Adventure Box Technology (ADVBOX) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were SEK 131 thousand, down from SEK 804 thousand year-over-year; H1 2024 net sales were SEK 316 thousand, down from SEK 1,150 thousand.

• Net loss after tax in Q2 2024 was SEK -4,911 thousand (Q2 2023: SEK -2,994 thousand); H1 2024 net loss was SEK -8,961 thousand (H1 2023: SEK -7,481 thousand).

• Cash and cash equivalents at quarter-end were SEK 165 thousand, down from SEK 5,177 thousand a year earlier.

• Equity at quarter-end was SEK 7,845 thousand (Q2 2023: SEK 21,111 thousand); solvency ratio was 49% (78%).

• Entered LOI to acquire Lion Gaming Group Inc. for SEK 475 million in newly issued shares, aiming to transform Adventure Box into a global iGaming and metaverse player.

Financial highlights

• Q2 2024 EBIT was SEK -5,038 thousand (Q2 2023: SEK -3,196 thousand); H1 2024 EBIT was SEK -9,224 thousand (H1 2023: SEK -7,836 thousand).

• Earnings per share before dilution in Q2 2024 was SEK -0.11 (Q2 2023: SEK -0.10); H1 2024 was SEK -0.21 (H1 2023: SEK -0.25).

• Net cash flow before financial items in Q2 2024 was SEK -2,363 thousand (Q2 2023: SEK -2,049 thousand); H1 2024 was SEK -4,456 thousand (H1 2023: SEK -5,950 thousand).

• Investments in development in Q2 2024 were SEK 161 thousand (Q2 2023: SEK 1,391 thousand); H1 2024: SEK 625 thousand (H1 2023: SEK 2,160 thousand).

Outlook and guidance

• Board sees challenges for continued operations and stresses the importance of increasing profitability and completing planned capital raising.

• Rights issue announced to raise approximately SEK 13.1 million before expenses, with a set-off issue of around SEK 2.1 million.

• Board believes there are good conditions to secure capital for ongoing operations and strategic investments.