”Group net sales increased strongly through acquisitions. Goodbye Kansas, representing the largest business, increased sales by 80% during the year with results improving significantly, although we did not manage to deliver a positive result. It shows that Goodbye Kansas turn-around continues on the right track. Several of our business areas have benefited from stronger interest, demand and concrete new business while other parts have seen a headwind and been affected by longer customer decision-making processes but also in some cases by production postponements.
Although some caution still prevails so far in the first semester of 2021, the film & Television industry is looking forward to the future with confidence. Streaming companies are now bracing themselves for placing a big wave of orders. Netflix is a good example; it has previously announced that it will spend USD 1 billion on UK-based film & TV productions in 2021 alone. This represents an almost insatiable market ahead for us. Our film & TV production company Infinite Entertainment, benefits from this and recently presented the first project they are doing together with Netflix.
We are starting a shift towards a significant share of revenue made up by product, license, and royalty revenues, as well as of course gaming revenue, while our consulting revenues continue to grow. During the period, we have established key dealer agreements for VR products, increased license revenues and entered into more strategic partnerships as part of that strategy.
We are increasing the pace and our focus on the journey towards building a leading player in the digital industry. In 2021, the most important goal is the work to create the conditions for sustainable profitable growth. I look forward with confidence to what we will create together in the Group".
Read the CEO's word and report here https://bublar.com/investor-relations/financial-reports/
Fourth quarter, October 1 - December 31
- Net sales increased to SEK 60.3 million (5.3). Goodbye Kansas, consolidated as of May 1, 2020, had net sales of SEK 57.1 million (32.9).
- Earnings before depreciation (EBITDA) amounted to SEK -14.9 million (- 8.9). The result was affected by postponements in assignments for film, streaming and VR/AR solutions due to the pandemic.
- Profit after depreciation (EBIT) amounted to SEK -23.1 million (-13.0). Depreciation of SEK 8.2 million (4.1) includes goodwill amounting to SEK 4.0 million.
- Cash on hand amounted to SEK 25.3 million (37.2)
The Full Year, January 1- December 31
- Net sales increased to SEK 161.3 million (17.1). Sales include Goodbye Kansas from May 1, 2020. Goodbye Kansas net sales amounted to SEK 246 million (136.2) for the full year, which is an improvement of 81%.
- Earnings before depreciation (EBITDA) amounted to SEK -42.0 million (-31.1). The result has been affected by production postponements for film, streaming and VR/AR solutions due to the pandemic. Goodbye Kansas EBITDA 2020 improved to SEK -11.2 million from -108.2 the year before.
- Profit after depreciation (EBIT) amounted to SEK -79.0 million (-45.7). Amortization of SEK 37.0 million (14.6) includes goodwill amounting to SEK 24.7 million.
Key events in the fourth quarter
- Bublar Group management decisions were made: Peter Levin, CEO and Founder of Goodbye Kansas, one of the acquisitions in Bublar Group, took office as new CEO on January 1, 2021. At the same time, Maria A Grimaldi, took a new senior position as Director, New Business & Scalable Technology.
- Bublar acquired Plotagon Production AB, which recently entered into an agreement with one of the world's largest avatar-based social networks, South Korea's Naver Z Corporation. Naver Z operates the ZEPETO app service with approximately 180 million users worldwide. Plotagon has a technology platform enabling the creation of 3D animated movie in minutes. The companies have started developing an app that will be launched in 2021 based on Plotagon's technology and ZEPETO's content.
- Bublar subsidiary Vobling signed a 3-year framework agreement with Saab AB that includes solutions in XR technology and 3D. The framework agreement covers Saab AB including subsidiaries.
- Bublar's subsidiary Sayduck expanded its partnership with one of the company's oldest customers and entered into a three-year license agreement with design and manufacturing company Forms+Surfaces based in the United States. The new assignment consists of building an online 3D configurator for over 80 of the company's various interior design products for public environments.
- In film & TV, Goodbye Kansas London landed several new contracts, including VFX (Visual Effects) for an Amazon series production as well as one for Netflix. Additional productions of two TV series are under negotiation. All titles are confidential for the time being.
Key events after the fourth quarter
- Another strategic agreement for Vobling's proprietary product VR Fire Trainer has been concluded with Gloria, Europe's largest company in fire and safety solutions. In a first step, the agreement covers the DACH region.
- Bublar has entered a strategic licensing deal with leading global toy company MGA Entertainment Inc. and obtained a global license for some of MGA's most popular brands. The aim is to develop new business by combining MGA's well-known and iconic brands with the recently acquired movie-making platform from Plotagon.
- The performance conditions for the second additional conditional consideration for Goodbye Kansas has not been met and will hence not be paid out. The acquisition value will therefore be lower than initially estimated, which means a lower dilution as payment would have been made in shares. For the acquisition of Sayduck, the earn-out price (in shares) will be paid since a target hurdle for license revenue has been reached.
- Infinite Entertainment, Goodbye Kansas' production and IP company, has announced its first feature film production with Netflix and Spike Lee, where Infinite will be co-producer and Goodbye Kansas will deliver visual effects (VFX).
For more information, please contact:
Peter Levin, CEO Bublar Group,
email: email@example.com Phone: +46 73 041 63 93
Anders Lundström, CFO Bublar Group:
email: anders.lundström@bublar.com Phone: +46 73 106 66 66
Bublar Group AB (publ) is the Nordic region’s leading listed company specializing in visualization and XR technology. The company develops products and solutions based on advanced technology; Augmented Reality (AR), Virtual Reality (VR), VFX production, Cinematics, Performance capture & scanning, Digital Humans and Real Time animation.
The Group has world-leading companies as customers in TV, film, streaming, games, manufacturing industries and e-commerce. The company comprises the subsidiaries Goodbye Kansas (incl. Infinite Entertainment), Vobling, Sayduck, Virtual Brains (incl. Plotagon). Bublar is headquartered in Stockholm and has offices in London, Helsinki, Vilnius, Hamburg, Belgrade, Los Angeles and Manila. 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.
The company has G & W fondkommission as Certified Adviser, Kungsgatan 3, Stockholm, email: firstname.lastname@example.org, phone +46 8-503 000 50