Custos Maritime & Defence Industries (CUST) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was SEK 224k, down from SEK 1,622k year-over-year due to asset divestments, in line with expectations.

• Net loss for Q3 2024 improved to SEK -6,206k from SEK -27,702k, mainly due to prior year goodwill impairments.

• EBITDA for Q3 2024 was SEK -4,030k, impacted by transactional costs and adviser fees related to a cancelled transaction.

• The group is focused on building a gaming ecosystem around strong IPs, highlighted by the planned acquisition of Raketspel.

• The SPA with Oceanview was mutually terminated post-Q3 due to complexity and cost; focus shifted to closing the Raketspel deal.

Financial highlights

• Q3 2024 revenue: SEK 224k (Q3 2023: SEK 1,622k); nine months 2024: SEK 801k (2023: SEK 5,773k).

• Q3 2024 EBITDA: SEK -4,030k (Q3 2023: SEK -2,927k); nine months 2024: SEK -9,217k (2023: SEK -11,721k).

• Q3 2024 net result: SEK -6,206k (Q3 2023: SEK -27,702k); nine months 2024: SEK -12,033k (2023: SEK -36,094k).

• Q3 2024 EPS: SEK -0.008 (Q3 2023: SEK -0.17); nine months 2024: SEK -0.02 (2023: SEK -0.22).

• Gross margin for Q3 2024 was 100% (Q3 2023: 90%).

Outlook and guidance

• The group aims to close the Raketspel acquisition in Q1 2025 and is in active discussions for future funding.

• Short-term financing is critical to complete the Raketspel transaction and deliver on strategic objectives.

• The board is confident in prospects for new share issues and/or loan financing to support ongoing operations.