Fragbite Group (FRAG) Q3 2024 earnings summary

Executive summary

• Q3 revenue was SEK 51.8 million, down from SEK 61.3 million year-over-year, mainly due to a delayed game release in the Gaming segment.

• EBITDA and adjusted EBITDA for Q3 were SEK 2.2 million, showing improvement from negative results in Q2.

• Cost reduction program fully implemented, yielding SEK 0.95 million in monthly savings.

• Rights Issue completed, raising SEK 60.9 million before costs, with 84.5% subscription.

• Fall Damage Studio AB declared bankrupt, impacting results and leading to SEK 3.7 million loss in Q2.

Financial highlights

• Q3 revenue: SEK 51.8 million (down from SEK 61.3 million year-over-year).

• Q3 EBITDA: SEK 2.2 million (vs. SEK 2.7 million year-over-year); adjusted EBITDA: SEK 2.2 million.

• Q3 operational EBIT: SEK -0.6 million (vs. SEK 0.7 million year-over-year); EBIT: SEK -21.0 million.

• Q3 net loss after tax: SEK -23.4 million (vs. SEK -19.7 million year-over-year).

• Cash flow from operating activities Q3: SEK -5.9 million (vs. SEK 16.9 million year-over-year).

Outlook and guidance

• Revenue for Q4 and early 2025 expected to be impacted by postponed game releases, with compensation advances received.

• Playdigious pipeline net revenue estimated at EUR 10–17 million over three years from release.

• 2025 expected to see increased release pace and business growth, especially in Web3 and Gaming.