Qiiwi Games AB (publ)

Vi är redo att starta dagens kvartals rapportspresentation och hoppas att alla ser vår presentation och så vidare. För de som inte vet så är mitt namn Erik Dahl-Rundberg, vd och the founder of Kiwi Games. Today we will talk about our Q3-rapport 2025, som jag kommer att presentera och gå igenom den först här tillsammans med Daniel Svensson, Head of New Games, och även Marcus Dahle som är CTO och ansvarig för live operations-delen inom bolaget. So, after that, we'll do a Q&A session, if possible, to send in and ask questions, where we answer the questions that we can do. And you can send in questions there via the Zoom client that you use. We'll keep going here. And quarter three, 2025. Bredspelskänsla plus underhållning i lika med framtiden har vi som rubrik och det binder samman en hel del av det arbete som vi har gjort under Q3 och Q4 med att genomlysa vår strategi och göra en del justeringar och nyanseringar. to get a really strong strategy here in the future, which we really believe is the way for the success of Kiwi Games. And we will talk more about this later during the presentation. But it has been a comprehensive work during the quarter. and also the introduction of Q4, with the game strategy for New Games. And we also see during the third quarter that Backpacker Go has achieved stronger and stronger results. And that's a game that we have under the third quarter, and also now a bit into Q4, it has been the game that we have focused on with the development of new functions, game content, and to try to improve the keyboard, and we will talk more about that as well, what we have done there. And let's look at... The revenue is about 3.5 million SEK, which is a reduction compared to the previous year, which ended at 4.4 million SEK. That it is a reduction compared to the previous year is still related to the fact that we have a smaller share of revenue from our older game titles. It is above all Wordington, Extreme Makeover and Midsommar Murders. But if we look at it sequentially, compared to Q2 2025, we increased the turnover by about 6%. And that is largely due to Backpacker Go, which is the game that we have worked a lot with and which has increased the turnover during these quarters sequentially. So Backpacker Go pairs a whole lot of... the decline that the older titles have, which is very positive. And if we look at the turnover, Backpacker Go has now come up to 51% of the total turnover generated. Word and Tom 22% and Midsommar Murders 8%. So Backpacker Go has become an increasingly important title for us and Moving on to the next slide, we have EBITDA. It landed at minus 0.8 million SEK compared to minus 0.3 million SEK in the previous year. The EBITDA results have been sequentially improved. It's the best EBITDA result this year and we are on the right track to reach the Black Even level with the current development we're seeing now. So the additional cost savings that we have made during the year have had an effect and we will see additional effects of that under Q4 here, where the last effects of the optimisation and cost savings that we announced here before the summer will have its full effect. Then we will see it fully first and foremost in Q1, when we do not have any costs related to the cost savings left within the company. So then we will really see the full effect of it. But if we continue with the stabilization and improvement of Backpacker Go, as we have seen in recent times, we will be able to reach break-even levels with the current development and the cost base that we have within the company in the future. Which is nice and creates a job for us to be able to develop. Nya spel som kan nå betydligt kraftigare tillväxt än vad vi har i dagsläget i portföljen. Men det är också väldigt positivt att vi har den spelportföljen vi har idag som ger en trygghet i sig och en arbetsro hos oss. Tittar vi på UA-marknadsföring så investerade vi cirka 1,4 miljoner SEK under rapporterade perioden. similar to the same period last year. Most of this investment is made in Backpacker Go as a game title. That's what we work with most of the time. We work a lot with AI-generated ad material, which has allowed us to create new kreativa vinklar och möjligheter med annonsmaterial som vi använder och det har gett en positiv effekt i resultat i U-arbetet att vi får en aning billigare install så vi kan också betydligt snabbare göra annonsuppdateringar och testa nya annonsmaterial som vi tidigare inte hade möjlighet att göra. Så där fortsätter vi att vara aktiva och take part in the new services that are coming in order to be able to generate ads and video material quickly and effectively. We are also increasing our UAV investment by about 17% compared to Q2 2025. One effect of this is that we have seen A positive development for Backpacker Go and we have been able to invest more and more under Q3 for that game title. And also on some new advertising networks that we have not used before for the game title. So it gives new opportunities for Backpacker Go to grow on new markets and so on. If you look at Conversion, it is on historically high levels. Conversion is a key word that shows how many players, on average, on a daily basis, make purchases in our games, which converts to making a purchase. During the period, it hits 1.20%. If we look at it compared to MAD, Q3 there, we see a big increase there at about 85%. And it's also related to Backpacker Go, which has seen a very nice development around the share of buying players. And it's mainly the in-app purchase revenues that have increased during the Q3 period compared to earlier We'll talk a bit more about why the in-app purchases have increased under the live operations slide. And then we'll jump over to some live operations focus. And since all of our game viewers are currently in live operations, Thank you very much.

And during the quarter, as Erik mentioned, the biggest focus has been on Backpacker Go. And we really feel that the work we have done there has It has brought fruit in a way with the conversion increase that Erik showed you on the previous slide and increased engagement. We have made several valuable efforts that have increased both the joy of playing and contributed to higher revenues. One of them is the launch of what we call Backpacker League. Therefore, the players compete in a division system and successively, week after week, rank up or down based on how well they perform. So the higher up you get in the divisions, the harder it becomes to stay in the divisions and to go up to the next. And this is part of the increase in conversion. The higher division you get in, you will probably indirectly need to spend a little more time and with that in some cases also money to stay. We have also introduced several new interactive events such as the Air Balloon, Race to the Gate and Souvenir race, as we call it. A bit different name in different languages. But where the players compete against themselves in the air balloon event to get as high as possible. And in these race events you compete against other players. And there we have also got a smart segmentation so that the players meet players who match their own level of skill, if you say so. So if you are a good player you get better resistance and with that it becomes it also makes it more fun to play games. It shouldn't be too easy, but it shouldn't be too hard either. And this is also part of the increase in conversion, that you get resistance as the game player's profile. We've also released more game passes, or battle passes, in the game. We have a new turning pass for those who feel that they need more turns. You can get a premium pass that gives that. We have one that gives souvenirs for those who are driven by the collection in the game. And also the classic, what we call travel pass, which covers the whole game in a way. And we also have a Halloween pass that we have had live now in October and into November. And soon the Christmas pass will also go live to the players with some unique Christmas souvenirs and Christmas thematization. En annan höjdpunkt är att oktober då blev spelets näst bästa månad någonsin sett till intäkter. Och det är väl ett bevis på att det vi har gjort faktiskt har gett resultat. Vi har även lanserat den 150e staden och flera därefter. Den 150e blev Kiruna efter en omröstning från spelarna. Och det är även så vi jobbar with improvements and new features in the game. We've had a close collaboration with the active players, we've had revisions and a close dialogue with the players who are most active in the game. For our other live-op games, besides Backpacker Go, we are still updating them, keeping them compliant and updating them with SDKs and announcement partners to give as good revenue as possible, especially now before Q4 and what is called Q5 around Christmas. And we are also trying to make sure that in those games we can keep some kind of theme or theme event to increase further engagement in those game titles. But that was all from LiveOps, so I'll pass it back to you.

Thank you very much. Exactly, a positive development for Backpacker Go, as Marcus mentions here, and A thing to connect back to from the UAE and marketing slide is that we have found some new markets to market the game against the last period. And one of the markets is the USA, which is a gigantic market that the game has not had. The market has moved on much earlier. We have had some difficulties with the American market, but there we have seen an improvement. And it's a gigantic market. If you manage to get some form of scalability and the opportunity to grow the game. So right now, and even earlier, we still have a very low number of daily active players in the USA. But if it were to continue as it has been so far, there are great opportunities to grow the game to new ones. to a new audience that we haven't been able to reach before. Other interesting markets are still the UK, but also Germany, where we've seen positive effects lately. So... Intressant utveckling för Backpacker Go. Vi går vidare till nästa slide och då ska vi hoppa vidare till New Games. Här blir det lite fokus kring vår nya spelstrategi som vi också pratar om en del idag i vårt vd-ord och i rapporten. And I'm going to hand it over to Daniel Svensson, who can take over and present a little bit about it.

Thank you very much. Yes, the biggest update that concerns New Games is our new game strategy and direction, where our goal is to become the leader of intellectual feel-good experiences. And we in the management and the company are convinced that a clearer focus will give us the chance to be faster, get the game to play through a straighter decision process and clearer goals. It will also give us the chance to take steps in the right direction all the time in order to find the next success. That we continue to build on what we do all the time and not shift focus. We are also convinced that it is a game direction that fits our core group. And the Intellectual Feel Good strategy, in short, means that we use board game principles as the basis for our games. And there we want to capture the core of the board game format and from a game design perspective, we think it contributes to a simplicity and clarity to understand the game, to onboard the player through recognition factors. We also think that we can create a game with a relaxed and comfortable tempo, using so-called click-to-action functions, such as throwing a dice, as we used in Backpacker Go. A very natural way to play a game. We also think that it will be a good opportunity to build long-term meta-progressions, as we call it, that you slowly build up your game when you play. If you have played for a long time, you will notice in your game that you have progressed and gathered up and developed things. And also that you will feel smart and intelligent when you play our games. And in the visual design, we believe that there is a recognition factor. When you look out over a board game and you can see what you relate to and how it works. It's something that we believe that our players... We will be able to relate to and get to know each other. We also think that we can package the whole game very well through how we shape the game in this ready-to-play format. And it is also a way of working that we are safe and fast with now, after having spent a lot of time on Backpacker Go for a while. For this game format, we want to connect hybrid casual loops and look for tested core loops for mobile games that we want to plug into this. For us, hybrid casual means that you can play both short and long sections. If you play two minutes or 22 minutes, you will progress in the game regardless of your effort. We also think that the board game principle, linked to hybrid caching, gives us the opportunity to offer greater values than just simple gameplay. You're in and playing the gameplay, but you're also progressing in the world as you see in front of you. We have a good combo there. Den här kombon tillsammans, den här modellen, ger oss möjlighet att jobba efter metoden som vi kallar 1 plus 1 lika med 3. Det är vi övertygade om att den här kombinationen av de här två elementen sätter oss i en position att hitta nästa succé. I modellen 1 plus 1 lika med 3 så är brädspelsprincipen den ena bestående ettan i ekvationen. Den andra ettan är där vi experimenterar med hybrid cache loopar och att det här ska ge oss en... unique combination that can stand out on the market. And in this work, to give us strength and speed in the goal of achieving this success, we want to work with what we call templatization. It is a more common way of working nowadays, where you develop the game based on a technical base model. that you use to create new games, and you successfully build it when you develop the game. So everything we put down in time and effort will give us speed forward as well, and not go to waste. During the Q3 period, we have started working with our template. We've had a period where we focused on BP Go, but the work is on again. And in parallel, when we work with the template work, we also work internally with the ideas we have, evaluate them, make sure that they are ready, and that we in the short term will be able to test the template sharply with a game idea and start this process forward. Finally, I can also mention the MBP process that we see at the bottom of the screen here, where we have four games that are in postmortem. We also mentioned them in the previous webcast, but it was during Q3 that we did a postmortem analysis of these four word games and took lessons from them. But we don't have any games right now under market control, but we aim for some short get out a game according to the new strategy in the market survey and start working with it. That was all Erik, back to you.

Thank you. Daniel summarized our nuanced game strategy. As mentioned, we believe a lot in combining board game principles with hybrid casual loops. There is a lot to explore, I would say. In recent years, a lot of board game-inspired games have been released. Monopoly Go is probably the biggest and most popular. the game in that niche where you have taken a wide game and made it into a well-adjusted mobile format and mobile experience. That's where you make changes in the board game principles. Because it works very well on mobile. We have done a lot of technical work with Backpacker Go. We have a lot to work on in our technical platform to create a really nice visual board game feeling. And that's where we really believe that we can find and test a lot of unique gaming experiences. This means that we can also become a stronger competitor on the mobile game market and offer something unique, both in the visual look and feeling, as well as play as such, illuminating something that no one else does. And then we can get this intellectual feel-good feeling in our games and in our experiences. So this is a key focus for us from now on, that we should be directed with this focus. So that's what you can expect from us from now on, that it's this type of game. Then we can't exactly say here and now. more than that, but you will probably get a good feeling for it when there will be games in soft launch and hopefully we can take some of all the ideas that we have in our idea bank all the way to global launch here in the coming period. And if we look at the overall financial results for Q3, we have already gone through some of the figures, but the result of the tax landed at approximately minus 1.6 million, compared to the previous year's minus 1 million. And we have liquid funds of about 13.5 million SEK based on the third quarter. And since we, as we have mentioned before, are really in good shape to reach break-even and positive cash flow, we do not see any worries about our cash position in the current situation. If we achieve the development we see and continue to stabilize and maybe even improve the development of Backpacker Go, then we should be able to come up on a much safer level and on work peace, as I mentioned before. Which is positive. Kiwi Games Intellectual Feel Good. That's what we want to highlight in this report, that we take a Strategiskt skiftet till att fokusera mer riktat kring brädspelsprinciper plus hybrid casual loops, som det kallas inom vår bransch, inom mobilspelsbranschen. Vi vill skapa engagerande mobila upplevelser med brädspelskoncept i basen. Vi kommer bjuda in till investerarträffar framöver där vi kommer prata mer om vår strategi för att ge en lite bättre belysning kring det. Som jag nämnde där på rätt väg för att nå ett positivt kassaflöde. Och med allt det här arbetet vi har gjort nu med strategiarbetet, vi har ett positivt momentum även i Backpacker Go, så har vi en stor energi och vi ser ju fram emot ett lovande 2026. Så... Yes, we are on the right track.

Let's move on to the Q&A session. Let's put myself there. We have some Q&A questions here.

I can start with a question here from Mats. After Q2, you expressed a certain disappointment about BPGO's commercial potential. Have you become more positive in the last three months? Yes, I would really like to say that we have become more positive. We have worked a lot with... The balance in the game, in terms of purchase frequency, we see a higher conversion rate. We see a better performance in UA campaigns. It's still, of course, if you compare it with many other gaming companies and so on, it's still so that we have, and also what we ourselves have done before with some games, we are still on a pretty low level in terms of what we invest. We see a positive effect in the game, both from older players than 30 to 60 days, that the effects and things that we have done with the game have given a positive effect. that we generate income from older players as well, which is positive. So it's not just the UA-driven effect we see now, it's an improvement in the game. We have found a good way to work with content, we can add new cities quickly, we can add fun events, rewards for players that can attract old players and new players. Also this segmentation that Marcus is talking about, is important for us to be able to play or connect players to each other that fit so you get a very good gaming experience. And we also have our team function in the game are appreciated by our community. You can be 30 people in a team and you sit in an airplane and communicate, give each other turns and also make challenges together as a team. Both positive with Backpacker Go that we see a greater potential in the game on new markets but also that we feel safer in our new strategy and that MADD board game so finns det mer möjligheter framöver att växa vidare sen har Backpacker Backpacker Go eller trivia spel som sådant det är ju en rätt så det kan vara en The point with that is to get a good degree of difficulty that fits a majority or a broad audience. And that's probably where Backpacker Go has a lot, that it fits, the core audience is those who really like trivia, who want to challenge themselves with knowledge and quite so deep knowledge also about world cities and views and so on. But I definitely believe that there are significantly more people to reach around the world with that game. And that's also what we're starting to see now, as I mentioned, in the USA, Germany, even in Great Britain, that we're starting to find ways to reach out with the game there, which is very positive. Nika, is it because income from BPG grows in October, is this also linked to increased UA? I think I answered it so well on the previous question as well, that it's not only linked to that we have increased UA in the game, but we have also seen an improved profitability on UA campaigns during October, so it's Dels en effekt av att vi får ut mer av äldre spelare, men också att vi ser en effekt av bättre UA-resultat på genomförda kampanjer under oktober. På grund av att spelet har blivit förbättrat med dess nyckeltal. Sen har vi en fråga här från Mats också. Ser ni Backpack Go som en tillväxtdrivare 2026? I would say that it is the game title in the game portfolio that is the game title that is in growth potential. Then it is important that we continue to achieve success with UA marketing on new markets. And hopefully what we see now can continue even further into Q4 and Q5 and beyond. So then we need to find new games within our new game strategy to achieve significantly stronger growth is our current vision. And that's why we also put a lot of time forward here on new games and new game ideas according to the new strategy. Then we have a question here from Bosse B. The increase in WEPA ego means that you have had a better result on your UAE investments so far under Q4. And it is also a similar question as before, or as I answered. Yes, we see better results on the UAE investments so far under Q4. We also have a question here from Bosse, but the income for live operations, exclusively for Backpacker Go, seems to decrease and stand for a smaller part of the total income. What are you doing to slow down the trend? The older game titles in the portfolio, where we don't do a lot of or marketing investments at all. There we will still see a stagnation or a downward trend in daily active players. And then the revenues will also decrease from those players. But it's an inholding tail, as they called it, that the revenues will still be there. And we want Backbreaker Go to... We want to be able to pair those downfalls and more than that in the future and stabilize and make sure that we are on a good level. Then we continue to work with Worthington, Extreme Makeover, Midsommar Murders and make updates and add content to new levels. Vi jobbar aktivt med våra butiksidor för att driva organiska installationer. Att folk som söker på butikerna hittar våra spel framför andras konkurrenterspel. Men ja, summeringen är att de äldre speltitlarna is in a downward trend, but we want to pair Backpacker Go, which we have also seen here under Q3, that Backpacker Go has a great potential to do. Starting with capital, you are still losing money per quarter. And as we mentioned in the presentation, we are at a very good value to reach break-even and positive cash flow here now, so we do not have any need to bring in more capital in the current situation, but we now see that we get the workload we want to have in order to be able to develop new games in the future in a good way. Are all cost savings now implemented or will it appear more in the future as an effect under Q4? It is true that we will see more cost savings as an effect under Q4. Then we will see the full effect of all cost savings in Q1. So Q1 can be said to be the first quarter where we see a cost base for the company as it will be in the future. We also want to unveil our daughter-in-law at SYPE and that unveiling is ongoing and is considered to be done at the beginning of the year. There will also be some cost payments further into Q1 as well, so that can be good to know. What does Backpacker Go's positive momentum depend on? Do you think it can continue even further? We have been talking about it. We think we will be able to continue our positive momentum. If we could only continue this good performance that we have seen in the USA, Germany and Great Britain, we will see a positive momentum that it will continue here in Q4 and hopefully further forward. Det beror på att vi har jobbat väldigt mycket med produkten. Vi har blivit bättre på att identifiera vilka features som vi ska lägga tid på. Där jobbar vi med ett scoring system internt där vi verkligen genomlyser varje feature vi vill göra eller har en idé att göra och vi belyser den med scoring system What potential is there? How long will it take? Will all players be affected by this change? Or will it only be new players? Or will it only be older players? How much impact can we get from a change we make in our games? I would say that as a company, we have improved significantly over the past six months. And that we do not put time on things that do not give effect in our games. So that's an important part that we see the effect of. With our scoring system, we have really come to the conclusion of which features we should invest and invest time on. Because all the time we invest is also costs that we could have invested on something else. Then we have increased our sales capacity in Backpacker Go. We have implemented a marketplace where players can see what they can buy. Collecting cards, souvenirs, collecting items. Livboja that you use to easily answer trivia questions. There are a lot of things that we have previously been a bit too bad to show to the players. So now we have a marketplace where you can both get free stuff, you can see videos to get some stuff, plus that we can get more sales for those who want to make purchases in the game. Så det är en del olika saker. Så vi hoppas verkligen att vi kan fortsätta få momentum här i UA-marknadsföringsarbetet och fortsätta växa spelets spelarbas framöver. Sen har vi en sista fråga. Och det var lite strategidelar där. Varför den är så intressant, den nya strategin, kan ni berätta mer om varför ni tror så mycket på den? But I think we've talked a lot about it before, that we see a very big potential to find exciting ideas in the board game format that we are good at, and we will be much, much better at finding how we can transform this really, really fun board game into a mobile gaming experience to create our so-called Intellectual Feel Good feeling. And we as a team, now we are quite a small team, we will be six people working on Kiwi. We believe that we In our team, it's this type of game that we will be able to be really good at creating in the future, where we can also create games that can compete at a really high level against other game companies that might make similar games. also other games. We can stick out a bit with our type of niche here visually and get a feeling of adventure while it feels cozy and very easy to understand for the players how to play the game. Combined with AI and how we can generate content and so on, we have already proven in Backbreaker Go that With our board game platform, if we find games that work and show good keys, we will also be able to scale content in those games extremely quickly with the help of AI. So it is also an important part to bear in mind that we will not need to scale up our team to succeed with these game ideas we are now starting to invest in this strategy. So yeah, the whole team feels like that, with a lot of energy. This feels right. Now we just have to keep fighting and keep having a lot of energy towards the end of 2026. Men jag tror det var alla frågor där och vi kommer att göra den här presentationen tillgänglig på vår webb tillgänglig och även på vår YouTube-kanal. Så ja, jag tror att vi tackar för ni som kom och lyssnade in här och tack för att ni följer Kiwi Games och vår resa. Vi är på rätt väg, vi We have a very exciting new strategy and are on our way to break even and a positive cash flow with our current player base and game portfolio. We are now fighting to end 2025 in the best possible way. Med de orden så avslutar jag presentationen och önskar er en trevlig dag. Tack för att ni såg. Hej då.