Yggdrasil plans to double headcount after revenues soar
Gaming provider plans rapid expansion over coming months following 119% growth during H1
Cherry-backed games developer Yggdrasil Gaming could potentially double its headcount in the coming months as the firm plots significant investment following a six-month period of revenue growth.
Although a 119% year-on-year increase in revenues to SEK4.5m (£342,000) for the first six months of the year was not matched on the bottom line, with EBITDA remaining almost static at negative SEK1.6m (-£122,000), CEO Fredrik Elmqvist told eGaming Review the firm was not afraid to make “an investment for the future”.
Elmqvist said the firm is currently weighing up options for the next two years, which could see a doubling of staff across the firm’s Malta and Krakow offices.
“The next couple of months will decide the longer term plan,” Elmqvist said. “First we’re going to close the third quarter. We are now shaping plans for the next two years. If we go with an aggressive plan, it could be anything from double the number of heads to maybe more,” he added.
Yggdrasil earlier this year moved into a new, larger office in Krakow with room for expansion, and currently employs around 25 people in total.
And an encouraging number of operators signing up for its games, including BetClic, Betsson and LeoVegas, coupled with the success of its Joker Millions progressive jackpot, has the firm eyeing more growth.
However, the negative EBITDA will remain a concern and while Elmqvist said the firm is running a tight ship but that its pursuit of potential growth opportunities has kept it in the red.
“We said let’s not be too cautious here. Let’s take these opportunities for future growth. But a lot of this is temporary stuff that isn’t going to have any impact on the second half.”
One such opportunity could come from the UK, with the firm announcing plans to apply for a GB licence in Q4, although Elmqvist cautioned that UK activity is unlikely to have a revenue impact until 2016.
“We’ve already seen some Nordic operators doing really well in the UK, and we’ve had a lot of interest from our existing clients to support the UK as well,” he added.