Fragbite Group AB (publ) ("Fragbite Group" or "The Company") hereby issues the interim report for the period 1 January to 31 March 2024.
First quarter 2024
- Revenue amounted to SEK 52.5 (55.2) million
- EBITDA amounted to SEK 6.5 (2.3) million
- EBIT amounted to SEK 2.4 (0.2) million
- Profit for the period was SEK -22.0 (-4.8) million
- Cash flow from operating activities was SEK 3.6 (-14.1) million
- Basic earnings per share amounted to SEK -0.20 (-0.05)
- Diluted earnings per share amounted to SEK -0.20 (-0.05)
Significant events during the period
- This is the Group's first financial report prepared in accordance with IFRS. Comparative figures have been restated.
- Board member Zara Zamani is appointed as acting CEO of till Lucky Kat.
- Playdigious releases Potion Permit on mobile platforms.
- Playdigious announces the upcoming release of Loop Hero on mobile platforms.
- Playdigious enters into an agreement on publishing Linkito under Playdigious Originals.
- Playdigious announces the upcoming release of Skul on mobile plattforms.
Significant events after the end of the period
- The Company updates its net revenue estimates for Playdigious' pipeline of upcoming new game releases to which further titles have been added. Total estimated net revenue three years from release increases to between EUR 10 and 17+ million.
- Playdigious releases Loop Hero on mobile platforms.
- Playdigious announces the release of Teenage Mutant Ninja Turtles: Shredder's Revenge on Apple App Store and Google Play Store in November, alongside extended distribution via Netflix.
CEO comments
Net revenue for the first quarter amounted to SEK 52.5 million, which is a decrease of SEK 2.6 million compared to the same quarter last year, however entirely attributable to the divestment of and reduced focus on the Company's hypercasual games. Adjusted for those divested hypercasual games, revenues increased by app. SEK 7.6 million, or app. 17%. EBITDA increased to SEK 6.5 million (2.3) and EBIT increased to SEK 2.4 million (0.2).
Playdigious' pipeline increases in value
Our French subsidiary has continued to stay on course by signing a number of key agreements during the quarter that expanded their pipeline of new game titles, for which Fragbite Group was recently able to update estimates. I am very pleased that our investments have yielded clear results, as evidenced by the development since the Company last communicated estimates. The total estimated net revenue for the current pipeline is between EUR 10 and 17+ million, compared to estimates communicated in August 2023 which amounted to a total estimated net revenue of between EUR 6 and 14+ million. The estimates correspond to a game's total net revenue over a three-year period from release, before licence costs and platform fees.
What is key is that despite a near same number of upcoming game releases, the value of Playdigious' pipeline has increased significantly, fuelled by the fact that we now have more major game titles to look forward to. If anything, this is a testament to the Playdigious brand growing stronger. In addition to an expanded pipeline of new games, where more discussions are underway, work continues to gradually expand the distribution of the entire Playdigious game portfolio to new platforms and geographical markets.
The quarter saw the release of Potion Permit, and another title was approved for release in China - Dungeon of the Endless. After the end of the period, we were able to announce that Playdigious and Netflix have agreed to extend TNMT: Shredder's Revenge for a period, in addition to the game being released on Apple App Store and Google Play Store in November. All in all, Playdigious is well set to accelerate its release pace during the year, as planned.
FunRock & Prey Studios takes steps forward
MMA Manager 2 demonstrated growth in the first quarter of 2024 compared to the same quarter last year, which is very positive. The successful UA campaign initiated this fall has continued during the spring, resulting in the game recently reaching over 4 million downloads. During the period, the team
has also worked on targeted updates to improve game experience and further drive microtransactions, and in the coming months we will continue to optimise marketing resources to enable further steps forward. Work also continues on increasing the profitability of the subsidiary, including expanding the business towards new revenue models, something which we will further outline in the upcoming report.
Strong start to 2024 for Esports
After reaching profitability for the full year 2023, the esports business looks set to outperform last year in 2024. This business typically has its strongest period in the second half of the year, but the team has already made good progress in closing sales for new projects for Config as well as sponsors for the Swedish Cup.
$KOBAN launch
In our web3 business area, Zara Zamani has done a commendable job of leading and preparing the business for the upcoming public token launch and sale, in parallel to further adapting our web3 games to match the upcoming $KOBAN ecosystem. There is significant work being done with all the necessary preparations and I look forward to updating the market going forward. Lucky Kat released Cosmocadia on mobile towards the end of the quarter. The game, along with Panzerdogs, is highlighted as one of the most important gaming projects on the Sui blockchain, and dialogue with Sui on further expanding the collaboration is ongoing.
Fall Damage
Dialogues with several potential partners for Fall Damage's game ALARA Prime have taken longer than expected. The feedback we have received regarding the game has been consistently very good. We have also had more dialogues than expected, and this has contributed to the process being time-consuming and lasting longer than optimal. Game development is otherwise on track and the game is ready for release by the end of the third quarter, with the possibility of a soft release already this summer.
We are target-oriented
Finally, I would like to emphasise that we are target-oriented and working hard to make Fragbite Group as successful as possible, both in the short and long term. We have a fundamentally stable and profitable business with several important opportunities to realise in 2024, a year for which I have high expectations given all that is in the pipeline.
Stockholm 16 May 2024
Marcus Teilman
President and CEO
The report is attached to this press release and available for download from the Fragbite Group website: www.fragbitegroup.com/financial-reports
For questions, please contact:
Erika Mattsson, Chief Communications Officer
em@fragbitegroup.com
Phone: +46 8 520 277 82
Redeye AB is the Company's Certified Adviser.
About us
Fragbite Group (publ) is a Swedish corporate group with a portfolio of established subsidiaries that develop, adapt and publish games and esports content within GAMING, ESPORTS and WEB3. Our products are developed for both traditional platforms - PC, mobile and console - and modern web3 platforms built on blockchain technology. The Group is headquartered in Stockholm and listed on Nasdaq First North Growth Market.
This information is information that Fragbite Group AB 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 2024-05-16 10:15 CEST.
