| · 1.6 million Kash Karnival App Install Base · Approximately 15,000 Monthly Active Users Toronto, Ontario – January 27, 2022 – Royal Wins Corporation (CSE: SKLL) (OTCQB: RYWCF) (“Royal Wins” or the “Company”), an innovative hyper-casual digital games studio with the world’s first fully licensed real-money pure-skill gaming platform, is pleased to announce Kash Karnival’s growth numbers for the quarter ending 31 December 2021. Kash Karnival App Installs During the final calendar quarter of 2021, Royal Wins saw a 210% increase in app installs, versus the previous quarter, with monthly growth averaging 30% through the quarter. At the end of 2021, the Company recorded a Kash Karnival install base of nearly 1.6 million with approximately 15,000 monthly active users (“MAU”) - an increase of 40% from the previous quarter. Kash Karnival’s MAU and high-value players are primarily Android users, accounting for approximately 80% of all paying users. Future marketing will be increasingly targeted towards Android users downloading from Google, Facebook, and Samsung Galaxy stores. Conversion to Paying Players Through the quarter, the Company’s marketing campaigns reached 28,000 daily impressions and generated approximately 13,000 daily product views on Google Play Store, Apple’s App Store, and www.kashkarnival.com. Initial target marketing CPM (cost per thousand) impression, across both Android and iOS, was approximately $10, equalling the overall global industry average (slightly lower for Android mobile and slightly higher for iOS, varies by region and by ad type). The Company’s conversion rates into paying players reached 2.3%, slightly below the global industry average of 3%. Management is making adjustments to marketing campaigns with a goal of meeting the global industry average in the current quarter and surpassing the average in the medium term. Player Rewards Player Rewards, defined as a win in a game followed by a cash redemption, for skill games are commonly at the 80% level. Actual Player Rewards for Kash Karnival over the quarter and across all skill player cohorts are currently averaging at the 40% level, indicating that Kash Karnival players prefer to leave their winnings within the Kash Karnival ecosystem and continue to play. This is an excellent indicator of higher retention of users and their deposits, potentially leading to a higher lifetime value of each player versus global industry benchmarks. Deposits and Play-to-Earn Rates Upon re-launching Kash Karnival (see Press Release dated September 29, 2021), Royal Wins increased minimum spend to $3 (from a previous minimum of $1). As a result, average deposits per paying user increased from $4 to $6.50. Management will evaluate further increases to average deposit sizes through the introduction of larger earned prizes, more frequent and diverse jackpot, and special promotions. During the final calendar quarter of the year, the number of active paying players increased by an average of 129%. “The Android platform is proving to be the biggest marketplace for us, moving forward we intend to focus our marketing efforts on cultivating and nurturing those users.” commented Royal Wins’ CEO Peter Gan. “The progress we have made, as confirmed by these metrics, is excellent news for shareholders. Following a complete retooling of the Kash Karnival platform; the initiation of new payment channels; and, our success in getting relaunched on BOTH Android and iOS, Royal Wins is now successfully rebuilding our active player base. Our management team believes that we can maintain these growth rates and build on this new base.” |