Fragbite Group (FRAG) Q1 2025 earnings summary

Executive summary

• Revenue declined to SEK 42.2 million, down SEK 10.3 million year-over-year, mainly due to delays in Playdigious releases and web3 business.

• EBITDA was SEK 0.7 million, a decrease of SEK 4.4 million, reflecting cost reductions and absence of prior year crypto gains.

• Operational EBIT was SEK -2.2 million, compared to SEK 2.4 million last year; EBIT improved to SEK -17.8 million from SEK -39.3 million.

• Net loss after tax was SEK -17.4 million, a significant improvement from SEK -60.4 million year-over-year.

• Focus remains on reducing debt, improving structure, and achieving group-wide profitability by year-end.

Financial highlights

• Gross margin for the quarter was 45.8%, down from 51.9% in Q1 2024.

• Cash flow from operating activities was SEK 2.1 million, slightly down from SEK 2.6 million year-over-year.

• Cash and cash equivalents at period end were SEK 8.3 million, compared to SEK 15.6 million last year.

• Equity ratio improved to 38.7% from 10.0% year-over-year; equity stood at SEK 63.6 million.

• Net financial items were SEK 1.1 million, positively impacted by SEK 2.6 million in currency fluctuations.

Outlook and guidance

• Several major game releases and announcements are scheduled for summer and fall 2025, expected to drive revenue.

• Esports business expected to maintain stable performance for full year 2025, with stronger activity in the second half.

• Web3 business area faces challenges due to delayed launches and lower-than-expected $KOBAN token sale revenue.

• Group focus is on cost control, asset sales, and debt reduction to achieve profitability.