Year-end Report 2021 - Another record quarter

Thu, Feb 17, 2022 07:30 CET

Financial - 1 Oct 2021 – 31 Dec 2021

Net sales amounted to MSEK 89.6 (MSEK 10.4), an increase of 764%.
Adjusted EBITDA amounted to MSEK 12 (MSEK 4.9), an increase of 148%, adjusted for currency effects and non- recurring costs. *
EBITDA amounted to MSEK 11.6 (MSEK 4.9).
EBIT amounted to MSEK 10,6 (MSEK 4.4), an increase of 143%.
Cash flow from operating activities before changes in working capital amounted to MSEK 11.6 (MSEK 2.2) during the quarter.
Earnings for shares during the quarter amounted to SEK 0.3. Normalized for a split of shares during previous quarter of 1/10, earnings per share were SEK 3 (SEK 1.7).

Financial - 1 oCt 2020 - 31 Dec 2021**

Net sales amounted to MSEK 209,7 (MSEK 41,2), an increase of 409% compared to the corresponding period last year.
Adjusted EBITDA amounted to MSEK 36,2 (MSEK 20), an increase of 81%, adjusted for currency effects and non- recurring costs related primarily to acquisitions. *
EBITDA amounted to MSEK 32,3 (MSEK 19,4).
EBIT amounted to MSEK 29,1 (MSEK 17,3), an increase of 69%.
Cash flow from operating activities before changes in working capital amounted to MSEK 26,3 (MSEK 12,3).
Earnings per share during the period amounted to SEK 0.9. Normalized for a split of shares during previous quarter of 1/10, earnings per share were SEK 9 (SEK 6,4).

* Adjusted EBITDA consists of operating profit before depreciation and amortization and adjusted for non-recurring costs and currency effects. Non-recurring costs are costs that do not accrue to ordinary operations, such as acquisition costs.

** The company changed the financial year to reflect the calendar year at the Extraordinary General Meeting held on 30 July 2021. To give an accurate and fair view, the financial statement for 1 October 2020 - 31 December 2021 has been compared with the period 1 October 2019 - 31 December 2020.

Significant events during the period 1 October 2021 – 31 DECEMBER 2021, in brief

The company acquired the website ResetEra on 14 October 2021 - one of the world's largest gaming forums and community networks. The purchase price amounted to MSEK 39.4. With the acquisition, M.O.B.A. Network's portfolio expands its reach globally with approximately 60 million page views per month.
The company has received a credit promise of a credit facility of MSEK 15 from the bank Nordea. The agreement provides increased funding to support M.O.B.A. Network's continued expansion and growth plans. The new credit increases M.O.B.A. Network's flexibility with potential acquisitions and further investments in existing operations.

Significant events after the period 1 October 2020 – 31 December 2021

On 13 January 2022, the company launched the new community brand Farmfriends. The new brand aims at the gaming genre "farming simulator games, " a large and popular genre.
On 14 February 2022, the company launched the new community brand Forzafire. The new brand aims at the gaming genre "iRacing", a prominent genre seeing significant growth. Forzafire targets the gaming community around the game Forza Horizon 5, a racing game on the Xbox console with many players and an extensive and dedicated content creator network active on YouTube, Twitch, TikTok, and other major channels.
The company extended its contract with the global ad tech platform Venatus Media. The new contract has improved conditions to further strengthen the relationship, which means that the partnership can grow strongly in the future. Based on sales figures for 2021, M.O.B.A. estimates that the new, improved conditions would have generated approx. USD 270,000 on EBITDA level for the period 1 January 2021 - 31 December 2021.
The company has updated its business concept, vision, and mission to better reflect the company's strategy. The company has also launched an updated version of its company website WeAreMoba.com. The update aims to clearly show the company's various brands and business legs and create a better platform/communication channel for our partners, customers, and content creators. In connection with the update of the website, the company also updated the graphic profile and logo for M.O.B.A. and a completely updated section for Investor relations.
The Board proposes that no dividend be paid for the period October 2020 - December 2021. The Board intends to continue applying a growth-oriented strategy, including organic growth and an offensive acquisition strategy.

CEO Comments

ANOTHER RECORD QUARTER - SOLID BASIS FOR CONTINUED PROFITABLE GROWTH

We have successfully continued to deliver on our growth strategy and perform a record quarter once again.

Through our recent acquisitions, we have stepped into new business areas and new verticals in the gaming segment, which has meant that we have strengthened our position significantly in the strongly growing gaming market. We have a solid base where we see continued profitable growth and many opportunities for innovative product development.

We ended 2021 with a very satisfactory result and strong cash flow; during the last quarter, the revenues increased by 764% to SEK 89.6 million. EBITDA and EBIT increased by 148% to SEK 12.0 million and SEK 10.6 million, respectively, and our cash flow amounted to SEK 11.6 million.

Focus on strategic acquisitions

We have an offensive acquisition plan which in October 2021 resulted in the acquisition of ResetEra, one of the world's largest forums and communities for gaming. The acquisition has broadened our portfolio and significantly expanded our network to a new and engaged audience. We see excellent growth potential with this acquisition, where synergies with our other brands establish a stronger offering and increased advertising revenues.

In June 2021, we acquired the American company Magic Find, which gave us access to the YouTube network Union For Gamers. The acquisition of Magic Find also allowed us to develop the direct sales company Creator1, with an attractive offer for content creators in gaming. Creator1 simplifies the work for our affiliated content creators and increases their revenue. Creator1 has already completed several deals, and we have a strong belief in the company and the opportunities we have identified.

409% growth in 2021

I am happy and proud of our employees' performance in 2021 and the positive results M.O.B.A. Network delivered. We grew by over 409% during the extended financial year 2021 to SEK 210 million in revenue, and EBITDA increased by 81%. I'm incredibly proud that we've kept the M.O.B.A. Networks' strong culture at the same time as we completed and integrated transformative acquisitions that strengthened our business as well as our product offerings. Our strong culture is based on creativity, personal responsibility, and business acumen - which are important building blocks for a successful business.

M.O.B.A. Network's strategic initiatives and goal-oriented business development in 2021 have meant that we have taken a step up in the value chain in the global gaming market. We have laid the foundation for continued value creation through recruitment. More projects have been launched during the last quarter of the year. These projects span several of our business operations and aim, among other things, to create more value and closer relationships between the various teams.

A strong position going forward

Our strong position and the fact that we are now a significantly larger company give us significant advantages when negotiating advertising business. We have succeeded in improving the terms of the advertising business for several of our brands, which will give us higher margins when we enter 2022.

New game categories

In our strategy to broaden our growing network, we have started the new year by launching two new community brands, FarmFriends and ForzaFire. With these two brands, we establish ourselves in more gaming genres to reach more target groups. This also means that we are broadening from our historical focus on big PC games-titles to games on console and mobile. As part of our organic growth strategy, we will launch additional brands in more gaming categories in 2022. To be able to implement our determined growth initiatives, we have started the year by recruiting key people for our teams. The focus of the investments is the content creator business, the YouTube network Union For Gamers and Creator1, where we see excellent growth potential.

Future prospects

It's a stronger M.O.B.A. Network entering 2022. Our strategy remains to create shareholder value through stable growth, both organically and through acquisitions, with good profitability. We do not deviate from the requirement that all business we do must be based on solid analysis and sound conditions, both operationally and financially. In 2022, the goal is to build an even stronger team, bring out more synergies and develop the company to new levels through the platform we created in 2021. We have a solid foundation for continued profitable growth, and I look very brightly at M.O.B.A. Network opportunities in 2022.

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 17-02-2022 07:30 CET.

Stockholm 2022-02-17

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.