Gold Town Games (GTG) Q1 2025 earnings summary

Executive summary

• Net revenue for Q1 2025 was 2.73 MSEK, down 10% year-over-year; operating loss improved by 63% to -0.84 MSEK due to cost savings and lower depreciation.

• Result after financial items improved by 60% to -0.99 MSEK; EPS was -0.02 SEK compared to -0.05 SEK last year.

• Global launch of Pocket Hockey occurred at the end of the quarter, with positive user feedback and strong early retention, especially on iOS.

• A rights issue was completed, raising 6.5 MSEK (subscribed to 118%), with 1.7 MSEK used to convert loans to a royalty-based agreement, improving the balance sheet and reducing interest costs.

Financial highlights

• Net revenue: 2.73 MSEK (down 10% year-over-year); operating result: -0.84 MSEK (improved from -2.26 MSEK).

• Result after financial items: -0.99 MSEK (improved from -2.49 MSEK); EPS: -0.02 SEK.

• Cash flow from operations: 0.55 MSEK (up from -0.54 MSEK); cash at period end: 0.39 MSEK (down from 3.17 MSEK).

• Investments in intangible and tangible assets: 0.91 MSEK; depreciation: -1.23 MSEK.

• Equity at period end: 9.7 MSEK; equity ratio: 43.2% (down from 49.2%).

Outlook and guidance

• Focus remains on improving Pocket Hockey's monetization and user lifetime value before scaling marketing.

• Targeting profitability in the coming quarters; ongoing operational efficiency measures.

• Product development continues for Pocket Hockey and other titles; World Football Manager and Baseball Franchise Manager require improved KPIs and marketing investment for growth.