M.O.B.A. Network AB (publ) updates on the fourth quarter and decides on reversal of additional purchase consideration and non-cash affecting write-downs
Update regarding the fourth quarter of 2023
Preliminary results for the fourth quarter (not audited by the company's auditors)
|
|
2023-10-01 |
2022-10-01 |
2023-01-01 |
2022-01-01 |
|
Amount in TSEK |
2023-12-31 |
2022-12-31 |
2023-12-31 |
2022-12-31 |
|
Revenue |
82 147 |
80 306 |
273 154 |
289 815 |
|
Adjusted EBITDA |
17 673 |
7 600 |
38 665 |
32 130 |
|
EBITDA |
74 184 |
7 600 |
89 801 |
32 130 |
|
Adjusted EBIT |
14 366 |
6 342 |
22 982 |
27 314 |
|
EBIT |
34 037 |
6 342 |
37 277 |
27 314 |
* Adjusted EBITDA consists of operating profit before depreciation and amortization, adjusted for costs and revenues of a one-time nature.
* Adjusted EBIT consists of the operating result adjusted for write-downs, costs, and revenues of a one-time nature.
Non-cash affecting write-downs
M.O.B.A Network (publ) has today decided on non-cash affecting write-downs of SEK 37 million in the fourth quarter in accordance with IFRS accounting standards. The write-downs are non-cash affecting and of a one-time nature.
As a result of the historically weak advertising market shown in 2023 combined with an increased discount rate (WACC), the booked value has been challenged in the short term for Critical Click, an asset acquired in 2018. Therefore, a non-cash affecting write-down has been made with 27 MSEK. M.O.B.A. Network continues to have confidence in the long-term growth prospects for the assets in Critical Click, where the start of 2024 has shown organic growth. The write-down corresponds to 27% of the total booked amount for goodwill and other intangible rights, related to the acquisition of Critical Click.
The company has also decided to migrate LoLWiz to the Porofessor app because Porofessor is the leading app in the market and the product M.O.B.A. will continue to invest in, which means that the asset needs to be written off from the balance sheet, amounting to 10 MSEK.
No additional purchase consideration for the acquisition of Wargraphs S.A.S. for year 1
The company has determined that no additional purchase consideration will be paid out for year 1 regarding the acquisition of Wargraphs S.A.S., which in accordance with IFRS will be recorded as other income and positively affects the result with 57 MSEK. The company continues to have confidence in the long-term growth prospects for the assets in Wargraphs S.A.S. with a continued strong inflow of users to Porofessor.
In total, the above adjustments for write-downs and omitted additional purchase consideration positively affect the EBIT by 20 million SEK and are non-cash affecting and of a one-time nature.
M.O.B.A. Network will, in accordance with previous communication, present the annual report for 2023 on February 21.
This disclosure contains information that M.O.B.A Network AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 16-02-2024 12:30 CET.
Stockholm 2024-02-16
Björn Mannerqvist, CEO
Mail: info@wearemoba.com
Web: https://wearemoba.com
Certified Adviser - FNCA Sweden AB
M.O.B.A Network AB acquires, develops and operates gaming communities for the global gaming market. The company owns one of the world's largest networks in gaming communities, with 20 web-based global brands and the YouTube network Union For Gamers (UFG) with over 1,000 content creators. The company's business areas consist of advertising sales on the company's communities and video sales via the YouTube network.