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Jagex 2021 Financial Report

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Dilbert2001
Jun Member 2006

Dilbert2001

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Jagex absolutely have announced in 2021, the year when RS3 reported 20% grow in revenue, the company have reported record revenue of £125M:

New record revenue
represents a 4% increase on 2020’s previous peak

02-Nov-2022 00:02:58

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
The other thing that RS3's 20% jump in revenue in 2021 following an already impressive 18% jump in 2019 surprised me is RS3 actually was victimized by the brutal Login/Logout issues that affected the login and banks of plenty of players for months.

It is really promising to know the RS3 community really understand and stick around for the actual quality of the game.

02-Nov-2022 14:39:53

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
While knowing how an individual company is doing financially in a year is nice, often it is more important to know how it is doing comparing to the industry in the perspective of their biggie growth fund owner.

We knew in Y2020, RS3 grew their revenue by 18%, and OSRS contributed their 6% gain, to Jagex's net revenue growth of 10%, comparing to a 23% gain from the video game industry. So Jagex was well behind the overall video game industry in all facets in Y2020 despite of RS3's stellar growth rate.

Now we know in Y2021, RS3 further grew their revenue by 20% while OSRS saw their revenue regressed by 7%, leading to a net growth of 4% for Jagex.

According to Newzoo, the global video game market actually suffered a 1.1% decline in overall revenue:

"Last week, we published our latest games market estimates for our Global Games Market Report subscribers. We forecast that 2021’s global games market will generate revenues of $175.8 billion, a slight year-on-year decline of -1.1%. By the end of the year, there will be 2.9 billion players worldwide."


https://newzoo.com/insights/articles/global-games-market-to-generate-175-8-billion-in-2021-despite-a-slight-decline-the-market-is-on-track-to-surpass-200-billion-in-2023

Did Jagex stack up well with the broad base video game industry in 2021? The answer is "yes". Jagex's overall growth of 4% surpassed the video game industry's -1.1%, and of course RS3's 20% growth rate blew the industry away, and OSRS's -7% growth was for the 2nd consecutive year a bit bee-hive the industry.

03-Nov-2022 19:48:42 - Last edited on 03-Nov-2022 19:58:43 by Dilbert2001

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
Let's look at where the 2021 revenue came from (page: 35/60), all figures in £:

Subscription revenue: 88.94 mil (91.72 mil in 2020)
MTX revenue: 34.56 mil (28.00 mil in 2020)
Other revenue: 1.36 mil (0.24 mil in 2020)

We probably see a dark cloud on the subscription model front. Number of paying members were pretty much flat in 2021 (1.1 mil) comparing to 2020, however, subscription revenue was 3% lower in 2021.

This probably means there were more grandfathered subscribers in 2021. Lesser new paying members coming in the games doesn't bode well for subscription based games, especially OSRS.

Perhaps we see the logics why Jagex is pushing FSW, aiming to recruit new and lapsed players.

04-Nov-2022 21:20:08

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
Certainly plenty of players care about Jagex's direction and the future of their games.

Mod Pips have the direction of Jagex pretty much summed up with diversification of their investments and the acquisition of Pipeworks (and potentially more like minded companies) and new in house games as well as partnership through Jagex Partners.

There are also beginning to seriously looking into selling GaaS and IPs. In the coming years, we probably are going to see and hear RS3 as not just a game, but an entertainment like comics, TV series, movies, etc. Actually Mod Jack et al have already beginning to compare themselves to Warhammer and the Bioware.

05-Nov-2022 14:32:21

Jaekob Caed
Apr Member 2011

Jaekob Caed

Posts: 7,194 Rune Posts by user Forum Profile RuneMetrics Profile
Making more money while they continue to try their best to ruin the game, nice.

I miss the days when I could be happy for Jagex's business success because they still actually gave a crap about their games, rather than how much $$$ they can squeeze out of them. ~
Jaekob Caed
: Scribe, Scholar and Prince of the Kingdom of Heaven ~
The Jagex I once loved is dead... A THREAD

07-Nov-2022 04:17:55

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
Jaekob Caed said :
Making more money while they continue to try their best to ruin the game, nice.

I miss the days when I could be happy for Jagex's business success because they still actually gave a crap about their games, rather than how much $$$ they can squeeze out of them.

I see RS3 getting more and more active. Perhaps a few players don't like the updates but real life financial data and in game engagements tell the actual story.

Remember, we are talking about real world financial data from a real world business. If customers aren't happy, how can they be giving Jagex more and more money?

07-Nov-2022 15:43:47

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