Fragbite Group (FRAG) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was SEK 49.8 million, down from SEK 60.4 million year-over-year, mainly due to divestment of hypercasual titles and lower gaming segment sales.

• Adjusted EBITDA for Q2 was SEK -1.1 million, compared to SEK 6.5 million in Q2 2023; operational EBIT was SEK -9.4 million versus SEK 4.7 million.

• Net loss for Q2 was SEK -2.1 million, a significant improvement from SEK -26.6 million in Q2 2023.

• Cost reduction program implemented, targeting annual savings of just over SEK 11 million from July 2024.

• Playdigious expanded its game pipeline, with Loop Hero surpassing 1 million downloads and new contracts increasing estimated net revenue potential to EUR 10–17 million over three years.

Financial highlights

• Q2 revenue: SEK 49.8 million (Q2 2023: SEK 60.4 million); H1 revenue: SEK 102.3 million (H1 2023: SEK 115.6 million).

• Q2 adjusted EBITDA: SEK -1.1 million (Q2 2023: SEK 6.5 million); H1 adjusted EBITDA: SEK 4.0 million (H1 2023: SEK 8.4 million).

• Q2 operational EBIT: SEK -9.4 million (Q2 2023: SEK 4.7 million); H1 operational EBIT: SEK -7.0 million (H1 2023: SEK 4.8 million).

• Q2 net profit/loss: SEK -2.1 million (Q2 2023: SEK -26.6 million); H1 net profit/loss: SEK -62.6 million (H1 2023: SEK -51.9 million).

• Q2 cash flow from operations: SEK -6.0 million (Q2 2023: SEK 0.2 million); cash and cash equivalents at period end: SEK 7.6 million.

Outlook and guidance

• Focus on extending core business profitability to all subsidiaries and the Group level.

• Cost reductions and restructuring expected to yield full impact from July 2024, with annual savings of over SEK 11 million.

• Upcoming launches include TMNT: Shredder's Revenge (Nov 2024), Children of Morta (Oct 2024), Don't Starve Together (2025), and $KOBAN token sale (H2 2024).