Gold Town Games (GTG) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were 3.27 MSEK, down 22% year-over-year but slightly up from Q1 2024.

• Operating loss improved to -1.61 MSEK from -4.75 MSEK year-over-year.

• Focus remained on developing a new hockey game, with a prototype and visual direction established.

• Cost reductions continued, with further savings planned for Q3, aiming for profitability.

• Optimism surrounds the upcoming hockey game launch in Q4 2024.

Financial highlights

• Net sales: 3.27 MSEK (Q2 2024), down from 4.2 MSEK (Q2 2023).

• Operating result (EBIT): -1.61 MSEK, improved from -4.75 MSEK year-over-year.

• Net result: -1.78 MSEK, improved from -4.94 MSEK year-over-year.

• Cash flow from operations: 1.77 MSEK (Q2 2024), up from 0.41 MSEK (Q2 2023).

• Cash and cash equivalents at period end: 1.71 MSEK (vs. 3.65 MSEK last year).

Outlook and guidance

• New hockey game targeted for Q4 2024 launch, with community-building and partner outreach ongoing.

• Existing products show modest revenue growth; Baseball Franchise Manager more than doubled revenues quarter-over-quarter.

• Continued cost reductions expected in Q3, not impacting key launches.

• Growth potential seen in new and existing titles, but further marketing investment and improved KPIs needed.