Hacksaw Q3 Revenue Rises 12% to €58.1 Million as Growth Slows

Hacksaw reported third-quarter revenue of €58.1 million, up 12% year-on-year, as stronger profitability accompanied a slowdown in sales growth.

The results, published on November 3, fell within the preliminary ranges announced on October 12. Revenue growth was also 12% at constant exchange rates, compared with reported growth of 31% in the second quarter. 

Margins and Cash Generation Improve

Adjusted EBITDA increased 15% to €49.9 million, with its margin rising to 86% from 83%. Adjusted EBIT grew 15% to €48.3 million, lifting the margin to 83% from 81%.

Net profit increased 18% to €45.7 million. Operating cash flow reached €52.2 million, up 42% on a reported basis and 20% after adjusting for one-off items in the prior-year comparison.

For January-September, revenue rose 23% to €175 million, or 27% at constant currencies. Adjusted EBIT increased 24% to €144.2 million, maintaining an 82% margin, while net profit rose 36% to €136.9 million. 

Release Mix Weighs on Growth

Chief executive Ana Vrabic Verdir attributed the slowdown to changes in the mix of games and operators, which reduced average revenue per game despite higher player activity.

Hacksaw had adjusted its development roadmap earlier in the year to broaden its appeal across markets. According to Verdir, the resulting releases did not match the performance of the company’s historically stronger formats.

The supplier is rebalancing its roadmap towards those established strengths. Management expects the mix to normalise over the coming months, although it warned of continued short-term effects. Long-term financial targets remain unchanged.

Portfolio and Distribution Expand

Hacksaw released 19 internally developed games during the quarter, compared with 12 a year earlier. Partner studios launched another 26 games through OpenRGS, up from 15.

The portfolio reached 399 games, versus 268 a year earlier. Average daily rounds increased 19%, while the ten largest games contributed 52% of GGR, compared with 45%.

The company signed 74 deals, including 67 with new clients, and brought 34 new customers live. It also launched its first crash game, Moneyplane, and entered locally licensed markets in Alberta and Buenos Aires City.

Buyback Follows Stronger Cash Position

Cash holdings reached €148.2 million at quarter-end, up €48.8 million from June. Hacksaw reported no interest-bearing debt.

After the quarter, the board approved a share buyback of up to €20 million over a maximum of three months. The company also introduced its B2B prediction market platform, Hacksaw Markets, and expanded distribution through partnerships including Bally’s Intralot in Britain and FanDuel in Connecticut.