In 2023, Huuuge Games, a developer and publisher, achieved record levels of adjusted net profits and adjusted EBITDA, with a notable year-on-year increase of 35.1% and 31.5% respectively. According to the company's latest financial report, adjusted net profits reached $87.3 million for the year, while adjusted EBITDA stood at $108.2 million.

Despite a decrease in daily players of its games, Huuuge Games experienced remarkable success, attributed to organizational changes, a focus on margins, and staff layoffs. These structural adjustments led to record profits for the year, surpassing the fiscal results of 2022 even before the fourth quarter of 2023 began.

The impact of these changes is particularly evident when considering revenue, which declined by 11% from 2022, primarily due to the cessation of development on Traffic Puzzle. Despite the decrease in revenue from $319 million in 2022 to $283.4 million in 2023, Huuuge Games managed to achieve significant profit growth through cost-cutting measures.

Even with a $0.40 increase in spending per daily active user and a rise in conversion from player to payer from 6.3% to 8%, the overall decline in daily active users from 610,500 to 429,700 and a decrease in daily paying users from 22,300 to 16,700 were observed.

Wojciech Wronowski, CEO of Huuuge Games, emphasized the company's focus on profitability over revenue growth, highlighting the achievement of a record level of adjusted EBITDA at $108.2 million and operating cash flows totaling over $82.4 million.

Huuuge Games' flagship titles, Huuuge Casino and Billionaire Casino, continued to perform strongly in the social casino gaming segment, with increases in average revenue per daily active user (ARPDAU) and average revenue per paying user (ARPPU) by 8% and 13% respectively. The number of daily active users also saw an increase, despite a decrease in marketing spending.

Furthermore, the company witnessed growth in revenue generated through the direct-to-consumer channel, which accounted for $16.6 million of Huuuge's revenue in 2023, representing approximately 8% in the fourth quarter alone. This revenue from direct-to-consumer channels tripled compared to 2022.

Looking ahead, Huuuge Games plans to increase spending on marketing and integrate more social features into its games. The company also announced a share buyback program worth $70 million, following a previous program worth $150 million in 2023, demonstrating its commitment to returning value to shareholders.

Source: adapted from an article by Aaron Astle, News Editor for PocketGamer.biz.