Inflation and other negative economic processes have taken their toll on the entire market. Despite the unfavorable macroeconomic environment, GAMIVO managed to earn more than one million zloty in profit in Q3 2023.
On Tuesday, November 14, GAMIVO switched to a report covering the third quarter of 2023. During the period, the company generated:
- Turnover: PLN 45 million,
- Revenue: PLN 10.4 million,
- Net profit: PLN 1 million,
- EBITDA: PLN 2 million.
“Although the market situation was not as good as expected, given the number of planned launches, the continuous development strategy we developed proved that we were able to cope even under unfavorable circumstances. Despite the long-awaited premieres by players, a market hit by recession and severe inflation could not fully realize the potential of the newly released games. The widespread unfavorable macroeconomic situation is causing customers in general to cut costs and seek savings, which is reflected in the level of spending on hobbies. At the same time, measuring ourselves against mutual cannibalization of products through customers’ limited purchasing capacity has not discouraged us from striving to offer popular titles to customers, thus setting our sights on maximizing their sales potential,” explains Mateusz Śmieżewski, CEO of GAMIVO.
The slowdown in market growth caused by the difficult economic situation in Poland and around the world, while at the same time reducing customers’ spending capacity, were the main challenges the company faced. The intensification of the number of launches has forced users to be selective in choosing the titles they buy, and thus the cost of customer acquisition has jumped. GAMIVO’s response to the situation is to offer potential customers a broad base of the latest titles. At the same time, the company strives to improve the quality of service as well as develop promising projects that will allow the company to be even more independent of business cycles in the future. The constantly improving GAMIVO SMART service plays a major role in producing resilience to local crises.
“We predict market processes and know how to set our strategy. Despite the fact that market growth forecasts for Q3 2023 were overestimated, our company has consistently managed to generate profits. We have maintained this state of affairs since GAMIVO’s beginnings, and we are taking steps to ensure that this will not change. We are constantly investing in the development of our platform and developing solutions that, using the latest technologies, will allow us to ensure a stable future for the company. It is worth noting that the R&D activities carried out make use of the knowledge and skills of those already employed, allowing for development that does not require additional costs. We plan to present our first project not directly related to the GAMIVO.com platform at the end of Q4 2023 and the beginning of Q1 2024,” adds Mateusz Śmieżewski.
Platform’s growth
Investments in the future of the service include activities around improving the shopping process focused on providing customers with the highest quality shopping experience designed with the best UX and UI trends in mind, as well as optimization for maximizing business benefits. The new shopping cart design clearly presents the benefits of opting for additional products offered by GAMIVO, namely CPP (Customer Protection Program) and GAMIVO SMART. GAMIVO’s team is simultaneously working on a project using AI, which will strengthen the platform’s existing activities as well as create a new field for generating an important source of revenue.
“We are constantly thinking about the comfort of the more than 5 million users who regularly use our service. That’s why we’ve streamlined the purchase path, providing them with even more convenience. The first figures also show the achievement of basic business goals, most importantly, an increase in conversion, which is crucial for any store or e-commerce platform,” stresses GAMIVO’s CEO.
A large part of building the recognition of the GAMIVO platform is collaboration with the leaders of various industries. During the third quarter, the company began cooperation with Alior Bank and conducted another campaign with the Wargaming studio. A new cooperation with the popular Żabka store chain was also launched. Users of the Żabka mobile application were given the opportunity to exchange the points they collected for discounts on the GAMIVO.com platform. The company also met the expectations of students, an important group constituting the platform’s users, by offering discounts to holders of ISIC cards in Germany, Spain, and Portugal.
“For us, cooperation with such brands is not only an opportunity to reach new customers but also to show that we are a significant player in the industry that is widely expanding its areas of operation. We are pleased that the partnerships concluded in previous quarters, such as with Coca-Cola, can grow,” adds Mateusz Śmieżewski.
