Embark Group AB (publ) publishes interim report for the period January-September 2024
The Group continues to achieve growth in revenue for both Jul-Sep 2024 and Jan-Sep 2024, which translated into much improved financial performance for Jul-Sep 2024 and Jan-Sep 2024 overall, and this has culminated to positive EBITDA for the Jul-Sep 2024 period.
FINANCIAL OVERVIEW OF THE THIRD QUARTER AND THE FIRST NINE MONTHS OF 2024 (2023)
| (Thousands SEK) | Jul-Sep 24 | Jul-Sep 23 | % movement | Jan-Sep 24 | Jan-Sep 23 | % movement |
| Revenue | 26,136 | 7,220 | ▲ 262% | 56,605 | 18,619 | ▲ 204% |
| EBITDA | 3,412 | (22,608) | ▲ 115% | (3,060) | (35,645) | ▲ 91% |
| Operating loss | (2,524) | (33,020) | ▲ 92% | (18,426) | (49,572) | ▲ 63% |
| Loss for the period | (3,155) | (35,166) | ▲ 91% | (22,851) | (52,232) | ▲ 56% |
| Total assets | 81,268 | 65,776 | ▲ 24% | 81,268 | 65,776 | ▲ 24% |
| Net assets | 37,013 | 31,400 | ▲18% | 37,013 | 31,400 | ▲ 18% |
| Loss per share, SEK | (0.01) | (0.28) | ▲ 96% | (0.10) | (0.45) | ▲ 78% |
| Total number of shares | 286,647,906 | 135,096,057 | ▲ 112% | 286,647,906 | 135,096,057 | ▲ 112% |
| Average number of shares | 286,647,906 | 125,439,316 | ▲ 129% | 223,174,244 | 116,041,226 | ▲ 92% |
SIGNIFICANT EVENTS DURING THE THIRD QUARTER OF 2024
- At the Annual General Meeting held on 28 June 2024, it was resolved to change the Company's name. This change has now been registered with the Swedish Companies Registration Office. The Company's ticker symbol on the Nasdaq First North Growth Market has changed to EMB starting 15 July 2024.
- The Company has appointed Pareto Securities AB as its liquidity provider.
SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD
- No significant events to report.
A WORD FROM THE CEO
Dear Shareholders,
I am pleased to report on a landmark quarter for Embark Group, where we achieved record revenue in Q3 2024, resulting in a substantial positive impact on our financial performance for both the quarter and the year to date. This period’s progress demonstrates not only that our growth strategy is heading to the right path but also our commitment to sustainable financial health.
Legacy issues with the Remote Gaming Server (RGS) have been addressed, improving the stability and scalability of our games and platform. As a result, we have been able to onboard and integrate our games with new operators more quickly and efficiently.
Revenue for Q3 2024 reached SEK 26,136k, marking a remarkable 262% increase over the same period last year. This record-breaking quarterly performance brought our total revenue for the first nine months of 2024 to SEK 56,605k, a 204% increase as compared to the previous year. This growth was primarily driven by increased royalties from new operators in Asia and other regions adopting our games, along with higher service fees generated from technology development and consulting projects.
The growth in our top line has translated into a 92% reduction in our operating loss for Q3, which decreased to SEK (2,524k) from SEK (33,020k) in Q3 2023. Similarly, our total loss for Q3 was reduced by 91%, reflecting our success in increasing revenue while controlling costs. For the year to date, we have seen similar progress, with a 63% decrease in our operating loss and a 56% reduction in total loss as compared to the same period last year.
Net cash inflow from operations for Q3 2024 was SEK 4,096k, representing a turnaround with an increase of 172% as compared to the same period in 2023 when it was an outflow of SEK 5,708k. This solid cash generation from our operating activities reinforces our confidence in the sustainability of our growth model and our capacity to support ongoing activities and future projects.
Looking forward, we aim to build on this momentum to reach a positive quarterly bottom line by Q4 2024. We remain committed to balancing growth with prudent financial management to deliver lasting value for our shareholders.
Stockholm, November 22 2024
Chi Ho Li
CEO
FUTURE REPORTING DATES
Q4 2024 March 21, 2025
Annual report May 9, 2025
Q1 2025 May 23, 2025
AGM May 30, 2025
All financial reports are published on the company's website, www.ladyluckgames.io.