MindArk Interim Report Q3 2024

[GeorgeSkywalker]

Link to press release from MindArk:
https://news.cision.com/mindark-pe-ab/r/mindark-interim-report-q3-2024,c4072362

Link to actual report in pdf:
https://www.mindark.se/investor-rel...ts/documents/2024/MindArk-Q3-2024-English.pdf

Copy paste of press release from first link above:

MindArk Interim Report Q3 2024​

Thu, Nov 28, 2024 08:00 CET

MindArk PE AB (publ) ("MindArk", the "Company") hereby announces that the Company's interim report for Q3 2024 has been published.​

Comment from acting CEO Leif Evander Andersson:
"We have closed the books for a quarter that has been relatively calm in terms of content releases, which has been reflected in a certain revenue shortfall. At the same time, we have been working intensively on events planned for Q4 and the turn of the year. We know from experience that content releases and events tend to act as revenue catalysts, but we must also be cautious about how frequently such content is released to avoid oversaturating Entropia Universe and its users.

During the third quarter of 2024, we have recruited new talent to our marketing team to enhance organic growth. Moving forward, we will work more methodically and strategically to attract new players. These players, in turn, can expect a significantly smoother onboarding process, as we have now integrated AI functionality into the NPCs that guide new users. We believe this will lead to substantial improvements in both acquisition costs and retention rates for new users.

I also want to highlight that, although the third quarter did not deliver impressive results, we remain well-capitalized with a strong balance sheet and no external loans. This solid foundation makes us resilient to occasional revenue dips, allowing us to continue future-proofing Entropia Universe through innovation and forward-thinking initiatives."

Reporting period
The report covers the period July 1 – September 30, 2024 (“Q3”) and January 1 – September 30, 2024.

July 1 – September 30, 2024
Group figures. Comparative figures in parentheses refer to the same period last year.

• Turnover amounted to 19.4 MSEK (22.9 MSEK)
• Work in progress amounted to 5.4 MSEK (6.1 MSEK)
• Operating profit amounted to -87 TSEK (1.8 MSEK)
• Profit before tax amounted to 1.1 MSEK (1.7 MSEK)
• Cash & cash equivalents including short-term investments 33.6 MSEK
• No interest-bearing liabilities
• Provision for unconsumed user holdings 32.5 MSEK
• Earnings per share for the period amounted to 0.05 SEK (0.07 SEK)

January 1 – September 30, 2024
Group figures. Comparative figures in parentheses refer to the same period last year.

• Turnover amounted to 66.9 MSEK (75.7 MSEK)
• Work in progress amounted to 15.4 MSEK (21.4 MSEK)
• Operating profit amounted to 6.5 MSEK (-5.5 MSEK)
• Profit before tax amounted to 6.9 MSEK (-7.5 MSEK)
• Cash & cash equivalents including short-term investments 33.6 MSEK
• No interest-bearing liabilities
• Provision for unconsumed user holdings 32.5 MSEK
• Earnings per share for the period amounted to 0.13 SEK (-0.29 SEK)

Significant events during Q3
No significant event has occurred during the quarter.​

Significant events after the end of the reporting period
The liquidation of all subsidiaries has been completed according to plan.​

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 been reviewed by the Company’s auditor.

Financial calendar
Interim Report Q4, 2024 February 28, 2025
Annual Report 2024 March 26, 2025
Annual General Meeting 2025 April 16, 2025
Interim Report Q1, 2024 May 28, 2025​

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 28-11-2024 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

About MindArk

MindArk PE AB (publ) (“the Company” or “MindArk”) develops and operates Entropia Universe, the world's first MMORPG (Massive Multiplayer Online Role-playing Game) with a “Real-Cash-Economy”, and Entropia Platform. Entropia Universe is a virtual universe consisting of a number of planets with different themes and activities. The software is provided globally and free of charge with the possibility to spend money in the virtual universe for anyone with access to PC and the internet. Entropia Universe consists of a digital economy where resources, materials, land, and buildings are represented as digital assets with an underlying base value. Entropia Platform is the technology platform that powers Entropia Universe. The platform is shared with partners who develop their own unique game content for their planets in Entropia Universe.

 

[Druwu]

Significant events during Q3
No significant event has occurred during the quarter.​

I mean... at least they're honest.

 

[Arthur The Hunter]

Hold up!

"We have recruited new talent to our marketing team to enhance organic growth."

What team and marketing?

Related to the game or share marketing.

"These players, in turn, can expect a significantly smoother onboarding process, as we have now integrated AI functionality into the NPCs that guide new users."

I just saw AI chick to turn into fat man not long ago.

 

[ColonelBuckshot]

All this time, all this talk, yet we have seen absolutely nothing when it comes to unreal 5 EU. Do we even know it exists?? Is it any wonder people get getting bored and taking step back from playing.

 

[sachi.mk2]

So they lost roughly $503,419?

 

[UnaAlconbury]

So they lost roughly $503,419?

In same period 2023 yes. "Comparative figures in parentheses refer to the same period last year."
6.5 MSEK or ~$595k profit Jan1-Sep30 in 2024, while they had -5.5MSEK or ~$504k loss during same period in 2023.

 

[SoberPhil]

Thanks for sharing!

 

[anonimity]

"We know from experience that content releases and events tend to act as revenue catalysts, but we must also be cautious about how frequently such content is released to avoid oversaturating Entropia Universe and its users."

- They're saying the quiet part out loud, lol. See you next RM....

at least they have strong cash flow. Also would Migration / Summer Mayhem not qualify as a significant event in Q3?

 

[UnaAlconbury]

Interesting that revenue is down 5x vs last year in the same time period.

Where do you pull this suggested 5x from?

 

[anonimity]

Where do you pull this suggested 5x from?

read it wrong. ignore.

 

[flowerbranch]

Won't deny that I had higher expectations for this interim report, which I obviously wasn't alone in, as the market reacted as expected to this semi-weak report. Buying mode, then, at least I'm thinking long-term and there's a lot to look forward to, the UE5 implementation e.g.

 

[flowerbranch]

However, it should be added that it is gratifying that share turnover today and for a period now, has been significant measured by Mindark measures and that the number of shareholders has increased significantly over the past year. A positive development if anything.

 

[Bamb00cha]

Not great, not terrible.

 

[Sub-Zero]

"We know from experience that content releases and events tend to act as revenue catalysts, but we must also be cautious about how frequently such content is released to avoid oversaturating Entropia Universe and its users."

Problem is they have already oversaturated loot 2.0 items.
They must make a way to fix the oversupply of weapons and make the mayhem/resource mayhem system work in a way that will benefit short term and longterm without ruining game balance for everyone that invests - if you don't dare to invest because of lack of trust - that mean no depo and lower gameplay, no depo = no income = eventually end of game.

The point is it needs to be sustainable if it's not it's just short term fix and we'll back at this shitty situation we have now again.

 

[Arthur The Hunter]

The point is it needs to be sustainable if it's not it's just short term fix and we'll back at this shitty situation we have now again.

Sounds to me like history.

Loop goes around and round.

 

[Dibbler]

Results not so bad imo, considering pressures on many peoples disposable income

 

[The Painkiller]

Won't deny that I had higher expectations for this interim report, which I obviously wasn't alone in, as the market reacted as expected to this semi-weak report. Buying mode, then, at least I'm thinking long-term and there's a lot to look forward to, the UE5 implementation e.g.

Of course, it’s only a matter of time before MindArk announces another share issue.

 

[sachi.mk2]

In same period 2023 yes. "Comparative figures in parentheses refer to the same period last year."
6.5 MSEK or ~$595k profit Jan1-Sep30 in 2024, while they had -5.5MSEK or ~$504k loss during same period in 2023.

Thanks for that. It would be interesting to read a thread showing the profit/loss for each year if it exists.

 

[JungleStalker]

Thank you for posting this info!

 

[GradenFoss]

Thanks for that. It would be interesting to read a thread showing the profit/loss for each year if it exists.

Net profit as to the annual financial reports

2012:	-20 971 158 SEK​
2013:	-9 526 901 SEK​
2014:	+4 820 199 SEK​
2015:	+3 055 944 SEK​
2016:	+5 433 772 SEK​
2017:	0 SEK​

2018:	+618 787 SEK​
2019:	-457 522 SEK​
2020:	+17 231 189 SEK​
2021:	+13 921 850 SEK​
2022:	+9 141 107 SEK​
2023:	+14 960 669 SEK​

(Note that there have been multiple changes in accounting policies over the years.)

 

[Korin Dante MDe]

I don't understand this -

• Operating profit amounted to -87 TSEK (1.8 MSEK)

what is TSEK? so this quater is a loss?

 

[flowerbranch]

I don't understand this -

• Operating profit amounted to -87 TSEK (1.8 MSEK)

what is TSEK? so this quater is a loss?

Think it´s 87 k SEK so approx a 7 911,18 USD loss...

 

[Rocket192]

Problem is they have already oversaturated loot 2.0 items.
They must make a way to fix the oversupply of weapons and make the mayhem/resource mayhem system work in a way that will benefit short term and longterm without ruining game balance for everyone that invests - if you don't dare to invest because of lack of trust - that mean no depo and lower gameplay, no depo = no income = eventually end of game.

The point is it needs to be sustainable if it's not it's just short term fix and we'll back at this shitty situation we have now again.

Yeah there needs to be a big juicy carrot on the end of the stick. If mayhem weapons are supply-heavy and there’s no “special/gamechanging” ascertainable gear like imk2 in loot1.0, then players will not invest into heavy cycling during events which MA admits are the big money makers.

The biggest handicap to loot 2.0 is that there’s a ceiling on what you can hope to achieve which runs contrary to the spirit of the game thus far.

We need a meta revamp and MA needs to make inconceivable outcomes possible for a few aspiring players again.

 

[ZPF]

Not sure when this game turned into Mayhem-Tropia, agree that it's not sustainable.

There needs to be more reasons to cycle PED outside of these events.

For that we need a real economy. Unfortunately we're a long way from that.