Qiiwi Games AB (publ)

Hello everyone and welcome to the QVGames presentation and the first quarter of 2025. My name is Erik Dahlrenberg, CEO and CEO of QVGames. We go through the quarter on a number of slides. We will also have participants from Daniel Svensson, Head of New Games, and Marcus Dahle, who is responsible for Live Operations and is CTO at Kiwi Games. And after that, we have a Q&A question time where it is possible to ask questions to the company where we answer what we have the opportunity to answer.

And we start.

If we look at the first quarter, we sum up that we have had a high efficiency in the organization, but that Backpacker Go does not really reach the whole way. During the quarter, we have Backpacker Go has been our main focus in connection with the fact that the global launch started at the end of December. I will talk more about the outcome of the launch so far and how we have worked with the game title. During the quarter, we have since allocated more resources to New Games. so that we can quickly develop more game ideas and so that it is possible to achieve greater scalability than what we have so far seen from the results of Backpacker Go. If we look at our EBITDA result, we achieve an improved EBITDA result compared to the previous year with about 1.4 million SEK. We still have a negative result of 1.6 million SEK. And we can see in the graph that we have a sequentially reduced EBITDA compared to Q3 and Q4 of 2024. And that we have a reduced GDP is mainly due to the fact that we have launched Backpacker Go, where we have increased the marketing investments and that these investments have not met the expectations that we had hoped for. We see A sequentially increased turnover from the gaming industry is also related to the launch of Backpacker Go. On the other hand, we have a turnover of 4.9 million SEK compared to 6.1 million SEK with the same amount in previous years. And if we look at the three biggest titles in the industry related to revenue, Backpacker Go has come up 54%. So that title itself has been very important for us to get out. It builds a lot of revenue for us. At the same time, we see that Worthington is at 17% and Extreme Makeover at 10%. It is a problem that we have also struggled with, that our live operations portfolio's turnover falls too quickly compared to what we have expected, which also affects the turnover itself. But it is positive that Backpacker Go has come up and stands for such a large part of the turnover. It is a new game title that will be important for us in the future and there are many more things to test with this game title and work with in the coming periods that we will talk more about. If we look at UA marketing, har vi legat på ungefär liknande nivå. Vi var i UA-investeringen som vi hade samma period för några år. Vid den perioden så jobbade vi fortsatt en del med Extreme Makeover och gjorde en hel del marknadsföringstester. Under den rapporterade perioden så är det Backpacker Go som har erhållit majoriteten av UA-investeringarna under perioden. In addition to Backpacker Go, we continue to do some UA for Worthington at a low level. But it is Backpacker Go and Worthington that we work with in the current UA work. If we look at the key word ARPDAU, it is at a record high level during the reported period. And we see an increase of 36% compared to the same period the previous year. And the increase is due to Backpacker Go, which has a significantly higher ARPA and a game portfolio average, which is positive. One should also mention here that The key word is positively influenced by the fact that we have bought in and invested in players who have a high ability to make purchases in mobile games. Which is the type of player that has proven to be the best throwback on the UA campaign for Backpacker Go. So the player base that Backpacker Go has generates a very high ARP down for us compared to other game titles in the portfolio, which is positive. We have also seen a positive effect about revenue per annum that seems to be positive. And part of this is the migration that we have worked with Apple from IronSource, which we have seen to have a positive effect on revenue per annum. And another part about the high value we see here is that The investment I mentioned about high value players for Backpacker GO also generates higher ad revenue from that type of player. So, positive development for ARKDAO. This is also a key word that will be a clue. It is worth mentioning that when our daily active player base decreases, we get a more concretized player base that is a very good player and active players. So you should also have in mind that when the DAO base decreases, it is quite so generally that ARP DAO will be positively affected by those players who are left. We definitely want to highlight that Backpacker Go has a significantly higher ARP DAO than our other game portfolios, and that is the game title that raises the ARP DAO on these levels. Summary of the financial results, Q1, we see here. I'm not going to rattle them up and down, but liquid funds of about 16.5 million SEK at the beginning of the first quarter is a bit of new information than what I mentioned before. If we look closer at the New Games business area, where we still have Backpacker Go listed, we started the global launch of Backpacker Go at the end of December. We got a very good start at the launch, where we reached ROAS levels significantly above our target levels. This was during a period under Q5, when there was a lot more engagement. Many are free, it's Christmas and weekends during December and even into January. So it's a good period for mobile games during the period when we also launched the game. But towards the end of January and February, we started to have difficulties to keep up with campaigns and add cheaper installations. fall our expected release of campaigns, which means that we have to hold back investments in marketing and thus not succeed in reaching the growth of Backpacker Go as we expected during the Q1. But we have continued to work very much with different types of marketing strategies for the game. We see more opportunities in the future to above all, to reach a stability level for the game. That it maintains a stable income level. And we will continue to work with more content and more functions. And right now, during the quarter, we have been working a lot on, considering that we see that the game as such will not be the game that leads us to the growth we want to have and the profitability we want to have, we are currently preparing the game for Lab Operations Stadium. So we are working on a lot of exciting functions right now, which we hope will be able to Activate players much more than what we do today with cities. We will add something that we call Star Destinations, which means that you will be able to travel to different types of destinations that are not cities but more exciting destinations with event functionality where you compete in teams against each other. So there are exciting things going on in Backpacker Go, but it's not the game that takes us to the growth we want and that takes us out of the problems we have with profitability. So that's why we have to focus on new games and there we have a great activity and great speed now, so I'll hand it over to you Daniel.