MindArk Interim Report Q2 2023
MindArk PE AB (publ) ("MindArk", the "Company") hereby announces that the Company's interim report for Q2 2023 has been published.
Comment from CEO Henrik Nel Jerkrot:
"During the second quarter of 2023, we increased our turnover by 28% compared to the same period last year, while also having executed an internal reorganization within the company. However, the reorganization involves a reservation of a one-time cost of 14 million SEK, which affects our net profit for Q2 results but positions MindArk well for the future, with an increased focus on innovation and growth in the digital world. EBITDA adjusted for one-time costs amounts to 6.1 MSEK in Q2 2023 and the reorganization is expected to have a positive impact on our net profit during the remainder of 2023."
Reporting period
The report covers the period April 1 – June 30, 2023 and January 1 - June 30, 2023.
April 1 – June 30, 2023
Group figures. Comparative figures in parentheses refer to the same period last year.
- Turnover amounted to 26.3 MSEK (20.5 MSEK).
- Work in progress amounted to 7.6 MSEK (6.5 MSEK).
- Impact of restructuring costs on profit - 14 MSEK (0 MSEK).
- Operating profit amounted to -11.5 MSEK* (2.8 MSEK).
- Profit before tax amounted to -13.6 MSEK (1.9 MSEK).
- Cash & cash equivalents including short-term investments 33.3 MSEK.
- No interest-bearing liabilities.
- Provision for unspent user funds 50.1 MSEK.
January 1 – June 30, 2023
Group figures. Comparative figures in parentheses refer to the same period last year.
- Turnover amounted to 52.8 MSEK (42.3 MSEK).
- Work in progress amounted to 15.3 MSEK (12.5 MSEK).
- Impact of restructuring costs on profit -14 MSEK (0 MSEK).
- Operating profit amounted to -7.3 MSEK* (7.6 MSEK).
- Profit before tax amounted to -9.2 MSEK (1.1 MSEK).
- Cash & cash equivalents including short-term investments 33.3 MSEK.
- No interest-bearing liabilities.
- Provision for unspent user funds 50.1 MSEK.
* As of the end of June, approximately SEK 14 million has been reserved for restructuring costs, which mainly refers to costs for salary and severance pay in connection with the reorganization. This SEK 14 million is thus a non-recurring cost.
Significant events during Q2
- MindArk appoints Pareto Securities as liquidity provider for the Company’s shares.
- The company’s AGM was held on May 5, 2023 and a new board was elected.
- MindArk reorganizes and implements AI initiative. Approximately 14 million SEK has been reserved for restructuring costs as of the end of June, mainly relating to salaries and severance pay.
Significant events after the end of the reporting period
- The company announced changes in the management team as part of the reorganization. Magnus Eriksson resigns as COO.
Financial reports
The Company's financial statements, including the forthcoming report, are available on the Company's website, www.mindark.se/investor-relations/financial-reports/. It is available in a Swedish and an English version.
Auditor
This financial statement has been reviewed by the Company’s auditor.
Financial calendar
Interim report Q3 2023 November 28, 2023
Interim report Q4 2023 February 28, 2024
This disclosure contains information that Mindark PE 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 28-08-2023 08:00 CET.
For more information, please contact:
Henrik Nel Jerkrot
CEO, MindArk PE AB (publ)
Tel: 031 607 260
About MindArk
MindArk PE AB (publ) (“the Company” or “MindArk”) develops and operates Entropia Universe, the world's first MMORPG (Massive Multiplayer Online Role-playing Game) with a “Real-Cash-Economy”, and Entropia Platform. Entropia Universe is a virtual universe consisting of a number of planets with different themes and activities. The software is provided globally and free of charge with the possibility to spend money in the virtual universe for anyone with access to PC and the internet. Entropia Universe consists of a digital economy where resources, materials, land, and buildings are represented as digital assets with an underlying base value. Entropia Platform is the technology platform that powers Entropia Universe. The platform is shared with partners who develop their own unique game content for their planets in Entropia Universe.
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