Flexion Mobile

LONDON, 29th of February 2024 - Flexion Mobile Plc (Nasdaq: FLEXM), the games marketing company releases a trading update for Q4 2023.

During the quarter monthly revenue records were broken several times which resulted in an all-time high for the quarter with an estimated total revenue of GBP 24.3m. The growth was driven both by newly launched titles, existing titles in the top-end of our portfolio as well as Audiencly's 7vsWild project. This is in line with the revenue guidance of GBP 22-29m for the quarter.

Estimated quarter-on-quarter revenue growth for Q4 was 64% and estimated adjusted EBITDA growth was 250% compared with the previous quarter. There was a clear trend break from the three previously reported quarters in 2023 (Total Revenue: Q1 GBP 16.3m, Q2 GBP 15.5m, Q3 GBP 14.8m).

At year end, the Company had GBP 11.1m in cash with no interest-bearing debt and is well positioned to take advantage of growth opportunities in the Alternative Distribution Market.

Estimates for the period 1^st October 2023 to 31^st December 2023:

• Total revenue increased by 12% (YoY) and 64% (QoQ) to GBP 24.3m
• Total gross profit increased by 35% (YoY) and 96% (QoQ) to GBP 4.9m
• Total adjusted EBITDA increased by 50% (YoY) and 250% (QoQ) to GBP 2.3m*
• Quarterly Gross Margin was 20.4%
• Quarterly Adjusted EBITDA margin was 9.6%
• Cash balance of GBP 11.1m

* This does not include advisory fees related to the independent legal and accounting review as announced on 29^th January 2024. Nor does it include any impairments for the GBP 400k investment in Liteup Media GmbH, which has decided to discontinue its operations. The legal and advisory fees may amount to approx. GBP 1.3m for the 2023 financial year, which the Company will report as General and administrative expenses in its profit and loss. The costs will be excluded from adjusted EBITDA as other extraordinary costs.

"We thought it was important to share our strong Q4 estimates as early as possible with the market while preparing the year-end report. Back in October we noticed a positive trend break and I am pleased that the strong performance continued in line with our revenue guidance for the quarter. It was great to finish the year on such a high after a slower than expected first half of the year. As we enter 2024, I am happy to say that we are in a strong position both in terms of our existing portfolio as well as in our sales pipeline. Our financial position is very solid with GBP 11.1m in cash, a positive cashflow and no debt. This allows us to continue to pursue growth opportunities without any capital constraints. The demand for new and alternative ways of marketing games to consumers is continuing to gain traction. In Europe, we look forward to the positive changes that the Digital Markets Act will bring this year as it aims to reduce the power of Google and Apple", says Jens Lauritzson, CEO of Flexion. 

Three new games were signed in Q4 including the Top Grossing game Klondike Adventures from Vizor Interactive. The new games are expected to launch in Q1 2024 and will start to contribute in Q2 2024.

Flexion will release its full year-end report on the 20th of March 2024. The company and its auditors Grant Thornton are committed to finalising the delayed 2022 annual accounts as soon as possible thereafter. 

The numbers reported are estimates based on unaudited numbers and the final numbers for the 2023 financial year may change depending on the outcome of the 2022 and 2023 statutory audits.

This disclosure contains information that Flexion Mobile is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on [Date and time is inserted automatically].

For more information

Niklas Koresaar CFO, Email: ir@flexionmobile.com. Tel: +44 207 351 5944

About Flexion Mobile Plc:

Flexion grows revenue and audiences for games. Our mission is to become the leading games marketing company. We offer unique game distribution and influencer marketing services to top grossing developers around the world.  Flexion boosts game revenue and audiences for games by maximising their performance in new alternative app stores, including the Amazon, Samsung, Huawei, Xiaomi and ONEstore. In 2022, the company acquired Audiencly GmbH, a leading game influencer marketing agency.
Flexion Mobile Plc is listed on Nasdaq First North Growth Market, Short name: FLEXM. Certified Adviser is FNCA Sweden AB.