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Revenue increased 829% and EBITDA 232% during the quarter - Interim report 4 2020/2021

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Financial highlights - 1 July 2021 – 30 September 2021

  • Net sales amounted to MSEK 70.8 (MSEK 7.6), a growth of 829% of which organic growth amounted to approx. 10% in local currency.
  • Adjusted EBITDA amounted to MSEK 8.9 (MSEK 2.7), an increase of 232%, adjusted for currency effects and non-recurring costs. *
  • EBITDA amounted to MSEK 8.9 (MSEK 2.7).
  • EBIT amounted to MSEK 8.2 (MSEK 2.3), an increase of 253%.
  • Cash flow from operating activities before changes in working capital amounted to MSEK 6.6 (MSEK 2.1) during the quarter.
  • Earnings per share during the quarter amounted to SEK 0.2. Normalized for a split of shares during the quarter of 1/10, earnings per share were SEK 2 (SEK 0.9).

Financial highlights - 1 October 2020 - 30 September 2021

  • Net sales amounted to MSEK 120.1 (MSEK 30.8), a growth of 290%.
  • Adjusted EBITDA amounted to MSEK 23.5 (MSEK 15.1), an increase of 55.7%, adjusted for currency effects and non-recurring costs related primarily to acquisitions. *
  • EBITDA amounted to MSEK 20.7 (MSEK 14.5).
  • EBIT amounted to MSEK 18,455 (MSEK 12,908), an increase of 43%.
  • Cash flow from operating activities before changes in working capital amounted to MSEK 14.7 (MSEK 10.2).
  • Earnings per share during the period amounted to SEK 0.6. Normalized for a split of shares during the period of 1/10, earnings per share were SEK 6 (SEK 4.7).

* adjusted EBITDA consists of operating profit before depreciation and amortization and adjusted for non-recurring costs and currency effects. 

Significant events during the period July 1 - September 30, 2021

  • The Company held an extraordinary shareholders meeting where decisions were made regarding split of shares and change of financial year to reflect calendar year. The split of shares meant that each existing share was divided into ten (10) new shares. The split means that the number of shares in the Company increased from 2,238,582 shares to 22,385,820 shares. The record date for the split was Friday, August 6, 2021.

Significant events after the period July - September 2021

  • The Company acquired the website RestEra.com on October 14, 2021 - one of the world's largest gaming forums and community networks, with great growth potential. With the acquisition, M.O.B.A. Network's portfolio expands its reach globally with approximately 60 million page views per month.

CEO-comments

Revenue increased 829% and EBITDA 230% during the quarter

M.O.B.A. Network delivers its strongest quarter ever with a revenue increase of 829% and an EBITDA increase of 230%. The revenue increase was driven by both organic growth and strategic acquisitions. We are now continuing the growth journey and creating profitable growth, both organically and through successful acquisitions.
 
I am proud that we can deliver our strongest quarter ever, where the focus has been on growth and implementation of synergies. M.O.B.A. Network is just at the beginning of its exciting growth journey, and I see many opportunities for further development. In the coming quarters, we will invest in and develop our organization to get a good foundation for continued growth and implementation of synergies within the Group. M.O.B.A. Network is today a global company with employees in most of the world's continents, and with a robust central organization, we will be able to provide even better support to our business units and employees worldwide.
 
During the quarter, we also focused on extracting synergies from our acquired assets. This work continues, and we see several opportunities for synergies on the revenue side, both short and long term. We thus continue to create organic growth while our acquired assets add growth, positive cash flow, and profitability.
 
Successful acquisition strategy
 
Our acquisition strategy has been proven successful, and the goal of the acquisition strategy is to develop and strengthen the network effect. We have made both smaller strategic acquisitions and significant acquisitions. Common to the transactions is that the sellers like M.O.B.A. Network and have appreciated our professionalism and the employees thrive in our corporate culture and have the opportunity to grow together with M.O.B.A. the family.

The acquisition of Magic Find gave us a new business leg in content creation via the YouTube network Union For Gamers. Through Magic Find, we have also expanded the offer by creating the direct sales company Creator1. Creator1 simplifies the work and increases revenue for affiliated content creators, among other things, by handling external company inquiries and organizing campaign collaborations. Via Creator1, we also broaden our offering by offering access to platforms other than YouTube and can reach platforms such as Twitch, Facebook and Twitter. We will work intensively with integration and revenue synergies in the coming quarters and develop the underlying margins to increase profitability further. I see great opportunities for new revenue streams with higher margins in the coming years from the content-creation platform.
 
We now continue to deliver on our strategy in the same way we have done since we started the company. Our goal is to continue to grow both through acquisitions and by developing our existing assets and creating network effects. We can clearly see that the greater the network effect we achieve, the higher revenue we generate. Every time we add a platform, M.O.B.A. Network becomes more extensive and more attractive to our partners. Consequently, the brand M.O.B.A. Network has grown stronger on the global playing field. More and more external players contact us with exciting acquisition objects, and we have continuous discussions with potential acquisition objects. As part of this, after the end of the quarter, we made another acquisition of one of the world's largest gaming forums, ResetEra, in which we see significant growth opportunities.

 
We continue the work of building one of the world's largest networks in the gaming sector. The more users and visitors our network attracts, the greater opportunities to build a large and profitable global company. As part of the growth journey, we will launch new communities in gaming niches we have not previously been active in, and we see great potential in creating synergies between these new communities and our existing ones.
 
It is with pleasure that I look back on the last twelve months and can state that M.O.B.A. Network continues to deliver on its strategy and create profitable growth, both organically and through successful acquisitions. I want to thank all the employees - both new and those who have been with us for a while - for fantastic efforts during the year when we together took M.O.B.A. Network into a new phase.

Financial calendar
Year-end report 2020/2021 - 2022-02-17 
Annual Report 2020/2021 - 2022-03-30 
Interim report 1 - 2022-05-18 
Interim report 2 - 2022-08-24 
Interim report 3 - 2022-11-16

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 17-11-2021 07:30 CET.

Stockholm 2021-11-17

Björn Mannerqvist, VD

Mail: info@wearemoba.com

Web: https://wearemoba.com

Certified Adviser

FNCA Sweden AB | +46(0)8-528 00 399| info@fnca.se

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.

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