MindArk (MNDRK) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw a 2% year-over-year increase in net sales to 26.8 MSEK, with a significant turnaround in May and June after a weak April.

• Operating profit improved to 5.4 MSEK from -11.5 MSEK in Q2 2023, driven by lower personnel costs and absence of last year's one-off reorganization costs.

• AI integration advanced, including launch of AI-driven NPCs and ongoing Unreal Engine 5 transition to enhance Entropia Universe.

Financial highlights

• Q2 2024 turnover: 26.8 MSEK (26.3 MSEK Q2 2023); H1 2024 turnover: 47.5 MSEK (52.8 MSEK H1 2023).

• Q2 2024 operating profit: 5.4 MSEK (-11.5 MSEK Q2 2023); H1 2024 operating profit: 6.6 MSEK (-7.3 MSEK H1 2023).

• Q2 2024 profit before tax: 5.7 MSEK (-14.9 MSEK Q2 2023); H1 2024 profit before tax: 5.8 MSEK (-9.2 MSEK H1 2023).

• Q2 2024 EPS: 0.16 SEK (-0.53 SEK Q2 2023); H1 2024 EPS: 0.08 SEK (-0.35 SEK H1 2023).

• Cash and cash equivalents at period end: 34.6 MSEK; no interest-bearing liabilities.

Outlook and guidance

• Profitability and sales momentum improved in Q2, with continued focus on AI integration and Unreal Engine 5 transition expected to drive future growth.