Toadman Interactive: Interim Report 1 December 2017 – 28 February 2018

Key insights

6 takeaways

01
Toadman Interactive reported a 862% increase in net revenue to 12.02 million SEK for the period ending February 28, 2018, compared to 1.25 million SEK in the prior year.See it on page 2
02
Operating profit (EBIT) reached 4.54 million SEK with a 37.1% margin, a significant turnaround from the 1.01 million SEK loss recorded in the same period the previous year.See it on page 3
03
Financial growth was primarily driven by milestone payments from a partnership with the Chinese firm Leyou and a 22 million SEK share issue conducted in December 2017.See it on page 4
04
The company ended the period with 23.15 million SEK in cash and bank assets, following an expansion of its workforce to 30 employees and the opening of a new office in Berlin.See it on page 11
05
Post-period, Toadman Interactive acquired its agent, Flashman Studios, for $1 million to consolidate future revenue streams.See it on page 2
06
Development progress included the successful launch of a closed alpha for the RPG title Immortal: Unchained and an updated agreement with Game Odyssey regarding the project.See it on page 6

Summary

Toadman Interactive’s interim report for the period of December 1, 2017, to February 28, 2018, details a period of significant financial expansion and structural development for the Swedish game developer. The company’s primary objective during this quarter was to leverage its successful public listing on the NGM MTF exchange to optimize its business structure, expand its international footprint, and advance its pipeline of both project-financed and internally funded titles.

Financial performance showed substantial growth, with net revenue increasing by 862% to 12.02 million SEK compared to 1.25 million SEK in the same period the previous year. Operating profit (EBIT) improved to 4.54 million SEK from a loss of 1.01 million SEK, resulting in an operating margin of 37.1%. This growth was largely driven by milestone payments from the company’s partnership with the Chinese firm Leyou. By the end of the period, the company held 23.15 million SEK in cash and bank assets, bolstered by a 22 million SEK share issue conducted in December 2017.

Operational highlights included the establishment of a new subsidiary and office in Berlin, Germany, and an increase in staff to 30 employees. Post-period developments included the buyout of the company’s agent, Flashman Studios, for $1 million to streamline future revenue streams, and an updated agreement with Game Odyssey regarding the title Immortal: Unchained. The company also successfully launched a closed alpha version of Immortal: Unchained, which generated significant engagement. Toadman continues to focus on its core competency in RPG development, balancing project-financed work with the higher-risk, higher-reward strategy of developing its own intellectual property.