GDEU

This financial presentation details the unaudited operational and financial performance of a gaming company for the first quarter of 2024, providing comparative data against the same periods in 2022 and 2023. The primary objective is to report on the company's transition toward profitability and its strategic diversification across titles such as Hero Wars: Alliance, Hero Wars: Dominion Era, Island Hoppers, and Pixel Gun 3D. The scope of the data covers global bookings across mobile and PC platforms.

Financial results indicate a decline in total revenue from $119.3 million in Q1 2023 to $106.9 million in Q1 2024. Despite this drop in top-line revenue, the company significantly narrowed its losses. The loss for the period, net of tax, improved from $8.2 million in Q1 2023 to $1.4 million in Q1 2024. This improvement was driven by a reduction in operating expenses, particularly selling and marketing costs, which fell from $78.4 million to $63.2 million year-over-year. Consequently, the company achieved a positive profit from operations of $1.9 million in Q1 2024, compared to a $13.5 million loss in the prior year.

The methodology relies on IFRS standards alongside non-IFRS metrics like Adjusted EBITDA to assess core business performance. Adjusted EBITDA improved from negative $12 million in Q1 2023 to negative $3 million in Q1 2024. Key operating metrics used to evaluate health include Monthly Paying Users (MPUs), Bookings, and Average Bookings Per Paying User (ABPPU). Cash flow analysis shows a net increase in cash and cash equivalents of $12.9 million for the period, ending March 31, 2024, with a total cash balance of $84.6 million, despite significant financing outflows related to share buy-backs and put option payments.

The presentation reports the company’s financial performance for 2024, focusing on revenue growth, cost structure, and profitability metrics. Revenue increased from $420 million in 2023 to $480 million in 2024, driven by higher bookings and a broader user base across mobile and PC platforms. Platform commissions rose from $91 million to $130 million, while game operation costs grew modestly. Selling and marketing expenses fell from $209 million to $153 million, reflecting a shift toward more efficient customer acquisition. Net income before tax surged from $30 million to $50 million, and adjusted EBITDA rose from $42 million to $49 million after excluding non‑core items such as goodwill impairments, share‑based payments, and fair‑value adjustments.

Key operating metrics show monthly paying users at 359 k in Q4 2023, rising to 381 k by Q4 2024, with average bookings per paying user declining slightly from $294 to $278. Bookings grew from $106 million to $109 million, while average bookings per user fell by 3 %. Geographic diversification is evident, with Asia contributing 15 % of bookings and the US 13 %. The company’s balance sheet reflects a reduction in total assets from $321 million to $272 million, largely due to lower deferred revenue and a decline in trade receivables. Cash and cash equivalents rose from $72 million to $111 million, supported by strong operating cash flow of $28.5 million in 2024.

The methodology relies on unaudited IFRS‑compliant financial statements and a non‑IFRS Adjusted EBITDA measure that excludes items deemed non‑representative of core operations. The report covers the full 2024 fiscal year, with quarterly comparisons to 2023, and provides reconciliations between net income and Adjusted EBITDA.