Goodbye Kansas Group (GBK) Q3 2024 earnings summary

Executive summary

• Net sales fell 43% year-over-year in Q3 2024 to SEK 44.0 million, mainly due to weak VFX project sales.

• EBITDA for Q3 was SEK -5.9 million, with adjusted EBITDA at SEK -5.7 million, excluding minor non-recurring costs.

• Major restructuring completed, focusing solely on Goodbye Kansas Studios after divesting Vobling and Plotagon.

• Significant new orders for game trailers and CGI animation films totaling approximately SEK 120 million secured during and after the quarter.

• CEO announced intention to step down, with a search for a growth-oriented successor underway.

Financial highlights

• Q3 net sales: SEK 44.0 million (down from SEK 77.2 million year-over-year).

• Q3 adjusted EBITDA: SEK -5.7 million (SEK 6.0 million last year); Q3 EBIT: SEK -7.4 million (SEK -142.0 million last year).

• Nine-month net sales: SEK 101.7 million (down 56% year-over-year).

• Cash and cash equivalents at September 30, 2024: SEK 6.4 million.

• Earnings per share Q3: SEK -0.34 (SEK -651.98 last year); nine months: SEK -2.63 (SEK -921.68 last year).

Outlook and guidance

• Expectation of positive EBITDA and improved operating cash flow in Q4 2024.

• Full-year 2024 guidance: net sales SEK 170–180 million, EBITDA SEK -30 to -40 million.

• Financial targets for 2025 maintained, supported by recent orders and joint venture in India.