Trophy Games has completed an internal assessment of the company’s annual savings following Google Play’s announcement of changes to the fee structure for mobile game developers.
Based on current operations and title performance, Trophy Games expects that the fee changes will result in a direct cost reduction of approximately DKK 3 million per year from the next financial year onwards, provided they are implemented globally as announced and assuming all other operational variables remain unchanged.
This saving gives the company better opportunities to scale the business and increase the value of the strategic initiatives that have been set in motion. These include the acquisition of the game portfolio from Tivola Games in 2024, which will see a clear improvement in margins, and the upcoming horse game being developed in collaboration with Tivola Games, which will similarly benefit from a more lucrative monetisation period at global launch. Finally, Trophy Games is currently evaluating further acquisitions following the most recent capital raise with support from Eiffel Investment Group, ATP and BankInvest, where lower fees support the profitability of new mobile games.
Trophy Games will closely monitor updates from Google Play, and the expected annual saving of DKK 3 million will be incorporated into the company’s guidance for the coming financial year. Chief Executive Officer Søren Gleie comments:
Google’s move to lower platform friction is a massive win. Because our portfolio relies more heavily on direct In-App Purchase (IAP) monetization compared to many of our competitors who lean on ad-heavy models, this fee reduction yields a disproportionately positive impact for us. It lays an exciting foundation for relative market expansion, allowing us to outperform peers on unit economics.
For us, saving DKK 3 million annually - all things being equal - immediately secures our baseline profitability at a significantly higher level. Crucially, this structural shift also unlocks a potential marketing budget expansion that we are actively evaluating right now. Instead of leaving capital tied up in platform commissions, we want to look at pivoting these freed-up funds directly into strategic user acquisition to scale our titles faster, while continuing to give our internal development teams the financial leverage to innovate without unnecessary constraints.