Mobile games publisher and free-to-play developer Huuuge Games has released its financial report for the third quarter of 2023, including data on its first nine months of the year overall.
In the third quarter, Huuuge’s two flagship titles Huuuge Casino and Billionaire Casino increased revenues by 4.2% compared to Q2, driven by its increased marketing budget, expanded loyalty programme and game economy update implemented this August.
Into the numbers
At Huuuge, Q3 meant the fifth consecutive quarter of rising YoY EBITDA, having risen by 10.4% compared to Q3 2022. This was bolstered by a 7.9% monthly conversion rate of players to payers in Q3.
Revenues were down, however, by 8.2% compared to Q3 2022, falling to $71.2 million in Q3 2023. This has become somewhat of a trend this year, with overall 2023 revenues of $212.1 million meaning a 12% fall compared to last year. This trend in falling revenues had extended to Huuuge Casino and Billionaire Casino too, but the third quarter has marked a turnaround for these titles specifically.
Net cash flows across the past nine months from operating activities were up as well, reaching $57.6 million compared to $42.1 million in the first nine months of 2022.
And importantly, adjusted net profits are up too, having risen by a massive 80.32% YoY to $66.6 million in the last three quarters and exceeding the whole of 2022’s. In fact, this is a new record for Huuuge’s net profits within a nine-month period.
"We are proud of Huuuge's strong position in challenging times in the market. Over the past 12 months, Huuuge has generated $112 million in adjusted EBITDA and maintains solid cash generation. Through nine months, we have already reached the level of adjusted EBITDA generated in all of last year, and exceeded the net profit earned in 2022," said Huuuge CEO Wojciech Wronowski.
"With changes in the gaming economy, a new loyalty program, and increased marketing spending, we look to the future and the Q4 2023 results with optimism."
Huuuge EVP of finance Marek Chwalek added: "In the third quarter we concluded and settled the $150 million share buyback and retired the repurchased treasury shares. After completion of this operation, at the end of the quarter, we held over $128 million in cash, placing us in a highly favourable position for future investments or potential cash distribution to shareholders."
Optimism for the future
The company were also optimistic about the future prospects for their loyalty program and direct-to-consumer webstore with CEO Wronowski giving further comment on their earnings call.
"The loyalty program is a feature that we plan to consistently build upon. We’ve recognised a number of opportunities to enahnce its functionality by finding more incentives for players to play, stay and pay.
"We are making significant progress in our dierect to consumer channels and their performance has surpassed our internal expectations. By the end of the year we anticipate that 8% of our revenue will be generated through the webshop," he added.
The presentation also teases the fact that four development 'pods' are working on four games with two games currently in testing, with further details to follow once the ongoing tests confirm commercial potential.
Whether either could become the next Huuuge Casino, which has generated over $1 billion in its lifetime, you can bet that Huuuge are certainly hoping so.