MindArk

For the full year 2023, net sales are expected to amount to approximately 121-123 MSEK, an increase of approximately 30-33 percent compared to the full year 2022. Operating profit is estimated to amount to approximately 19-21 MSEK, which corresponds to a decrease of approximately 1-11 percent compared to the full year 2022. Profit after financial items is estimated to amount to 18-20 MSEK, which is an increase of approximately 50-67 percent compared to the full year 2022. 

Reasons for the increase in revenue and profit in Q4 include the following:

• Usage in Entropia Universe has increased by 27.5%.
  • Usage is a measure of user activity and also the main driver of MindArk's net sales. 
• MindArk has adopted a new policy on how to account for allocation for unconsumed user holdings:
  • Previous methodology - Historically, the Company has calculated the allocation for unconsumed user holdings by looking at all previous years since the game's launch 20 years ago and taking into account the years when withdrawals were high. This methodology has given the Company a comprehensive overview of user behavior over time.
  • New policy - With the new policy, the company now focuses on the last five years of data to better reflect current user behavior and economic trends. This change aims to provide a more timely and relevant picture of the company's allocation needs for the unconsumed user holdings in Entropia Universe.
• Personnel costs are estimated to have decreased to 10.7 MSEK, a decrease of approximately 5 MSEK compared to Q4 2022 which amounted to 15.7 MSEK.

MindArk expects to publish the Q4 2023 report on February 28, 2024.