Interim Report Q3 January-September, Bublar Group

Stable development of Goodbye Kansas turn-around and good growth in the licence business

“We continue to take a position in the digital industry and deliver on our strategy. I see continued stable development with establishment in new markets and product development. Our vision to become a leading player in the digital industry continues to drive us. We see continued stable development in the desired direction of the turn-around underway in Goodbye Kansas, increasing sales by 85% this year, and a continued strong development in the Shop business area, where licence revenues doubled compared to last year. The Group’s earnings in July and August are seasonally weak. After the period, we see a positive trend in the development of the Work segment with high sales activity,” says Maria A. Grimaldi, CEO and Managing Director, Bublar Group

Read the CEO comment and the full report: https://bublar.com/investor-relations/financial-reports/

Third quarter, July 1 -  September 30, 2020

  • Net sales amounted to SEK 48.4 million (4.0). The increase is explained by the fact that Goodbye Kansas, which is consolidated as of May 1, 2020, had net sales of SEK 46.1 million (30.7).
  • Earnings before depreciation (EBITDA) amounted to SEK -15.1 million (-7.0). The result is affected by the summer season, which normally has a lower activity.
  • Profit after depreciation (EBIT) amounted to SEK -28.8 million (-11.1). Amortization of SEK 13.6 million (4.1) includes goodwill amounting to SEK 9.2 million.
  • Cash on hand amounted to SEK 31.5 million (8.7) at the end of the period. After the end of the period, an agreement for a flexible convertible financing has been settled that allows the company to raise SEK 4.2 million monthly in 12 tranches of up to SEK 50.4 million.

Period, January 1 - September 30, 2020

  • Net sales amounted to SEK 101.0 million (11.8). Goodbye Kansas revenue growth, which is included from May 1, has been driven by revenue growth from the gaming industry by 146% compared to the same period in 2019.
  • Earnings before depreciation (EBITDA) amounted to SEK -27.0 million (-22.3). The cost of gaming and gaming platform amounted to SEK 6.8 million for the first half of the year and has thereafter been activated.
  • Profit after depreciation (EBIT) amounted to SEK -55.9 million (-32.8). Amortization of SEK 28.8 million (10.5) includes an item of goodwill amounting to SEK 19.8 million.

Key events in the third quarter

  • The Board of Directors decided to award the additional conditional consideration 1 regarding the acquisition of Goodbye Kansas. The conditions were met for the first of the two possible profit-based additional conditional considerations.
  • The Entertain business area with Goodbye Kansas increased the share of game-related assignments. Several contracts for productions for major international game developers were signed. 
  • Business Area Work has signed a 3-year framework agreement with Saab AB covering solutions in XR technology and 3D. The framework agreement includes Saab AB and its subsidiaries.
  • License revenue for 3D product visualization for business area Shop doubled for January-September 2020 compared to the corresponding period in 2019. 
  • For the map-based mobile game Otherworld Heroes, the soft launch continued with more countries. The aim is to test the game based on technology, user experience and monetization.

Important events after the period

  • The Work and Shop segments received several new major customers and additional assignments for existing ones. Alfa Laval and Forms+Surfaces, among others. 
  • Goodbye Kansas has signed an agreement for the production of a new game trailer. The order value amounts to approximately SEK 11 million.
  • Goodbye Kansas won the Swedish Government’s Export Prize for the cultural and creative industries 2019. 
  • Bublar entered into a flexible convertible loan agreement with Nice & Green S.A. of up to SEK 50.4 million. The purpose is to further accelerate business and product development. Bublar has an opportunity but not an obligation to use the agreement.

For more information please contact:
Maria A Grimaldi, CEO and Managing Director, Bublar Group: maria.grimaldi@bublar.com Phone: +46 70 828 38 34
Anders Lindell, CFO Bublar Group: anders.lindell@bublar.com  Phone: +46 70 841 83 14

Bublar Group
Bublar Group AB (publ) is the Nordic’s leading listed company specializing in XR technology and visualization. The company develops products and solutions based on advanced technology; Augmented Reality (AR), Virtual Reality (VR), VFX/Animation, Digital Humans and Performance Capture. The Group has world-leading companies as customers in film, TV, streaming, e-commerce and manufacturing industries. The company comprise the subsidiaries Goodbye Kansas, Sayduck, Virtual Brains and Vobling. Bublar is headquartered in Stockholm and has offices in Helsinki, Manila, London and Los Angeles. The company is listed on the Nasdaq First North Growth Market.

In essence, Bublar Group will change the game. We change how we Work, Shop, and Play

Bublar has G & W fondkommission as Certified Adviser, Kungsgatan 3, Stockholm,
email: ca@gwkapital.se, phone +46 8-503 000 50

Source: MFN

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