Jumpgate AB: Interim Report for January 1, 2024 to June 30, 2024

• Earnings before interest and taxes (EBIT) amounted to -6 046 TSEK (-11 526 TSEK). Earnings before interest and taxes (EBIT) in the second quarter amounted to 1 630 TSEK (-6 645 TSEK)
• The result after financial items amounted to -12 891 TSEK (-15 562 TSEK). The result after financial items in the second quarter amounted to -1 988 TSEK (-9 402 TSEK).
• The result per share amounted to -0,027 SEK (-0,036 SEK) in the period. The result per share in the second quarter amounted to -0,005 SEK (-0,022 SEK).
• On April 17, it was announced that a Project Financing Agreement had been entered into with MGV Financing AB with a total contract value of 14 million SEK for a yet to be announced game project, to be published by THQ Nordic.
• On April 19, it was announced that Tivola Games' Cat Rescue Story had won the Deutscher Computerspielpreis 2024 in the category best mobile game with a price award of 40 thousand EUR.
• On May 3, it was announced that Tivola Games divests its mobile game portfolio for ca 8.2 million SEK.
• On May 9, it was announced that Jumpgate carries out a rights issue of shares with a volume of ca 28.6 million SEK fully covered by subscription commitments, subscription intents and guarantee commitments, and proposes a directed conversion issue of ca 7.2 million SEK.
• On June 12, the outcome of the rights issue was announced. The equivalent of 36.4 % of the share issue was subscribed for. The remaining part (63.6 %) was allocated to the underwriters of the rights issue. In total, 533 754 374 new shares were issued in the rights issue and the registered share capital was increased with ca 14 699 472,53 SEK.
• On June 18, the Annual General Meeting in the Company was held followed by an Extra General Meeting. Martin Ekdal, Marcus Jacobs, Viktor Modigh, Andras Vajlok and Markus Windelen were re-elected to the board and Viktor Modigh was re-elected as chairman. The Extra General Meeting resolved to execute a conversion share issue of 143 657 997 shares at the same subscription price (0,06 SEK) as in the previous rights issue to be paid by conversion of claims. Through the conversion share issue the registered share capital of the Company is increased with 3 951 538,70 SEK. The general meetings voted in accordance with all announced proposals.
• On June 25, it was announced that the Company had decreased the indebtedness with 24.5 million SEK, primarily through payments of the remaining consideration for the acquisition of Nukklear and an amortization of 10 million SEK on an interest-bearing loan. This has been enabled by proceeds from the sale of Tivola's mobile games portfolio as well as the recent rights issue. Following the payments, the Company still has an interest-bearing loan of 11 million SEK.
• On June 28, it was announced that Jumpgate had entered into a financing agreement of 12.2 million SEK in total for a new game project to be launched in 2025 with a consortium comprising MGV Financing AB, Triple Dragon and a license / IP partner. Jumpgate is participating in the financing through a debt facility from Triple Dragon amounting to approximately 2.5 million SEK allowing Jumpgate to capture additional upside from the project. In addition to being a financing partner in the project, Jumpgate is entitled to a substantial part of the revenue from the game as developer provided that it's commercially successful.

The "Company" or "Jumpgate" means Jumpgate AB with corporate registration number 556842-4062. Information in parentheses relate to the previous year.

Comment to the Interim Report

Positive EBIT in the Second Quarter

Despite a continuously demanding market climate in the gaming industry, it is with pleasure we see that our focus on business development, cost control and profitability is providing results and showing in the numbers. For the first time, we can now present a positive EBIT of 1.6 million SEK in the second quarter compared to -6.6 million SEK in the previous quarter, which is a significant milestone.

Successful business development leads to continuously increasing revenue. The net turnover in the quarter is up 12.5 % compared with the first quarter (18.45 M / 16.4 M) and 145 % compared with the second quarter the previous year (18.45 M / 7.54 M). The cost reduction program is yielding results, with costs lowered by 11.1 % in the second quarter compared to the first quarter (21.25 M / 23.9 M), mainly due to personnel costs being decreased with 19.2 % (12.5 M / 14.9 M).

The balance sheet has been significantly strengthened and the indebtedness has been decreased, following re-negotiation of the acquisition agreement regarding Nukklear and down payment of interest-bearing debt with proceeds from the strategic sale of the Tivola free-to-play mobile games portfolio and the share issue before the summer. Other current liabilities have thus been decreased with 23.3 million SEK in the second quarter compared with the first quarter. Despite the significant decrease in debt, the post "Other interest expense and similar loss items" is unchanged between the first and second quarter, due to the inclusion of transaction costs from the share issue. Thus, the capital costs are expected to decrease significantly in the coming quarter.

Successful Business Development in the First Half of the Year

In the end of the quarter, it was announced that we'd executed a financing agreement totalling 12.2 million SEK for a new game project, now announced as the kart racing game Ed & Edda: GRAND PRIX - Racing Champions in collaboration with MACK Magic and Europa-Park.

The financing will provide revenue for Jumpgate in the development period from the third quarter until release. With this, we have achieved three fully financed game projects, with a total budget of close to 30 million SEK in the first half of the year. The goal is now to sign at least one more externally financed project as soon as possible in the second half of the year.

Attractive Business Model Gives Several Shots on Goal in 2025

In parallel with the business development, the game development is running at full speed aiming for several exciting releases in 2025. Nukklear is still working primarily on Dune Awakening in collaboration with Funcom, which is a pure co-development assignment. For the other studios in the group, the three largest projects are our Star Trek based game, a yet to be announced re-master of a classic title to be published by THQ Nordic, and Ed & Edda: GRAND PRIX - Racing Champions and in these three we have a substantial upside through revenue share in the event of successful releases. Our business model is built upon these shots on goal coming on top of an underlying stable and profitable business, based on externally financed game projects. 

We are making significant progress, which is gratifying, but we will not be satisfied with that. Business development and cost control remains in focus moving forward, with the ambition to further increase the profitability of the business and develop our teams.

Harald Riegler

CEO, Jumpgate AB 

About the Company

Jumpgate AB is an independent group of game development companies founded in 2011, comprising five game studios: Nukklear (Hannover), Tivola Games (Hamburg), gameXcite (Hamburg), Funatics (Düsseldorf) and Tableflip Entertainment (Visby). The group develops and publishes its own games as well as developing games and other digital products for external companies. The companies in the group have established collaborations with strong industry partners and exciting product portfolios with large potential. The group is engaged in the global market, distributing games on a worldwide basis and has a large international network. For more information: www.jumpgategames.se

This information is such information Jumpgate AB (publ) is obliged to make public in accordance with the EU Market Abuse Regulation (MAR). The information was submitted for publication, through the agency of the contact persons set out above, at 2024-08-19 11:15 CEST.

Jumpgate AB Interim Report Q2 2024 (http://jumpgategames.se/wp-content/uploads/2024/08/Jumpgate-AB-Interim-Report-Q2-2024.pdf)
Jumpgate AB Interim Report Presentation Q2 2024 (http://jumpgategames.se/wp-content/uploads/2024/08/Jumpgate-AB-Interim-Report-Presentation-Q2-2024.pdf)