SOZAP

OCTOBER – DECEMBER 2024

• Net revenue amounted to MSEK 4.3 (4.7), a decrease of 10 percent, and a decrease of 11 percent in comparable currency.
• EBITDA amounted to MSEK 0.6 MSEK (-1.6).
• Operating result, EBIT, amounted to MSEK –2.3 (-3.4).
• Result for the quarter amounted to MSEK -2.3 (-3.4).
• Earnings per share were SEK -0.10 (-0.30) before and after dilution.
• Cash flow from operating activities was MSEK 0.3 (-2.3).
• Cash and cash equivalents amounted to MSEK 4.7 (6.3).
• Average Revenue Per Daily Active User (ARPDAU) amounted to USD 0.085 (0.089), a decrease of 4 percent compared to the previous year.
• Unique Monthly Active Users (MAU) during the quarter amounted to 0.7 million (0.9).
• The number of outstanding shares at the end of the period was 22 238 211. There were no subscription warrants issued at the end of the period, since all subscription warrants issued expired without having been exercised.

JANUARY – DECEMBER 2024

• Net revenue amounted to MSEK 17.5 (15.0), an increase of 17 percent, and an increase of 18 percent in comparable currency.
• EBITDA amounted to MSEK 0.1 MSEK (-3.0).
• Operating result, EBIT, amounted to MSEK –11.3 (-8.9).
• Result for the period amounted to MSEK -11.3 (-8.9).
• Earnings per share were SEK -0.65 (-0.91) before and after dilution.
• Cash flow from operating activities was MSEK -0.3 (-3.0).
• Average Revenue Per Daily Active User (ARPDAU) amounted to USD 0.089 (0.070), an increase of 27 percent compared to the previous year.
• Unique Monthly Active Users (MAU) during the quarter amounted to 0.8 million (0.8).
• The Board of Directors proposes that no dividend be paid for the financial year 2024.

A FEW WORDS FROM OUR CEO

We began 2024 with the goal of launching a scalable version of the Fishing Tour and achieving cash flow neutrality. Although we have not yet achieved full cash flow neutrality, we have delivered sequential improvements quarter by quarter during 2024. Cash flow from operating activities before changes in working capital has shifted from MSEK -1.5 in the fourth quarter of 2023 to MSEK +0.6 in the fourth quarter of 2024. Cash flow from investment activities also improved, from MSEK -2.9 to MSEK -1.3 during the same period.

As we enter 2025, the continued development of Questopia and our collaboration with Supersonic remain on track. If these initiatives continue to evolve positively, they will further strengthen our financial position.

We have implemented cost savings and established new revenue streams through partnerships. We have also ensured that the Fishing Tour team and development work can continue without interruption, even if we may need to make further efficiency improvements. Our continued priority is to launch the scalable version that we believe will meet the key performance indicators necessary to demonstrate the game’s long-term revenue potential and regain market confidence.

My plan going forward is clear. Fishing Tour will be launched in the spring. Our goal is for the game to prove its revenue potential and ensure that shareholders and the team can drive Fishing Tour’s continued success within SOZAP, maximizing its long-term value.

To succeed, we rely on several key factors: that we have made the right decisions during the development of Fishing Tour; that the team maintains the set schedule; and that our launched games, together with the collaboration with Supersonic, continue to develop in line with expectations. These interdependent factors are crucial for our available cash reserves to be sufficient and provide the best possible conditions to create long-term value for SOZAP and our shareholders.

At the same time, I am continuously evaluating strategic partnerships and other opportunities to ensure that the game’s value is realized in the most effective way. If developments do not progress as planned, we may need to make strategic decisions to optimize operations and financing, or explore potential strategic alternatives, including a possible divestment.

On behalf of the entire team, I would like to thank you for your continued support and trust. We now enter 2025 with a clear vision, ambitious goals, and a strong commitment to delivering results that benefit both our players and our shareholders.

Rade Prokopovic
Chief Executive Officer

FINANCIAL CALENDAR
All financial reports are published on https://www.sozap.com/ir/financial-reports

• Annual Report 2024: 2 Apr 2025
• Annual General Meeting: 6 May 2025
• Interim Report first quarter 2025: 16 May 2025
• Interim Report first quarter 2025: 15 Aug 2025
• Interim Report first quarter 2025: 14 Nov 2025
• Year-End Report 2025: 13 Feb 2026

BOARD OF DIRECTORS

The Board of Directors and the CEO affirm that the interim report provides a fair overview of the Parent Company’s and the Group’s operations, financial positions and results, and describes the significant risks and uncertainties which the Parent Company and the Group are facing.

Nyköping, February 14, 2025

Daniel Somos
Chair of the Board

Stefan Janse
Board member

Hanif Bali
Board member

Rade Prokopovic
CEO & Board member

This report and press release are translated versions of the Swedish originals. Every care has been taken in the translation of this document. In the event of discrepancies, the Swedish original will supersede the English translation.