Third Quarter 2019 Financials

Highlights

• 3Q19 revenue was USD 5 353 thousand, mainly driven by Conan Exiles and Mutant Year Zero: Road to Eden. 3Q18 revenue was USD 7 534 thousand driven by the very successful Conan Exiles Japan launch and a strong effect of the Conan Exiles full game launch in 2Q18
• Despite 3Q19 being a quarter without new game releases the EBITDA was USD 2 148 thousand, and the EBITDA margin was 40% for the quarter and 49% for the last 12 months. 3Q18 EBITDA was USD 4 642 thousand, again mainly driven by the launch effect of Conan Exiles
• On 31 July, Funcom made its first release on the Nintendo Switch platform with the critically acclaimed Mutant Year Zero: Road to Eden. A new DLC was also released on all platforms and retail
• On 22 October, after the third quarter, Moons of Madness was released on PC, positively received by gamers and press. A Nintendo Switch version of The Park, initially launched in 2015, was released on the same day
• The pipeline of projects in development continues to be strong, with two internally developed major multiplayer titles, two revealed publishing titles not yet fully launched, and 6 other active projects
• Tencent, the world’s largest online gaming company, announced in September 2019 the acquisition of 29% of the Shares in Funcom SE at 15.75 NOK / share from KGJ Capital AS, becoming the largest shareholder in Funcom

Words from the CEO 

“We’re very happy to welcome Tencent as our largest shareholder, a sign of trust and recognition that we are humbled by and excited about. We thank KGJ for all their support over the years and we are glad to see their ownership be transferred to such a knowledgeable investor as Tencent.

The third quarter of 2019 was a low-key period in terms of releases for the company, with several small activities happening on several games. We released a game for the first time on Nintendo Switch – Mutant Year Zero: Road to Eden – in addition we released a DLC for the game and had it on the Epic Games Store as a free game of the week. We also continued delivering on the DLCs for Conan Exiles, with “Blood and Sand” during the quarter and “Debaucheries of Derketo” in October. Moons of Madness had its Steam release in time for Halloween and has been positively received by players and press. The console release for the game is scheduled for January for Xbox One and PlayStation 4.

We continue the investments into our games pipeline and particularly into our internally developed games Conan Exiles, the DUNE open world survival game and the Mutant Chronicles online shooter.

We’re excited about everything we have in the pipeline and strengthened by the support shown by Tencent. We’re steadily growing our teams, knowledge and expertise which helps us pave the way for future successes.”

 Rui Casais,

Chief Executive Officer

The report and presentation can be downloaded from the Company's website: https://investors.funcom.com/financial-reports/

As previously announced a presentation will be held on the Funcom channel on Twitch, www.twitch.tv/funcom at 8:00pm CET (20:00 Oslo Time) today 11 November 2019. The presentation will be held in English by Rui Casais, CEO of Funcom, and Stian Drageset, CFO.

Any enquiries may be addressed to: investor@funcom.com

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Funcom SE

Badhoevedorp, The Netherlands, 11 November 2019

This information is subject to the disclosure requirements acc. to §5-12 of vphl (Norwegian Securities Trading Act)