I can get to a minimum profit number.
Bear with me.
You can actually work out from the half yearly report that the F2P group made gross profit of 2million and 729k operating margin.
By reviewing the F2P accounts half yearly (6 months to December 2019) , we do not have an individual GOW account, we can see that the F2P group made an operating profit of 729,000 Euro from 4 games. GOW made gross 2.595 million in those 6 months. You would argue looking at the financials that the operating costs seem high for the 4 games, true.
Going further down, you see they spent money as a group (group money) on a new studio - DR products, on large investment to bring Hawken and also paid taxes and debts on existing products. Not to do with GOW.
They also abandoned the game Chef Emma at a loss of £346,000 and they had amortisation costs of £324k from loss of asset from previous years go into the half yearly statement. In fact almost 33% of net revenue was lost on depreciation or similar. Not to do with GOW.
So we know that the income GOW generated was three times as much as all the other 3 games combined.
Here’s the base profit number.
We know it is profitable because we can see that the total operating costs of all 4 companies, is £240k less than the income derived by GOW on its own.
So even if we used all of the operating costs of the entire group for GOW, there is still a difference of £240k if GOW involved every cent/penny of the entire F2P division.
Of course the other companies have operating costs. With me, GOW made a minimum of 240k if it had all 100% of the operating costs?
So, that’s the starting point.
Let’s say all 3 other companies = the operating cost of GOW. That’s 240k, fair? Could be on the low side, but aiming low…
We know GOW is running at three times the revenue of those 3 companies. If that split fell that way, so if GOW equalled the operating costs of all 3 other companies. Then we know it already nets 240k plus 1/3rd of the balance of £729k, 243k.
So based on that potentially the profit for the 6 months is 483k.
So, we can say that GOW is profitable for certain, it at least has a profit of £240k, or ½ million per year as a minimum. Put the numbers with some sense, it’s not far short of 1 million per annum.
Costs are already factored in, so salaries are factored into the calculation of net operating margin, so those numbers have already paid salaries to the team.
I looked at the management report for 2020, it’s a similar story, 3.968 million for the year, which means that actually GOW last year made 2,595 in the second half of the year over, 1.373 million in the first half.
So, GOW is largely carrying 3 other F2P games according to the data made public.