Qiiwi Games AB (publ)

So, då hälsar vi alla välkomna till vår webcast för genomgång av det andra kvartalet 2024. Och med mig i webcasten här har jag ju Erik Dahlgrenberg, vd och med grunden till Kiwi Games och jag har med mig två andra... Personer från ledningsgruppen, Marcus Dahl, som kommer prata om live operations och Daniel Svensson som kommer prata om new games. Efter genomgången av kvartal två så har vi också en frågestund där det finns möjlighet att ställa frågor. Har ni några frågor ni funderar på så kan ni Yes, already now send in the QA feature that is in Zoom. Then we will answer the questions that we feel is possible to answer in the current situation and we start.

And we look at Let's see here.

If we look at the first quarter, we reach a turnover of about 5.4 million SEK compared to the same period the previous year, which ended up at 5 million SEK. And it's about an 8% increase. And it mainly led to... Extreme Makeover, which didn't exist in the portfolio the previous year. And that title has continued to be an extra revenue injector for this quarter. Another title that has stood out during the quarter has been Midsummer Murders, where we have seen very good effects on UA, which we will talk more about a little later. And then we also have Worthington. Extreme Makeover, Midsomer Murders and Co-Worthington are the three largest contributors during the period. In summary, the quarter has been influenced by the fact that we have focused a lot on implementing our new strategy and vision. Under året eller i början av året så informerade vi om och även exekverade på vår kostnadsbesparing och omorganisering. Alla de åtgärderna i det programmet har slutsats under den här perioden vilket är väldigt skönt så framöver så kan vi fokusera utslutande på kärnverksamheten och helt enkelt att utveckla nya spel men också ta hand om våra live operations spel. Let's move on to the next point. As we also mentioned, we continue to see an improved EBIT result. This is mainly related to the fact that we have lower staff costs now due to the cost savings and reorganization, for example at the SIP. så har vi inte kvar något kontor längre utan vi personer som är kvar där jobbar redan hemifrån så kontor som vi har kvar är i Sverige och i Allingsås där vi har fortsatt samma personalstyrka som vi har haft tidigare också i Sverige så nedskador av personal har And that is in our new strategy and vision that we want to create a central place for game development in order to achieve the best possible results and work locally in teams. And here we have a graph that shows Den procentuella ökningen om cirka 5% relaterat till omsättningen jämfört med samma period föregående år. Tittar vi på antal anställda som jag nämnde där så samma period föregående år så var vi 52 stycken och vid utgången av det andra kvartalet 2024 16 stycken. Så vi har en betydligt lägre The number of employees now and a significantly lower cost mass in relation to staff costs. And we estimate our staff costs to be around 2.5 million SEK in the coming quarter. If we look at the marketing of the UAE, I mentioned that that Midsummer Murders has performed very well during the second quarter, which means that we have also been able to invest, partly more than in the first quarter of 2024, but also more than in the same period last year. We see an increase of about 42% in UAE investments and marketing. And here, especially Midsommar Murders stands out, where we have seen very good ROI results, which means that we have been able to keep up a relatively high spend and marketing for that game, which is actually a live operation game where we will try to get as much profitability as possible. But when we see the type of results that we have seen for Midsommar Murders during the second quarter, we have chosen to keep going. a relatively high spend, then we feel very safe with getting the UA investments back quickly. Other game titles we have invested in are still Extreme Makeover, but to a smaller share than the previous quarter, and also Worthington, which is on a relatively low share of UA investments. We don't go out with any exact figures here, But most of our investments have gone to midsummer murders during the period. And if we look at our geographical distribution of revenues, it is very similar to previous quarters. We have mostly revenues that come from the USA. It is also where we market our games primarily. Followed by Great Britain. Germany, Canada, France and Sweden. Then we have other countries where we have several countries that are below this 3% threshold. level that is bundled. But above all, the USA is a very important market for us. We also foresee that Nordic countries and Germany can grow, hopefully if, for example, our new game Backpacker Go gets fixed and works well. But of course, the USA is also a very interesting market for that type of game. If we look at the distribution of revenues, 37% of the revenues were created via purchase in the game, so-called in-app purchase, and 63% via announcement revenues. And the reason we see that it goes down sequentially related to in-app purchase is because Extreme Makeovers... revenue has decreased, which has been a big driver to reach higher in-app purchases in our games. And yes, we assess that what we see in distribution right now is probably what we will have in the coming quarter as well, where we see a majority coming from ad revenues. Summing up the financial results for Q2 2024, we have a turnover of SEK 5.4 million, EBITDA of SEK 1.9 million, EBITDA landing at SEK 2.9 million, And that's an improvement compared to the previous year with minus 4 million SEK, with some improved tax results at minus 2.9 compared to 3.8. And we have liquid funds of about 19.1 million SEK at the beginning of the second quarter. And considering that we That will be in the next... Yes, you will see it in the final part. But let's move on to live operations. And I'll hand it over to you, Marcus.

Ja, tack så mycket. Marcus Dahl heter jag. Medgrundare CTO i bolaget. Jag är ansvarig för Live Operations. Under andra kvartalet har vi fortsatt att jobba hårt med alla våra Live Operations spel med ett primärt fokus på Midsommar Murders och Worthington. Målet har varit att skapa funktioner som vi ser direkt kan bidra till en mer långsiktig aktivitet i spelen samtidigt som vi With the limited resources we have, always make sure that they are used where they are most useful in our games. If we look at Worthington, we started in the second quarter a big update of the technical platform that the game runs on. This means that we can now reuse functions that we have in our other newer games, such as Extreme Makeover and Midsummer Murders, which already run on the same technical platform. These functions can be for example team and team functionality, different events, store offers, user interface related functions that make the game generally more stable and work better. In August we have rolled out this update and now we are focusing on adding even more of these reusable functions and events with more that we have already developed in Xtreme and Midsommar for example. On Midsommar Murder we have launched the team functionality that we started implementing in Q1. This really helps to build more player community and increases the engagement of the players. De kan kommunicera med varandra, de kan hjälpa varandra genom att skicka till exempel energi till varandra. Och vi har även under det andra kvartalet rullat ut engelska ljudspår eller voiceovers för alla befintliga motfall. Vilket verkligen ger ett extra djup till spelets story och förbättrar den totala upplevelsen. Detta är enbart tillgängligt på engelska just nu. Besides this, we have made several minor updates to the game to improve UI and UX, and we are continuously running different events in the game. If we look at Extreme Makeover, we have added one more new family during the second quarter. So the total number is now eight families. We have also rolled out a big update with what we call Extreme League. It is an event for the most dedicated players who have completed all the families in the game. Then they can go into what we call Extreme League and climb through different divisions by completing most match three levels during a limited time. During the second quarter, we have also launched card collection functionality for all players, which gives them more goals to aim for if they want to collect all cards. In addition to this, we have continued to keep the game alive with recurring events and we also regularly add new levels to the game. So if we look at the near future, the focus will be primarily on Wordington, where we want to get a real change for the new technical platform by getting all the functions that we already have in, for example, Xtreme and Midsommar. This in the first hand, for example, is Teams and more events and offers. De andra speltitlarna som vi har live på butikerna har även de underhållts med sedvanliga mindre uppdateringar för att hålla dem stabila. Och det var allt från Live Operations idag.

Tack. Tack så mycket. Jag ska bara säga att jag saknar den här New Games sliden här tror jag i pressdagen så jag bara fixar det snabbt. Det tar någon halv minut bara. Jag slutar då dela här va.

Nu ser ni New Games sliden där också.

Hoppas jag och jag lämnar över ordet till Daniel.

Yes, tack så mycket Erik. Mitt namn är Daniel. Jag är en av medgrundarna till Kiwi och leder arbetet med Kiwis New Games avdelning. Under det andra kvartalet så har vårt New Games team huvudsakligen haft fokus på utvecklingen av ett spel och det är inom varumärket Backpacker. Det är ett spel som går under namnet Backpacker Go och i det här arbetet med det här spelkonceptet så utforskar vi synergierna mellan den populära spelmekaniken tärningsbaserat brädspel och trivia-frågesport. where we brand the game in the theme of travel and use our elaborated question and content bank from Backpacker. The game mechanics, game-based board games, have become popular globally, mainly thanks to the success of Monopoly Go and we are now exploring the area with our own twist on it, where we include trivia to follow our ambition, where minds thrive and challenge the mind. So under den senaste perioden har teamet arbetat mot en beta-prototyp av Backpack Go som vi ser i den visuella MVP-processen här i sliden. Det har inneburit ett fokus på att färdigställa planerade features samt att implementera tillräckligt med innehåll i spelet som tillåter oss att mäta kvarhållningsgraden i ett längre perspektiv. I utvecklingen av Backpacker Go has used us as a way of work, where we can create a decent content for the game, even though we are a relatively small team. And where we have researched further how AI can support us in development to speed up processes. So with these set processes, as well as our content bank from Backpacker, we are ready to quickly create more content for the game Backpacker Go, if the number of keys looks satisfactory. Spelet är nu tillgängligt i svenska butikerna om man vill testa. Vi har även under perioden återupptagit och även avslutat arbetet med spelkonceptet WordMe. Detta enligt med vårt systematiserade arbetssätt vi kallar MVP. Vi ser den där i postmortem. And after a number of iterations without managing to improve the keys, the next step was to remove the game from the stores and learn from the project through a post mortem analysis. Vi arbetar även i nuläget med ytterligare ett spelkoncept som befinner sig i ett tidigt stadie där målet är att i någon kort få till en intern prototyp för vidare utvärdering. Vi ser den där under intern prototyp. Och det var en statusuppdatering från New Games och jag kickar ordet tillbaka till Erik.

Yes, tack så mycket Daniel.

And if we look at the summary, we have an exciting coming quarter ahead of us here. We have, as Daniel mentioned, Backpacker Go, out now in Sweden, but also in English, where we actually, just a few days ago, prepared the next phase in a new game title that has been very exciting, new. concept in trivia. We have many popular mechanics right now in the mobile gaming industry. I think we have really come up with a game that is nuanced, which is also unique on the market. So hopefully we can get a very good score in that game title in some markets. Trivia games can be tricky in different markets, but in some it can work very well. So that's what we're currently evaluating. And we also have a very exciting monetization mechanism in the game with Dice Roads. We can control the progression much easier than in our old Backpacker game for example. So we are looking forward to seeing how the current phase goes in the soft launch of Backpacker Go. We have World of Wargaming Tom's big update now that is out as Marcus mentioned. Det är ju en... A game title that we released in 2019 that has been out for a while and all the games that we have made after that are on a completely different type of technical platform. So now that Wordington has come up to the technical platform, it makes it much easier for us to handle the game title and make use of many of the functions that we have in, for example, Extreme Makeover, Midsommar Murders and also Masterchef, Hell's Kitchen and so on. So we see that the game has also received a refresh, a new user interface, taken well from the users that we have heard from. So we have a great hope that Worthington will be able to give a positive effect on the turnover in the future. Vi har också sett goda effekter på insatser vi gjort under det första kvartalet, där vi fokuserade på Midsomer Murders. Under det andra kvartalet såg vi goda effekter på UA-investeringar där. Så förhoppningen är att vi kan se liknande saker nu i Worthington. Worthington has been our flagship title historically, and it's definitely the game that has stood for the majority of our revenues. So can we wake up a new life in Worthington with this update and a new way of working, that is of course very positive for us. I mentioned that we are now done with the reorganization and the cost savings program that we have implemented, so now we can focus fully on the nuclear business. Of course, when you make such a big change, there are a lot of things around that take time and affect some of the staff as well. But now it's done, and now we can focus fully on our nuclear business. We are working towards achieving a positive cash flow by the end of the year. We still see it as possible to do so if we get the effects in the live operations that we want, as we have mentioned, and still have a very controlled way of working on UA investments and marketing. Vi går vidare till QA-frågestund.

Vi ska se här vad vi har fått in för frågor.

Vi har en fråga här från... Niklas, som är att för att kunna nå positiv lönsamhet behöver ni öka omsättningen rejält. Hur lyckas ni med det? Och som jag nämnde, att vi... We have our strategy and vision for this year and for this goal to achieve positive profitability and cash flow positivity, that our live operations portfolio is what will drive us to that. So an important thing for us is to continue to maintain the game titles and that the efforts we make give effect. Then we also have, if you look at this quarter two, we have reinvested relatively much from our level operations in marketing and the coming quarter is not quite certain that we will reinvest so much, but it depends on how the results are and the possibilities we see. The cost base we have is more or less as we consider it to be our operational cost base. Then it is the marketing that is the cost that we can reduce and increase depending on the possibilities we see. But the Lab Operations portfolio is what will take us to the positivity of Kastförö. And that is the continued goal we are working towards. And see it as sustainable as long as we see the positive effects of the efforts we do in Lab Operations. And very exciting now with the new update of Worthington and the way we continue there. Vi har en fråga här om... Stämmer det att Extreme Home Makeover laddas med mest i Sydafrika och Ryssland, så som AppMagic anger? Vad anser boligen att vara orsaken till Extreme Home Makeover inte blev en succé ni förväntade er? Och... Yes, it is not true that Extreme Eco Overload is the most in South Africa and Russia. However, we see that during the last period we have received a whole range of installations from South Africa. Russia is not among any of the top where most of the installations come from the USA. Then it may be that we have some UAV campaigns going on on some markets where the We can get a lot of installations from some countries that are very cheap and then the majority of installations can be seen from a lot of countries such as not the USA or the UK. But Russia is nothing that we see in our data, at least that we get a lot of installations from. And the reason why Extreme Homecover did not become the success you expected We have mentioned several times that we have seen difficulties around user acquisition. A very tough market to make user acquisition on to get in high value players, buyers. And the game title has not had the degree of retention and retention that is required to to meet the requirements per installation that Match 3 games currently have. Then in the big picture, So we think that a game like that is a good match 3 game. It's high quality, but in terms of quality and retention, it's not good enough to scale it up to the goals we had from the beginning.

Let's see.

Vi har en fråga här. Går inte New Games bra då ni inte har några aktiverade kostnader för 2024? Vi har ju en... The policy within the company is that we start by activating costs for our games when they have reached a financial approval, as we call it. And that's when the title of the game shows the degree of retention and key figures that are required for a game to be able to go out on a global launch. And none of the games we've worked with in New Games have reached that in 2024, so that's why you don't see any activated costs. And it's a new way of working that has been started, if I remember correctly, from the start of 2024. Previously, we could activate costs for our games, given that we worked a lot with Branded Games earlier, and then it's more or less decided from the start that this game will be launched. We have an agreement with a partner, and then we activate the costs from the first start. We have a question here from Lennart. Will Home Makeover be updated during the fall with new renovations? Many users have reached the end. I don't know if that's something you, Marcus, can give an answer to.

Yes, to tackle the fact that many have reached the end, we have launched what we call the Extreme League. Where those who have managed the whole game get to fight for something else. More competitive, more players against players, to show who is the best in a way. But then we look at how we, in a sustainable and sustainable way, can create new families. It is of course also a matter of resources, but we are looking for alternatives to create new families. But with that said, not something planned in the current situation. The focus is primarily to create new events and levels in the game and continue to maintain Extreme League.

Thank you. We have a question from Niklas about which of the games you have in your portfolio do you think you have the potential to become a rocket? Or do you think that none of these can deliver so strongly? And if you look at the Live Operations portfolio, we should be honest with you that we I don't think that it's one of those games in the Live Operations portfolio that will lead to a stronger growth, but then it's New Games that counts. The Live Operations portfolio is to create a stable inflow of revenue and to be able to reach cash flow positivity. Then New Games, where we have several ideas where Backpacker Go is the one that has come the longest. The game has not yet reached the financial approval stage, so it has not yet meant a global launch, but it has been evaluated. We have also started another New Games game project, as Daniel mentioned. New Games will be what drives the growth and takes us to new heights. Of course, Now that we have worked a lot to stabilize Worthington and made a big platform update, there is of course a hope that we will be able to see new opportunities there, but I don't think it's anything that we should say that it will be some form of extreme growth driver, more than that we will hopefully be able to reach a more stable turnover level and hopefully a smaller growth on the Worthington side. Let's see... We have a question here regarding... How will it be when you divide the company equally into ten employees in Sweden and six employees in Cyprus? Wouldn't it be better for the company to collect the company in Sweden alone? And... We have established that we have some resources on the site that we think contribute a lot and that are important to keep. We have some resources that have knowledge of our MERS-3 engines that we have on the site. Then we have implemented a way of working that means that we work very locally and structurally. In Sweden, we work with projects in teams only here to achieve a really fast and agile way of work. So from the center it is more support resources and We have made a statement that we think that these resources contribute a lot to the company to have left over. I have a question. How long will the cash register last? Do you need more money in the company? As we are assessing right now, we have no plans to add more money to the company. We are assessing that as the business develops and the goals we have set, the cash register will be enough. That's what I have to say about that right now. Then, of course, if it happens that we find a new game that has an extreme growth potential that makes us need to market the game very, very much and end up in that type of situation, then there are of course very positive decisions to make about capital to make such efforts. But as the plans are now, we have no plans at all to bring in any more capital. Yes, I think these are the questions we choose to answer here and now. tacka för intresset för ni som varit med här på webcasten. Den kommer göras tillgängligt på vår hemsida här inom kort, och även presentationen som användes här i webcasten. Så jag tackar för visat intresse och hoppas ni fortsätter följa oss här och på vår resa. And yes, have a nice Thursday.