The company saw net revenue of $163.8 million, a year-on-year increase of 36 percent compared to $120.1 billion in Q3 2021. CEO Jörgen Larsson attributes this to the “stable performance from our acquired studios, a positive FX effect and continued organic growth from our studios.”
“Our two recently acquired studios Jawaker and 6waves continued to deliver stable performances, with both studios performing well in the third quarter. Jawaker has continued its successful expansion by launching new games and expanding to new Arabic-speaking markets, and the Jawaker app now consists of more than 40 different games.”
The company’s strong performance in the third quarter of 2021 bucks the trend for the company, with its games, typically seeing less activity during the summer months.
“This year, the normal seasonal decline was largely offset by a positive FX effect between the second and third quarter, resulting in a small sequential decline in net revenues in the third quarter,” said Larsson.
Increased costs equal falling profit
Another factor in the company’s strong performance in Q3 is the investment in user acquisition, which increased by 34 percent year-on-year to $39.3 million, corresponding to 24 percent of net revenues.
Cash flow from operations before net working capital increased to $50.2 million in Q3 and $184.35 million over the past twelve months (respective increases of 41 percent and 34 percent.) Despite the negative impact on the company’s finances due to changes in net working capital and higher growth investments, the company’s free cash flow over the past twelve months stood at $90 million, roughly in line with the previous year.
Despite its strong performance in other areas, the company’s profit before tax is down slightly year-on-year at $15 million, a decrease from $17.1 million during the third quarter of 2021. In the year-to-date the company generated $49.4 million before tax, compared to $56.1 million for the same period in 2021. This falls in line with the industry at large, as the market continues to normalise following the pandemic boom.
In August, we listed Stillfront Group as one of the top 50 mobile game makers of 2022 and you can connect with them and their portfolio companies Jawaker and Babil directly along with the rest of the MENA games market at PG Connects Jordan.