Sales grew 12% y-o-y in Q4'23 and gross margin increased
Flexion delivered Q4 sales of GBP 24m, in line with the preliminary results presented on 29 February and 4% below ABGSCe at GBP 25m. This corresponded to a 12% increase y-o-y, mainly driven by the successful ramp-up of games from its partner Scopley, including the best-selling game on iOS currently, MONOPOLY GO!, but sales were also supported by solid momentum in the overall portfolio. Opex were GBP 5m (19% vs. ABGSCe GBP 4m) for EBITDA of GBP 1m (vs. ABGSCe 3m) and EBIT of GBP 0m (vs. ABGSCe 1m). Adjusted EBITDA was GBP 2m (vs. ABGSCe 3m). The gross margin of 20% surprised positively (+1pp vs. ABGSCe 19%) compared to 17% in Q4'22, in part because of strong growth in the higher-margin marketing segment (31%), but IAP gross margin also increased from 16% to 17% y-o-y, which we think was because of a higher gross margin for MONOPOLY GO!.
