LONDON, 8th of October 2020 - Flexion Mobile Plc (Nasdaq: FLEXM), the Android games distribution company today releases its first regular quarterly trading update on the back of strong positive momentum in the 2[nd] quarter ending September 2020.
Flexion expects a new revenue record in the 2[nd] quarter, combined with a significantly improved gross profit. The continued rapid growth and gross profit improvement are primarily attributed to strong portfolio performance in Huawei's App Gallery, where many of the top titles have been promoted during the 2[nd] quarter.
Quarterly estimates for September 2020:
Three new games were signed during the period and four games were launched. Flexion anticipates that the Yoozoo agreement will not be extended beyond 1[st] October 2020 due to internal restructuring within Yoozoo. The two titles Legacy of Discord and Saint Seiya will therefore not be distributed by Flexion going forward. In the short term, this will have some impact on revenue growth and an approximate 10% reduction in the gross profit margin.
Going into the 3[rd] quarter, Flexion has 18 live titles, including the newly launched game Dragon Raja.
Flexion reaffirms the target of 27 live titles and positive EBITDA on IAP revenue alone by 31[st] March 2021 as sales and integration pipeline remains strong. Two games are pending launch in the 3[rd] quarter.
Flexion intends to release a trading update each quarter going forward. Final numbers will be presented in the quarterly report on 5[th] November 2020.
This information was distributed by Cision http://www.cisionwire.se/