{"id":1669,"date":"2025-05-14T07:40:00","date_gmt":"2025-05-14T05:40:00","guid":{"rendered":"https:\/\/fragbitegroup.com\/mfn_news\/interim-report-for-the-period-1-january-31-march-2025\/"},"modified":"2025-05-14T07:40:00","modified_gmt":"2025-05-14T05:40:00","slug":"interim-report-for-the-period-1-january-31-march-2025","status":"publish","type":"mfn_news","link":"https:\/\/fragbitegroup.com\/en\/press\/interim-report-for-the-period-1-january-31-march-2025\/","title":{"rendered":"Interim report for the period 1 January \u2013 31 March 2025"},"content":{"rendered":"
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Fragbite Group AB (publ) (\u201cFragbite Group\u201d or \u201cThe Company\u201d) hereby issues the interim report for the period 1 January to 31 March 2025.<\/strong><\/p>\n<\/div>\n

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First quarter 2025<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n
Revenue<\/td>\nSEK 42.2 million<\/td>\n(52.5)<\/td>\n<\/tr>\n
EBITDA<\/td>\nSEK 0.7 million<\/td>\n(5.1)<\/td>\n<\/tr>\n
Adjusted EBITDA<\/td>\nSEK 0.7 million<\/td>\n(5.1)<\/td>\n<\/tr>\n
Operational EBIT1<\/sup><\/td>\nSEK -2.2 million<\/td>\n(2.4)<\/td>\n<\/tr>\n
EBIT<\/td>\nSEK -17.8 million<\/td>\n(-39.3)<\/td>\n<\/tr>\n
Result after tax<\/td>\nSEK -17.4 million<\/td>\n(-60.4)<\/td>\n<\/tr>\n
Cash flow from operating activities<\/td>\nSEK 2.1 million<\/td>\n(2.6)<\/td>\n<\/tr>\n
Diluted earnings per share2<\/sup><\/strong><\/td>\nSEK -2.37<\/td>\n(-278.46)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

(1)<\/em> <\/sup>Operational EBIT is defined as EBIT excluding non-operational amortisation and impairment of intangible assets<\/em><\/p>\n

(2) Per number of shares at the end of the period<\/em><\/p>\n

CEO Stefan Tengvall comments<\/strong><\/p>\n

Revenue amounted to SEK 42.2 million, a decline of SEK 10.3 million from 2024, largely due to delays in Playdigious\u2019 release schedule and in the web3 business area. EBITDA amounted to SEK 0.7 million, a decline of SEK 4.4 million, the majority of which corresponded to the SEK 4.3 million capital gain on crypto asset sales in Q1 2024. EBITDA reflects the cost reductions made within the Group.<\/p>\n

Playdigious gears up for summer and fall<\/strong>
The global Epic Games Store opened its doors in January, with four of Playdigious\u2019 mobile titles as part of the launch offer. Loop Hero was also recently made available via the platform \u2013 a title with enduring popularity that was awarded at the annual P\u00e9gases Awards in March. During April, Teenage Mutant Ninja Turtles: Shredder\u2019s Revenge was released on Apple and Google in addition to being available on Netflix. The title is one of Playdigious\u2019 most successful in recent years, and a further expansion of its distribution is a priority. During the period, progress was made in the Chinese market with the granting of a licence to release Spiritfarer.<\/p>\n

As previously communicated, Q3 2024 was weak due to an important game release being postponed at the IP owner\u2019s request. Part of the contract\u2019s fixed compensation was brought forward to compensate for the delay, which had a positive impact on Q4 2024. As the game has still not been released, we see a negative impact again during Q1. The game is being released in summer and will finally be announced in late May.<\/p>\n

The quarter was also affected by a delay to Don\u2019t Starve Together. With several releases and announcements in 2025, initially planned for 2024, it will be an intense summer and fall for the porting business. Before then, we also look forward to the release of Playdigious Originals\u2019 two PC games Fretless and Crown Gambit, for which the team has put a lot of effort into marketing. In March, a new Fretless trailer was released during the Future Games Show at the Game Developers Conference.<\/p>\n

Wind in the sails for FunRock Prey<\/strong>
FunRock & Prey Studios\u2019 new revenue model, a form of hybrid work-for-hire, has produced results. The year 2024 closed with a positive EBITDA and the subsidiary has been cash flow positive since November. We recently announced the extension of one of two agreements and that talks on a third game are in motion. Meanwhile, MMA Manager 2 is also showing good numbers since the end of 2024. The subsidiary has finally caught a tailwind, and we are working together to build on this.<\/p>\n

Web3 \u2013 Challenges and opportunities<\/strong>
In January, the first product collection of Kumo plushies with integrated digital chips sold out in less
than 7 hours. Kumo has been well received by players and the Sui blockchain community, which indicates opportunities to utilise the brand in different ways.<\/p>\n

In November, we announced the development of $KOBAN into a protocol token and that work our own gaming protocol had started. This work continued during the period and a closed testnet has been established. In parallel, the studio has continued its game development, including preparations on Panzerdogs to allow implementation of new features when $KOBAN is released on public exchanges.<\/p>\n

Despite much product development, the business area suffered major delays in 2024 and with them an increasingly strained cash position. The public $KOBAN launch was due to start earlier, and revenue budgeted by the subsidiaries for 2024 and beyond did not materialise, which has had a negative impact on the Group\u2019s cash flow. We have put much focus on supporting the business area during the past quarter and driving project and revenue realisation in various ways. Getting the business on track financially is our top priority at the time of writing.<\/p>\n

The first two steps in the $KOBAN launch were completed in April, and preliminary figures show significantly lower revenue than forecast, which is disappointing. However, we don\u2019t yet have all the data, and the Company will report the outcome when the launch is finalised. The last step, when $KOBAN is released on public exchanges, starts today and we will come back with collated details on the full launch. It is important to note that while revenue from the launch is one thing, the importance of $KOBAN as a functional token in an ecosystem of games intended to endure for many years to come, is another.<\/p>\n

Esports \u2013 New vertical and Nordic ambitions<\/strong>
A new business vertical called Config Ads was launched in Q1 \u2013 an ad network that will be the Nordic region\u2019s largest in gaming and esports with over a hundred connected channels and websites. The team has also partnered to organise the Elisa Nordic Championship 2025, marking the first step in establishing Fragbite\u2019s Nordic tournament business. Esports is normally strongest in the second half of the year, notably with the Swedish Cup, and makes up for the less active months early in the year. The first quarter is weaker compared with 2024, largely due to fewer assignments for Config. After a profitable 2023 and 2024, the Company expects the business area to maintain the same stable level for the full year 2025.<\/p>\n

Focus on profitable business<\/strong>
We closed 2024 with profitability for Gaming and Esports but now have a tough situation in the Web3 business. Our focus for this year is to review the entire organisation, improve the structure, sell assets where favourable and redirect where needed so that we can reduce debt and close 2025 with profitability across the Group.<\/p>\n

Stockholm 14 May 2025<\/em><\/p>\n

Stefan Tengvall, President & CEO<\/p>\n

The report is attached to this press release and available for download from the Fragbite Group website:\u00a0www.fragbitegroup.com\/financial-reports<\/a><\/p>\n<\/div>\n

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For questions, please contact:<\/strong><\/p>\n

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Erika Mattsson, Chief Communications Officer
em@fragbitegroup.com<\/a>
Phone: +46 8 520 277 82<\/p>\n

Redeye AB is the Company\u2019s Certified Adviser.<\/p>\n<\/div>\n

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About us<\/strong><\/p>\n

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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 platforms built on blockchain technology. The Group is headquartered in Stockholm and listed on Nasdaq First North Growth Market.<\/p>\n<\/div>\n

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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 2025-05-14 07:40 CEST.<\/em><\/p>\n<\/div>\n

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Attachments<\/strong><\/p>\n

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Fragbite Group Q1 2025 (eng)<\/a><\/p>\n<\/div>\n