Next Games Withdraws Outlook for 2021, Previously Issued Outlook Is No Longer Probable And In Effect

NEXT GAMES CORPORATION | COMPANY RELEASE | 2 December 2021, 11:00 am EET

Next Games withdraws its outlook for 2021, originally published on 19 February 2021. Previously issued outlook is no longer probable and in effect.

The company has made a strategic decision to postpone certain planned and significant marketing investments, and thus part of 2021 expected revenue growth from Stranger Things: Puzzle Tales will, ​​according to the company’s estimate, be generated closer with the release of season 4 of the Stranger Things series, expected to happen in 2022.

Next Games has sound financial reasoning to postpone the investments as returns are expected to be higher at that point in time, due to both expected higher average revenue per daily active user (ARPDAU) and lower effective cost per install (eCPI). The company continues to invest significantly in Stranger Things: Puzzle Tales development and its marketing. Stranger Things: Puzzle Tales will however contribute to revenues in 2021, but the company's previously issued outlook is no longer probable and in effect. Both of the company’s The Walking Dead Games have performed as expected in 2021.

Additionally, Next Games is conducting multiple contractual and partnership negotiations, some of which may have financial impact for the fiscal year 2021. However it is uncertain if such negotiations will be concluded during Q4 2021.

For these reasons, the company cannot reliably give a revenue and profitability outlook for the year 2021.

Teemu Huuhtanen, CEO, Next Games: “Stranger Things: Puzzle Tales has the strongest early performance metrics we have ever seen in any of our own games. The game has the full support and largest team at Next Games, and we believe we will be able to make further, significant improvements to it as planned. As we continue to invest both in development and marketing, we think the highest return can be achieved by coinciding our larger planned marketing investments, with season 4 of Stranger Things series.

Additionally, we have several contractual negotiations ongoing, which were expected to contribute to our revenues during Q4, but which may be extended to Q1 2022. For these reasons we are not able to reliably issue new outlook.”

Previous outlook for 2021:

Next Games expects revenues to grow to at least EUR 40 million in 2021. The Company is targeting profitable growth with full year EBITDA positive in 2021.

Contacts:

Saara Bergström
Chief Communications Officer
+358 (0) 50 483 3896
investors@nextgames.com

Certified Adviser: Alexander Corporate Finance Oy, tel. +358 (0) 50 520 4098

About Next Games

Next Games is the first publicly listed mobile game developer and publisher in Finland, specializing in games based on entertainment franchises, such as movies, TV series or books. The developers of the critically acclaimed The Walking Dead games redefine the way franchise entertainment transforms into highly engaging service-based mobile games. Next Games works on multiple new games based on beloved global IP’s, including Stranger Things: Puzzle Tales based on Netflix’s hit 80s horror drama series. www.nextgames.com