APRIL – JUNE 2024
JANUARY – JUNE 2024
A FEW WORDS FROM OUR CEO
The second quarter of 2024 has been both eventful and motivating for us at SOZAP. Revenue during the quarter amounted to MSEK 4.7 (3.8), an increase of 24 percent, primarily driven by the ongoing global launch of Questopia. During the same period, we carried out a rights issue that provided the Company with MSEK 7.8, which has secured the capital necessary to continue developing and launching Fishing Tour.
In the second quarter we implemented the new user interface in Fishing Tour, which allows for regular updates to the game, with new game modes, live-ops and content. In the coming quarters, we will continue to update the game with new features and content. Our goal with these updates is to create the conditions to transition from an intensive development phase to one focusing on live-ops and full-scale global launch.
This will not only give us a full version of Fishing Tour, but also provide us with the flexibility necessary to ensure the Company achieves its financial target in the fourth quarter.
The development of Questopia continues, with new features and more playable content. The update launched in April has improved user retention and the average revenue per user. We launched another update with more playable content in July, and we plan to release several major updates in the coming quarter.
Our investments in user acquisition campaigns during the period have been positive, with an average payback time of 30 days. We expect the coming updates, where the focus will be on expanded playable content, to enable increased investment and attain the levels required to achieve the Company's financial goals in the fourth quarter.
Our collaboration with Voodoo in the Chinese market has not attained the levels we had aimed for, which has resulted in a mutual decision to terminate the publishing agreement. We are now opting to focus our internal resources on the markets where we have successfully launched, at the same time as exploring new opportunities to introduce Questopia to other markets and expand our user acquisition campaigns on more ad networks.
ARMED HEIST continues to see solid organic traffic on both the App Store and Google Play, with revenue and daily active users (DAU) in line with our expectations. During the quarter, we updated ARMED HEIST with our proprietary data processing and user monetization system, AGIM, and are continuing to optimize the game title with the aim of increasing net revenue.
The cost savings program continues to produce results. The saving during the second quarter was equivalent to MSEK 7 on an annual basis. We are continuing to adapt our organization to our two main goals: to launch a scalable version of Fishing Tour, and to become a ‘cash flow neutral’ company in the fourth quarter, calculated before investments in marketing for the growth of the game portfolio. Given that the positive development of Questopia continues, I believe that we have all the conditions in place to be able to achieve our financial goals during the fourth quarter.
Rade Prokopovic
Chief Executive Officer
FINANCIAL CALENDAR
All financial reports are published on https://www.sozap.com/ir/financial-reports
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, August 14, 2024
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.