edyoutec - Operational update March 2024
Press release March 18, 2024
I would like to start by highlighting how well our German consulting business is doing. We have recently set our financial goal for 2024 at SEK 32 million in turnover with an EBITDA of SEK 5 million. This financial goal includes major cost savings throughout the entire group corresponding to SEK 4 million. This goal does not include revenue from our IPs. In light of the fact that the investments in our IPs were largely completed in 2023, income from our IPs will be felt directly on the bottom line. edyoutec is no longer an idea company, we generate income and can always adapt our cost structure in order to grow.
Below I thought I would touch on several important work steps that are going on in edyoutec and thus remind all our current and future owners about the status of our IPs. We have previously been clear that the investments made in 2023 should now bear fruit. By signing publisher agreements with both MAF and 2tainment, we have left the investment-heavy period behind us and now expect to see income from our IPs.
King Royale
The game has entered an increasingly intensive monetization phase. Publisher MAF works actively on a daily basis to increase the number of users. The initial test launch has shown very strong KPIs, which has been noticed both by us and MAF. Supported by these positive results, MAF has chosen to broaden the marketing campaigns. These are ongoing at the time of writing and we follow developments daily. We look forward to seeing the game's high potential being realized.
Tank Operations
Tank Operations is now in a 1.0 version on STEAM and it includes a number of structural improvements requested by the game's community. For our publisher, 2tainment, it is important that the game reaches a larger group of users and thereby get initial feedback. Marketing and strategies now rest in the hands of 2tainment, in which we have full confidence. The updated 2.0 version of Tank Operations is scheduled for release in August 2024 and consists of several historical battles and improvements to both graphics and gameplay.
The Math Bakery
We are working to finalize the acquisition of the Math Bakery, and expect that everything will be ready and that we will have access to the games by the beginning of April.
License generating platforms - Rail Experience and AppLeMat
In addition to our traditional consulting business within Edtech, which forms our foundation, we have two proprietary license-generating platforms.
Rail Experience is complete and ready to be launched in Q2 2024. The platform is based on a license-based revenue model. The goal is for at least 600 students to use the platform and pay a monthly license fee of EUR 49.90 per student. We aim to have at least 1800 students connected to the platform in Germany, and we have already established contacts to be able to expand in Switzerland and Austria.
AppLeMat is being developed together with Meister Cody GmbH and will be delivered to German schools through Meister Cody's school platform. The price for the monthly license is under negotiation. The market for AppLeMat is large; in Germany there are approximately 4,500 schools for grades 1–3.
Concluding remarks
Our subsidiaries in Germany continue to generate stable revenue streams and in the first two months of the year have performed above expectations, which makes us feel confident in setting ambitious financial targets. In addition to the ongoing work with consulting assignments, we will launch our license generating platforms.
The goal is 32 million in turnover with an EBITDA of 5 million kroner on consulting assignments alone. Add to that revenue expected to come through our IPs. In a scenario where all our IPs - King Royale, Tank Operations, Rail Experience and AppLeMat - together generate SEK 1 million per month, we would immediately be a profitable company on the bottom line. We become cash flow positive at much lower levels. For this, it is enough for our German consulting business to reach its estimated turnover of SEK 32 million.
Finally, I would also like to add that we have activated Cricket Manager Pro on both the Appstore and Playstore. This is completely in line with our strategy of actively looking at finding a publisher and that a requirement from publishers is that they must be able to test the game. Both the IPL (Indian Premier League) and the World Cup in Cricket are played during April to June 2024 so the interest in cricket is starting to pick up again.
For further information, please contact:
Eric de Basso, CEO, edyoutec AB
E-mail: eric@edyoutec.com
Phone: +46 70 780 52 00
About edyoutec
edyoutec is a Swedish company in games and digital education that consists of two verticals, EdTech and games. In the EdTech vertical, the company focuses on developing products in genres such as game-based learning and Serious Games, it is in these areas that edyoutec has identified the greatest synergies between the company's two verticals. In the Games vertical, the business concept is based on developing and distributing free-to-play ("F2P") mobile games for Android and iOS.
For more information, see edyoutec's website www.edyoutec.com
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