edyoutec (WIG) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were 5,200 TSEK, down from 6,400 TSEK year-over-year; H1 2024 net sales were 8,917 TSEK, down from 12,971 TSEK year-over-year.

• EBITDA improved to -172 TSEK in Q2 2024 from -1,904 TSEK; H1 2024 EBITDA was -463 TSEK, up from -4,198 TSEK year-over-year.

• Result after financial items for Q2 2024 was -3,096 TSEK (vs. -4,789 TSEK); H1 2024 was -6,345 TSEK (vs. -10,837 TSEK).

• Cost reduction initiatives and organizational restructuring in German subsidiaries led to significant savings.

• Strategic focus shifted to profitability over revenue, with a revised consulting revenue target of 26 MSEK and EBITDA goal of at least 5 MSEK.

Financial highlights

• Q2 2024 net sales: 5,200 TSEK (down from 6,400 TSEK); H1 2024: 8,917 TSEK (down from 12,971 TSEK).

• Q2 2024 EBITDA: -172 TSEK (vs. -1,904 TSEK); H1 2024 EBITDA: -463 TSEK (vs. -4,198 TSEK).

• Q2 2024 result per share: -0.08 SEK (vs. -0.29 SEK); H1 2024: -0.17 SEK (vs. -0.65 SEK).

• Q2 2024 cash flow: 130 TSEK (vs. -1,538 TSEK); H1 2024: -1,312 TSEK (vs. 2,924 TSEK).

• Q2 2024 investments: -250 TSEK (vs. -2,356 TSEK); H1 2024: -612 TSEK (vs. -4,466 TSEK).

Outlook and guidance

• Cost reductions expected to have greatest impact in Q3 and Q4 2024.

• Increased order inquiries for autumn 2024 and early spring 2025; plans to hire more programmers.

• King Royale projected to generate 950 TSEK/month in late autumn on Tier 1 markets.

• Focus on securing publisher agreements for all IPs; launches of AppLeMat, RailXP, and Mattebageriet planned.