The company generated primary adjusted EBITDA of 24.5 million, representing year-on-year growth of 39 percent, and a 79 percent increase compared to Q2. With this, the company has recorded its highest-ever quarterly profitability with an adjusted EBITDA margin of 32 percent, compared to 9.2 percent in Q3 2021 and 17.2 percent in Q2 2022.
This improvement was achieved with sales bookings totalling $77 million. This represents a 16 percent year-on-year decrease, and a 3 percent decrease compared to Q2. The company claims that “these results speak to [their] ability to adapt to the current market realities where the global mobile games market declined by 12.7% in Q3 2022 according to Sensor Tower.”
Success for core franchises
The company’s core franchises generated $71 million in bookings – a 12 percent decrease compared to the same quarter in 2021, but a 1 percent increase compared to Q2. The decrease is in line with an industry trend of decline, as the market normalises following the pandemic boom. The company credits the 1 percent increase to its rollout of a major game economy update in August, as well as a shift to optimising user acquisition.
“The long term outlook for the gaming industry looks very promising,” said founder and co-CEO Anton Gauffin. “While the world is experiencing turbulent times from the economic perspective, we believe one of our advantages is our ability to quickly adapt to changing market realities. Our sales margin improvement in Q3 2022 exemplifies this. Huuuge is generating increasingly sizable profits, and has fuel to invest in the future, which positions the company well for times of economic stress.“
“In a market which continues to throw off negative statistics, Huuuge is bucking the trend and the early initiatives we actioned are delivering over performance which we believe to be sustainable,” said co-CEO Rod Cousens. “Our sales margin is improving and we are maximizing returns on reduced revenues, demonstrating the efficiencies of our strategies where we achieve more from less. We continue to be cost disciplined and our product enhancement strategy will only lead to more monetisation opportunities in the future.“
In August, Huuuge revealed its intent to review strategic options.