HUUUGE, INC., COMPLETES 2022 WITH REVENUE OF USD 319m AND RECORD-HIGH ADJUSTED EBITDA OF USD 82.3m
Adjusted EBITDA increased to USD 82.3m, 27.9% YoY growth, and adjusted net profit was USD 64.6m, compared to USD 41.1m in 2021 (+57.3% YoY), both measures reaching record-high levels. These solid results were achieved despite market challenges, owing to our strategic shift towards fundamental value creation via profitability and cash generation.
The gaming industry faced unprecedented headwinds in 2022, with the first year-on-year contraction in its history (-4% YoY, according to Newzoo). Mobile games were hit particularly hard at -5% YoY, while the social casino category contracted by 2.5% YoY. This was due to several factors, including the post-COVID return to recreation, ongoing impact of IDFA depreciation on performance marketing, universal economic slowdown, and rising inflation.
In 2022 Huuuge revenue reached USD 319m, a 14.7% YoY decline. The core franchises (Huuuge Casino and Billionaire Casino) declined by 12.2% YoY, reflecting lower marketing spend and the broader post-IDFA market reality. New franchises declined by 33.1% YoY, mostly driven by the gradual decline in Traffic Puzzle’s revenue as well as lower other games revenue.
Looking to the future, Huuuge will refocus its efforts on building games with the creation of creative development 'pods.' The company is also exploring opportunities to expand beyond mobile and give its players the opportunity to enjoy games on multiple devices and platforms.
Additionally, after completing a thorough strategic options review process, Huuuge's board adopted the recommendation made by the independent special committee of the board and announced plans to conduct a share buyback, which will return up to $150 million to shareholders
According to Anton Gauffin, Founder and CEO of Huuuge: "Our focus on improving profitability and strong cash generation has resulted in record high adjusted EBITDA for Huuuge. We responded proactively to the challenges faced by the industry by focusing on costs and efficiency.”
“We are confident that our continued focus on creativity, innovation, improving efficiency, and developing fun games will drive our success in the years to come."