Goodbye Kansas Group (GBK) Q2 2024 earnings summary

Executive summary

• Net sales fell 66% year-over-year to SEK 27.0 million in Q2 2024, mainly due to weak new project sales in game trailers and VFX.

• EBITDA was SEK -22.9 million, with losses driven by the sales decline despite cost reductions.

• The company completed a restructuring, focusing on core studio operations and reducing debt and costs.

• Strategic partnership with NY VFXWAALA established, including a joint venture in India to improve margins and market presence.

• Several new orders and framework agreements signed, expected to boost revenue in H2 2024 and 2025.

Financial highlights

• Q2 2024 net sales: SEK 27.0 million (down 66% year-over-year); H1 2024 net sales: SEK 57.7 million (down 62%).

• Adjusted EBITDA Q2: SEK -22.9 million (Q2 2023: -8.7 million); H1: SEK -42.6 million (H1 2023: -21.3 million).

• EBIT Q2: SEK -25.5 million (Q2 2023: -32.6 million); H1: SEK -50.2 million (H1 2023: -64.7 million).

• Earnings per share Q2: -1.17 SEK (Q2 2023: -123.72); H1: -2.29 SEK (H1 2023: -269.70).

• Cash and cash equivalents at June 30, 2024: SEK 3.0 million (June 30, 2023: SEK 25.2 million).

Outlook and guidance

• 2024 sales now expected at SEK 170–180 million and EBITDA at SEK -30 to -40 million, revised down from previous guidance.

• Second half of 2024 anticipated to be profitable, with new orders expected to drive improved results.

• 2025 outlook maintained, expecting further improvement based on cost savings, new sales, and joint venture benefits.