Thank you very much, and welcome to the presentation of our year-end report 2019. We will start with on slide one, on the second page, with a short overview of Stillfront. We regard ourselves to be a free-to-play powerhouse. We have 12 studios and approximately 700 professionals through these studios, delivering and developing and managing a portfolio of 37 games which provides us with a diversification and a strong mix between niche products and large products such as "Empire", which is a good mix for us. I will come back to the composition of our portfolio and how it has developed later in the presentation. On the upper right side of this slide, you can see how the revenues have been distributed through under the quarter, the Q4 quarter.
You can note that North America is increasing and Asia is going down slightly and slightly is Europe, North America is increasing. This is a very brief introduction to what Stillfront is, but more interesting maybe is to talk about the fourth quarter and the full year 2019, which we do on the next page, slide two. Some highlights for the fourth quarter to start with. We had the opportunity to enjoy a net revenue growth of 61% year-on-year, and that's supported very much from how the portfolio is balanced and where the growth comes from. We pair that with an adjusted EBIT margin of 32%, and one of the key drivers for achieving that margin is the good monetization that we have developed through LiveO ps, which has been one of the key achievements during the year as well and into Q4.
Looking to the portfolio, we have a strong development in the big products in Nida Harb year-on-year, but also the mid-size products that in itself contributes with a growth which is higher than the market growth, only the mid-size part of our portfolio, which is a very strong thing and shows the strength of our portfolio, we think. The UAC amounted in Q4 to SEK 107 million or 19% in relation to our net revenues. We can continue with our efficient marketing and delivering strong return on that marketing, but also balance that with the efficient LiveO ps that drives the monetization and hence our growth. We will come back to that further in the presentation. A few highlights from the full year. 2019 has been a very important year for Stillfront.
We deliver a solid full-year financial performance with 48% growth and with 33% EBIT margin, which we think is very solid numbers or very strong numbers even. One important thing is that we, during the year, have conducted a program called Stillfront 3 beginning in February 2019, and we were finished at the Capital Markets Day in November and the end of November. The whole purpose with that is prepare Stillfront to be a three times larger company. It's a lot of things that we've done during the year in organization processes, developing more synergies, establishing centers of excellence that really makes a difference for our studios and a lot of other things that is not visible today, but I think when we look back being a 3x larger company, we will see that 2019 was really important for achieving that.
Also we are happy to note that Goodgame for the second year, basically since Goodgame joined Stillfront Group, again have a full year of a full-year growth and a solid one, which we are pleased to see. Also we would like to mention that KIXEYE is not contributing so much to growth, and that is on purpose because we are preparing ourselves for entering into a growth phase during 2020 in different ways, both through GGS, Goodgame conducting the marketing for KIXEYE, but also that the collaboration with Babil Games and Goodgame for launching War Commander: Rogue Assault in the Middle East version will come into play.
We are, as always, very disciplined in Stillfront, so we are not marketing a studio's product before it's ready to be marketed, which had an impact of not contributing with growth from KIXEYE in Q4, but we are optimistic about what it will bring the coming quarters and the next year or this year, 2020. We can also just mention that our organic growth continues to be significantly higher than the market growth, full year as well as for the fourth quarter. Going to the next slide, looking at our portfolio. We can see that our work with continuous improvement of the balance in the portfolio is paying off. We have improved the balance in terms of younger products and more mature products. We have a stronger balance during 2019 just because of the mere fact that we have a higher number of games.
We have now 37 games contributing to revenues and profits every single day. They are of different sizes. As I mentioned initially, there are small niche products with really loyal users, as well as the very large brands that we have and IPs that we have that contribute with the stability and higher volume. We have a good balance between these two in these aspects as well. All in all, we think we have improved our balance and hence our diversification is stronger. Can also mention that the largest product in Q4 is less than 15% of the total revenues. Looking at the three different areas, Empire brand represented 28% of the total revenues in Q4. The Big brand area was 17% and Core products 65%.
Looking into Empire, we can see that the deposits from the now five products in that area was 151%, very stable or slightly down year-on-year, with a UAC which is much lower. That leads to a very strong EBIT contribution with stable revenues and less than 10% in UAC. It's also pleasing to see that Empire really contributes in Q4 with a sequential growth of 12%. We are very pleased to note that, and that obviously helps and contributes to Goodgame Studios achieving growth for the second out of two years in being part of Stillfront Group. EMPIRE: Age of Knights is in global soft launch, and we are looking forward to what that could bring in 2020. A few comments about the Big Farm. The deposits were SEK 90 million, which is 29% year-on-year growth. The UAC is higher.
That increased by 67% year-on-year, and amounts to SEK 38.5 million. That is high, it does pay off sequential growth 6% and a high year-on-year growth. Big Farm: Mobile Harvest is among the top three products driving organic growth year-on-year by 46% organic growth, which is of course, a very satisfying number. Looking into the Core products. The Core products have been growing tremendously for us for many quarters, but this quarter it's a bit slower in growth, approximately growing by some 3%. A couple of things to remember here is that Nida Harb still being the largest product in Core, has its weakest quarter in Q4, whereas the strongest in the Middle East is Q2, as you might recall from last year. It's a slightly different pattern in Core products taking Nida Harb into consideration.
The total deposits amounted to SEK 296 million, which is a strong year-on-year growth of 118%. The UAC grew less, so that is, of course, a strong development, amounted to SEK 55.5 million. Besides Nida Harb which is the largest product in Core, but not in this quarter growing, but we think we have exciting quarters ahead. Shakes & Fidget has a tremendous strong Q4 with all-time high of SEK 36 million, and we have Battle Pirates of SEK 32 million. Nida Harb and Strike of Nations are the two strong contributors to our organic growth.
Again, it is important to note that KIXEYE didn't grow that much, also contributing to the area not growing so much, but that is on purpose since we would like to be completely prepared in the best possible way before we use marketing funds to the new products that we expect to grow KIXEYE and contribute to still some growth. All right. Let's turn to slide number four, the active user base. Of course that has an impact that we have a seasonality that with the Q4 is as always stronger than Q3, but also we have an efficient UA, which I touched upon, but we are pleased to see that the MAU growth sequentially by 13%, DAU with 6%. We reach all-time high on monthly active users by exceeding 6 million for the first time.
Also we can see that all three areas are growing sequentially and year-on-year. That is satisfying on MAUs. On DAUs, we can see that the year-on-year Empire is going down by 21%, but we are not so concerned about that because the loyal base continues to be very loyal and enjoying Empire and spending money and spending time. As we have mentioned earlier, by our capital market say, the average cohort entering into Empire up until 2014 had played on average 821 days. I think that tells something about loyalty. Also contributing to the MAU growth in particular is that we are in global soft launch. Still soft launch, but still that contributes to the growth of the MAU numbers. Turning to next slide five, looking at our monetization of the paying user base.
We are pleased to see that we have also an all-time high in the number of monthly paying users, unique paying users. You can see how it grows year-on-year by 28%. Also you can see that even though it's down by 10% for Empire year-on-year, you can see it's for the second sequential growth. It's a growth on the number of paying users. I think we again can see the signs of this loyal user base still enjoying Empire. As we increase the Empire franchise by Age of Knights, we are optimistic about what that will bring next year in 2020. Also, when we look at every average revenue per monthly paying users, we can see that the average goes down slightly to SEK 756, which is not unusual when you grow the number of MAUs and MPUs.
You can see that we have Big Farm growing significantly than the sequential average revenue per monthly paying user goes down, whereas Empire shows the loyalty and the strength and the existing user base with an increase from SEK 737 up to SEK 809. You can see how core products are contributing negatively in development, still the highest number, but that is very much also attributed to Nida Harb having a slightly slower quarter, not contributing so much to the growth. That has an impact being a high average spending product. Also KIXEYE not contributing with the highest growth, but has a high spending pattern also contributes to the average being slightly lower, but still on good levels. Also, I would like to emphasize that Shakes & Fidget is a main driver of sequential 12% growth in the monthly paying users. Going to slide six.
We are of course pleased with the 51% year-on-year growth. We will look further into financial in a short while with Andreas. As mentioned, big products and Nida Harb year-on-year is very strong contributors to this. Also as mentioned, the mid-size product is really a very important variant in our portfolio. Playa and KIXEYE of course contributes with acquisitive growth. Again, good solid organic growth besides acquisitive growth. We can see that we have a 6.6% sequential growth on top line. We think that is a good number considering again that we haven't fueled KIXEYE so much, or very little, and that Nida Harb has the weakest quarter in Q4. We can also see that the SEK 561 million in revenues and the SEK 177 million in adjusted EBIT has been achieved with 19% in UAC.
We think that again proves our efficiency in UAC combined with our efforts and our results from LiveOps contributing to the higher average revenue per monthly paying users. Looking at the last 12 months numbers, we can see that we're up to SEK 1,967 million, a solid number and a solid growth. With last 12 months, 20% again in user acquisition costs. We show that we're also looking at the longer time period have improved our efficiency clearly on how we market our products. We have a SEK 645 million in adjusted EBIT contribution during the last 12 months, which is equal to 33%. We can also note that we have a lower share of mobile revenues in Q4, so it went down from the 56% in Q3 to 54% in Q4.
I would like to emphasize looking at the last 12 months that our EBIT growth is 62%. We improve our margins by 3 percentage points. All right. With that, I would like to hand over to Andreas to go a bit deeper into financials. Please, Andreas.
Thank you. Good morning, everyone. Thank you for joining us this sunny morning in Stockholm. I will start with page seven, which is the Q4 income statement. I will go into the full year as well. Starting off with Q4, our deposits totaled SEK 537 million for the quarter. We had a positive IFRS effect of SEK 3 million. The other games-related revenues, which relates to ad revenues and other sort of games revenues amounted to SEK 11 million for the quarter. That gives us the SEK 551 million of total net revenues, which is a 51% growth for the quarter year-on-year.
With platform fees of SEK 142 million, which then gives us a gross margin of 74%, which is in line with what we've seen in the previous quarters as well. In terms of other operating costs then, we have UAC costs of SEK 107 million, which is then 19% of our revenues. We had items affecting comparability for the quarter of SEK 5 million. We had other operating costs of SEK 49 million. In terms of depreciation and amortization, in total SEK 69 million for the quarter.
PPA items and amortization of those was SEK 38 million in total. Capitalized development expenses and amortization of those, SEK 28 million. The IFRS 16 and i.e. leases and fixed assets was SEK 3 million. This gives us an adjusted EBIT, which grew by 30% year-over-year of SEK 177 million and a margin of 32%. We had net financial items of SEK 19 million for the quarter.
SEK 70 million was pure financial cost. We have non-cash interest charged on earn-outs and other currency effects, which was a negative SEK 5 million, which was offset by the year-end final revaluation of the provision for earn-outs, which affected the financial net positively by SEK 3 million. Taxes for the period, SEK 29 million, in line with the full year 25% of reported tax rate for the group. That gives us a net result for the quarter of SEK 87 million. Looking for the full year, Jörgen touched upon that as well. I will give a bit more flavor in terms of financials, turning to page eight. We had a growth of 48% in terms of net revenues. I said this before, growth is obviously very good in itself, this comes both from organic, but also acquired growth.
This has created a much better balance in our revenue portfolio in 2019. That is very important that we have both managed to grow our organic, our existing games, and then complemented that with new games through acquisitions. Looking ahead, Storm8 will further improve our revenue diversification, both in terms of geography and new games. We have also been, and we touched upon that, very successful on the LiveOps in 2019, and that shows that we have managed to increase our average revenue per monthly paying user with 16% year-over-year. That shows the efficiency in how we structurally work with that and work with synergies across the studios to get that number up. Our other revenues, so revenues from then ad spend, ad revenues, and also other kind of revenues had increased to SEK 39 million.
That actually makes up now almost 2% of the total revenue, which is an increase from 2018, where it only made up below 1%. That is something that obviously helps our gross margin as well because they're down to bottom line. Looking at then gross margin, we had 74% for the full year, which was the same as in Q4. That is a slightly lower gross margin than we had in 2018. That is driven by a higher share of mobile for the full year, and also that Babil has a slightly different setup, and that also drives down gross margin. However, we've been managing to keep the gross margin high because of the other revenues, but also in terms of the scalability of our business model for the full year.
We have deployed SEK 397 million of UAC for the full year, which is a 24% increase versus 2018. I think it's very important that it actually decreased four percentage points versus 2018 over net revenues. We see the fluctuations here from quarter to quarter, and that we have seen that into 2019, and I would expect that we will see that going forward as well, that we have fluctuation over quarter on quarter when we see that our returns actually work, our returns of 180-day money back. Personnel cost has in total increased with 51% to SEK 356 million. It's worth noting that majority of the personnel cost is for development staff, so that goes into own works capitalized. It's people that are working on building new games. The underlying P&L increases was only SEK 41 million, so it's 35% increase for the full year.
In terms of depreciation, amortization, write-downs, that increased to 78%, which is mainly driven by higher than PPA amortization for PPA items, which has increased to SEK 101 million, that is driven by the acquisitions that were done late 2018, also during 2019 with KIXEYE. We have an adjusted EBIT that amounted to SEK 645 million for the full year, which is a 63% improvement. Our EBIT margin increased with three percentage points to 33% for the full year. In total, we had taxes reported at SEK 113 million, we had a reported tax rate of 25%. Net results for the full year, SEK 341 million, which is an increase of 117% versus 2018. Turning to the balance sheet, looking at end of the year. Our asset side consists mainly of intangible assets.
We had capitalized product development costs and so-called PPA items of SEK 1.1 billion ending of the year. Goodwill of SEK 2.2 billion, which is a slight reduction from Q3, where we had SEK 2.3 billion, and that we have recorded a deferred tax credit for KIXEYE as part of our PPA items, which has now been confirmed, that reduces that goodwill position. We had a cash balance of SEK 342 million.
That's gone down slightly since Q3, but that's basically driven that we have repaid SEK 83 million of debt in the quarter. Non-current liabilities, which is mainly earn-outs and utilized RCF at SEK 224 million. Current liabilities is the same there with earn-out that is within the next 12 months, plus utilized working capital facilities and payables of SEK 550 million. We end the quarter with an adjusted leverage ratio pro forma of 0.9, which is in line with the quarter before.
We have an adjusted interest coverage ratio pro forma of 11.7. In the quarter, we also had unutilized credit facilities, SEK 522 million, but I'll get to that further on. That's probably less relevant going forward based on the new financing structure. In terms of cash flow. Q4 cash flow from operations, SEK 148 million. It was then positively impacted by working capital movements. I addressed this before, that fluctuates quarter on quarter. It's much better to look at on the last 12 months. But we had a positive effect in this quarter. Then as normal, you continue to pay taxes during Q3, but also during Q4 across our jurisdiction. We had investments of SEK 86 million, which was primarily driven by product development. Total, we spent SEK 84 million on product development, which is 15.2% versus net revenues. That fluctuates also over time.
For the full year, we have 12.6% over net revenues. That is driven by Age of Knights that is in global soft launch and other products that we are developing at the moment. Cash flow from financing activities, negative SEK 94 million. This is mainly driven by a repayment of SEK 83 million of a long-term debt prior to year-end. Looking at full year, I think this is where we can see what important numbers comes out. We had a cash flow from operations of SEK 484 million, that is an improvement in operating cash flows of 120% full year-over-full year. That is really showing the strength of the model where we build scale, we become more efficient in terms of our deployment of the marketing costs.
That we can increase our operative cash flow because that helps us both to do acquisitions, but also to spend money on product development. If we look then at the cash flow from investment activities, it was SEK 1.2 billion in total for the full year. That's mainly driven by KIXEYE, which was a large acquisition, and also payment by earn-outs, which then totaled acquisition of business of SEK 996 million for the full year.
In terms of investment in product development, these increased only with 55% to SEK 248 million, which is then lower than the increase in the operative cash flow. That obviously is very important for our funding financing model and our business model going forward. Cash flow from financing activities, SEK 861 million. Primarily driven by that we took in SEK 500 million of equity and SEK 500 million of new long-term bond financing in June.
We have also managed to reduce our debt from our credit facilities of SEK 100 million for the full year. To sum up, we have good growth in our cash flows, driven by both revenue growth and margin improvements, which helps us to fund further expansion of this business. I'm turning to page 11, and I think this is just to look a bit backwards but also look forward. We have in January put a robust financing platform in place as part of the Storm8 acquisition. This is some of the key highlights from that. With our cash generative business, we have a high debt service capacity, and that I touched upon in the previous page. We have maintained our leverage ratios well below our 1.5 targets, which we also reiterated as part of the capital markets day, despite that we have done large acquisitions in 2019.
The Q2 number here, LTM, is obviously slightly the outlier, but that is because we had the full depth of KIXEYE, but not the pro forma numbers in terms of the EBITDA. We also proven that we have good access to the capital markets, both from the equity and the bond side. We have also managed to move the interest curves in our debt capital markets down, both when we did the KIXEYE transaction and also the tap issue now we've done in Q1 2020. That is always important both from our cost perspective but also for the future. We put the new bank facilities in place, both Nordea and Swedbank, SEK 1.6 billion, which is a maturity of three and a half years. That gives us a strong foundation to build on.
We have only SEK 30 million utilized as of Q4, but we would obviously use some of this to fund part of the Storm8 acquisition as well. Looking back at sort of 2019, but also beginning of 2020, we have strengthened our financing platform, which will be able to support further business growth. We also managed to get a well-diversified maturity profile, and we have maintained our conservative leverage targets. I will hand back to Jörgen.
Thank you, Andreas. Going into slide 12, just briefly talk about Storm8. When we conducted this Stillfront 3 program that I mentioned during 2019 to prepare ourselves to be a 3x larger company compared to 2019 within five years, one of many things that we worked with was how should our footprint genre-wise and in the market look like. As you might know, we have focused a lot on mid-core strategy games in Stillfront, and that has been part of our success. It's not that we only should work with strategy games. The key thing is that we have a strong diversification paired with areas where we see that the consumer behavior is loyalty, and you play the games for not only one or two years, you play them for decades.
What we saw preparing ourselves and planning for the 3x target that we have was that if we become a 3x or when we become a 3x times larger company, if we stick to mid-core strategy game, then what has been a strength for us, namely focus on certain areas, will at some point be a weakness because we will be too focused and diversification will suffer. What we decided early during the spring 2019 was that we need to broaden our addressable market. We need to broaden our genre footprint so that we're not only addressing some 10%, it should be more than 20%, 25% as we become a 3x larger company.
The one area that came out as most interesting for us was so-called mashup or genre mix between casual games and games that last for a long time, that have the pattern and the benefits of long lifecycle games where you also have high lifetime value from the consumers. We looked at many products, we looked at many companies, and the one single company that stood out for us, came out highest rated among all the companies and products we looked at was Storm8 and their product Home Design Makeover and Property Brothers. That's why we are very enthusiastic when we now have been able to sign the deal and in a few weeks also have closed the deal because they are leading in exactly that.
They have a tremendous strong track record in casual games, been around for 10 years, being profitable every single quarter, have very strong numbers now. The LTM numbers for Storm8 was in Q3, revenues of $118 million with $58 million at EBIT. They are in a very exciting phase, we think, because the products are young. However, they have proved themselves when we make all the data analysis that we always do, we can see that the most mature cohorts of these games, especially Home Design Makeover, Property Brothers is based on the same engine, so it goes for that product even though it's younger, shows exactly that. That the most mature players or the most progressed players in the games are the ones that spend more than half of the revenues.
That's exactly the pattern that we need to see in order to believe and to be convinced that we can scale this product together with Storm8. With joint efforts and with the help of course, all the skilled 70 employees at Storm8 to much higher numbers. Also worth mentioning is that they have a very strong track record. They have had in total more than 1 billion downloads, significantly more at this point, I would say. That has generated more than $1 billion in revenues. They have more than 9 million monthly unique playing their games. Of course, that is impressive and relevant numbers to have people also mentioned on this slide with a significant experience and knowledge. They really know what they do, but also to provide and get hold of much more data.
Data is probably the highest asset in Stillfront, of course, the products, but also the data is extremely important to achieve the results that we have been achieving in marketing with the efficiency of 180 days, but also the LiveO ps achievements that I mentioned and also Andreas elaborated on. The amount of data from more than 1 billion downloads is a significant asset that this deal brings besides the obvious financial strong performance. We are very enthusiastic to welcome and consolidate Storm8 from the 1st of March in Q1 and then include them going forward. We also are very optimistic about how we can create synergies both on the marketing side as well as on the LiveO ps side between Storm8 and Stillfront's 12 other studios. Turning to the last slide of this presentation, slide 13, looking ahead.
As we have talked about from the Capital Markets Day, we think that it's a very exciting industry, of course, from the growth and the structural growth that the gaming industry represents or are fueled from with demographics supporting that, also that younger people will probably not stop playing games, but as they grow old, it's just a very strong growth mechanics behind the market growth that is expected for many years to come. Also another thing is that the consolidation that we have touched upon, also the convergence between traditional publishers of AAA+ games and companies like Stillfront, that we are very process-oriented and data-driven. These two parts of the gaming industry will for sure converge. We think it's key if you can take advantage of that convergence to be on top of that, then can create tremendous value.
We have four things that we would like to emphasize here. Build size, increase the addressable market through stronger building. That is absolutely key in order to be a winner in the market as if the next coming four to seven years will be more consolidated. You will have commercial benefits from size in itself to a larger extent than you have had previously. Second thing is that we should further leverage the positive scaling that we have from our business model to accelerate our synergies. We can clearly see and have been seeing for the last two years that the more studios we are, either at a higher degree, we can find and execute synergies. It's not scaling linearly, it's scaling progressively with the number of studios we have thanks to the way that we operate with centers of excellence and a very high degree of decentralization.
We really think that our business model is built for taking advantage of how the market develops the next coming years. The next point is accelerate value through our M&A and leverage the pipeline and the position that we have. We have exciting things that we hope to be able to do the next coming years. We also, as Andreas elaborated on, it's key for us to have a financial model supporting that we continue being very active in the consolidation for years to come. I think that we have during 2019, taking very important and very good steps to having a very strong financial model supporting this. The next one is use our unique organization model to develop and attract the best talents in studios.
We are absolutely convinced that by nourishing and supporting in a decentralized structure, the entrepreneurship, that is an unprecedented way of building a larger company. The tricky thing is it is not so easy if you have not really tried and refined your way of operating, in our case, with centers of excellence and a lot of other things, something called Still Base, where we facilitate studios to collaborate and exchange knowledge and information so that the collective knowledge is really driving and attracting the right studios to join studio number 14, 15, 16, and so on. All these areas and a lot of other things, we are prepared to execute on these tasks.
We have prepared ourselves for a year. We are convinced that we will be able to do that in a way that makes us a 3x larger companies and also to achieve the financial targets that we communicated to the market at the 27th of November last year. Thank you for that. I think that was all for our presentation. We open up for questions.
Thank you. If you would like to ask a question, please press zero one on your telephone keypad. If you wish to withdraw a question, you may do so by pressing zero two to cancel. That is zero one if you would like to ask a question. Our first question is from Hjalmar Ahlberg from Kepler Cheuvreux. Please go ahead. Your line is open.
Thank you. Let me ask a question on the average revenue per monthly paying user. You discussed this a bit during the call. If it is right to understand that Nida Harb was mainly the reason why you maybe saw some lower revenue per user in this quarter compared to Q3?
That is one of the main contributors, for the simple reason that their share of the total portfolio, since this is their weakest quarter, whereas many studios have Q4 as one of the two strongest quarters. Also the fact that we haven't seen KIXEYE that also have a high average revenue per monthly paying users with growth so much in Q4 because we are preparing for the growth that we expect to see during 2020. That is the two main factors. Also, I should mention a third one is that when you grow in monthly users, active users, of course, it's not all of them that will pay in their initial phase playing our game. As we have all-time high in monthly active users, it's a quite natural pattern that the average revenue per monthly paying users is a bit lower.
Got it. Thanks. In terms of monthly active users, Big Farm was growing a lot with the, of course, increased user acquisition investments. Looking at the Empire brand into 2020, you have the new game launch. Do you think that will give a step up in growth for Empire brand looking into 2020?
Yes. We are completely data-driven, but of course, we don't take a product to global soft launch if we don't believe it will contribute. To say how much, how fast, that's always very difficult. We think it's a good first period with Age of Knights, and then we will see how much it will bring.
Thanks. The investments in intangibles was a bit higher during the quarter. Can you discuss that a bit more? What would it be up so much? If you look forward, was this a quarter with exceptionally high investments in relation to sales? What is your view that going forward?
I think that there are a couple of things playing in. Compared to many other gaming companies, we are quite capital efficient, I think. You're 100% correct in that it's a high number for being Stillfront. That is mainly due to two reasons. One is that we have a natural fluctuation from quarter to quarter, depending on how much we basically invest in new products. As we mentioned, Age of Knights is in a very intense phase, the investment goes up when that happens. Also we have some other exciting initiatives. We have mentioned Walk Commander: Rogue Assault for the MENA region, which is also part of that. I think we have several growth triggers that will during nothing Q1, but it will many growth triggers for 2020 that will come out during the 2020 years.
Of course, increasing that will also doing that. Also looking at the full year, you can see we are at 12.6% investment in relation to revenue. It is a higher number, yes, but it's a natural quarterly fluctuation. Also the second thing I would like to mention is that we do think that looking at the average, not this single quarter, but if you look at 12.6%, two and a half years ago, we were at 10%, 11%. We think it's natural to see that over time it will be slightly increasing, which is natural, whereas the production value, the sophistication of our games goes up. That is nothing that will happen one quarter to another. It's not like the quarterly fluctuations, but we do think that it's natural that it increases slowly, whereas our product becomes more and more sophisticated.
Thanks. Maybe a few question on the Storm8 acquisition. I know you discussed it already in the other call in January, but maybe just some question about the profitability. I mean, it's a bit higher than you have right now. Do you think that this is sustainable, or will you invest more there until this margin come down, but maybe growth coming up? You can comment anything on that.
We make the same comment as we made when we presented the acquisition. We hope it will go down for the reason that we think that it will be a completely rational decision, looking at the data to increase the marketing spend. As you know, marketing spend comes at a cost when it occurs, whereas the revenues from the paying users comes the second, well within 180 days we recoup the investment, the users that we brought in will be there for years spending money. It lowers the short-term margin, but we hope that will be the case.
It will not be drastic changes, as you can see in the presentation that we held when we announced the acquisition, when they had higher investment, they had a margin that were approximately 4%, 5%, 6% lower, so approximately 46%, 45% instead of the 52% that it is now. I think that, but it's only if the data proves that we can recoup the increased marketing spend, returning the money in tops 180 days. I think we have all the data supports that. That is what we hope and expect will happen. Again, as always, and I emphasize this, I did emphasize when we made the KIXEYE acquisition, and also when we presented at the Capital Markets Day, the development with Babil Games and Bytro Labs, it usually takes a quarter or two or even three, before the growth do accelerate.
You make a transaction and that takes some focus from the studio, but also before we identify how much we should push, how much synergies we should use, and how we should use the collective knowledge to push marketing in the most efficient way. That takes some lead time. We're not saying that we will immediately have a spike in growth at Storm8, but we are comfortable with that during 2020, we'll see an increase in their growth, that we are very confident with.
Thanks. Got it. Maybe just a question about Storm8, and in general also when expanding to new genres, how do you see the strategy games have been historically very strong in terms of stability in the longevity of the games, understanding patterns of the users. What do you see here for the more maybe casual or different kind of genres that you enter now?
That's a very relevant and good question. When we seek for how we should expand our market footprint and stronger footprint, so besides that, we've just brought an audience gender-wise, which is very good. Now we take in games that have 75%- 80% female audience between 25 and 45, which is very good, obviously, to broaden that from being 80% male audience. I think that what is very important is what I touched upon. When we have studied the data, and trust us, we have studied the data for quite some time, you can see that the majority of the spending is from mature users in these mashup games.
That is the whole idea, that we can see from the data that the way that the users actually behave is exactly the way that they should behave in order to play the game for a long time. What we also think is that if we would have broadened our genre footprint into something that was too far away, we would not be able to achieve the synergies. From Storm8's perspective, they see that the knowledge and the leading knowledge, I will use their words, in how to conduct LiveOps and to really extend the life cycle of a game, they could use a lot of that into Home Design Makeover and Property Brothers, because in their view, which is interesting, we are amongst the best in the market on doing that.
They believe that they could be even better in achieving long life cycles for these games. Again, it's already there in the data pattern.
Okay, perfect. That's all from me. Thanks.
Our next question is from Lars-Ola Hellström from Pareto Securities. Please go ahead, your line is open.
Hi Jörgen. I came in late as there is another company reporting as well. Can you just give me some dynamics on KIXEYE because you have started to scale War Commander and VEGA Conflict, and it's a seasonally stronger quarter in Q4. It seems like revenue for War Commander is down sequentially or deposits. Is it that it has been fewer content updates, less LiveOps?
No, as we have tried to say, obviously not being completely clear enough, so I apologize for that, but it takes a couple of quarters before you can scale things. As you might recall, KIXEYE decided, they tested with their own marketing capabilities, making test campaigns in Q3 with the Goodgame centers of excellence for marketing, and saw that Goodgame Studios by far were delivering better results. They decided, which we think obviously was very wise decision, to shut down their own marketing and instead use Goodgame Studios. What happens is then it takes some lead time. You have to adjust the games.
You have to make test campaigns, which we have been doing, but we haven't really fueled it. We are disciplined, so we will never do that just because it should look good, but not meeting the requirements of what we should achieve in marketing, namely recoup the money in 180 days. We have been preparing ourselves, and that goes for GGS marketing on the existing products. It goes also for War Commander and Rogue Assault for the MENA region. The growth shouldn't be in Q4, it should come in 2020. As I've said already in July or June when we announced the deal, remember, it takes a couple of quarters, three quarters. In the Babil case, it was actually almost five quarters.
We hope to be faster than that before you can see the results, especially as we change the marketing department, and then you have to do some plumbing and changing the tools, calibrating campaigns, decide which channels you should go for, what territories you should go for. We are unchanged, optimistic about what that will bring over time, but we're also unchanged. We haven't changed that, but we're unchanged, used to that it takes a couple of quarters before it really takes off. That was what we have tried to communicate, and that's basically a natural thing. We're not surprised, neither disappointed in that. We are just reading the data and do our homework before we start to scale.
Where are you in the timeframe here? Are you at full speed now in terms of scaling up VEGA Conflict and War Commander, or is it still to come? Have you done all the adjustments you want to do?
You're never done doing adjustments and improvements. I think that, as I mentioned, we don't give a forecast explicitly, as we have said several times, we expect that during the spring here, so when exactly that is, that's data telling us, we will push the throttle or turn the throttle to achieve growth. We have come far in our preparations. We have started with test campaigns, it's slightly step-by-step it goes over to more significant marketing. We're close to be there. It will not be long. If your question is will you have a 10% growth for KIXEYE in Q1? Obviously, I can't answer that. We're getting there.
Okay. Also for the Big Farm segment, I know that the monetization is sequentially lower. Is that a reflection of higher number of paying users that is so to say young paying users or is it a lower amount of content update, the LiveOps?
No, you're correct. That's a more dynamic effect that we have seen so many times. When you grow something significantly, like the Big Farm: Mobile Harvest has done, it's a natural thing that you also have some balances in the average spending. It's the first, not the latter.
Okay. Age of Empires, during the soft launch now in Q4, the data is looking good, I think we have discussed before. Is it ready to be ramped now in Q1, Q2?
Do you mean Age of Knights?
Age of Knights, yeah.
As we have said that we are in a global soft launch, when the KPIs are where they should be, and we have a very clear dashboard, what one-day retention, seven-day retention, 30-day retention should be in different markets and in different areas. It should be conversion into paying and it's hundreds of parameters. We know where they should be in order to scale. We are still optimizing the product. Whether we will be there in one month or in two months, it's a bit hard to say because we are data-driven, which is good. It should be that way.
Otherwise, you throw good money after bad.
Yeah. Two other titles here, do you still expect to have a War Commander for the MENA region and Playa Games Clash of Empires through the door before Q1 ends?
We have to come back to that, but we are progressed, so we are comfortable that it will be during the first half of this year, we expect. Again, it's data, so if the data comes in, not being that we see that we can improve it, we improve it. That is our current expectation.
Okay. Thank you.
Just as a final reminder, if you do wish to ask a question, please press zero one on your telephone keypad now. Our next question is from Kristoffer Lindström from Redeye. Please go ahead. Your line is open.
Hi, guys. Just a few questions here. Could you just elaborate a little bit on the main drivers behind the strong performance of Shakes & Fidget? Is there General improvements, or is it really much content updates, or what's the drivers?
It's several drivers. I think Playa Games has made a very interesting and obviously successful move. They have turned Shakes & Fidget into a platform on which you can play several games. The main game, obviously, which is a role RPG type of game, they have also developed that in a way that you have games in the game, so to speak. For instance, there is an idle game within Shakes & Fidget, and that's actually not that small. It's generating quite some significant game revenue. If we would have had that as a standalone product, it would have been our 38th game in our portfolio. What they have done very successfully is both that they have developed a product to a platform on which they can launch new games as a natural part of it, and that has been very appreciated.
The idle game is only one thing, but also other games in the game, so to speak, that has been very appreciated from the audience, which has proven to be extremely loyal. This is a very clever way and a slightly different way from what we usually do in LiveOps. I think they can learn a number of things to our other studios.
Obviously. Oh, sorry. Continue. Yeah.
They have increased the volumes on mobile, their cross-platform effort that has been significant during 2019 really have paid off in Q4 as well. It's a strong season, they have been successful in LiveOps, very successful LiveOps in conjunction with the holidays. It is several pieces, but it's good to see that again, one of the midsize studios and the midsize games really could, on being quite mature, could take a leap in revenues, just as we have mentioned Supremacy 1914, that has almost tripled its revenues in one year on its 11th year of life. This is again, proving our studio capabilities on that, but also the strength of the products in our portfolio.
Yeah, the reasoning behind our platform would be obviously to have a platform to easily try new ideas into the game and then possibly spin them off into a separate game, I guess.
Yeah, spin them off or not, I honestly don't know. We have discussed that a lot, whether it should be a spin-off or not, but we have seen that it has worked out quite nicely being an integral part of what is the Shakes & Fidget world, so to speak.
Yes. Would you say that the sequential drop in Nida harb is mainly due to seasonality then, or do you see any other trends? Okay, yes.
No, it's a sequential. Last year, we were, I think, exactly flat Q4 compared to Q3. It's exactly the pattern that we have seen last year.
Do you see any reason why going forward, the seasonality pattern from last year shouldn't repeat?
Ramadan is very important for the seasonality, and that is in Q2. I would expect that whether it would be on the same level, that's of course super hard to say. We expect Q2 to be the strongest quarter this year, just as it has been for many years for Bytro.
Yeah. Okay, great. Thank you.
As there are no further questions, I will hand the word back to the speakers for any final comments.
Thank you all for dialing in and asking questions. Yes, I think we're done with that. Thank you, everyone.