In 2023, GAMIVO S.A. generated PLN 40.5 million in consolidated revenues, adjusted consolidated net profit was nearly PLN 6.5 million, and standalone net profit was PLN 9.3 million. The company’s Board of Directors recommends a dividend payment of PLN 6 million.
The momentary stagnation in the game market over the past year has been replaced by the simultaneous arrival of highly anticipated releases. Such a specific release calendar took a particular toll on the fourth quarter. In addition, as a result of the recession and rising inflation, players’ limited purchasing capacity caused a slowdown in the market, which, combined with a jump in the cost of customer acquisition, posed a challenge for the entire industry.
The difficult market situation did not prevent GAMIVO from generating solid financial results. In 2023, consolidated revenues amounted to PLN 40.5 million, 8% less than in the previous year, EBITDA was PLN 6.2 million and adjusted consolidated net profit was PLN 6.5 million. At the end of the year, GAMIVO had PLN 7.5 million in its accounts, at the same time recording a standalone positive financial result of PLN 9,307,024.30. Analysis of last year’s profit convinced the Board of Directors to recommend, at the upcoming AGM, the payment of PLN 6 million in dividends to shareholders.
“In the past year, we faced a challenging market environment that resulted in increased competition for customers and a higher cost of acquiring them. We used the period of market change to transform our business model, which opened us up to new potential international operators of the GAMIVO platform. Today, we can focus on product and technological development of the platform and high-quality customer experience and service, leaving the issue of billing to external partners,” comments Mateusz Śmieżewski, CEO of GAMIVO S.A.
In Q4 2023, GAMIVO adopted and implemented a new strategy and business model. The change in the billing method with the platform operator and the closing of the transaction involved one-time operating costs and a collective settlement of marketing costs.
“The adoption of the new strategy involved accounting for additional costs in the past quarter. Today, however, we can focus on key areas of our business, and we should be generating positive operating and net income again from Q1 2024. The last quarter of 2023 was exceptional in this regard, and we treat it as a cost of implementing the new business model and an investment towards future scaling and business development,” adds Tomasz Lewandowski, Member of the Management Board of GAMIVO S.A.
In line with its new strategy, GAMIVO is focusing on further developing its platform. The change also involved simplifying the company’s structure and preparing for the possibility of licensing the platform to new players, making it immune to potential local crises or industry downturns. As part of the new strategy, the company is focusing on the technological development of the platform and expanding its product offerings, while retaining the intellectual property and brand of GAMIVO.com. The existing payment processing unit, the Maltese company Gamivo.com Limited, has been sold to a partner specializing in the financial area. This will enable the future acquisition of new platform operators and increase the efficiency of business processes. Despite the changes, GAMIVO S.A. remains responsible for the platform’s technological and brand development.
“We are glad that the period of the most intense changes is behind us. The end of last year was extremely challenging for us. The personal and financial commitment was necessary. However, we look back on this process with optimism, especially since we have recorded stable results again since the beginning of the year and can focus on business development. We also recognize the new opportunities that have opened up for us. For existing customers and suppliers, nothing has changed. From the point of view of shareholders, today we generate revenue from the license fee, which is derived from the turnover on the platform, instead of directly from the turnover on the platform as before. We have lower revenues, but also lower costs, which is not yet directly visible in the Q4 results, as we incurred additional expenses related to the closing of the sale of the platform operator. The change has allowed us to optimize our business processes and focus on developing key values for our customers, and in the future will enable us to scale more effectively and enter new markets,” adds Mateusz Śmieżewski.
The introduction of a new shopping cart and a revised path to purchase were initiatives to improve the shopping platform, which have already yielded initial results in the past year. By reducing the complexity of the platform’s interface and shortening the path to purchase, the company saw a noticeable increase in conversions by as much as about 64%. In addition, the average value of orders increased by almost €1 during the compared periods, and the share of orders with a value of more than €40 also increased significantly.
“The solutions being introduced are the result of our ongoing work to improve the platform. At the same time, we would like to thank our users for their involvement in this process by willingly using the solutions provided and their feedback, which is extremely important to us. Together we are shaping the future of GAMIVO and soon you will be able to see further effects of this,” sums up Mateusz Smieżewski, CEO of GAMIVO S.A.
Three rounds of share repurchases were held in 2023, with a total value of PLN 15 million. In addition, the company issued complimentary shares to existing shareholders. As a result of the share buybacks, GAMIVO S.A. accumulated 150,000 shares, which accounted for 7.44% of the Company’s share capital and the total number of votes – these shares were canceled. At the same time, the Management Board plans to recommend, during the AGM, the payment of PLN 6 million of the profit earned last year in the form of dividends to shareholders.
