At the gaming division Mail.Ru Group record. In three months, it earned 11 billion rubles ($153.6 million)

Consolidated revenue and profit

The mentioned 11 billion rubles is 46% more than MY.GAMES earned during the same period a year earlier. And this is almost half (43%) of all quarterly revenues Mail.Ru Group, which amounted to 25.3 billion rubles ($332.4 million).

If consolidated gaming revenue showed a historical maximum, then the profit of the gaming brand before taxes and depreciation turned out to be at the level of the company’s financial indicators for the fourth quarters of previous years.

EBITDA of the gaming business Mail.Ru The Group in the 2nd quarter of 2020 amounted to 2.3 billion rubles ($32.1 million). It was at approximately the same level in the 4th quarter of 2019 and in the 4th quarter of 2018.

Growth factors

The report names four main drivers of growth indicators:

• the success of the company’s products in foreign markets;
• launching new games;
• strengthening the company’s position in the mobile segment;
• increased activity of players due to forced self-isolation.

Let’s look at some of them in more detail.

MY.GAMES and the Western market

Following the example of Chinese companies Mail.Ru The Group strives to strengthen its position in foreign markets. The company does it well. Over the past year, its export revenue has grown by 54%. Now the company earns two-thirds of all money from games from abroad.

The company is conquering foreign markets, including by continuing console expansion. She develops and releases games in the Warface universe on PlayStation 4, Xbox One and Nintendo Switch. For example, in May, the company released a premium console Warface: Breakout. This increased its quarterly revenue from console games by 149% in the US and by 150% in the UK.

Mobile market

The main revenue of MY.GAMES is accounted for by mobile games. Two-thirds of the game rental (67%) is for them. And it is growing twice as fast as the mobile games market as a whole — by 39% per year.

The company is striving to increase the pace. Including through the introduction of new products to the market. In April, for example, MY.GAMES released the PvP shooter Dino Squad from Pixonic studio. In May, the game earned up to 2.4 million a day every day. However, according to the results of the quarter, it is not yet included in the top 5 most earning games of the company.

What’s next?

The company plans to continue releasing new games this year. Its management is confident that despite the stabilization of the situation (we are talking about a pandemic) in the third quarter, which will lead to the return of business indicators to lower values, MY.GAMES will continue to show high annual growth.

Also on the topic:

• MY.GAMES earned $105 million in the first quarterGaming revenue Mail.Ru The Group grew by 20% in 2019, but EBITDA remained at the same level
• Mail.Ru The Group earned $120 million from the games in the third quarter of 2019
• Is there any news?