Thunderful

Trading update January - March 2024 – preliminary numbers
 
Net revenue for the group decreased 28 percent to 391.7 MSEK (541.6) for the period.
 
In the Games segment, net revenue declined 36 percent to 69.0 MSEK (107.0) for the period. The decline in sales is mainly due to lower demand in the quarter compared to previous year.
 
In the Distribution segment, net revenue decreased 26 percent to 322.7 MSEK (434.6) for the period of which Bergsala decreased 33 percent to 129.1 MSEK (191.3), Amo Toys increased 14 percent to 129.3 MSEK (113.5) and Nordic Game Supply decreased 50 percent to 64.3 MSEK (129.8). Bergsala’s decline in sales is mainly due to weaker consumer demand. Amo Toys increase in sales is mainly due to continued strong consumer demand within the toys segment. Nordic Game Supply’s decline in sales is mainly due to continued discounted sales to reduce inventory levels.
 
Preliminary Adjusted EBITDA for the Group amounts to -28.9 MSEK (72.6) for the period. Preliminary Adjusted EBITDA for the Games segment amounts to -19.5 (57.8) MSEK for the first quarter, corresponding to an adjusted EBITDA margin of -28 percent. Adjustments to EBITDA amounts to 17.8 MSEK and are primarily attributable to the ongoing restructuring program announced on 17 January 2024. Adjusted EBITDA for the Distribution segment amounted to -2.2 MSEK (19.2) for the first quarter, corresponding to an adjusted EBITDA margin of -1 percent. Within the Distribution segment, Bergsala’s Adjusted EBITDA amounted to -2.9 MSEK (10.0), Amo Toys’ Adjusted EBITDA amounted to 14.8 MSEK (9.0) and NGS’ Adjusted EBITDA amounted to -14.0 MSEK (0.3).
 
The Group has continued to evaluate the games portfolio during the first quarter in connection with the restructuring program. This has led to write-downs related to capitalised game development costs of 72.4 MSEK for the period. The write-down has no impact on the cash flows of the Group.
 
Drawn credit facility amounted to 573.9 MSEK and consolidated cash and cash equivalents amounted to 70.9 MSEK as of 31 March 2024, corresponding to a net debt position excluding leasing debts of 503.0 MSEK. The majority of contingent earn-out liabilities payable in Q1 2024 has been postponed until later in 2024.
 
The Group continues to work on the restructuring program including evaluation of divestment of non-strategic assets.
 
The full report for the first quarter of 2024 will be released on 15 May 2024 as planned.