Lokotech Group (LOKO) H2 2024 earnings summary

Executive summary

• Transitioned from R&D to industrial phase, focusing on mass production of redesigned ASICs with superior power efficiency, and expanding PowerPool operations and data centers.

• Achieved cash flow positivity on a run rate basis, with cash-generating mining pools and data centers expected to cover fixed costs in 2025.

• Completed PowerPool acquisition and secured significant pre-orders for Scrypt hardware, totaling $6–$13 million, with several framework agreements.

• Acquired a 5,000 sq m mountain hall for data center expansion, including a decommissioned nuclear bunker, with new services launching Q1 2025.

• Listed on Euronext Growth with a NOK 340 million market cap as of March 28, 2025.

Financial highlights

• 2024 group revenue: NOK 7,044k, up from NOK 4,215k in 2023, primarily from PowerPool.

• OPEX decreased to NOK 7,704k from NOK 15,504k year-over-year.

• Pre-tax loss widened to NOK 32,323k from NOK 23,932k year-over-year, mainly due to aggressive R&D depreciation.

• PowerPool Mining SL contributed EUR 456,636 in revenue and EUR 346,653 in operating profit, with a EUR 248,115 dividend paid in 2024.

• Operating costs for PowerPool around 5% of revenue, with an operating margin estimated at ~76%.

Outlook and guidance

• PowerPool net revenue guidance for 2025: EUR 1.5–2.8 million, depending on growth rates.

• Mass production of ASIC chips to be initiated and ramped up, with focus on improving mask set quality.

• Expansion of PowerPool's service offerings and acceleration of growth in existing verticals planned.

• Data center business to be developed and matured, with potential hosting services assessed.

• Targeting entry into the larger SHA-256 market after Scrypt ASIC launch and exploring Edge AI commercialization.