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Fractal Gaming Group Interim Report January-June 2024

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Secund quarter 2024

  • Net sales amounted to SEK 143.7 million (245.3).
  • Product profit amounted to SEK 59.5 million (98.7), with a product margin of 41.4% (40.2).
  • EBITDA amounted to SEK 7.0 million (47.9), corresponding to an EBITDA margin of 4.8% (19.5).
  • EBIT amounted to SEK 0.9 million (42.7), corresponding to an EBIT margin of 0.6% (17.4).
  • Operating cash flow amounted to SEK 8.9 million (64.0).
  • Interest-bearing net debt was SEK -21.5 (-12.7).
  • Earnings per share amounted to SEK 0.0 (1.2).
  • No items affecting comparability for the quarter.

Jan–Jun 2024

  • Net sales amounted to SEK 336.1 million (440.8).
  • Product profit amounted to SEK 141.8 million (177.7), with a product margin of 42.2% (40.3).
  • EBITDA amounted to SEK 43.3 million (89.5), corresponding to an EBITDA margin of 12.9% (20.3).
  • EBIT amounted to SEK 31.5 million (79.2), corresponding to an EBIT margin of 9.4% (18.0).
  • Operating cash flow amounted to SEK 27.2 million (122.8).
  • Earnings per share amounted to SEK 0.9 (2.1).
  • No items affecting comparability during the period.

Jonas Holst, CEO of Fractal comments:
“During the second quarter, we faced short-term market challenges in the form of damped consumer demand and high freight prices, which impacted the entire industry. The dampened demand is due to a combination of weaker purchasing power among consumers, affected by high inflation and higher interest rates, as well as the postponed launch of important PC components until 2025. It is also important to emphasize that we are facing very high comparative numbers in the quarter with organic growth of 157% in the year-earlier.

Even though we faced short-term macro-economic challenges, we continued to advance our positions and increased market shares in our key markets. We are highly optimistic about the future after presenting our new, expanded product portfolio to resellers, suppliers and media at the international Computex computer expo in Taipei at the beginning of June. This is our largest ever launch and the start of a shift for Fractal’s global brand and market position. It received an overwhelming reception and gave me and my colleagues at Fractal a strong sense of optimism as well as providing clear confirmation that we are moving in the right direction.

The upgrade cycle for gaming hardware has been postponed slightly, with 2024 expected to be an intermediate year and to be followed by a stronger trend for the industry in 2025 supported by important component launches. For the remainder of 2024, we anticipate a continued slow trend in the third quarter followed by a stronger fourth quarter, when we can again report growth supported by the launch of new products, expansion into new product categories, and increased marketing and channel initiatives.”

Telephone and web conference
A telephone and web conference will be held for investors, analysts and media on August 15, 11.00 (CEST). CEO, Jonas Holst and CFO, Karin Ingemarson will present and comment on the report and the presentation will be followed by a question-and-answer session.

Link to web conference:
https://ir.financialhearings.com/fractal-gaming-group-q2-report-2024

To sign up for the telephone conference:
https://conference.financialhearings.com/teleconference/?id=50047223

For more information, please contact
Jonas Holst, CEO, Fractal
Telephone: +46 31 380 71 00
E-mail: IR@fractal-design.com

Karin Ingemarson, CFO, Fractal
Telephone: +46 31 380 71 00
E-mail: IR@fractal-design.com

This information is information that Fractal Gaming Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 8:00 a.m. CEST on August 15, 2024.

Certified Advisor
FNCA Sweden AB 

About Fractal
Fractal Gaming Group AB is a PC gaming hardware company based in Gothenburg, Sweden. Since its inception in 2007, Fractal has built a distinct reputation among PC gamers and enthusiasts for combining Scandinavian design, user-centric innovation and premium quality. In 2021, Fractal Gaming Group AB was introduced to the Nasdaq First North Premier Growth Market. Today, Fractal offers PC gaming products through retail and distribution partners around the globe from its offices in Sweden, Taiwan, China and the US.

 

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