Press releases

Press releases

2021 Year-end report

Regulatory25 February, 2022 at 07:30

The growth journey continues

Fourth quarter 2021

  • Net revenue amounted to SEK 60.3 (1.2) million.
  • EBITDA amounted to SEK 10.2 (2.3) million.
  • Net result after tax was SEK -14.3 (-2.1) million.
  • Earnings per share after dilution amounted to SEK -0.17 (-0.06).

Full year 2021

  • Net revenue amounted to SEK 124.0 (4.6) million.
  • EBITDA amounted to SEK 6.2 (-5.5) million.
  • Adjusted EBITDA (before items affecting comparability) amounted to SEK 9.7 (-5.5) million.
  • Net result after tax was SEK -50.4 (-22.6) million.
  • Earnings per share after dilution amounted to SEK -0.60 (-0.60).

Significant events during the quarter

  • Additional purchase consideration of EUR 1.5 million paid for the Playdigious acquisition, EUR 0.75 million of which in cash and EUR 0.75 million via 1,824,543 newly issued shares.
  • On 14 December, Fragbite Group signed an agreement to acquire all shares in the Dutch company Lucky Kat B.V. (“Lucky Kat”).
  • Fragbite Group’s subsidiary Fragbite AB entered into an agreement with the Swedish Chess Federation to start an e-sports chess league, the Swedish Chess League, which was launched on 15 December.
  • Lars Johansson appointed new CFO.

Significant events after the end of the period

  • The acquisition of Lucky Kat was completed on 3 January and in connection with the closing of the transaction, the Board decided to issue a total of 3,944,551 shares. The result for the fourth quarter has been included in the Group’s result for the same period, in accordance with the acquisition agreement.
  • On 9 February, Fragbite Group’s subsidiary, Lucky Kat entered into a partnership with The Sandbox to create a virtual world with an amusement park theme in the Metaverse – a decentralised digital eco-system based on the next generation Internet, Web3.

CEO’s comments: 2021 – continuing growth journey and company building

Developments during the fourth quarter
The year was Fragbite Group’s strongest to date. In parallel with profitable and cash-flow-positive growth, many new building blocks were put in place for good future development. In the fourth quarter, both sales and EBITDA continued to develop well, partly as a result of the acquisition of the Dutch gaming company Lucky Kat B.V. (“Lucky Kat”). Net revenue for the fourth quarter amounted to SEK 60.3 (1.2) million with an EBITDA of SEK 10.2 (2.3) million.
During the fourth quarter, an agreement was reached to acquire the Dutch gaming company Lucky Kat. This is an excellent example of the type of companies we want to acquire: fast-footed and entrepreneurial companies with existing and proven games in their portfolios and with a dedicated management that is aligned with our strategy. With Lucky Kat in the group, we add cutting-edge competence in the development of hypercasual games, performance marketing and also games in the third generation internet including Web3 “play-and-earn mechanics” and the Metaverse.
The Metaverse, or metaversum, is set to become part of the next generation internet, a virtual 3D animated meeting and trading place where digital currencies play a growing role. Metaverse means “beyond the universe” and is expected to offer a more interactive version of the internet where users can trade, socialise and engage in various activities. With the acquisition of Lucky Kat, we are now running two Web3 initiatives within the Group – a partnership with one of the leading Metaverse players, the Sandbox, and our proprietary game, Panzerdogs. The game genre is called “play-and-earn” and shows that a digital world can work like the physical world we know today; an achievement can generate benefits for players. Panzerdogs has got off to a good start and I look forward to following the game’s future development and the opportunities it creates for the Group.
In the fourth quarter of 2021, the subsidiary Playdigious launched the game Sparklite in the Publishing & Indie Games business area. The Mobile Gaming business area includes MMA Manager 2: Ultimate Fight, which is still in the soft launch phase. This means some delay, but the aim is to continue optimising the game mechanics for the global launch, expected in spring. The game Army Battle has not met our expectations and the development work has therefore ceased regarding this game title. An impairment loss of SEK 7.3 million on the intangible asset related to the game title Army Battle has therefore been decided. The impairment does not have a cash-flow effect.
Within our e-sports business, our cooperation with the Swedish Chess Federation has resulted in the Swedish Chess League, which held its first e-sport tournament in November. We are pleased with the outcome and will continue with this tournament format in 2022. It means we have begun to establish chess as a real e-sport in Sweden and to attract a new category of Fragbite customers and sponsors.
The year 2022
During 2021, more and more building blocks have been put in place, including a name change and a completed IPO, but also a strengthened Board and management team. With our three acquisitions during the year, we have broadened our business with e-sports, indie game publishing, mobile games, Web3 games and in doing so also expanded our geographical exposure to the global gaming market. In parallel, we are gradually expanding cooperation between our subsidiaries in order to create revenue synergies and economies of scale, as well as improving internal processes and procedures. This is important work that lays the foundation for the continued growth and effectiveness of Fragbite Group over time.
We will continue to invest in the business with a particular focus on new e-sports and game development projects. I am confident in our strategy to offer e-sports concepts, mobile games and Web3 games with high quality and appeal. As I sum up 2021, my conclusion is that our strategy is working and generating good returns with diversified risk. We have established a solid foundation for a continued good performance going forward. Our acquisition pipeline is strong, although we remain selective. Our long-term vision and ambition to build one of Europe's leading entertainment groups in e-sports & gaming stands firm.

Stefan Tengvall,
President & CEO

2021 Year-end Report (Link)

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