{"id":1377,"date":"2024-08-20T08:10:00","date_gmt":"2024-08-20T06:10:00","guid":{"rendered":"https:\/\/fragbitegroup.com\/mfn_news\/interim-report-for-the-period-january-june-2024\/"},"modified":"2024-08-20T08:10:00","modified_gmt":"2024-08-20T06:10:00","slug":"interim-report-for-the-period-january-june-2024","status":"publish","type":"mfn_news","link":"https:\/\/fragbitegroup.com\/en\/press\/interim-report-for-the-period-january-june-2024\/","title":{"rendered":"Interim report for the period January \u2013 June 2024"},"content":{"rendered":"<div class=\"mfn-preamble\">\n<p><strong>CEO Stefan Tengvall comments: \u201cFragbite Group\u2019s core business remains strong, and our most important task going forward is to ensure that the healthy profitability that characterises that business is extended to the whole Group.\u201d<\/strong><\/p>\n<\/div>\n<div class=\"mfn-body\">\n<p><strong>Second quarter 2024<\/strong><\/p>\n<ul class=\"wysiwyg-list\">\n<li>Revenue amounted to SEK 49.8 (60.4) million.<\/li>\n<li>EBITDA amounted to SEK -6.6 (6.5) million.<\/li>\n<li>Adjusted EBITDA (before items affecting comparability) was SEK -1.1 (6.5) million.<\/li>\n<li>Operational EBIT (1) amounted to SEK -9.4 (4.7) million.<\/li>\n<li>Operating profit (EBIT) amounted to SEK -41.6 (-17.2) million.<\/li>\n<li>Profit\/loss for the period was SEK -2.1 (-26.6) million.<\/li>\n<li>Cash flow from operating activities was SEK -6.0 (0.2) million.<\/li>\n<li>Basic earnings per share (2) amounted to SEK -0.02 (-0.29)<\/li>\n<li>Diluted earnings per share (2) amounted to SEK -0.02 (-0.28).<\/li>\n<\/ul>\n<p><strong>First six months 2024<\/strong><\/p>\n<ul class=\"wysiwyg-list\">\n<li>Revenue amounted to SEK 102.3 (115.6) million.<\/li>\n<li>EBITDA amounted to SEK -1.5 (8.4) million.<\/li>\n<li>Adjusted EBITDA (before items affecting comparability) was SEK 4.0 (8.4) million.<\/li>\n<li>Operational EBIT (1) amounted to SEK -7.0 (4.8) million.<\/li>\n<li>Operating profit (EBIT) amounted to SEK -80.9 (-38.5) million.<\/li>\n<li>Profit\/loss for the period was SEK -62.6 (-51.9) million.<\/li>\n<li>Cash flow from operating activities was SEK -3.4 (-14.2) million.<\/li>\n<li>Basic earnings per share (2) amounted to SEK -0.57 (-0.57)<\/li>\n<li>Diluted earnings per share (2) amounted to SEK -0.57 (-0.55).<\/li>\n<\/ul>\n<p>1) <em>Operational EBIT is defined as EBIT excluding non-operational amortisation and impairment of intangible assets<\/em><br \/>2) <em>Per number of shares at the end of the quarter<\/em><\/p>\n<p><strong>Invitation to information meeting<\/strong><br \/>The company will hold an information meeting on 2 September via tele conference during which CEO Stefan Tengvall will present the report and upcoming activities as well as hold a Q&amp;A session. Prior to the meeting, shareholders are invited to submit questions by email to ir@fragbitegroup.com. A separate invitation with more information and a link will be press released.<\/p>\n<p><strong>CEO Stefan Tengvall comments<\/strong><\/p>\n<p>The second quarter of 2024 was a real steel bath for Fragbite Group and after an intense summer, we are now ready for a fall of continued efforts. Our core business remains strong and the most important task going forward is to ensure that the healthy profitability that characterises much of the business is extended to the whole Group, on the individual subsidiary level as well as the Group level.<\/p>\n<p>I would like to start by thanking you, our shareholders, who have stood by our side over the past months. In July, Fragbite Group completed a rights issue that placed great demands on both those of us who run the Company as well as on the shareholders, particularly those shareholders who have been involved since the beginning. Building Fragbite Group stronger and more profitable to earn your trust is a task we assume most seriously.<\/p>\n<p>Revenue for the quarter was SEK 49.8 million, which is lower than the same period in the previous year. The difference is mainly attributable to the gaming business area and the sale of two game titles in the hypercasual genre in the second quarter 2023. As the hypercasual portfolio previously required a high level of marketing, we also see a difference between the second quarter 2024 and 2023 in terms of reduced operating expenses. Adjusted EBITDA is SEK -1.1 million this quarter compared to SEK 6.5 million in the same period 2023. Here as well the gaming business area is mainly driving this outcome with, as communicated previously, revenue from our games and their corresponding costs at times varying greatly from month to month depending on release dates and third-party contracts.<\/p>\n<p><strong>Cost reduction programme<\/strong><br \/>Fragbite Group will enter fall and then 2025 with a reduced cost base. The main cost reductions are in the Parent Company and FunRock &amp; Prey Studios, but we have also identified some opportunities for efficiency improvements in Lucky Kat and Fragbite AB without jeopardising their revenue generation. From 1 July onwards, the Group\u2019s total monthly costs will be reduced by just over SEK 0.95 million, corresponding to SEK 11 million on an annual basis.<\/p>\n<p><strong>Strong progress for Playdigious<\/strong><br \/>Playdigious had a strong quarter and released two titles, with Loop Hero standing out in particular. Already a huge success on PC and console, the title has also exceeded expectations on mobile, having reached one million downloads by early July.<\/p>\n<p>In April, we were able to update the market on development of the Playdigious pipeline of new game releases, which has grown with several new contracts. One of the more significant contracts closed during the period is for the development of the success title Don\u2019t Starve Together on mobile for exclusive release on Netflix, a very positive addition to the portfolio. The total estimated net revenue of the current pipeline is between EUR 10 and 17 million, compared with between EUR 6 and 14 million when the previous estimate was published in August 2023. The estimate corresponds to a game\u2019s total net revenue over a period of three years from release, before licensing costs and platform fees.<\/p>\n<p>The summer has been a busy one for Playdigious, whose team has organised several marketing campaigns and participated in various industry events. Linkito was released shortly after the end of the period \u2013 a milestone for the subsidiary as the first title to be released under the new Playdigious Originals business unit and publishing label. This week, the team is attending Gamescom, the world\u2019s largest gaming event, where as part of the Future Games Show, they will present the third title that Playdigious Originals has signed. We also look forward to the release of Playdigious Originals\u2019 unique title Fretless \u2013 The Wrath of Riffson which is scheduled to reach the market in the first half of 2025.<\/p>\n<p><strong>New revenue streams<\/strong><br \/>Alongside in-house game development and marketing, FunRock &amp; Prey Studios entered into a work-for-hire agreement with the first assignment starting in the beginning of the second quarter. Dialogue is in progress on additional assignments, while work continues on increasing profitability for MMA Manager 2. During the spring, operations gradually became more efficient and by the last month of the second quarter, the subsidiary was profitable on both an EBITDA and cash flow basis. A key factor in strengthening Fragbite Group as a whole consists of increasing the profitability of FunRock &amp; Prey Studios, which is why we will have continued Group level focus on that during the fall.<\/p>\n<p><strong>Esport \u2013 profitable business area built stronger<\/strong><br \/>2023 was the year that Fragbite AB turned the ship around and delivered a profitable year after a period when the entire esports market suffered in the aftermath of Covid. I am proud of the team whose members have continued to deliver at the same high level in 2024, with the same great enthusiasm, even during this spring that has been difficult for all of us. The flagship that is the Swedish Cup has a much stronger pipeline today than at the same time a year ago, with several key partnerships signed. The agency business under the Config brand is increasingly finding its place in the modern media landscape and there is room for growth. When we report on the third quarter the 2024 Swedish Cup will have started, and I look forward to sharing more comments on this year\u2019s tournament then.<\/p>\n<p><strong>KOBAN launch around the corner<\/strong><br \/>Work has continued at Lucky Kat and Wagmi with preparations for the upcoming public launch and sale of $KOBAN, which is approaching. In June, the marketing campaign was kicked off which for the entire team paved way for an intense summer in increasingly higher gears. Business area web3 had a weaker second quarter, especially on EBITDA level, as a result of administrative changes as well as the continued impact of $KOBAN initially being planned for the end of 2023.<br \/>However, the business area has a very strong pipeline while efforts are also underway to expand the revenue models within web3. I am very much looking forward to closing 2024 with a successful launch of $KOBAN in the rear-view mirror and new exciting projects ahead.<\/p>\n<p><strong>Focus on profitable core business<\/strong><br \/>On 23 May, the Board was forced to declare the subsidiary Fall Damage bankrupt, a decision that was very difficult but necessary. The bankruptcy obviously burdens the Group financially, but it also represents a loss in terms of the potential synergies that have not materialised, something which of course is very disappointing for all involved. One lesson learned from this process is to assume a larger initial capital reserve when making future acquisitions. Another lesson is that Fragbite Group has the advantage of standing on a stable, profitable core business, which we will now vigorously develop and prioritise ahead of further acquisition.<\/p>\n<p><strong>With our sights firmly set<\/strong><br \/>After the type of steel bath Fragbite Group has gone through, there is much to be done and many difficult decisions still to be made, but there is also increased strength and faith in the future. Those of us who run the Company have rolled up our sleeves and are motivated for the task. Many thanks again to you, our shareholders, who join us on this journey \u2013 we will do this together.<\/p>\n<p><em>Stockholm 20 August 2024<\/em><\/p>\n<p>Stefan Tengvall, President &amp; CEO<\/p>\n<p>The report is attached to this press release and available for download from the Fragbite Group website:\u00a0<a href=\"https:\/\/www.fragbitegroup.com\/financial-reports\" rel=\"noopener\" target=\"_blank\">www.fragbitegroup.com\/financial-reports<\/a><\/p>\n<\/div>\n<div class=\"mfn-footer mfn-contacts mfn-4764aa0e729e\">\n<p><strong class=\"mfn-heading-1\">For questions, please contact:<\/strong><\/p>\n<hr \/>\n<p>Erika Mattsson, Chief Communications Officer<br \/><a href=\"mailto:em@fragbitegroup.com\" rel=\"noopener\" target=\"_blank\">em@fragbitegroup.com<\/a><br \/>Phone: +46 8 520 277 82<\/p>\n<p>Redeye AB is the Company\u2019s Certified Adviser.<\/p>\n<\/div>\n<div class=\"mfn-footer mfn-about mfn-ccc6dc18ad3e\">\n<p><strong class=\"mfn-heading-1\">About us<\/strong><\/p>\n<hr \/>\n<p>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 \u2013 PC, mobile and console \u2013 and modern web3 platforms built on blockchain technology. The Group is headquartered in Stockholm and listed on Nasdaq First North Growth Market.<\/p>\n<\/div>\n<div class=\"mfn-footer mfn-regulatory mfn-regulatory-mar\">\n<p><em>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 2024-08-20 08:10 CEST.<\/em><\/p>\n<\/div>\n<div class=\"mfn-footer mfn-attachment mfn-attachment-general\">\n<p><strong class=\"mfn-heading-1\">Attachments<\/strong><\/p>\n<hr \/>\n<p><a class=\"mfn-primary\" href=\"https:\/\/storage.mfn.se\/0c0b2bf1-ae40-4fbd-b690-7d5e42b32d1d\/fragbite-group-interim-report-q2-2024-eng.pdf\" rel=\"noopener\" target=\"_blank\">Fragbite Group Interim Report Q2 2024 (eng)<\/a><\/p>\n<\/div>\n<script>\n                Array.prototype.slice.call(document.querySelectorAll(\".mfn-footer.mfn-attachment\")).forEach(function (el) { el.remove() });\n            <\/script>\n        <div class=\"mfn-attachments-container\"><div class=\"mfn-attachment\"><a class=\"mfn-attachment-link\" href=\"https:\/\/storage.mfn.se\/0c0b2bf1-ae40-4fbd-b690-7d5e42b32d1d\/fragbite-group-interim-report-q2-2024-eng.pdf\"><span class=\"mfn-attachment-icon\"><img decoding=\"async\" src=\"https:\/\/storage.mfn.se\/0c0b2bf1-ae40-4fbd-b690-7d5e42b32d1d\/fragbite-group-interim-report-q2-2024-eng.pdf?type=jpg\"><\/span>Fragbite Group Interim Report Q2 2024 (eng)<\/a><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>CEO Stefan Tengvall comments: \u201cFragbite Group\u2019s core business remains strong, and our most important task going forward is to ensure that the healthy profitability that characterises that business is extended to the whole Group.\u201d Second quarter 2024 Revenue amounted to SEK 49.8 (60.4) million. EBITDA amounted to SEK -6.6 (6.5) million. Adjusted EBITDA (before items [&hellip;]<\/p>\n","protected":false},"template":"","class_list":["post-1377","mfn_news","type-mfn_news","status-publish","hentry","mfn-news-tag-mfn-lang-en","mfn-news-tag-mfn-report-interim","mfn-news-tag-mfn-type-ir","mfn-news-tag-mfn-regulatory-mar","mfn-news-tag-mfn","mfn-news-tag-mfn-report-interim-q2","mfn-news-tag-mfn-regulatory","mfn-news-tag-mfn-report"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Interim report for the period January \u2013 June 2024 - Fragbite Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fragbitegroup.com\/en\/press\/interim-report-for-the-period-january-june-2024\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Interim report for the period January \u2013 June 2024 - Fragbite Group\" \/>\n<meta property=\"og:description\" content=\"CEO Stefan Tengvall comments: \u201cFragbite Group\u2019s core business remains strong, and our most important task going forward is to ensure that the healthy profitability that characterises that business is extended to the whole Group.\u201d Second quarter 2024 Revenue amounted to SEK 49.8 (60.4) million. 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