LONDON, 30th of June, 2021 – Flexion Mobile Plc (Nasdaq: FLEXM), the Android games distribution company today published its annual report for the financial year ending 31 March 2021.
Words from the Chairman:
I am pleased to share Flexion’s annual report for the year to 31 March 2021. What a year we have had with revenue growing by 160% and gross margin growing by 180%. These are very impressive numbers, but I am even more proud that we have managed to do this with only a slight, 7%, increase in administrative expenses, resulting in net loss falling by 95% to GBP -0.1m (2020: GBP -2.8m). This really shows the scalability of our platform and the reason that we have managed to reach a positive adjusted EBITDA for the year, a real milestone for a technology growth company.
The year started with the terrible Covid pandemic hitting us all with full force. We were very fortunate as we already had implemented a complete cloud based remote access policy meaning that we could start working remotely overnight, with little to no impact on operations. I am extremely grateful for all of our staff, who continued to push so hard while dealing with very challenging and often lonely working conditions. Without these efforts we would never have been able to reap the benefits from the large increase in user activity that we saw during the pandemic.
During the year, we continued our efforts to expand our portfolio of games. We signed a total of 12 games and launched 8 games during the year, growing the portfolio of live games to a total of 20 games. We now manage the second largest portfolio of games in the world when looking at the 750 top grossing games in Google Play. This puts us firmly in a market leading position on our market.
On the channel side, our strategic relationships with key channels went from strength to strength. We are getting closer to key decision makers and key strategies within the stores. We are especially proud of our roll out of Huawei which has become our biggest channel during the year. This relationship was also cemented in the business agreement signed in December 2020, where we will collaborate in the sourcing, development, promotion, and marketing of games. Our success with the stores can clearly be seen in our revenue growth, but even more importantly in key game revenue indicators. As an example, our average revenue per game of live top games reached USD 0.5m per month during the year. This is another example of how we have started to become a real force in the alternative market.
In the latter parts of the year, we reached out to the institutional investor community to see if we had matured enough to attract their interest. We launched an accelerated bookbuild in December and to our great excitement we concluded a GBP 9m oversubscribed round with eleven institutional investors, including one of our key channels. We are also pleased that we attracted funds from six different countries reflecting the global interest in what we are trying to achieve.
Due to our strong cash position and ownership structure, we can now aggressively look at capturing the wider opportunities in our market. We are in a great position to take a leading role in uniting user acquisition with the massive un-tapped traffic in our market. Another important opportunity is within the further scalability of our platform, where we would look at increased automation to maximise developer access to the alternative market. These are some of the opportunities which we could either develop ourselves or gain access to through strategic partnership or acquisitions within the service sector.
So, on behalf of the Board, I would like to thank all our staff, board members, partners and shareholders for being so supportive in helping Flexion develop into the leading game distributor within the Alternative Android Market.
Non-Executive Chairman of Flexion Mobile PLC
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For more information
Niklas Koresaar CFO, Email: email@example.com. Tel: +44 207 351 5944
About Flexion Mobile Plc:
Flexion offers a distribution service for free-to-play Android games. Using the service games can be distributed in multiple channels such as Amazon, Huawei,Samsung, ONE store and Xiaomi. These are channels that developers are struggling to reach and support. At the core of Flexion's service is the patented enabling and enhancement software that converts developer’s existing Android games into specific game versions for the new stores without any work required by the developers. Flexion Mobile Plc is listed on Nasdaq First North Growth Market, Shortname: FLEXM. Certified Adviser is FNCA Sweden AB, +46(0)8-528 00 399, firstname.lastname@example.org.