Financial results for the 4th quarter and for the entire last year of Nexters have been published. The central figure is $562 million. It was to this level that the company’s cash receipts rose from January to December 2021.
Art for Hero Wars, a key Nexters projectIndicators for the year
According to International Financial Reporting Standards (IFRS):
- revenue (user spending in the company’s games) of Nexters amounted to $434 million. It increased by $173 million compared to revenue for 2020 (66% growth);
- of this amount, the company paid $117 million to partner platforms (Apple, Google, Xsolla and others) (56% more than the year before);
- The most significant item of Nexters’ expenses over the past year was marketing. She spent $270 million on it. This is 66% more than a year earlier;
- the company spent $19 million (9% growth) and $23 million (multiple growth) on operating games and general/administrative expenses accordingly. Curiously, the growth is associated with an increase in the company’s staff, which increased from 427 people in 2020 to 752 people at the end of 2021;
- the net loss amounted to $124 million (the company ended 2020 with a slight minus of $0.7 million). It is primarily related to the costs of listing, which cost the company $ 125 million.
Important: despite the fact that, according to IFRS, the company ended the year in the red, in practice this is not the case. The fact is that financial standards do not take into account the actual operating revenue, which is calculated taking into account deferred payments. Such revenue is called receipts (bookings).
If we do not take into account IFRS, then:
- Receipts amounted to $562 million. They grew by $116 million year-on-year. Curiously, the company earned only 5% of the specified amount from advertising.
- Nexters’ operating flow (the amount of cash generated as a result of operating activities) amounted to $106 million in 2021 (a drop of 13%). The decrease in the metric in the company is explained by “an increase in investments in attracting additional players in 2021 compared to the previous year.”
- The number of monthly paying users (MPU) has reached 362 thousand people (an increase of 28%).
- The average revenue from a paying user (ABPPU) was $123 (a 9% drop).
Indicators for the 4th quarter
According to International Financial Reporting Standards (IFRS):
- revenue amounted to $123 million (annual growth of 65%);
- commission payments to platforms reached $33 million (an increase of 55%);
- Nexters spent $51 million on marketing in three months (63% increase in the advertising budget);
- operating games and general/administrative expenses ate up $6 million and $9 million;
- the quarter was finished in the black. The company earned $11 million.
Operational indicators:
- receipts — $144 million (20% growth);
- operating flow — $44 million (5% growth);
- MPU — 363 thousand people (growth of 28%);
- ABPPU — $125 (125% drop).
Charts
We also attach several graphs from the report.
