JANUARY - MARCH 2024
- Net revenue amounted to MSEK 4.7 (3.3), an increase of 42 percent, and an increase of 41 percent in comparable currency.
- EBITDA amounted to MSEK -1.2 MSEK (-0.6).
- Operating result, EBIT, amounted to MSEK -3.9 (-1.9).
- Result for the quarter amounted to MSEK -3.9 (-1.9).
- Earnings per share were SEK -0.34 (-0.22) before and after dilution.
- Cash flow from operating activities was MSEK -1.8 (-1.7).
- Cash and cash equivalents amounted to MSEK 1.8 (6.8).
- Average Revenue Per Daily Active User (ARPDAU) amounted to USD 0.083 (0.056), an increase of 48 percent compared to the previous year.
- Unique Monthly Active Users (MAU) during the quarter amounted to 0.9 million (0.9).
- The number of outstanding shares at the end of the period was 11 361 120. The number of subscription warrants issued at the end of the period was 250 000, unchanged during the quarter.
A FEW WORDS FROM OUR CEO
We started 2024 with a more efficient organization and an increased focus on our most promising title in development, Fishing Tour. The soft launch has yielded positive results and insights, and we continue our development of Fishing Tour with great enthusiasm. During the first quarter, we implemented several important product updates that improve the user experience and ongoing development moving forward. We plan to launch a significant update featuring an improved user interface in the current quarter, followed by regular updates with the goal of starting an official launch in the third quarter.
Our portfolio of launched games, ARMED HEIST and Questopia, generated an income of MSEK 4.7 during the quarter, a 41 percent increase compared to the same period last year. ARMED HEIST continues to have stable organic traffic on both the App Store and Google Play, with income and daily active users (DAU) in line with the same period last year. Despite a tougher marketing climate, Questopia has soldiered on in its global launch with user acquisition investments of almost MSEK 2 during the period. Our partner in China, Voodoo, has also faced challenges in user acquisition. The initial UA campaigns showed great promise, but the increased marketing efforts have not yet produced the expected results. In response to these challenges, we launched a comprehensive update in April, which is expected to increase income per user and allow Voodoo to make another attempt at launching in China.
During the first quarter, we completed our proprietary data processing and user monetization system, AGIM, named after our Lead Monetization Manager, Adrian Gersztof, who has a background at Huuuge Games and Ten Square Games. We have updated ARMED HEIST with this innovative system. The update was launched in April and has already started to generate positive results, with increased income per user and improved conversion to paying users. With ARMED HEIST's strong organic presence on both the App Store and Google Play, we expect this update to lead to continued growth in net income.
Despite the challenges we have faced in the mobile games sector in recent years, with changing conditions for new game launches and user acquisition, I am proud of our progress and the opportunities ahead of us. We have encountered obstacles along the way that have partly slowed our progress, but I am confident that we will succeed even if this will require more capital than we first assumed. We are addressing this through the upcoming rights issue, in which I fully participate to show my confidence and commitment to the Company's future.
We have two main goals for 2024: to launch a scalable version of Fishing Tour, and no later than Q4 achieve a cash flow-neutral company, calculated before investments in marketing for the growth of Fishing Tour. Through our transition, we have adapted to our environment, and we are developing a game title that has the potential to retain its users for several years, which is key to succeeding in the maturing mobile gaming market. I ask our shareholders to be patient; we will continue to be efficient and reduce our costs where possible without jeopardizing the Company's long-term value creation.
Rade Prokopovic
Chief Executive Officer
FINANCIAL CALENDAR
All financial reports are published on https://www.sozap.com/ir/financial-reports
- Interim Report, Q2 2024: Aug 14, 2024
- Interim Report, Q3 2024: Nov 14, 2024
- Year-end Report 2024: Feb 14, 2025
BOARD OF DIRECTORS
The Board of Directors and the CEO affirm that the Year-end report provides a fair overview of the Parent Company's and the Group's operations, financial positions and results, and describes the significant risks and uncertainties which the Parent Company and the Group are facing.
Nyköping, May 15, 2024
Claes Wenthzel
Chair of the Board
Annette Colin
Board member
Stefan Janse
Board member
Daniel Somos
Board member
Rade Prokopovic
CEO
This report and press release are translated versions of the Swedish originals. Every care has been taken in the translation of this document. In the event of discrepancies, the Swedish original will supersede the English translation.
For additional information, please contact:
Rade Prokopovic, VD
Email: rade@sozap.com
Telefon: +46 708 800 558
Certified Adviser
As a publicly traded company at Nasdaq First North Growth Market Stockholm, the company must have a certified adviser. SOZAP has chosen Augment Partners AB as Certified Adviser (www.augment.se).
About SOZAP
SOZAP is a Swedish digital entertainment company that develops qualitative and innovative games with the ambition of building a product portfolio which appeals to a broad target group. SOZAP was founded in 2014 and shortly after established its first development team, focusing on games in the shooter genre. Today SOZAP has several independent development teams that work at SOZAP's strategically located studios in Nyköping (Sweden) and Niš (Serbia).
This information is information that SOZAP AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-05-15 07:00 CEST.
