Swedish games firm Stillfront Group generated 1.19 billion SEK ($136.7 million) in Q2 2020.
The company's earnings represent an impressive growth of 148 per cent year-on-year. In terms of bookings, Stillfront brought in 1.17 billion SEK ($134.2 million). Of this, 75 per cent came from its mobile division, an increase of 10 per cent year-on-year.
Storm8 and Candywriter's portfolios have been cited as a reason for the increased performance in the mobile division. Furthermore, the number of monthly paying users (MPU) grew by 352 per cent. Stillfront has attributed the impressive growth to acquisitions, namely Storm8, Candywriter and Kixeye, two of which took place earlier this year.
Moreover, different genres have proven to aid Stillfront in its growth as its strategy portfolio is cross-platform, drawing in more mobile players. Meanwhile, its simulation, RPG, and action library are proving popular, making up 28 per cent of bookings in the active portfolio. However, 38 per cent of mobile bookings have come from casual and mash-up titles. It was noted that Candywriter's games were a good source of in-app purchases while Storm8 saw successful marketing campaigns.
"Stillfront demonstrated strong performance in the second quarter. Group revenues amounted to 1,192 MSEK and the adjusted EBIT margin amounted to 39 per cent. Revenues benefited from strong organic growth across our portfolio of games as well as growth from the acquired studios Kixeye, Storm8 and Candywriter. Following the recent acquisitions, the product mix has further improved through the new vertical causal & mash-up," said Stillfront CEO Jörgen Larsson.
"The ongoing COVID-19 pandemic will continue to have an impact on the Group's performance due to the strong inflow of new users in the second quarter as well as increased activity within existing user bases, even though we expect a more normalized pattern including seasonality effects for the second half of the year."