Jumpgate

Interim Report for January 1, 2025 to June 30, 2025

• Net turnover in the period amounted to 24 921 TSEK (34 850 TSEK). Net turnover in the second quarter amounted to 11 273 TSEK (18 450 TSEK).

• Earnings before interest and taxes (EBIT) amounted to -7 003 TSEK (-6 046 TSEK). Earnings before interest and taxes (EBIT) in the second quarter amounted to -1 390 TSEK (1 630 TSEK)

• The result after financial items amounted to – 9 601 TSEK (-12 891 TSEK). The result after financial items in the second quarter amounted to -3 651 TSEK (-1 988 TSEK).

• The result per share amounted to -0,836 SEK (-0,027 SEK) in the period. The result per share in the second quarter amounted to -0,317 SEK (-0,005 SEK).

• On April 30, it was announced that Jumpgate game Grand Prix of Europe was ready for launch in the end of July 2025 and that the Steam-, Xbox- and Play Station versions of the game were approved by the platform owners.

• On May 7, it was announced that the Company had entered into loan agreements for a total of ca 13.6 MSEK (of which ca 4.9 MSEK is refinancing of existing debt), proposes a directed issue of warrants to the lenders and resolves to carry out a rights issue of ca 10.2 MSEK.

• On May 7, the Company published its Board of Directors´ view on the potential of the future sales from the three game releases being planned for the second half of 2025. The view is based on the first 12 months of revenue following launch of each respective title, taking into account that the releases take place at different times and that the revenues therefore will accumulate over time, and comprises an interval of between 14 MSEK and 51 MSEK.

• On May 20, it was announced that the Company´s Hamburg based game studios were awarded 1.7 MSEK in public grants supporting prototypes for new game projects from Gamecity Hamburg.

• On May 22, it was announced that the Company had entered into a distribution agreement with THQ Nordic for the game Grand Prix of Europe.

• On June 2, it was announced that the Company had obtained approvals for ca 13.3 MSEK in public grants for three new game projects. The financing is received in the form of grants covering production costs and have been approved within the scope of the German program for game financing.

• On June 23, it was announced that the Company´s subsidiary Nukklear was releasing its 2D platform game Klaus Lee – Thunderballs on June 26.

• On June 27, it was announced that the Company had obtained project financing of 1.16 MSEK for a Nintendo Switch version of a yet to be announced game with planned release during the second half of 2025.

• After the period, on July 1, the outcome of the Company´s rights issue was announced with a subscription rate of 46.9 %. Through the share issue, the Company received ca 3.3 MSEK before transaction costs after conversion of debt amounting to ca 1.5 MSEK.

• After the period, on July 24, it was announced that the game Ed & Edda: GRAND PRIX – Racing Champions was released on PC, Sony Playstation 5, Xbox X/S and Nintendo Switch.

• After the period, on July 28, it was announced that the Company had extended the agreement with Professionel Bull Riders regarding rights for the game 8 to Glory.

• After the period, on August 5, it was announced that the Company had executed a second tranche of the loan amounting to 2.6 MSEK and resolved to issue free warrants to the lenders,

• After the period, on August 8, it was announced that the Company is developing a remaster of Sacred 2 in collaboration with THQ Nordic.

• After the period, on August 13, it was announced that the Company had received a payment of 2.2 MSEK for an achieved sales milestone for a work-for-hire project and that subsidiary Funatics had signed a new work-for-hire agreement with a contract value of 5 MSEK.

• After the period, on August 20, it was announced that the Company through its subsidiary gameXcite announced the coming game Star Trek Voyager: Across the Unknown in partnership with Daedalic and Paramount, a story based survival strategy game in the Star Trek-universe officially licensed by Paramount Consumer Products.

The ”Company” or ”Jumpgate” means Jumpgate AB with corporate registration number 556842-4062. Information in parentheses relate to the previous year.

Comment to the Interim Report

Improved results compared to the previous quarter

Due to the downsizing of the group since the previous year with the divestment of Tableflip Entertainment and additional significant layoffs, this section compares the quarterly results with the previous quarter to show the development in the current setup of the Company.

The second quarter delivered stable operating revenues compared with the previous quarter, with a slight increase from SEK 15.3 million to SEK 15.5 million. The studio divestment and staff reductions had a clear impact on costs, with operating expenses decreasing by 19.1% from SEK 20.9 million to SEK 16.9 million. As a result, operating profit improved significantly compared with the previous quarter from SEK -5.6 million to SEK -1.4 million.

Profit after financial items also improved, from –SEK 5.9 million to –SEK 3.7 million. The increase in financial costs was mainly due to negative currency effects and arrangement fees (non-cash flow impact) related to the loan raised in May.

New public funding strengthens the project pipeline

In May and June, the Group’s subsidiaries were awarded new public funding from Germany totalling approximately SEK 15 million. The grants cover two game prototypes and three new projects, with disbursements made gradually over the respective project periods. This additional funding further strengthens our pipeline beyond the three key launches planned for the second half of the year.

Revenue support of approximately SEK 8.4 million for the second half of the year

As noted in the Q1 interim report, increased revenues are necessary to return to profitability. It is therefore encouraging that through new project financing, work for hire, and a sales bonus, we are adding approximately SEK 8.4 million in revenues during the second half of the year.

I have recently returned from the Gamescom trade fair in Cologne. After a few challenging years for the games industry, it is encouraging to see a cautious sense of optimism returning. We continue to work with focus on securing additional agreements – both in the form of external funding for our own projects and new contract work.

Three key launches in the second half of the year

We have three important titles scheduled for release in the second half of the year:

• Ed & Edda: Grand Prix – Racing Champions (launched at the end of July)
• Sacred 2 Remaster
• Star Trek: Voyager – Across the Unknown

As previously communicated, the Board estimates that these three titles combined have the potential to generate revenues in the range of SEK 14–51 million during the 12 months following each release. There are no activated costs for these games on the balance sheet, which is very positive for the impact of the game revenues on the result.

Ed & Edda

The launch has been well received by players, although sales are currently tracking at the lower end of our projections. As primarily a retail-focused product, sales have exceeded expectations through external retail channels, while performance in Europa-Park’s own channels has been weaker. We are addressing this with improved store placement and additional marketing efforts in the park, supported by upcoming game updates. We still expect a positive return on investment, albeit over a longer period than initially anticipated.

Sacred 2 Remaster

Announced in early August, the title has been warmly received by its loyal player base. Engagement on community forums has been strong, and a substantial number of players have added the game to their Steam wishlist – a key leading indicator for PC launches. Revenues for Jumpgate will only accrue once external financiers have achieved a predetermined return, which means we do not expect revenues from Sacred 2 during 2025.

Star Trek: Voyager – Across the Unknown

Unveiled at Gamescom, the title has received very strong attention from industry media, community forums, and fans. The response from Trekkies has been particularly encouraging, reflected in high levels of wishlist activity on Steam. With revenue sharing in place from launch, the title represents a significant upside and has the potential to become a major breakthrough for Jumpgate if the release is successful.

Summarizing, we are feeling positive about our release pipeline, our business development efforts, and the overall position of the company going forward. Considering our substantial efforts to set up the business in a very lean and efficient manner, we are in a good position to capitalize from an improved business environment and successful releases (fingers crossed) moving forward.

Harald Riegler
CEO, Jumpgate AB

About the Company

Jumpgate AB is an independent group of game development companies founded in 2011, comprising four game studios: Nukklear (Hannover), Tivola Games (Hamburg), gameXcite (Hamburg) and Funatics (Düsseldorf). The group develops and publishes its own games as well as developing games and other digital products for external companies. The companies in the group have established collaborations with strong industry partners and exciting product portfolios with large potential. The group is engaged in the global market, distributing games on a worldwide basis and has a large international network. For more information: www.jumpgategames.se