Tangelo cuts 25% of staff following platform integration

Tangelo Games has reduced its staff headcount by 25% following the successful integration of Akamon and Diwip into a single social casino platform.

The developer said the cutbacks were made possible by the scale of the newly combined firm.

The efficiencies also helped the firm boost its Q3 EBITDA 56% to C$2.96m, while revenues for the quarter were also up 57% year-on-year to C$9.3m.

“Tangelo has now completed the full integration of Akamon and Diwip into a single, seamless social casino platform,” said Tangelo vice-president Vicenc Marti.

“The proof is our recently launched game Pixies, jointly developed by our Tel Aviv and Barcelona offices, which for the first time in the history of the company has been launched simultaneously in all of the company’s platforms.

“A fully integrated and experienced company with an efficient costs structure is the perfect baseline to leverage the next wave of opportunity in the young social casino industry, with nascent technology platforms such as bots and VR.”

The group also lauded its “best-in-class marketing platforms and analytical models”, which improved churn in the Diwip customer base, from 35% last year to 20% in Q3 2016.

“This is a critical metric for Tangelo’s business, as it means we are able to increase customer life time value,” the firm said in statement.

“We believe there is room for further improvement and our ultimate goal is to reduce Diwip customer base churn to a number much closer to Akamon’s 5%.”