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Info: Mindark Annual Report 2014

sawachika

sawachika

Old Alpha
Joined
Oct 26, 2008
Posts
975
Now looky what I found here...:laugh:

Remembering what I said earlier in

sawachika said:
Almost June now right?

Gonna wait and see the Annual Report for 2014 to see if things have improved or deteriorated I guess.

http://www.mindark.com/investor-relations/financial-reports/
Click to expand...

I decided to have a look at the link again and surprisingly found that its up with the latest annual report. Hahaha.

(Just heads up for anyone else who's interested.)

Mindark Annual Report 2014:
http://www.mindark.com/investor-relations/financial-reports/documents/ANNUAL_REPORT_MindArk_2014.pdf

Mindark Annual Report 2007 (For Posterity):
http://www.mindark.com/investor-relations/financial-reports/documents/AnnualReport2007_LOW.pdf
 
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Very interesting: Page 22

Note 8 Planet Calypso Forum Group
Purchase 201 880 0

So MA owns PCF or did we already know this ?

At least if we didnt , we now know there is a higher authority to push complaints to if necessary ;)
 
Well, my complaints have all gone unanswered so...
 
Interesting read. The financials look like the company is in better nick than it was last year'! Deposits down slightly, but operating costs also down, with some interesting economical developments. Doesn't look like the sky is falling any more! :yay:

Some interesting parts about the loss on ilunova, owernship of PCF, retained funds from ark underground deed.
 
Can someone please make a summary and explain it to me? I'm good with numbers but I have no clue what most of those terms mean for a business.

Thx
 
Would be nice if there was a USD version of this (given PED is linked to USD) and also a graph :)
 
the numbers are all relative . 40 mil SEK = 4.8 mill USD
 
have i missed something, or has that something to do with accounting stuff / "classical" company shares?

page 5:
Listing of MindArk Shares
The correct timing of the listing of the MindArk shares has not yet been established, any further
information will be published on our website.
Click to expand...
 
Alainax said:
Interesting read. The financials look like the company is in better nick than it was last year'! Deposits down slightly, but operating costs also down, with some interesting economical developments. Doesn't look like the sky is falling any more! :yay:
...
Click to expand...

Frankly, I can't quite make heads or tails :scratch2: nor any conclusion yet...with regards to whether "sky is falling". ;)

Angel O2 Mercer said:
Can someone please make a summary and explain it to me? I'm good with numbers but I have no clue what most of those terms mean for a business.

Thx
Click to expand...

No expert here, but some interesting points to note...
  1. Pg 8 (of annual report 2014) - Net Sales still dropping. This means that they've managed to sell less PEDs than compared to previous years (net of deposits - withdrawals).
  2. Pg 9 (of annual report 2014) - Operating Profit still negative. This means that they're still losing money from keeping this company (game) operational. (Although its less loss than compared to past year 2013).
  3. Pg 9 (of annual report 2014) - Net Profit is POSITIVE. Though "good" in a sense, this profit seemingly came from one single "event" (the ultimate turnaround) called "Income Tax". And this, if you refer to Note 23 (on Pg 27 of annual report), is apparently labelled under the category of "Deferred Tax" (don't know what that means, but seems to be some unused tax loss that was carried forward...again, don't know what that means either).
  4. Pg 10 - Total Non-current Assets (cannot be "realized" or "obtained" within a year) appeared to have improved from previous year, but if you look closer, you find the same big fat thing in it, the "Deferred Tax". And if you take that away and compare it with the previous year, you see that the "Total Non-current Assets" has (rather) fallen instead.

As for the rest, can't quite make anything out of them, sorry. (Like I said, I'm a newb too.):laugh:
 
SoReal said:
that's accountants for ya ! ;)
Click to expand...

Is it bad I kinda like reading year end accounts :ahh::laugh:

They made a loss, but not as bad a loss as the previous year ( even with the deferred income tax removed) (hence sky is less falling ;) ) . In the second part of 2014 they had a positive ebita. "Forecasting" this to continue into 2015
 
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Support
With the closing of MindArk’s office in Mexico during 2014, support operations were relocated back
to the Gothenburg headquarters. This change has resulted in a better overall support experience
for our customers, with faster response times and much improved support ticket satisfaction
ratings.


plz STFU!
 
TheRock said:
Support
With the closing of MindArk’s office in Mexico during 2014, support operations were relocated back
to the Gothenburg headquarters. This change has resulted in a better overall support experience
for our customers, with faster response times and much improved support ticket satisfaction
ratings.


plz STFU!
Click to expand...

:laugh::laugh::laugh::laugh::laugh::laugh:

Can anyone explain how they are calling taxes a profit?
 
Something to add, after inspecting how they added sums up.

Apparently the "Deferred Tax" was also incorporated into the 2014's "Total Assets", "Equity" and "Fixed Assets".

If you discount this "Deferred Tax" (roughly take away 10k off them), then the values on Pg 8 would look like this.

Consolidated
20142013201220112010
Net sales40 99846 79746 47845 99350 796
Profit after amortization-5 270-8 725-20 790-7 396-16 328
Profit after financial items-5 576-8 941-20 698-7 688-17 331
Total assets22 01525 71941 69151 14094 948
Equity10 38315 56325 09340 99949 072
Fixed assets10 48112 80527 13630 97441 949

Although I'm not quite sure if I can do this and whether doing this is "appropriate". But I'm guessing this "Deferred Tax" could be considered a one-off and thus ought to be discounted?

(* Is it me or are the sums somehow not adding up quite right?)

Ah.... Pg 11, the total of short term and long term liabilities isn't added up right. But the total of 32 015 159 is correctly added.
 
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Darkpepe said:
have i missed something, or has that something to do with accounting stuff / "classical" company shares?

page 5:
Click to expand...

Mindark was planning (sort of) going public, but than the ~2008 financial crisis came and they never decided to do such a move and remained privately owned like any other non-listed company.
 
Cash flow is positive. (insert Metallica clip)
 
to me it looks like it isn't only depending on mindark, how their (and our) future will be. if we keep depositing less and less over the years, start a pedrun or any other sky-is-falling-sell-items-stop-depo-hate-mindark scenario in larger groups, then you can't blame them at all. :wise:

anyways, i'm probably not a pessimistic guy, so i'm looking forward to the next decade. there is so much more to come, isn't it? :tongue2:
 
Thanks for bringing this up! Always wanted to have a look, but was lazy to search for it. Now no excuses :).

Anyways my read on the few notes is that 'sky is not falling' and the game is growing including deposits net of withdrawals. Net sales are confusing as they are in SEK and should use average exchange rate, but there are contingent liabilities where MA records 'unconsumed user holdings', i.e. how much it owns to players if they were to withdraw everything in one day (also tt value of 'everything in EU' including PED card balances if I read it right).

Unconsumed user holdings on Dec 31st

2014----------2013

FX 7.81-----------6.51

SEK 96,990,148----74,460,750

USD 12,418,712----11,437,903

Yes, $12.5 million and up by $1 million.

So let's hope that those contingent liabilities are not moving to real...

The other interesting observation is that on Dec 31st 2014 there were less players waiting for their money, but still at $0.5 million, not sure if MA decreased withdrawal delays or less people were withdrawing during end 2014 holiday period:

User requested reimbursements not yet settled

SEK 4,284,077----4,816,355

USD 548,537-------739,839
 
For those who complain about the withdrawal time there is your answer:
Withdrawals requested : 4.2 million Sek
Money in the bank : 3.7 million Sek
 
Scurvy Sityl said:
:laugh::laugh::laugh::laugh::laugh::laugh:

Can anyone explain how they are calling taxes a profit?
Click to expand...

It's the tax value of accumulated losses. When calculating the tax the company can deduced losses from the previous years. According to the accounting rules that MA are following a company should book a deferred tax asset in their balance sheet and income statement if they have an accumulated loss that they can use on future profit. They have not done this previous years, but they are follow different accounting principles this year so I guess that's why we have a big increase this year.

The company tax in Sweden is 22%, so the deferred tax they have this year should be 22% of the accumulated loss. That means that the accumulated tax loss is 10 398 700/22%=47 266 818 SEK. MA can make that much profit in the future without being forced to pay any taxes.

Anyway.... you should not look at the net profit this year, it very misleading just because of this. Look at the operating profit (loss) instead, show more how the business really goes.
 
As of today's exchange rates approximately:

Operating Revenue (PED purchased) - $4,773,589 US~
Operating Expenses - $4,558,674

Operational cash flow 2014 +$214,915

Investing Expenses are offset by financing expenses (the big IOU to Arkadia) so lets leave this out for simplicity's sake. Approximately 95% of your deposits are going directly towards paying their staff and keeping the lights on.

Otherwise... they essentially have $450,000 available to pay off potentially $11,000,000 in PED in-game. They aren't even considering PED a liability on this sheet, and no, contingent doesn't count. The gap is getting larger every year.

It's no wonder they were trying to sell these "limited" Quads at $5k a piece at the end of the year to lift their numbers. Looks like the CLD money has run dry... I fully expect to see another (failed) cashgrab related to CLD estates before the end of 2015.
 
Overall it looks a bit depressing with the decline in net sales, they must stop that and instead start to increase it. But it sounds like they maybe have done that in the second half of 2014.

One bit of interesting information that I see in the Swedish version, but can't find in the English version, is that from 1 jan 2015 Planet Calypo and Calypso forum is managed directly by the mother-company and not separately in the subsidiary Calypso company. Look like everything is now consolidated in the MA mother-company again (including support). Looks like they bought the forum for 201 880 SEK.
 
Futurama said:
Mindark was planning (sort of) going public, but than the ~2008 financial crisis came and they never decided to do such a move and remained privately owned like any other non-listed company.
Click to expand...

ah okay, thank you, good to know. i guess the banking license was around the same time, and postponed for the same reason.
 
I wonder about something.

How can a company work/operate in minus all those years and still "living"?
 
TheRock said:
I wonder about something.

How can a company work/operate in minus all those years and still "living"?
Click to expand...

Thats the way every company saves taxes - you dont want to harvest profits while growing if you dont have to...
 
The where saved coz the dollar went up. Otherwise they would have gone bust
 
Interesting......

sawachika said:
Something to add, after inspecting how they added sums up.

Apparently the "Deferred Tax" was also incorporated into the 2014's "Total Assets", "Equity" and "Fixed Assets".

If you discount this "Deferred Tax" (roughly take away 10k off them), then the values on Pg 8 would look like this.

Consolidated
20142013201220112010
Net sales40 99846 79746 47845 99350 796
Profit after amortization-5 270-8 725-20 790-7 396-16 328
Profit after financial items-5 576-8 941-20 698-7 688-17 331
Total assets22 01525 71941 69151 14094 948
Equity10 38315 56325 09340 99949 072
Fixed assets10 48112 80527 13630 97441 949

Although I'm not quite sure if I can do this and whether doing this is "appropriate". But I'm guessing this "Deferred Tax" could be considered a one-off and thus ought to be discounted?

(* Is it me or are the sums somehow not adding up quite right?)

Ah.... Pg 11, the total of short term and long term liabilities isn't added up right. But the total of 32 015 159 is correctly added.
Click to expand...

Out of curiosity..wouldn't the "equity" be a reflection of the already accrued "fixed assets?" The sale off and closing of Mexico office and staff,may have helped those numbers a bit. (also that creative accounting reporting.)
 
Thorns Rose said:
Out of curiosity..wouldn't the "equity" be a reflection of the already accrued "fixed assets?" The sale off and closing of Mexico office and staff,may have helped those numbers a bit. (also that creative accounting reporting.)
Click to expand...

Equity = Assets - Liabilities

And they did a loss from the sell of of the Mexico office, "Result from shares in group companies -831 303"
And their no such thing as creative accounting it's just accounting :)
 
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