Play Magnus Group (PMG) – Q4 2021: Continued Strong Growth, Raising Mid-Term Target for Bookings to USD +100 Million Annual Run Rate

• Q4 2021 bookings USD 7.1 million, a year-over-year growth of 90%
• Q4 2021 46% year-over-year growth in paying users
• FY 2021 bookings of USD 24.5 million, a year-over-year growth of 164% 
• Reiterated target to reach break-even run-rate for adjusted EBITDA by 2022 year-end
• Raised year-end 2025 target for bookings to USD +100 million annual run-rate (previously USD 60 million by year-end 2025)
• High visibility for 2022 bookings, with Q1 2022 expected to be the company’s strongest ever

(Oslo, 16 February 2022) – Play Magnus Group, a global leader in the chess industry, today published its financial results for the fourth quarter and full year 2021, and upgraded its mid-term financial targets.

In the fourth quarter, bookings grew to USD 7.1 million, a growth of 90% compared to a strong fourth quarter in 2020. The growth was driven particularly by the development within elearning, with chess courses and subscriptions. Bookings from esports, mainly partnership revenues for the Champions Chess Tour, continued to be strong. 

Adjusted EBITDA was negative USD 3.7 million in Q4 2021, following investments in product development, chess content, and activities related to the World Chess Championship. Play Magnus Group expects to reach a break-even run-rate during Q4 2022, helped by continued revenue growth combined with improved efficiencies in operations. The Group has seen strong bookings so far in 2022, and the first quarter of 2022 is expected to be the company’s strongest ever in terms of bookings.

“Chess is among the world’s most popular activities with 650 million players worldwide, but in terms of commercialization, the industry is at a nascent stage. Play Magnus Group is perfectly positioned as a leader in the two most attractive segments of chess: esports and elearning with our strong brands Champions Chess Tour and Chessable. In both areas our business has developed very rapidly last year, and we see vast opportunities going forward,” CEO of Play Magnus Group Andreas Thome said.

Play Magnus Group raised its 2025 target for bookings to USD +100 million annual run-rate, up from previously communicated USD 60 million by year-end 2025.

“Our previous target was set in 2020, and we have developed much stronger than expected during the last 12 months. During the period we established the Champions Chess Tour and further grew our elearning business organically and through M&A. Our position as a global leader in chess is reinforced,” Andreas Thome says, and continues:

“Play Magnus Group is in better shape than ever, and we see strong results from the growth initiatives we have executed. We now have clear visibility towards our upgraded mid-term bookings target of USD 100 million annual run-rate by year-end 2025, and our strong foundation and leading global position implies that growth will also be strong longer term,” Andreas Thome said.

Financial highlights in Q4 2021:

• Q4 Bookings USD 7.1 million (+90% Y/Y)
• Q4 Revenue USD 6.3 million (+114% Y/Y)
• Q4 Monthly Paying Users 64,600 (+46% Y/Y)
• Q4 Average Revenue per Paying User (ARPPU) USD 21.9 (+19% Y/Y)
• Q4 Adjusted EBITDA USD -3.7 million

Please find enclosed Play Magnus Group's Q4 2021 presentation material. 

Play Magnus AS has the pleasure of inviting investors, analysts and media to a quarterly presentation and extended business update today, 16 February at 13:30 - 15:30 (CET). During the event, the company will give a strategy update and deep-dive presentations of the business units.

Presenters: CEO Andreas Thome, CFO Dmitri Shneider, Tour Director Arne Horvei, Chessable CEO Geert van der Velde, CBDO Sebastian Kuhnert.

Venue: Auditorium, ground floor at SpareBank 1 Markets, Olav Vs gate 5, Oslo.

For registration to attend the physical presentation, please email ir@playmagnus.com

The event will be transmitted as a live webcast on the following link: https://channel.royalcast.com/landingpage/hegnarmedia/20220216_3/ 

Viewers may submit written questions during and after the presentations.