MindArk Interim Report Q1 2023

[Mega]

Published: 2023-05-25 08:00:00

MindArk PE AB (publ) ("MindArk", the "Company") hereby announces that the Company's interim report for Q1 2023 has been published.

Comment from CEO Henrik Nel Jerkrot:

"The first quarter of 2023 has been a continued strong quarter for MindArk where we reach a revenue record for the Q1 period for the third year in a row. Although some of the company's resources are committed to the work on the graphics engine migration, user activity in Entropia Universe has increased by 15%. This speaks to our team's ability to create exciting content for our users that keeps them engaged. The company remains well-capitalized at the end of the period and enters Q2 with a strong balance sheet."

Reporting period

The report covers the period January 1 - March 31, 2023.

January 1 – March 31, 2023

Group figures. Comparative figures in parentheses refer to the same period last year.

• Turnover amounted to 26.5 MSEK (21.9 MSEK).
• Work in progress amounted to 7.7 MSEK (6 MSEK).
• Operating profit amounted to 4.2 MSEK (4.7 MSEK).
• Profit before tax amounted to 4.5 MSEK (3 MSEK).
• Cash & cash equivalents including short-term investments 37.1 MSEK.
• No interest-bearing liabilities
• Provision for unspent user funds 47.4 MSEK

Significant events during Q1

• Insurance compensation of 4.75 million SEK related to the dispute with David Storey paid January 2023
• The company performed a 1:5 reverse split in January 2023, resulting in a change in the number of outstanding shares from 157,623,125 to 31,524,625.
• Listing on Spotlight Stock Market on January 27, 2023.

Significant events after the end of the reporting period

• The company's employee foundation has acquired 82,883 MindArk shares.
• A new board was elected at the company's annual general meeting.
• MindArk appoints Pareto Securities as liquidity provider for the Company’s share.

Financial reports

The Company's financial statements, including the forthcoming report, are available on the Company's website, www.mindark.se/investor-relations/financial-reports/. It is available in a Swedish and an English version.

Financial calendar

Interim report Q2 2023 August 28, 2023

Interim report Q3 2023 October 25, 2023


This disclosure contains information that Mindark PE AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 25-05-2023 08:00 CET.

For more information, please contact

Henrik Nel Jerkrot

CEO, MindArk PE AB (publ)

Source:

News article | Spotlight

spotlightstockmarket.com

 

[Angela Draniie Cloud]

Entropia is dying I thought

 

[MsPudding]

Entropia is dying I thought

Sky has fallen for the last 20 years. A moment of silence, please.

 

[MrFatBoy]

1 USD = about 11 SEK - call it 10 to make it easy - profit for 1 QTR = 420K USD is that supposed to be impressive?

i mean its nice for such a niche game but really nothing to go nuts over and i think could be a lot better

Sky may not be falling but it is not that high up in the air either

well guess i should expect even crappier loot now that i dared to say this lol

 

[Cpt Super Flash]

I think $420k profit for just 3 months is really good

 

[smoothee]

I think $420k profit for just 3 months is really good

You realize, of course, that the $420,000 means 4,200,000 ped of bad hunts for us, right? The horrific loot and frustration and boredom that most of us are seeing now create that.

 

[Cpt Super Flash]

I mean it's good as in the amount they are making as the previous post think's it is low

But you shouldn't find anything frustrating, Just depo what you are ok to lose and just call it as money spent, It will help you keep your sanity lol and you will enjoy the game more
Then making ped is just part of the game and not a case of you getting any kind of return on your depo.

 

[Art Jennifer]

user activity in Entropia Universe has increased by 15%. This speaks to our team's ability to create exciting content for our users that keeps them engaged.

Good to see they are making money that is always a positive

However . Dangerous thinking. “Ability to create Exciting content” Not sure what metric they use to measure that. I haven’t received any feedback questionnaire….

User activity would be interesting to see how they have defined that.. I assume this is due to TWEN which if it is. I would say 15% is a little light…

 

[AckerZ]

420k profit while investing heavily in RnD is good.

 

[DistantSun]

Significant events during Q1

• Insurance compensation of 4.75 million SEK related to the dispute with David Storey paid January 2023

Large dent in their balance sheet. Anyone know what this relates to?

Update since above question:

1. David Storey = Deathifier
2. Still interested to know more recent info (if it is available)

 

[WildD3mon]

Is this exciting content with us in the room now ?
am i missing something , all the new content this year was that bugged robot "wave". And all this in a TWEN year .

 

[unufain8]

Is this exciting content with us in the room now ?
am i missing something , all the new content this year was that bugged robot "wave". And all this in a TWEN year .

and the weapons dropped and the armors dropped, and the tokens and rare tokens dropped, and not to mention the upcomming new events they promissed

 

[RickEngland]

You realize, of course, that the $420,000 means 4,200,000 ped of bad hunts for us, right? The horrific loot and frustration and boredom that most of us are seeing now create that.

I'm of the opinion that any figures relate to real deposits less costs and liabilities = profit.

The game can invent value from thin air, say new weapons or deeds. It's always quite interesting what revenue or turnover actually means. Hence if I was an investor I'd more more interested in the movement in cash.

Ironically the game could give you 100% hunting returns, as long as they could invent reasons for a player to deposit for gear (weapon tokens is a good example or teiring) and they would still make an operating profit.

So the point is, the 420k usd operating profit, doesn't necessarily equate to bad hunts.

Rick.

 

[theawsomechick]

Large dent in their balance sheet. Anyone know what this relates to?

Update since above question:

1. David Storey = Deathifier
2. Still interested to know more recent info (if it is available)

Is this because he owned treasure island and now its mind ark owned? Im not sure

 

[Smoking Holland]

Cannot log in..server problems..who is gonna take my money now..?

Anyone else have problems depositing with cc?

Have a good whatever makes you happy all

 

[WildD3mon]

and the weapons dropped and the armors dropped, and the tokens and rare tokens dropped, and not to mention the upcomming new events they promissed

sorry , i dont view weapon/armor stats and tokens as content.

 

[GeorgeSkywalker]

Cannot log in..server problems..

Can you be more specific? What problems are you having? Do you get any error message(s)?

I ask because we are all logged in and don't have any problems.

Is this because he owned treasure island and now its mind ark owned? Im not sure

Yes. There was a legal battle between David Storey aka Deathifier and MindArk. MindArk won the case so I'm not sure why they are paying David Storey.

 

[Angela Draniie Cloud]

420k profit while investing heavily in RnD is good.

Yeah that's real good, equated to straight 1.6m profit this year and that's AFTER paying everyone. So the company its self is bringing in some good dough. for such a niche product where they make NO EFFORT.

Think if they made effort? They brought back dropping items (huge for events and I'd spend more) They bring back real life lootable items.

Partner up with Ibuypower, Acer, Asus etc. Fucking Hulu or something to get like 1 year of hulu subscription in a drop or something.


Like the possibilities are endless and instead we get guns/armors where there are SOOOO many in the game.

I'd love to loot a laptop, computer, fucking $500 ACME giftcard etc.


How difficult would it be for them to buy like Nintendo store cards. Like a $50 card for $45(90%). Someone spends $47.50(95%) to get the gift card, Mindark made $2.50 right there.

And then the fact that they can be sold on the Auction House thats another probably 40-50 cents in fees. So now there at $3 profit off of 1 drop and it does not negatively effect the games economy at all.

 

[Smoking Holland]

Temporary error, please try again in a few minutes.....

 

[krazykat]

Can you be more specific? What problems are you having? Do you get any error message(s)?

I ask because we are all logged in and don't have any problems.

Yes. There was a legal battle between David Storey aka Deathifier and MindArk. MindArk won the case so I'm not sure why they are paying David Storey.

It sounds like a settlement to me maybe they offered a settlement of the case. It was in MA's interest to settle to gain full control of TI.

 

[GeorgeSkywalker]

It sounds like a settlement to me maybe they offered a settlement of the case. It was in MA's interest to settle to gain full control of TI.

I doubt it was a settlement because MA won the case.

Edit:
See post below by GradenFoss...I must be getting old

 

[GradenFoss]

All the public info concerning the Deathifier/TI legal dispute has already been published in the 2022 annual financial report.


Settlement of a dispute

On December 9, 2022, the Patent and Market Court of Appeal (PMÖD) issued a decision in a
dispute between a foreign private individual, David Storey and MindArk. The dispute was initiated
on March 23, 2018 by the individual who sued MindArk before the Patent and Market Court
(PMD), to prohibit MindArk from using certain source code and to award him damages which was
finally specified to be in the amount of approximately 33 million SEK.

MindArk considered the action to be unfounded from the outset for a number of reasons.
Developments have shown that MindArk was correct, though the case took longer than expected.
The dissolution followed the bankruptcy of the private individual on June 28, 2021, after which
MindArk was able to reach a settlement with the individual’s bankruptcy estate which resulted in
the bankruptcy estate withdrawing its claim in exchange for MindArk not making a claim for costs
against the bankrupt’s estate. PMD dismissed the case. PMD rejected part of MindArk’s claim for
costs and reduced MindArk’s claim for costs insofar as it related to the remaining part of the
action. On March 14, 2022, MindArk appealed the PMD’s decision to the Patent and
Marknadsöverdomstolen (PMÖD). MindArk’s appeal was successful and the PMÖD reversed the
decision by awarding MindArk compensation for costs totaling 3 384 032 SEK instead of 2 220
942 SEK, of which the private individual would be jointly and severally liable together with his
bankruptcy estate for 3 001 388 SEK.

The dispute has finally been settled by decision of the PMÖD. In other words, it cannot entail any
further costs for MindArk.

The individual has no known assets in Sweden and his bankruptcy was declared on January 12,
2023. MindArk’s chances of obtaining compensation for its legal costs in accordance with the
PMÖD’s decision are therefore small. However, MindArk has reached a settlement with its
insurance company, and it has paid 4 750 000 SEK as compensation for the legal costs incurred
by MindArk during the period of the dispute.

 

[NevadaJake]

I wish NTI could have the same TPs that old TI had:

 

[ProActive Mango]

Yeah that's real good, equated to straight 1.6m profit this year and that's AFTER paying everyone. So the company its self is bringing in some good dough. for such a niche product where they make NO EFFORT.

Think if they made effort? They brought back dropping items (huge for events and I'd spend more) They bring back real life lootable items.

Partner up with Ibuypower, Acer, Asus etc. Fucking Hulu or something to get like 1 year of hulu subscription in a drop or something.


Like the possibilities are endless and instead we get guns/armors where there are SOOOO many in the game.

I'd love to loot a laptop, computer, fucking $500 ACME giftcard etc.


How difficult would it be for them to buy like Nintendo store cards. Like a $50 card for $45(90%). Someone spends $47.50(95%) to get the gift card, Mindark made $2.50 right there.

And then the fact that they can be sold on the Auction House thats another probably 40-50 cents in fees. So now there at $3 profit off of 1 drop and it does not negatively effect the games economy at all.

Looting irl items = Gambling.

 

[Angela Draniie Cloud]

Looting irl items = Gambling.

I disagree. The game has already won the court case that the game is not gambling. Would help MU a ton and help Mindark a ton IMO.

 

[ProActive Mango]

I disagree. The game has already won the court case that the game is not gambling. Would help MU a ton and help Mindark a ton IMO.

Mindark have said they cant have irl items or peds in the loot sence that counts as gambling under the Swedish law.

 

[miseGXr]

This speaks to our team's ability to create exciting content for our users that keeps them engaged.

exciting content

content

No

 

[GeorgeSkywalker]

Also Planet Arkadia used to have real life items as prizes but they found it difficult to continue with them as advertisers wanted to work with a bigger audience than what we had i.e. not enough players for it to be worth the effort

 

[Angela Draniie Cloud]

Also Planet Arkadia used to have real life items as prizes but they found it difficult to continue with them as advertisers wanted to work with a bigger audience than what we had i.e. not enough players for it to be worth the effort

Player counts have increased, they could do smaller company deals. They could buy stuff wholesale instead of consumer prices, like I said giftcards, etc.

I just think it's sucha. fun and interesting idea. Even MA mugs, shirts stuffed animals etc. Concept art and signed shit. 30 minute zoom meeting with someone at MA, maybe a flight out to visit MA etc.

 

[ProActive Mango]

Guess Arkadia know how to do loots