// Perth-founded social gaming business Virtual Gaming Worlds has reported stunning results set against the backdrop of the global pandemic.
According to their FY20 annual report, the public unlisted company Virtual Gaming Worlds (VGW) has had a stellar past 12 months.
The headline figures are (rounded to nearest million):
- Revenues rose 122% to $779M;
- Marketing spend rose to $59M;
- Profit after tax rose 155% to $72M;
- Net cash inflows of $116M;
- Dividends to shareholders of $35M.
As the report acknowledged, with more people stuck indoors due to COVID-19, VGW experienced significant growth in their mobile offerings.
“While a challenging time operationally for our staff and key stakeholders, providing our entertainment services consumed primarily on mobile devices is very popular for our customers,” the report said.
“An environment of reduced travel, working from home, and more flexible time have all contributed to increased demand for our offerings.”
The increased revenue was mainly attributable to “significant revenue growth for both Chumba Casino and the Group’s growing new segment, Luckyland Slots.”
“Global Poker income recovered from a fall in the first half of FY20, due to several structural factors,” the report said.
VGW was founded in Perth in 2010 by Executive Chairman Laurence Escalante. He has 15 years’ experience in the industry.
The company handed out $496M in prizes during the last year, a rise of almost threefold on FY19. The reports show that there is $142M in cash in the business, and in a letter to shareholders, Laurence Escalante says that there are “no plans to seek listing on the ASX.”
The growth of the business was described as “unparalleled” and presented VGW as a “significant Australian business success story.”
Certainly, there are no arguments here. Over the past decade, VGW has grown by extraordinary amounts, with an average monthly revenue of $65M. So much so, that the company can provide a dividend of 6c a share.
While Laurence acknowledges that there could continue to be challenges ahead, his focus is set on long term growth, while remaining profitable and cash flow positive.
For more on VGW, visit their website.