YEAR-END REPORTJANUARY - DECEMBER 2019 / NITRO GAMES OYJ
REPORTING PERIOD JANUARY – DECEMBER 2019• Revenues(Jan-Dec):816,2KEUR(2204,2KEURoncorrespondingperiod2018).• EBITDA:-2658,3KEUR(-5101,0KEUR).• EBIT:-3284,5KEUR(-5734,4KEUR).• Netprofit:-3293,4KEUR(-5748,8KEUR).• Cashandcashequivalents:1677,5KEUR,and313,5KEURofshort-termreceivables(31December2019).
OCTOBER – DECEMBER 2019 • Revenues(Oct-Dec):426,6KEUR(407,9KEUR).• EBITDA:-554,6KEUR(-2117,4KEUR).• EBIT:-711,0KEUR(-2280,9KEUR).• Netprofit:-712,0KEUR(-2280,1KEUR).
SIGNIFICANT EVENTS DURING OCTOBER – DECEMBER 2019 • Announcednewgame:Lootland.• SignednewagreementwithExpansiveWorldsAB(“AvalancheStudios”).NitroGamesbuildingaDatastacktoAvalancheStudiostopreparefortheupcomingsoft-launchofanon-disclosedtitle.
• StrengthenedteamandLiveOperationscapabilities.• Completed,basedontheauthorisationofanExtraordinaryGeneralMeeting,adirectedissueofapprox.1,4MEUR(SEK15,0million).
• Received460000EURoffundingfromBusinessFinland.
SIGNIFICANT EVENTS AFTER THE PERIOD• SignedpublishingservicesagreementwithExpansiveWorldsAB(“AvalancheStudios”).• ExpandedsoftlaunchforHeroesofWarlandwithbiggestgameexpansiontodate.• Updatedontheroadmapandnowexpectsatotalofthreegamestoreachatleastsoftlaunchduringthefirsthalfof2020.
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ABOUT NITRO GAMESNitroGamesisafree-to-playmobilegamedeveloperandpublishermakinggamesforthemid-coreusersegment.TheCompanyfocusesonproducingcompetitivemultiplayergameswithhighproductionvalueandhighrevenuepotentialforsmartphonesandtablets.WithNitroGames’powerfulNGPlatformandNGMVP-process,theCompanyisabletodomarketvalidationduringthedevelopmenttoensurehighproductquality.NitroGameshasdevelopedgamessuchasHeroesofWarland,MedalsofWar,RaidsofGlory,EastIndiaCompany,Commander:ConquestoftheAmericas,PiratesofBlackCove.
NitroGames’sharesarelistedonNasdaqFirstNorthGrowthStockholmwiththetickerNITRO.TheCertifiedAdviserisAugmentPartnersAB,[email protected],+468-50565172.
www.nitrogames.comFinnishBusinessID:FI21348196
EXPANDING OUR PORTFOLIO OF SHOOTER GAMES“Weendedtheyear2019withaseriesofgoodprogresshappeningduringthefourthquarter.Overallwearenowinabetterpositionafterexpandingourportfolioofshootergames,sequentiallyincreasingourrevenueandstrengtheningourpositioninbusinessdevelopmentbothwithexistingandnewpartners.
2019wastheyearwhenshootergamesfinallyestablishedthemselvesonmobile.WeareexpectingthecategorytocontinuetogrowandNitroGamesiswell-positionedtotakeadvantageofthis.Iamexcitedtocontinueourjourneyin2020withnewreleasescomingupfromourexpandingportfolioofshootergames.”
saysJussiTähtinen,CEOofNitroGames.
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KEY FINANCIALS
Oct-Dec2019
Oct-Dec2018
Full Year2019
Full Year2018
AuditedRevenue(EURthousand) 426,6 407,9 816,2 2204,2Operatingprofit/loss(EURthousand) −711,0 −2280,9 −3284,5 -5734,4Operatingprofit/loss%(EBIT%) −166,7% −559,3% −402,4% -260,2%EBITDA(EURthousand) −554,6 −2117,4 −2658,3 -5101,0EBITDA% −130,0% −519,1% −325,7% -231,4%Netprofit/loss(EURthousand) −712,0 −2280,1 −3293,4 -5748,8Cashflowgeneratedfromoperations(EURthousand)
−309,7 −1579,2 −2661,2 -4939,9
Equityratio(%) 56,44% 84,00% 56,44% 84,00%Numberofshares,average 4151660 3361284 3749055 2668910Numberofsharesattheendoftheperiod
4992897 3616328 4992897 3616328
NumberofShareoptions 459368 307868 459368 307868Equitypershare(EUR) 0,4 1,1 0,4 1,1Earningspershare(EUR)undiluted −0,1 −0,6 −0,7 -1,6Earningspershare(EUR)diluted −0,1 −0,6 −0,6 -1,5Netdebt(EURthousand) −159,0 −2523,8 −159,0 -2523,8Numberofemployees 34 51 39 51
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A WORD FROM JUSSI TÄHTINEN, CEO
Expanding our portfolio of shooter games
Weendedtheyear2019withaseriesofgoodprogresshappeningduringthefourthquarter.Overallwearenowinabetterpositionafterexpandingourportfolioofshootergames,sequentiallyincreasingourrevenueandstrengtheningourpositioninbusinessdevelopmentbothwithexistingandnewpartners.
Themostimportantvaluedriverwehaveisourteam.Improvingourteamwasoneofthebigfocuspointsfor2019.NitroGamesnowhasastrongseniorteamofprofessionalscoveringallthefunctionsfromgamedevelopmenttoself-publishing,live-operationsandbusinessdevelopment.
Ourvisionistobecomeahouseholdnameintheshootercategory.Shootergameshavehistoricallybecomeadominantgenreonotherplatformsandweexpectthistohappenonmobileaswell.
Ourstrategyistobuildaportfolioofshootergamesonmobile.We’redoingthisutilizingourproprietarytechnologyNGPlatform.Asaresultof2019,wenowhavethreeshootergameprojectsinourportfoliofor2020.
HeroesofWarlandhasgonethroughacompletere-workthroughaseriesofupdateswestartedrollingoutduringthethirdquarter.Movingforwardwe’relookingtocompletetheworkontheupdatesinsoft-launchandmeasuretheresultsofthisre-work.Weareself-publishingthegameonthewesternmarketsandhaveanagreementwithNetmarbleEMEAforpublishingintheMEAregion.
Lootlandisanewgameweannouncedattheendof2019.Weareexpandingourportfolioofshootergamesbyintroducinganeasytoapproachlootershootergamewithaheavyemphasisonco-opgameplay.Basedonourearlytestingresultswe’redelightedtoseeagreatdemandforagamelikethis.Lootlandiscurrentlyindevelopmentandtargetedforsoft-launchasanextstepin2020.
WeareworkingwithAvalancheStudiosinourServicebusiness.Thisprojectisagoodexampleofhowwecanutilizeourexpertise,technologyandpublishingcapabilitiesbeyondourowngames.ThiscreatesstrongsynergiesbetweenServicebusinessandourSelf-publishingbusinessandsupportsourvisionandstrategy.Iamlookingforwardtocontinuingtheco-operationlong-term.
Wehaveseveralinterestingfutureopportunitiesinourbusinessdevelopmentpipelineconcerningnewprojectsandstrategicco-operation,thatallhavestrongsynergieswithourexistingproductportfolioandtechnology.Overallitseemsthatourfocusedvisioncombinedwithrecenttrackrecordintheshootercategoryonmobilehascreatedusgoodmomentuminexploringthesenewopportunitiesnow.Wearealsolookingintonon-organicgrowthandaredeterminedtotakeactiononcewefindtherightfit.
Ourrevenuesgrewduringthefourthquarter.Wecontinuedoursequentialimprovementsthroughoutthesecondhalfoftheyear,Iamexpectingthistocontinuein2020.Ourcashpositionimprovedtowardstheendoftheyearasaresultoftheincreaseinrevenues,maintainingourlowercostbaseandraisingfundingfromBusinessFinland,andinadirectedshareissueinNovember.
2019wastheyearwhenshootergamesfinallyestablishedthemselvesonmobile.WeareexpectingthecategorytocontinuetogrowandNitroGamesiswellpositionedtotakeadvantageofthis.Iamexcitedtocontinueourjourneyin2020withnewreleasescomingupfromourexpandingportfolioofshootergames.
JussiTähtinenCEO,Co-Founder
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“2019 was the year when shooter games finally established themselves on mobile. We are expecting the category to continue to grow and Nitro Games is well positioned to take advantage of this. I am excited to continue our journey in 2020 with new releases coming up from our expanding portfolio of shooter games.”
Jussi TähtinenCEO, Co-Founder
A COMMENT FROM CEO
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SIGNIFICANT EVENTS DURING OCTOBER – DECEMBER 2019
Nitro Games announced new game Lootland. Lootlandisasuper-casualshootergamewithanemphasisonCo-Opmultiplayer.Playersclearwavesofenemiestogether,whilepickingupatonoflootfromthedefeatedmonsters.Lootallowstheplayerstoupgradetheirpreferredweaponsandarmor,whichhelpsthemtoadvancethroughthemoreandmorechallenginglevels.
ThisannouncementfollowsNitroGames’strategywherethecompanyisbuildingaportfolioofmobilegamestobeself-published.LootlandcontinuesNitroGames’focusontheshootercategory.ThegameexpandsNitroGamesportfolio,followingHeroesofWarland,thatiscurrentlygoingthroughaseriesofupdatesinsoftlaunch.
Lootlandiscurrentlyindevelopmentandistargetedforreleasein2020.ThedevelopmentofthegamefollowsNitroGames’MVP–process,wherethegameisbeingtestedwithliveaudiencesduringthedevelopmentphasetoensurethebestpossibleproduct-to-marketfit.
Nitro Games has signed a new Agreement with Expansive Worlds AB (“Avalanche Studios”) to develop a Data stack for Avalanche Studios. ThepartieshavepreviouslysignedanAgreementinJune2019,aboutNitroGamesdevelopingamobilegameforAvalancheStudios,basedonAvalancheIP.
WiththisnewAgreement,thepartiesarepreparingfortheupcomingsoft-launchofthegamethatNitroGamesisdevelopingforAvalancheStudios.TheDatastackisasetoftoolsandprocesses,basedonthedatapipelinethat’spartoftheNitroGames’proprietarytechnology,NGPlatform.
Theordervalueofthisnewagreementis30000EUR,andthereforenotsignificant,butholdsgreatstrategicvaluesinceitutilizesNitroGames’proprietarytechnologyandmobilegamepublishingcapabilitiesforathirdparty
Nitro Games strengthened its capabilities in Live-Operations, to support its strategy and the game release roadmap for 2020.IndustryveteranKennyChanjoinedNitroGamesasaSeniorProductManagerstartingnowinNovember2019.Kennybringsinhands-onexperiencefromlive-operatingfree-to-playmobilegamesandoperatinggamesasadatadrivenservice.PriortojoiningNitroGamesKennyhasworkedinseveralindustryleadingcompaniesincludingWargaming,GumiandUbisoft.
ThisrecruitmentfollowsNitroGamesstrategy,wherethecompanyisnowexpandingitsbusinesstowardslive-operations.Otherrecentactivitiesinstrengtheningthelive-operationscapabilitiesincludehiringSeniorDataAnalystAhmadPatel(Blizzard)andSeniorProducerCaleLares(CriticalForce),aswellasappointingJukkaHilvonenasthePerformanceMarketingManagertosupportgrowingneedsinmanaginguseracquisition.
Nitro Games completed, based on the authorisation of an Extraordinary General Meeting, a directed issue of approx. 1,4 MEUR (SEK 15,0 million.) TheBoardofDirectorsofNitroGamesOyjhasresolved,basedontheauthorisationreceivedbytheshareholdersattheExtraordinaryGeneralMeetingon20November2019,onadirectednewissueof1376569sharesatasubscriptionpriceofSEK10,9pershare,whichisexpectedtoraiseproceedstotheCompanyof1,4MEUR(SEK15.0million)millionbeforeissuecosts.TheproceedswillprimarilybeusedforthefurtherdevelopmentoftheCompany’sgameHeroesofWarland.
OtherinformationrelatedtotheDirectedShareIssuehasbeenpublishedon29October2019inaCompanyRelease.
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SIGNIFICANT EVENTS AFTER THE PERIOD
Nitro Games has signed a Publishing Services Agreement with Expansive Worlds AB (“Avalanche Studios”), for a non-disclosed title. ThepartiesoriginallysignedanAgreementinJune2019,aboutNitroGamesdevelopingamobilegameforExpansiveWorlds,basedonExpansiveWorldsIP.WiththisAgreement,NitroGameswillperformpublishingservicesforJanuary–April30th2020.ThegoalofPublishingServicesistoprepareandexecutetheupcomingsoft-launchaccordingtoindustrystandardswithNitroGamespublishingteam.Theordervalueofthisnewagreementis100000EUR.Nitro Games introduce the biggest update so far to Heroes of Warland, expanding the game with a whole new meta game. Also,thegametestinghasbeenexpandedtonewmarkets,suchasCanada,UK,BrazilandMexico.Ascommunicatedearlier,NitroGameshasbeenworkingonaroadmapofupdatestothegameandthisroadmapisnownearingthecompletionduringthefirsthalfof2020.Withthisnewupdate,thegamenowhasacompletelynewmetagamelayer,consistingofanentirelynewprogressionsystemfortheherocharacters,anewseasonalBattlePasssystem,completelyrevisedin-gamestoreandvariousothersmallernewfeatures,suchasboostersthatgivetheplayersanedgeintheheatofthebattle.Movingforward,theexecutionoftheroadmapforHeroesofWarlandcontinueswithdeliveringmoreupdatesandopeningmoremarkets.Theplanistoexpandthegamestep-by-steptowardsmeasurementofresultsaftertheroadmapiscompleted.Paralleltothis,NitroGamesisworkingtogetherwithNetmarbleEMEAinpreparingthegameforthesoft-launchintheMEAregion.Nitro Games updates on the roadmap and now expects a total of three games to reach at least soft launch during the first half of 2020. NitroGameshasgainedexperienceinthecategoryofshootergameswithitslatestproductsandisnowfocusingonexpandingitsportfolioofshootergameswithfutureproducts,totakeadvantageofthemarketopportunityinthecategory.
Thecompanyiscurrentlyworkingonthreeshootergames,eachwithnewreleasesplannedforthefirsthalfoftheyear.ThegamesincludeHeroesofWarland,LootlandandayetunannouncedgamewithExpansiveWorldsAB(“AvalancheStudios”).HeroesofWarlandjustsawthebiggestexpansionsofarinJanuary,andthismarksmostoftheworkdonewiththenewroadmapofupdates.TheworkonHeroesofWarlandcontinueswithafocusonthecoregameplayandexpandingthegametomoremarkets.Lootlandiscurrentlyindevelopmenttowardsasoft-launchthatistargetedforthefirsthalfof2020.NitroGamesisalsoworkingonnewun-announcedshootergamesaspartofitsMVP-process,wherethecompanyisutilizingitstechnologyNGPlatformtoproducenewgameconceptstoaplayablestageatafastpace.
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REVENUES & PROFIT / LOSS
RevenuesduringtheperiodJanuary–December2019were816220,35EUR(2204249,35EURoncorrespondingperiod2018),whichisandecreaseof62,97%comparedtothecorrespondingperiod2018.Majorityoftherevenuescameduringthesecondhalfoftheyear,asthecompanyfocusedonstreamliningitsoperationsduringthefirsthalfoftheyear.
EBITDAduringtheperiodJanuary–December2019was-2658265,71EUR(-5100979,73EURoncorrespondingperiod2018).
EBIT:OperatingresultbeforefinancialitemsfortheperiodJanuary–December2019amountedto-3284503,05EUR(-5734357,07EUR).
ThenetresultfortheperiodJanuary–December2019amountedto-3293425,94EUR(-5748806,324EUR).
Thecompanyexecutedacostsavingsplanandstreamliningofitsoperationsduringthefirsthalfoftheyear,whichreflectedinimprovementinthefiguresabove.
REVENUE DEVELOPMENT
The above graph illustrates the development of Revenue generation per quarter in 2019.
300,00
200,00
100,00
0,00
400,00
Q1 Q2 Q3
500,00
Q4
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The above graph illustrates the development of EBITDA per quarter in 2019. The company had one-off costs related to the directed share issue during the fourth quarter.
Materialsandserviceswere-951386,19EUR(-1409296,96EUR).Thisincludesthirdpartycostsrelatedtogamedevelopmentandmaintenance(outsourcedservices),hostingcosts,aswellasmarketingcosts,suchasuseracquisition(AU)costs.
Thecompanymadechangesinterminologyusedinitsfinancialreportingatthebeginningof2019.Inthepastyears,thecostofuseracquisition(UA)hasbeenbookedunderOtheroperatingExpenses.Startingfrom2019,thesecostsweremovedunderMaterialandServices.UAcostsin2019were-521277,84EUR(-1657714,75EURoncorrespondingperiod2018).Thecomparativefigures2018havenotbeenchanged.
Otheroperatingexpenseswere-1561603,23EUR(-3609601,83EUR).Thisincludesthirdpartycostsrelatedtoaccounting,legal,fundingcosts,stockmarketexpenses,hardwareandsoftware,travelexpenses,officecostsandothercosts.
Thecompanyexecutedacostsavingsplanandstreamliningofitsoperationsduringthefirsthalfoftheyear,whichreflectedinlowercostbaseduringtheyear2019,comparedtothepreviousyear.
-1000,00
-1500,00
-500,00
0,00
Q1 Q2 Q3 Q4
EBITDA DEVELOPMENT
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CASH FLOW AND FINANCIAL POSITIONNetcash,operatingactivitiesduringtheperiodJanuary-December2019was-2661,2KEUR(-4939,9KEURin2018forthecorrespondingperiod).Netcash,investingactivitieswas-1169,4KEUR(0,0KEUR).Netcash,financingactivitieswas2247,9KEUR(5832,4KEUR).Cashandcashequivalentsattheendoftheperiodwere1677,5KEUR,andthecompanyhad313,5KEURofshort-termreceivablesasof31December2019.
INVESTMENTS AND DEPRECIATION Partoftheexpensesfromgamesinproductionwereexpensedascosts.Partoftheexpensesfromthedevelopmentofthere-workednewversionofHeroesofWarland,andrelatedtechnologywerecapitalizedduringtheperiodagainstexpectedfutureprofits.ThisisvisibleintheIncomestatementunderManufacturingfortheenterprise’sownuse.
NewdevelopmentcostswerecapitalizedfromJanuary-Decemberbyatotalof1169400,33EUR.Thisincludesthirdpartycostsrelatedtothegamedevelopmentandmaintenance(outsourcedservices),personnelcosts,andothercosts,whicharedirectlyrelatedtotheproject.Thesecapitalizeddevelopmentcostsareamortizedoverafive(5)yearperiodonastraight-linebasisstarting1.1.2020.
Depreciationsweredoneaccordingtothedepreciationplan,consistingmostlyofcapitalizeddevelopmentcostsfrompreviousyears.Thedepreciationsamountedtoatotalof–626237,34EUR.
EMPLOYEESTheaveragenumberofemployeesin2019was39.ThenumberofemployeesonDecember31,2019was34.
MARKETNitroGamesoperatesintheglobalgamesmarketasadeveloperandpublisherofmobilegames.Historically,theCompanyhasoperatedinavarietyofmarketsegments,includingPCandconsolegamesaswellasmobilegames.NitroGamesnowfocusesonoperatinginthemobilegamesmarket.
2019globalgamesmarketwasestimated$152,1billioninrevenues,Mobilegamingwasthelargestsegmentin2019,totalingestimated$68,5billionandaccountingfor45%ofthetotalglobalmarket.Themajorityofgamersinmobilesegmentareplayingwithsmartphones.2,4billionpeopleplayedmobilegamesaroundtheworldin2019.
AccordingtoindustryresearchfirmNewzoo,theglobalgamesmarketisexpectedtogrowtomorethan$196billionin2022.
Source: NewZoo 2019
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THE SHARE AND SHAREHOLDERSNitroGames’sharesaretradedonNasdaqFirstNorthGrowthStockholmsinceJune16,2017.
ThelargestshareholdersasofDecember31,2019were:.
Shareholders Number of shares % of shares and votes JasperusS.A.1 835977 16,74SavoxS.A.2 598341 11,98SwedbankRoburNYTeknikBTI 291340 5,84AvanzaPensionförsäkringAb 273633 5,48NordnetPensionsförsäkringAb 254873 5,10LudvigStrigéus 232645 4,66FeatInvestAb3 229717 4,60AktiaNordicMicroCap 138150 2,77AnttiVillanen 129254 2,59AjorantaGroupAb4 117103 2,35OP-FinlandMicroCapFund 108400 2,17Others 1783464 35,72The total number of shares 4 992 897 100,00
1JasperusS.A.iscontrolledto100%byJacobEhrnrooth. 2SavoxS.A.iscontrolledbyJacobEhrnroothwithfamily. 3FeatInvestAbiscontrolledbyJohanBiehl. 4AjoRantaGroupAbiscontrolledto100%byCFOMattiNikkola.ThetotalnumberofsharesasofDecember312019is4992897.
RELATED PARTY TRANSACTIONSTherewerenosignificantrelatedpartytransactionsduringtheInterimPeriod.
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ACCOUNTING AND VALUATION PRINCIPLESTheCompanypreparesitsfinancialstatementsinaccordancewiththeFinnishAccountingAct(31.12.1997/1336,asamended),FinnishAccountingOrdinance(31.12.1997/1337,asamended),andinstructionsandstatementsoftheAccountingBoardoperatingundertheMinistryofEmploymentandtheEconomy(the“FinnishAccountingStandards”,“FAS”).InapplicablecasesTheCompanycapitalizestheexpensesusedfordevelopmentofproductsandtechnology,includingpersonnelcostsandprocurement,subtractedwithsubsidiesandgrantsreceivedforthese,totheextentthattheyareexpectedtogenerateeconomicbenefitsinthefuture.Amortizationanddepreciationforintangibleandtangibleassetsarecalculatedbyusingtheestimatedusefullifeoftheasset.Fortangibleassetsdepreciationaccordingtoplanstartsduringthecalendarmonthwhenthecommoditywastakenintouseandforintangibleassetswhenrevenuestartstoaccruefromthedevelopmentwork,typicallyduringtheyearafterthedevelopmentwork.
TheCompany’scapitalizeddevelopmentcostsareamortizedoverafive(5)yearperiodonastraight-linebasis.Formachinesandequipmenta25%expenditureresiduedepreciationismadeyearly.
REVIEWThisreporthasnotbeenreviewedbythecompany’sauditors.
CERTIFIED ADVISERNitroGames’CertifiedAdviserisAugmentPartnersAB,phone+46850565172,email:[email protected].
INVESTOR CONTACTThelatestinformationonthecompanyispublishedonthecompany’swebsitewww.nitrogames.com/[email protected],orbyphone+358443881071.
FINANCIAL CALENDARAnnualReport2019,17April2020,tobepublishedonthecompany’swebsiteandmadeavailableatthecompanyheadquartersatJuhaVainionkatu2,48100Kotka,Finland.InterimReport,Jan–Mar2020,27April2020.AnnualGeneralMeeting2020,8May2020.Half–YearReports,Jan-Jun2020,24August2020.InterimReport,Jan–Sep2020,26October2020.
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PROPOSED ALLOCATION OF PROFITTheAnnualGeneralMeetingofNitroGamesOyjwillbeheldon8May2020.TheBoardofDirectorsproposestotheAnnualGeneralMeetingthatthelossforthefinancialyear(–3293425,94EUR)betransferredtotheprofit/lossaccountofthepreviousperiodsandnodividendbedistributed.
NOTEThiscompanyannouncementcontainsinformationthatNitroGamesOyjisobligedtomakepublicpursuanttotheEUMarketAbuseRegulation.Theinformationwassubmittedforpublicationbycontactpersonmentionedbelowon17February2020at09:00(EET).
FOR FURTHER INFORMATION, PLEASE CONTACT:Jussi Tähtinen, CEO, Co-founder [email protected]
BOARD DECLARATION
TheBoardofDirectorsand theChiefExecutiveOfficerherebycertify that this InterimReportgivesa trueandfairviewofthecompany’sandthegroup’soperations,financialpositionandresultsofoperations,anddescribessignificantrisksanduncertaintiesfacedbythecompanyandthecompaniesinthegroup.
Kotka, Finland, 17 February 2020
JacobEhrnrooth,Chairman
AnttiVillanen IlkkaLassila SverkerLittorin
OliverKern WilhelmTaht JohanBiehl
JussiTähtinen,CEO
Sverker Littorin, Board member, [email protected]
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KEY FINANCIALS
Oct-Dec2019
Oct-Dec2018
Full Year2019
Full Year2018
AuditedRevenue(EURthousand) 426,6 407,9 816,2 2204,2Operatingprofit/loss(EURthousand) −711,0 −2280,9 −3284,5 -5734,4Operatingprofit/loss%(EBIT%) −166,7% −559,3% −402,4% -260,2%EBITDA(EURthousand) −554,6 −2117,4 −2658,3 -5101,0EBITDA% −130,0% −519,1% −325,7% -231,4%Netprofit/loss(EURthousand) −712,0 −2280,1 −3293,4 -5748,8Cashflowgeneratedfromoperations(EURthousand)
−309,7 −1579,2 −2661,2 -4939,9
Equityratio(%) 56,44% 84,00% 56,44% 84,00%Numberofshares,average 4151660 3361284 3749055 2668910Numberofsharesattheendoftheperiod
4992897 3616328 4992897 3616328
NumberofShareoptions 459368 307868 459368 307868Equitypershare(EUR) 0,4 1,1 0,4 1,1Earningspershare(EUR)undiluted −0,1 −0,6 −0,7 -1,6Earningspershare(EUR)diluted −0,1 −0,6 −0,6 -1,5Netdebt(EURthousand) −159,0 −2523,8 −159,0 -2523,8Numberofemployees 34 51 39 51
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INCOME STATEMENT
EUR thousand Oct-Dec2019
Oct-Dec2018
Full Year2019
Full Year2018
AuditedRevenue 426,6 407,9 816,2 2 204,2Manufacturingforenterprise'sownuse
263,5 0,0 1169,4 0,0
Otheroperatingincome 2,1 44,2 9,0 69,0Rawmaterialsandservices −227,1 −415,1 −951,4 −1409,3Personnelexpenses −538,8 −714,0 −2139,9 −2355,3Depreciationandreductioninvalue −156,5 −163,6 −626,2 −633,4Otheroperatingcharges −480,8 −1440,3 −1561,6 −3609,6Operating profit (loss) −711,0 −2 280,9 −3 284,5 −5 734,4Financialincomeandexpenses −0,9 0,9 −8,9 −14,4Profit before taxes and appropriations
−712,0 −2 280,1 −3 293,4 −5 748,8
Appropriationsandtaxes 0,0 0,0 0,0 0,0Financialstatementtransfers 0,0 0,0 0,0 0,0Profit (loss) for the fiscal year −712,0 −2 280,1 −3 293,4 −5 748,8
Theseunauditedfinancialstatementsreportfortheperiod1.1.-31.12.2019havebeenpreparedaccordingtoFinnishAccountingStandards(FAS)andNasdaqFirstNorthGrowthmarketplacerulesandregulations.
Comparability of data against the previous financial year
Thecompanymadechangesinterminologyusedinitsfinancialreportingatthebeginningof2019.Inthepastyears,thecostofuseracquisition(UA)hasbeenbookedunderOtheroperatingExpenses.Startingfrom2019,thesecostsweremovedunderMaterialandServices.UAcostsin2019were-521277,84EUR(-1657714,75EURoncorrespondingperiod2018).Thecomparativefigures2018havenotbeenchanged.
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BALANCE SHEET
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EUR thousand 31 Dec 2019 31 Dec 2018
ASSETSNon-currentassetsIntangibleassets 1465,9 922,4Tangibleassets 1,3 1,7Non-currentassetstotal 1467,2 924,1CurrentassetsReceivablesLong-termdebtors 27,7 33,6Short-termdebtors 313,5 379,0Totalreceivables 341,2 412,6Cashinhandandatbanks 1677,5 3260,1Currentassetstotal 2018,7 3672,7ASSETS TOTAL 3 485,9 4 596,8
EQUITY AND LIABILITIESEquity Sharescapital 80,0 80,0Investedunrestrictedequityreserve 18469,4 17069,0Retainedearnings(loss) −13288,6 −7539,8Profit(loss)forthefiscalyear −3293,4 −5748,8Equitytotal 1967,4 3860,4LIABILITIES Non-current Loansfromcreditinstitutions 986,1 129,6
Othercreditors 0,9 0,9Non-currenttotal 987,0 130,6Current Loansfromcreditinstitutions 94,1 94,1AccountsPayables 228,8 259,3Othercreditors 39,2 47,7Accrualsanddeferredincome 169,5 204,7Currenttotal 531,5 605,8Liabilitiestotal 1518,5 736,4EQUITY AND LIABILITIES TOTAL 3 485,9 4 596,8
CASH FLOW STATEMENT
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EUR thousand Oct-Dec2019
Oct-Dec2018
Full Year2019
Full Year2018
Cash flows, operating activities:
Netprofit(loss)beforetaxation,andextraordi-naryitems(+/–)
−712,0 −2280,1 −3293,4 −5748,8
Adjustmentsfor:
Depreciationaccordingtoplan 156,5 163,6 626,2 633,4
Unrealisedforeignexchangewinsandlosses(+/–)
0,0 0,0 0,0 0,0
Othernon-cashitems(+/–) 0,0 −39,2 0,0 −39,2
Financialincomeandexpenses(+/–) 0,9 −0,9 8,9 14,4
Otheradjustments(+/–) 0,0 0,0 0,0 0,0Operatingprofitbeforeworkingcapitalchanges −554,6 −2156,6 −2658,3 −5140,2
Workingcapitalchanges: 0,0 0,0 0,0
Increase(–)ordecrease(+)inlong-termtradeandotherreceivables
0,0 0,0 5,9 −17,0
Increase(–)ordecrease(+)intradeandotherreceivables
134,5 493,0 65,5 −24,0
Increase(–)ordecrease(+)ininventories 0,0 0,0 0,0 0,0
Increase(+)ordecrease(–)intradepayables 110,4 84,3 −74,3 241,3
Cashgeneratedfromoperations −309,7 −1579,3 −2661,2 −4939,9
Cashflowbeforeextraordinaryitems −309,7 −1579,3 −2661,2 −4939,9
Cashflow,extraordinaryitems(+/–) 0,0 0,0 0,0 0,0
Net cash, operating activities (A) −309,7 −1 579,3 −2 661,2 −4 939,9
Cash flows, investing activities:
Purchaseoftangibleandintangibleassets(–) −263,5 0,0 −1169,4 0,0
Net cash, investing activities (B) −263,5 0,0 −1169,4 0,0
Cash flows, financing activities:
Proceedsfromissuanceofsharecapital 1400,4 4585,5 1400,4 5954,7
Purchaseofownshares(–) 0,0 0,0 0,0 0,0
Proceedsfromsaleofownshares 0,0 0,0 0,0 0,0
Proceedsfromshort-termborrowings 0,0 0,0 0,0 0,0
Preceedsfromshort-termreceivables 0,0 0,0 0,0 0,0
Repaymentofshort-termborrowings(–) 0,0 −8,6 0,0 −8,6
Proceedsfromlong-termborrowings 460,0 0,0 950,6 0,0
Repaymentoflong-termborrowings(–) −23,5 −27,5 −94,1 −98,4
Intrestpaidandcontributionsfromfinancialexpenses(-)
−0,9 0,7 −8,9 −15,3
Dividends(-) 0,0 0,0 0,0 0,0
Taxes 0,0 0,0 0,0 0,0
Net cash, financing activities (C) 1 836,0 4 550,1 2 247,9 5 832,4
Net increase/decrease in cash and cash equivalents (A + B + C)
1 262,8 2 970,8 −1 582,6 892,6
Cashandcashequivalentsatbeginningofperiod
414,7 289,4 3260,1 2367,5
Cash and cash equivalents at end of period 1 677,5 3 260,1 1 677,5 3 260,1
CHANGE IN EQUITY
Asummaryreportshowingchangesinequityduringthefinancialquarterlyperiod,includingcomparativefiguresforthesameperiodduringthepreviousfinancialyear.
EUR thousand Share capital
Invested unrestricted
equity reserve
Retained earnings
(loss)
Profit (loss) for the financial
year
Total equity
Equity 1 Oct 2019 80 17069 −13289 −2581 1279Sharesissued 1400 1400Profit(loss)forthefinancialperiod −712 −712Equity 31 Dec 2019 80 18469 −13289 −3293 1967
Equity 1 Oct 2018 80 12483 −7540 −2476 2141Sharesissued 4586 4586
Profit(loss)forthefinancialperiod −2280 −2280Equity 31 Dec 2018 80 17069 −7540 −5749 3860
Equity 1 Jan 2019 80 17069 −13289 0 3860Sharesissued 1400 1400Profit(loss)forthefinancialperiod −3293 −3293Equity 31 Dec 2019 80 18469 −13289 −3293 1967
Equity 1 Jan 2018 80 11114 −7540 0 3654Sharesissued 5955 5955Profit(loss)forthefinancialperiod −5749 −5749Equity 31 Dec 2018 80 17069 −7540 −5749 3860
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