Fragbite Group (FRAG) Q4 2024 earnings summary

Executive summary

• Q4 revenue reached SEK 59.0 million, nearly matching Q4 2023, with EBITDA improving to SEK 7.1 million from SEK 5.1 million year-over-year.

• Full-year revenue declined to SEK 213.2 million from SEK 237.2 million, mainly due to divestments in Lucky Kat's hypercasual portfolio.

• Cost reductions and restructuring led to improved adjusted EBITDA and reduced losses at the parent company level.

• Playdigious delivered its best quarter, winning two Pocket Gamer Awards and expanding distribution, including a deal with Epic Games.

• FunRock & Prey Studios achieved profitability for both Q4 and the full year, supported by new work-for-hire contracts.

Financial highlights

• Q4 adjusted EBITDA was SEK 7.1 million (Q4 2023: SEK 5.1 million); full-year adjusted EBITDA was SEK 13.3 million (2023: SEK 16.2 million).

• Q4 EBIT was SEK -40.0 million (Q4 2023: SEK -36.7 million); full-year EBIT was SEK -141.8 million (2023: SEK -96.7 million), impacted by goodwill impairments.

• Net loss after tax for Q4 was SEK -43.0 million (Q4 2023: SEK 18.5 million); full-year net loss was SEK -129.0 million (2023: SEK -53.1 million).

• Cash flow from operating activities was SEK 0.3 million in Q4 (Q4 2023: SEK -4.1 million) and SEK -9.0 million for the year (2023: SEK -1.4 million).

• Cash and cash equivalents at year-end were SEK 9.4 million (2023: SEK 25.1 million); equity ratio improved to 41.9% (2023: 14.8%).

Outlook and guidance

• Playdigious has a strong 2025 pipeline, including several prominent game releases and expanded distribution channels.

• Web3 business area expects significant revenue from node sales and the $KOBAN launch in 2025.

• Esports aims to grow both turnover and profitability in 2025, leveraging the success of the Swedish Cup and new Nordic tournament collaborations.

• Cost efficiency and rationalisation measures are expected to continue supporting improved group performance.