Toadman Interactive: Interim Report 1 June – 31 August 2018

Key insights

7 takeaways

01
Toadman Interactive grew revenue by 61% year-over-year to 11.8 million SEK for the period ending August 31, 2018, though the company recorded an EBIT loss of 3.15 million SEK due to expansion and IP development costs.See it on page 13
02
The company transitioned into a multi-national group following the acquisition of the Norwegian studio Artplant AS.See it on page 7
03
Toadman significantly scaled its operations, increasing its workforce from 27 to 80 employees to support large-scale production and internal game development.See it on page 4
04
The company launched its first proprietary title, Immortal: Unchained, which achieved sales of over 53,000 copies within its first three weeks of release.See it on page 4
05
Toadman secured letters of intent with Leyou for projects valued at 10 million USD, covering the continuation of 'Project Osiris' and work on established franchises.See it on page 2
06
The company maintains a stable financial position with 10.5 million SEK in cash holdings and an equity base of 27.7 million SEK.See it on page 7
07
Future growth is anchored by a development pipeline that includes the upcoming title Project I.G.I. 3 as the company shifts toward higher-risk proprietary projects.See it on page 4

Summary

Toadman Interactive’s interim report for the period of June 1, 2018, to August 31, 2018, details a significant growth phase characterized by corporate expansion, the launch of its first proprietary title, and a transition into a group structure. The company’s primary objective is to solidify its position as a leading developer and publisher of role-playing games (RPG) through a strategy of internal development, strategic acquisitions, and the provision of development consulting services.

Financial performance during the quarter showed a 61% increase in revenue, reaching 11.8 million SEK compared to 7.3 million SEK in the previous year. Despite this top-line growth, the company reported an EBIT loss of 3.15 million SEK, largely influenced by the costs associated with its expansion and the development of its own intellectual property. The company’s financial position remains robust, with 10.5 million SEK in cash and bank holdings and a strong equity base of 27.7 million SEK. The workforce expanded significantly during the period, growing from 27 to 80 employees to support the production of large-scale projects and internal game development.

Key operational milestones include the acquisition of the Norwegian studio Artplant AS, which facilitated the company’s transition into a multi-national group. Following the reporting period, Toadman launched its first self-developed title, Immortal: Unchained, which sold over 53,000 copies in its first three weeks. Additionally, the company secured letters of intent with Leyou for projects valued at 10 million USD, covering the continuation of "Project Osiris" and new work related to established franchises. These developments, alongside a pipeline of upcoming titles such as Project I.G.I. 3, reflect the company’s shift toward higher-risk, higher-reward proprietary projects while maintaining its core consulting business.