Jumpgate (GATE) Q3 2024 earnings summary

Executive summary

• Achieved positive EBIT and net profit in Q3, surpassing the year-end target of 0.8–1.2 MSEK/month, driven by restructuring, cost reductions, and new projects.

• Second consecutive quarter with positive EBIT and result after financial items.

• Revenue growth continued, with Q3 net turnover up 6% year-over-year and 3% sequentially.

• Strengthened project pipeline and upcoming game releases position the company for further growth in 2025.

Financial highlights

• Q3 2024 net turnover reached 19.1 MSEK, up 6% year-over-year; Jan–Sep turnover was 53,966 TSEK, up from 32,390 TSEK.

• Q3 EBIT improved to 2.4 MSEK from a loss of -2.4 MSEK in Q3 2023; Jan–Sep EBIT was -3,691 TSEK, up from -13,965 TSEK.

• Q3 profit after financial items was 1.5 MSEK, a 5.6 MSEK improvement year-over-year; Jan–Sep result after financial items was -11,345 TSEK, up from -19,570 TSEK.

• Cash equivalents at period end were 9,291 TSEK, up from 5,436 TSEK year-over-year.

• Cash flow remained negative at -1.9 MSEK but improved by 2.6 MSEK year-over-year.

Outlook and guidance

• Externally financed game projects and work-for-hire deals expected to provide stable revenue into 2025.

• Three major game releases in 2025, including a Star Trek-based game, Ed & Edda: GRAND PRIX, and an unannounced title with THQ Nordic, are anticipated to drive significant revenue.

• Ongoing business development efforts aim to sign further project deals in upcoming quarters.

• Expanding deal pipeline and focus on cost control and debt reduction expected to support future growth.