Singapore’s gaming company Razer posted a revenue of US$1.62 billion (S$2.20 billion) for the financial year 2021, a 33.3 per cent increase from a year ago.
The boosted revenue was driven by pandemic-induced demand in the first half of last year, said Razer. There was an increase in market share for its hardware business, and continued expansion for channels and content for its services business.
Net profit rose to US$43.4 million, compared to US$0.8 million a year ago, driven by revenue growth, ongoing gross margin expansion, and productivity improvement.
Adjusted EBITDA or earnings before interest, taxes, depreciation, and amortization was at US$96.1 million, an increase of 115.5 per cent from US$44.6 million a year ago.
Growth momentum to ease in 2022
Razer noted that industry-wide supply chain challenges on the business will persist in the year ahead, and freight and logistics are expected to remain a challenge throughout the year. Growth momentum will also ease due to the high base last year.
Tan Min Liang, Co-Founder and CEO of Razer said: “As we navigate the uncertainties and challenges attributable to geopolitical tensions, macro environment as well as the ongoing Covid-19 pandemic, we expect the lingering industry-wide supply chain shocks to continue to have an ongoing impact on our business, with freight and logistics to remain a challenge through 2022.”
“On the demand front, we saw a deceleration in the growth momentum for our products and services since the second half of 2021 compared to exceptional growth in the prior year, we expect this trend to continue through 2022 as a result of the high base effect seen in 2021,” he added.
Looking ahead, Razer will continue to invest in new growth areas and to build out its “unique gaming ecosystem”, the CEO said. “However, before we start to see the fruits, these growth areas will take time to fully realise and it will require additional spending in our operating expenses and may affect the short to medium-term business performance.”
New growth areas for the business include the extension of hardware offerings to furniture and other gamer lifestyle categories, the continued regional expansion for Razer Gold, and the geographical expansion for Razer Fintech.
Featured Image Credit: Razer