Jumpgate (GATE) Q2 2024 earnings summary

Executive summary

• Net turnover in Q2 2024 increased by 145% year-over-year, reaching 18.45 MSEK, driven by acquisitions, new projects, and business development.

• Achieved positive EBIT of 1.6 MSEK in Q2 2024, a turnaround from a loss in Q2 2023, due to cost control and restructuring.

• Indebtedness reduced by 24.5 MSEK through debt repayments, asset sales, and rights issues.

• Three fully financed game projects secured in H1 2024, with a total budget close to 30 MSEK.

• Focus remains on profitability, cost control, and signing additional externally financed projects.

Financial highlights

• Net turnover: 18.5 MSEK in Q2 2024, up from 7.5 MSEK in Q2 2023; H1 2024: 34.85 MSEK, up 142% year-over-year.

• EBIT: 1.6 MSEK in Q2 2024, an improvement of 8.3 MSEK year-over-year; H1 2024: -6.05 MSEK.

• Net loss Q2 2024: -2.2 MSEK, improved from -9.4 MSEK in Q2 2023.

• Cash flow: 5.0 MSEK in Q2 2024; cash equivalents at period end: 9.02 MSEK.

• Personnel expenses reduced due to restructuring.

Outlook and guidance

• Focus on signing further project deals and maintaining positive momentum in EBIT and cash flow.

• Several major game releases planned for 2025, including Star Trek-based game, Ed & Edda: GRAND PRIX, and a THQ Nordic-published remaster.

• Revenue from new project financing expected to support development through 2025.

• Targeting at least one more externally financed project in H2 2024.

• Continued efforts to reduce debt position.