MindArk (MNDRK) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined 15% year-over-year to 19.4 MSEK, mainly due to fewer content releases and a lower SEK/USD exchange rate.

• Operating profit for Q3 was -87 TSEK, down from 1.8 MSEK in Q3 2023, but cost reductions helped offset revenue decline.

• Profit before tax for Q3 was 1.1 MSEK, compared to 1.7 MSEK last year; YTD profit before tax improved to 6.9 MSEK from -7.5 MSEK.

• No significant events occurred during Q3; all subsidiaries were liquidated after the period as planned.

• Strong cash position with 33.6 MSEK in cash and no interest-bearing liabilities at quarter-end.

Financial highlights

• Q3 turnover: 19.4 MSEK (22.9 MSEK in Q3 2023); YTD turnover: 66.9 MSEK (75.7 MSEK YTD 2023).

• Q3 operating profit: -87 TSEK (1.8 MSEK); YTD operating profit: 6.5 MSEK (-5.5 MSEK YTD 2023).

• Q3 EPS: 0.05 SEK (0.07 SEK); YTD EPS: 0.13 SEK (-0.29 SEK YTD 2023).

• Q3 total operating income: 24.8 MSEK (29.1 MSEK); Q3 total operating expenses: 24.9 MSEK (27.3 MSEK).

• Provision for unspent user funds: 32.5 MSEK.

Outlook and guidance

• Focus remains on technical upgrades, including transition to Unreal Engine 5 and AI-driven user onboarding.

• Major content releases and events planned for Q4 and early 2025 are expected to drive future growth.

• Enhanced marketing and improved onboarding aim to boost user acquisition and retention.