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MindArk Interim Report Q1 2024

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Link to press release from MindArk:
https://spotlightstockmarket.com/sv/market-overview/nyheter//nyhets-artikel?id=103865

Link to actual report in pdf:
https://www.mindark.se/investor-rel...ments/2024/MindArk-Interim-Report-Q1-2024.pdf

Copy paste of press release from first link above:

Press release from Companies
Publicerat: 2024-05-15 08:00:00

Mindark PE Aktiebolag: MindArk Interim Report Q1 2024​



MindArk PE AB (publ) ("MindArk", the "Company") hereby announces that the Company's interim report for Q1 2024 has been published.
Comment from Acting CEO, Leif Evander Andersson:
"Our financial results for the last quarter—both turnover and operating profit—did not match the figures from the same period last year. However, this discrepancy primarily stems from the first quarter of 2023 being exceptionally strong due to the launch of our 20th anniversary event, TWEN.
In early 2024, MindArk has focused on advancing AI integration across the organization. This initiative is already enhancing our operational efficiency, accelerating development, and improving gaming experiences. Additionally, our AI-driven approach to data management is paving the way for more informed strategic decisions."
Reporting period
The report covers the period January 1 – March 31, 2024 (“Q1”).
January 1 – March 31, 2024
Group figures. Comparative figures in parentheses refer to the same period last year.
  • Turnover amounted to 20.7 MSEK (26.5 MSEK)
  • Work in progress amounted to 5 MSEK (7.7 MSEK)
  • Operating profit amounted to 1.1 MSEK (4.2 MSEK)
  • Profit before tax amounted to 88 TSEK (4.5 MSEK)
  • Cash & cash equivalents including short-term investments 38.3 MSEK
  • No interest-bearing liabilities
  • Provision for unspent user funds 35.6 MSEK
  • Earnings per share for the period amounted to -0.07 SEK (0.11 SEK)
Significant events during Q1
Henrik Nel Jerkrot steps down as CEO in March 2024 after six years in the position. Leif Evander Andersson, who has been a member of the Board since May 2023, takes over as acting CEO.
Significant events after the end of the reporting period
In April 2024, MindArk terminated the agreement with Pareto Securities AB, the liquidity provider for MindArk’s shares. MindArk’s Board of Directors concludes that the service is no longer necessary.
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.
Auditor
This financial statement has not been reviewed by the Company’s auditor.

Financial calendar
Interim report Q2, 2024 August 28, 2024
Interim report Q3, 2024 October 25, 2024

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 15-05-2024 08:00 CET.
For more information, please contact:
Gunilla Krogh
CFO, MindArk PE AB (publ)
gunkro@mindark.com
Tel: +46 31 607 260
MindArk PE AB (publ)
Org. nr. 556640-4769
Masthamnsgatan 5
413 29 Gothenburg
www.mindark.com

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I always dive in to find some Unreal Engine 5 news but seems pretty light this time :(
 
pretty significant drop, but i'm betting resource mayhem will crunch a lot of ped through the system
 
Tried to find some interesting news about the road ahead for Entropia or UE5, but unfortunately just seemed as some word salad this time. At least on the technical stuff.
 
Fredelig said:
Tried to find some interesting news about the road ahead for Entropia or UE5, but unfortunately just seemed as some word salad this time. At least on the technical stuff.
Click to expand...
Only interesting thing being they are moving to the next stage of development soon....whatever that means. Would be nice if they could give us a proper community update saying what's been acheived and what the next stage actually is.
 
jwestonmoss said:
pretty significant drop, but i'm betting resource mayhem will crunch a lot of ped through the system
Click to expand...
There is a large impact on USD exchange rate
player money inflow is rising 2.5m PED or so...
as long as "player un consumed holding" rises it means all is ok
TWEN took an insane amount of fresh ped inflow to buy tokens for weapons
it it 100% normal that afer such "binge depositing" there is a slowdown

I was considering that autocrat could damage economy, so far seems that
i was wrong, and until mid june event will command more decay in craft.
we should have a strong q2 with a 20...40% increase in cycled ped
 
Msturlese said:
I was considering that autocrat could damage economy, so far seems that
i was wrong, and until mid june event will command more decay in craft.
Click to expand...

The auto-craft was disabled until patch 18.2.1 on Tuesday, so it’s too early to see any impact from that.
 
After re-organisation they have dropped a lot of staff, unfortunatly this will obviously impact the UE5 development.
 
Last edited:
ProActive Mango said:
Do you think they will keep the deadline at 2025 Q1?
Click to expand...

Seriously doubt it, somehow they were caught off guard by the fact that turnover will decrease when twen event is over, and were forced to cut a substantial amount of employees. I think we can expect at least one year delay if not more.
 
I dread the day they "maybe" upg to UE5.

Gonna be boring few years while waiting them to get it working right.

🤞🤣🤞
 
SleePy said:
Seriously doubt it, somehow they were caught off guard by the fact that turnover will decrease when twen event is over, and were forced to cut a substantial amount of employees. I think we can expect at least one year delay if not more.
Click to expand...
What if it isn't a delay, what if it doesn't make it to launch. The only thing that makes players not want to play, is this dog crap loot patch. It needs to be reversed back to the 2008 loot patch rofl. Every single player on my friends list complained about loot. literally nothing else just loot, is what they had an issue with.
 
UE5 will be released only when it will be obsolete engine :) so they can make announcment of UE10 :ROFLMAO::ROFLMAO::ROFLMAO:
 
Times are changing when the game was released ppl were spending thousands of $ and having fun with it because the game was unique an dthere were no alternatives. So many years later there are less and less ppl willing to spend that kind of cash on a single games and some if not most don't see returns on their investment. Not to mention the fact that mmo scene is now flooded with games some of which will offer cash economies aswel. If Ma wants to keep their customers they need to revise their game.While new graphics are step in the right direction a better looking slot machine is still a slot machine so doing only graphics won't work !
 
DRAGUNOV44 said:
Times are changing when the game was released ppl were spending thousands of $ and having fun with it because the game was unique an dthere were no alternatives. So many years later there are less and less ppl willing to spend that kind of cash on a single games and some if not most don't see returns on their investment. Not to mention the fact that mmo scene is now flooded with games some of which will offer cash economies aswel. If Ma wants to keep their customers they need to revise their game.While new graphics are step in the right direction a better looking slot machine is still a slot machine so doing only graphics won't work !
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i think there are some ways they can enhance and diversify the experience. just some fun ideas

  • A collectibles system
    • rare "collectibles" that drop all over the universe, some that are universal, some that are planet-specific. these collectibles can be traded or auctioned.
    • once a collection is completed (think like a stamp book that is filled out) it unlocks a one-time reward which could be a real-life item.
      • tabtab plushie
      • various types of usable EU swag
      • a replica item from the game (this has been done by Destiny and others)
  • reform the shares/deeds system to allow a voting system, the way you have voting on board decisions when you own real life shares, except not legally that way, more like a poll or survey.
    • aka, the custodian of the digital property for which there are shares, can release a survey in the exchange system and people can vote on what option they prefer (ideally "which of these changes would you like to see most" type questions)
    • the more shares you have the more your vote counts
    • obviously this is non-binding but it gives the dev teams community feedback and can help inform their decisions anyway
  • more missions, including dynamic ones for every profession, think "radiant system" from the elder scrolls games. this would help structure the system a lot more for people who prefer that structure and feeling of progression
 
We can sugest but they wont change anything and we can wonder why. Fact is most people don't know how to fix game economies without making it worse. Untill they have steady income they won't change anything if they loose the playerbase they might wonder how to try to fix it but then it could be too late !
 
The biggest thing for improving the economy would be lowering auction fees. With a vast majority of the loot at 101 and 102% MU the fees on auction are rather too high. Improving the liquidity of players probably means more profit anyway as it allows faster re-cycling of ped. The game just needs a bit more big picture than worrying about .55 - .65 pec fees which hurt the liquidity of everyone. Not saying there should be no fees, but I think the fees are at least 50% too high.
 
Also pills and any item which can be traded for ped need to be actionable. High fees and non-auctionable items simply drive a lot of ped from actively playing players to non-playing resellers.
 
DannyGo Danny BadukWeiqi said:
Also pills and any item which can be traded for ped need to be actionable. High fees and non-auctionable items simply drive a lot of ped from actively playing players to non-playing resellers.
Click to expand...
This is a no-brainer.

I truly have no idea why they do not do this.

Due to the way the reseller dynamics work, this change would directly help low-medium depo players who get pills from boxes but don't really use them. Right now they are getting ripped off 50-75% of the selling value of the pills.
 
DannyGo Danny BadukWeiqi said:
The biggest thing for improving the economy would be lowering auction fees. With a vast majority of the loot at 101 and 102% MU the fees on auction are rather too high. Improving the liquidity of players probably means more profit anyway as it allows faster re-cycling of ped. The game just needs a bit more big picture than worrying about .55 - .65 pec fees which hurt the liquidity of everyone. Not saying there should be no fees, but I think the fees are at least 50% too high.
Click to expand...
yep. i think the easiest way to fix this problem without hurting MA's rake too much.

if an auction has a buyout price 102.5% or less, or the resulting bid winner is 102.5% or less, there is zero auction fee

there's a lot of crap sitting in people's storage that would move.
 
I've always loved reading these reports. This part was the most interesting for me:
UNCONSUMED USER HOLDINGS IN Q1 2024
All users in Entropia Universe have an in-game account where cash in the form of the virtual in-game currency PED or digital items are placed. The sum of these cash funds and digital items is the user’s unconsumed user holdings.

Unconsumed user holdings have somewhat increased during the first quarter, from 140.5million PED to 141.7 million PED, an increase of 1.2 million PED. However, the total amount increased significantly more in SEK as the SEK/USD exchange rate has increased from 10.04SEK/USD at the end of December 2023 to 10.66SEK/ USD at the end of March 2024 (10 PED=1USD). This resulted in an increase of 10 million in SEK, from 141.1 million SEK to 151 million SEK.

With the closing of the financial year 2023, the company has implemented a new policy to calculate and report the allocation for unconsumed user holdings on the company’s balance sheet.

Previous methodology: Historically, the company has calculated the allocation for unconsumed user holdings by looking at all previous years since the launch of the game 20 years ago and considering the years when withdrawals were high. This methodology has provided the company with a comprehensive overview of users’ behavior over time.

New policy: With the new policy, the company now focuses on the last five years of data to better reflect current user behavior and economic trends. The average of withdrawals over the last five years stands at 23.6%. This change aims to provide a more current and relevant picture of the company’s allocation needs for unconsumed user holdings in Entropia Universe.

As of March 31, 2024, the total liability for unconsumed user holdings amounted to 141.7million PED. According to the new calculation methodology based on the new five-year average figure of 23.6%, the company estimates the real debt at the end of March 2024 to be 33.4 million PED which is equivalent to 35.6 million SEK. This policy change also reflects the company’s continuous efforts to improve financial processes and at the same time ensure that the item of unconsumed user holdings is reflected in a sustainable and responsible manner
Click to expand...
I last remember that "unconsumed user holdings" were just a footnote on the balance sheet, and not actually included in the calculation of liabilities. Which basically translated to: "Your PED does not belong to you."

They are now at least reserving 23.6% of the total PED in the game now on the balance sheet. We're making progress!

I'm happy to see that they seem to understand the implications of this for the more financially astute of us in the player base. Why would you want to put your money in a bank if the bank is going to tell you that money is not yours should the worst case scenario happen? This move makes me personally a little more comfortable giving them larger sums of money as an "investment", versus just giving them some play money every so often.
 
DoubleWolf said:
I've always loved reading these reports. This part was the most interesting for me:

I last remember that "unconsumed user holdings" were just a footnote on the balance sheet, and not actually included in the calculation of liabilities. Which basically translated to: "Your PED does not belong to you."

They are now at least reserving 23.6% of the total PED in the game now on the balance sheet. We're making progress!
Click to expand...

Actually, they had been reserving 33% of unconsumed user holdings up to the 2023 annual report.

2022 annual report
 
DoubleWolf said:
Why would you want to put your money in a bank if the bank is going to tell you that money is not yours should the worst case scenario happen?
Click to expand...
Correct me if I'm wrong but banks are the worst they know we have to use them so if the worst were to happen in reality you would not get anything because we would be last in the people they pay out to.
 
GeorgeSkywalker said:
Correct me if I'm wrong but banks are the worst they know we have to use them so if the worst were to happen in reality you would not get anything because we would be last in the people they pay out to.
Click to expand...
Banks, unlike Mindark (until recently. I assumed this was the first time due to the language they used in the quote that I put in bold) actually keep all customer deposits accounted for on the balance sheet as a liability. In the event of company liquidation of assets, liabilities like debts and deposits and other payables get distributed first before equity holders get what's left.

So owners of banks would have to make depositors as whole as possible before they get to keep anything for themselves. In theory, at least. Not to say some of the scumbags at the top wouldn't try to short depositors for their own benefit.
 
DoubleWolf said:
Banks, unlike Mindark (until recently. I assumed this was the first time due to the language they used in the quote that I put in bold) actually keep all customer deposits accounted for on the balance sheet as a liability. In the event of company liquidation of assets, liabilities like debts and deposits and other payables get distributed first before equity holders get what's left.

So owners of banks would have to make depositors as whole as possible before they get to keep anything for themselves. In theory, at least. Not to say some of the scumbags at the top wouldn't try to short depositors for their own benefit.
Click to expand...

This could explain why MA decided not to pursue their banking licence and set themselves up as a bank.
 
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