFORMANCE IN Q1 2021 REACHING NEARLY $150m REVENUE AND SIGNIFICANT EBITDA GROWTH
Global gaming brand, MY.GAMES, part of Mail.ru Group, has today announced its results for Q1 2021. The company continues to perform strongly, with revenues growing by 42.2% YoY in Q1 to RUB 11b ($147m). EBITDA of MY.GAMES in the first quarter of 2021 grew by 165% year-on-year to RUB 1.4 billion with a margin of 13.2% on the back of the typical seasonal boost in marketing investment.
Grand Hotel Mania, Rush Royale, Zero City, War Robots and Conqueror’s Blade were the main contributors in MY.GAMES revenue YoY growth in Q1 2021, with around 98% of revenues coming from MMO games. Mobile game share came in at 78% in Q1 2021 (vs 69%in Q1 2020).
Average MAU stood at 22.7m in Q1, with a 4.8% share of paying monthly users. Further globalisation remains the company’s focus, with 79% of revenues coming from outside Russia and CIS (versus 69% in Q1 2020) with the US, Germany and UK being the largest international markets.
“We had a confident start to 2021, keeping pace with the revenue record that we successfully reached last year. Following our strategy of a diversified portfolio, we continue to build our active user base across all platforms and release regular updates for our products, while our commitment to the principle of an open partner environment and the creative freedom of our studios allows us to work on multiple projects simultaneously, confidently moving towards our goal of becoming one of the top companies in the gaming industry“ - said Vasily Maguryan, CEO of MY.GAMES.
In Q1 MY.GAMES launched PC versions of mobile games War Robots, World Above, Left to Survive and Guild of Heroes on MY.GAMES Store as part of internal cross-selling and cross-integration.
The long-term success of MY.GAMES is due to the strategy of diversifying the portfolio, focusing on the game releases on PC, mobile and consoles, as well as porting its successful products to other platforms. The company continues to invest in talented studios and projects via its investment arm MGVC (MY.GAMES Venture Capital). In Q1 2021 MGVC signed a strategic agreement with US-based studio Pizza Club Games, developers of the Raid Boss game. In Q1 MY.GAMES also expanded its hyper-casual expertise on the global market: the company purchased minority stakes in Mamboo Games and Espresso Games, hyper-casual publishers. MGVC plans to continue supporting MY.GAMES in its efforts to continue expanding its market share in the largest worldwide entertainment market with an ambition of becoming one of the top games companies globally, including through value accretive M&A.
Adhering to its principles of developing a partnership environment and supporting talented studios, MY.GAMES together with Google team wrapped up the results of the first season of their joint international project Game Drive – a business accelerator for independent mobile game developers. During the first stage of the project, teams from Google and MGVC studied more than 40 applications from developers from 16 countries. The project was launched in November 2020, offering EMEA developers free consulting services, including expert evaluation, key metrics analysis, recommendations on step-by-step improvements, as well as advice on scaling and international expansion. MGVC and Google are working on a new phase of the campaign, aimed to start in 2021.
The top-5 revenue-generating mobile games in Q1 were War Robots, Hustle Castle, Grand Hotel Mania, Rush Royale, and Left to Survive.
War Robots, launched seven years ago by Pixonic studio, surpassed $500m in lifetime revenues in Q1, with game downloads reaching 191m as of March and standing one of the world’s biggest mobile-based tactical shooters. The project maintains the lead in terms of revenue generation with average monthly revenue of ~RUB 800m in Q1 and significant positive EBITDA contribution.
Hustle Castle, launched four years ago by Nord Studio, reached 70m downloads, with ~RUB 400m in monthly revenue in Q1. Nord Studio also operates Zero City (~17m downloads, >RUB 150m in monthly revenue). American Dad! Apocalypse Soon also performed well, with 8.5mn downloads in Q1.
Grand Hotel Mania, which launched in July 2020 from Deus Craft, is a time management title that has reached 10m installs, with ~RUB 350m in monthly revenue as of March.
Rush Royale on mobile from IT Territory studio launched in mid-December 2020 and reached 6m downloads to date, with monthly revenue exceeding RUB 250m in March, making this new launch one of our top revenue generators. The game has become the first project in the MY.GAMES portfolio to be developed remotely during a pandemic reaching RUB 1bn in revenues within less than 4 months since launch.
Left to Survive, which launched three years ago from Whalekit studio, has reached 33m downloads. Another title from this studio, Warface: Global Operations (~1 year-old), reached 16mn downloads and was named “Best Shooter of the Year” at the Pocket Gamer Awards 2021.
PC & Console
The Warface franchise, which first launched 9 years ago, reached 114m players worldwide across all platforms and remains a top-3 revenue generator for MY.GAMES.
Warface on consoles has reached 23m installs thanks in part to the release of the new ‘Heist’ season on PC in Q1.
Q1 saw the launch of the 7th season in tactical action MMO Conqueror's Blade, which first launched on PC two years ago, with the user base reaching 3.1m. In addition, the launch of a Polish localization in March is expected to support the game’s growth in Q2.
Free-to-play MMO Skyforge from Allods Team has reached 12m registered users, with acceleration in growth following the game’s expansion to Nintendo Switch in February.