Sulake Corporation, the creators of the popular teenage social network Habbo Hotel, have reported very strong financial figures for their first quarter of 2010. Between January and March, Sulake’s revenue grew by more than 25 percent compared to Q1 in 2009. Sales for the first three months of 2010 were $20 million (€14.7 million).
Sulake’s profits also increased nicely in the first part of the year. EBITDA for Q1 was $3 million (€2.3 million). The increase in profit is due to revenue growth, together with operating model improvements as well as cost savings. “Habbo Hotel’s solid growth this quarter has been a result of our continual new and relevant features, exciting campaigns and monetization improvements to the Habbo virtual goods economy. Better Habbo user experience has also led to increased viral recommendations and a larger user base. Additionally, our activities and presence on social networking sites like Facebook, and other new acquisition partnerships have contributed to our growth. Also, the global online advertising market recovery resulted in solid growth in our ad sales business”, states Timo Soininen the CEO of Sulake.
Habbo Hotel is currently open in 32 countries in 11 different languages. More than 15 million unique visitors spend a total of 45 million hours playing Habbo Hotel each month. In 2009, Sulake’s revenue was $60 million (€49 million) – approximately the same as in 2008. It seems the Finnish startup giant is back on the growth wagon.