TROPHY GAMES Development (TGAMES) Q3 2024 earnings summary

Executive summary

• Revenue grew 56% year-over-year in Q3 2024 to DKK 24.7m, driven by strong performance in the Transport Series and new titles like Energy Manager.

• Unique paying users more than doubled year-over-year, reaching 130,405 in Q3.

• The acquisition and integration of Tivola's games contributed positively, and the company is preparing to launch Truck Manager and other new titles.

• Strategic focus is shifting to enhancing existing games and discontinuing underperforming projects, including the closure of PIU-PIU LT, UAB and the Airport Tycoon project.

Financial highlights

• Q3 revenue: DKK 24.7m (+56% YoY); YTD revenue: DKK 70.1m (+71% YoY).

• Q3 EBITDA: DKK 4.9m (+67% YoY); YTD EBITDA: DKK 17.5m (+149% YoY).

• Q3 EBT: DKK -0.4m (impacted by DKK 3.0m impairment); adjusted EBT: DKK 2.6m.

• Gross profit: DKK 10.4m (+36% YoY); gross margin declined to 42.2% from 48.2% due to higher marketing spend.

• Cash and cash equivalents at period end: DKK 21.0m, with no debt.

Outlook and guidance

• Anticipates continued growth with upcoming launches of Truck Manager, Farm Manager, and Space Transport Manager.

• Plans to invest more in existing titles to maximize player engagement and revenue.