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2021-07-21

Interim report Jan-June 2021: Improved sales for Q2 compared to Q1 but the pandemic continues to affect earnings.

Goodbye Kansas Group's net sales for the second quarter increased by 8 percent compared to the first quarter this year. However, net sales and EBITDA for the quarter compared to pro forma for the same period last year are still negatively affected by the pandemic.

CEO Peter Levin comments:

“We had increased net sales compared to the first quarter this year and an increase in license revenue for the same period. However, in the comparison of net sales and EBITDA with pro forma for the same period last year, the second quarter is still negatively affected by the pandemic.

During the quarter, we have worked intensively to focus the company in line with the strategic direction we presented in the spring. A cost optimization program has been initiated, which we expect will take full effect from January 2022, with an annual lower cost of SEK 38 million. At the same time, the Board of Directors will propose a directed rights issue of SEK 100 million, which is 100% guaranteed through subscription and guarantee commitments, at an extraordinary general meeting in September.

We are in a transition and remain to certain parts in a strong hold of the pandemic, especially concerning film & TV production. However, we see clear signs of for us important segments now opening up and we are in pool position to seize these opportunities. The group’s total sales pipeline remains strong for the second half of the year and internationally diversified.”

Read the full CEO comment and the Interim Report here:
https://goodbyekansasgroup.com/investor-relations/financial-report


Second quarter, April 1 – June 30, 2021

  • Net sales increased to SEK 63.7 million (47.9).
    Goodbye Kansas Holding is included as from May 2020.
  • Earnings before depreciation and amortization (EBITDA) amounted to
    SEK 15.0 million (-4.7).
  • Earnings before interest and tax (EBIT) amounted to SEK -27.6 million (-15.8)
    of which amortization of goodwill amounts to SEK 7.8 million (7.4).
  • Earnings before tax amounted to SEK -23.3 million (-18.8).
  • Earnings per share amounted to -SEK 0.22 (-0.22).

Second quarter, pro forma comparison

  • Net sales amounted to SEK 63.7 million (68.9). 
    Compared to first quarter 2021 amounted net sales to SEK 63.7 million (58.9)
  • EBITDA amounted to SEK-15.0 million (-6.6.) 
    Compared to first quarter 2021 amounted EBITDA to SEK-15.0 million (-9.5) 
  • Net sales and EBITDA for the second quarter are lower compared to the same period 2020 mainly because of the exposure towards the film & TV industry. However net sales has recovered compared to the first quarter 2021.

First half year, January 1– June 30, 2021

  • Net sales amounted to SEK 122.6 million (52.6).
  • Earnings before depreciation and amortization (EBITDA) amounted to
    SEK -24.4 million (-11.9).
  • Earnings before interest and tax (EBIT) amounted to SEK -50.4 million (-27.1)
    of which amortization of goodwill amounts to SEK 14.9 million (10.6).
  • Earnings before tax amounted to SEK -51.5 million (-30.1).
  • Earnings per share amounted to SEK -0.48 (-0.36)
  • Cash on hand amounted to SEK 21.9 million (59.3) as of June 30.

First half year, pro forma comparison

  • Net sales amounted to SEK 122.6 million (150.1).
  • EBITDA amounted to SEK-24.4 million (-5.4.)
  • Net sales and EBITDA for the second quarter are lower compared
    to the same period 2020 because of the pandemic.

Key events in the second quarter

  • New financial targets were decided by the Board of Directors; average annual sales growth of 20% and to reach an EBITDA margin exceeding 20% by 2024
  • Goodbye Kansas Group secured financing from LDA Capital, major shareholders and Nordea. LDA Capital offers the company the opportunity, but not an obligation, to raise up to SEK 175 million through directed issues over a three-year period.
  • The Annual General Meeting resolved to change the name to Goodbye Kansas Group. The market-listed stock is trading under Goodbye Kansas Group (short name: GBK) as of May 3.
  • Partnerships with Keywords Studios and their studio Electric Square were entered into to complete the production of the location-based mobile game Hello Kitty AR: Kawaii World ahead of the game’s launch in 2022.
  • An additional re-seller agreement was signed for the UK market for the product VR Fire Trainer
  • Markus Manninen was appointed Managing Director of Goodbye Kansas Studios. He has worked at Dreamworks in Los Angeles and Shanghai and Framestore in London. He has soid experience of companies in growth with a focus on advanced digital visualization and has a broad international track record.

Key events after the period

  • The Board of Directors of Goodbye Kansas Group proposes a fully guaranteed rights issue of approximately SEK 100 million that is subject to a resolution at an Extraordinary General Meeting in September
  • Management and the Board initiated a cost optimization program based on the new financial targets. Fully implemented, the program is expected to deliver approximately SEK 38 million in lower annual costs that will give full effect from January 1, 2022. Together with the rights issue, it will enable the acceleration of Goodbye Kansas Studios to continue, focusing on the launch of the location-based mobile game Hello Kitty 2022 and the product development of proprietary IP and scalable solutions.
  • Modelio Equity AB provides the company with a bridge loan facility of SEK 55 million in July that will be repaid in connection with the upcoming rights issue.


For further information, please contact:
Peter Levin, CEO and Managing Director, Goodbye Kansas Group
e-mail: peter.levin@goodbyekansas.com Phone: +46 (0) 73 041 63 93

Goodbye Kansas Group
Goodbye Kansas Group AB (publ) is a leading company in visual content and emerging technology. The Company creates award-winning visual experiences for all media and offers products and solutions with the possibility to scale, combining cutting-edge technology with world-class artistry. Services include VFX, Virtual Reality (VR), Augmented Reality (AR), Performance Capture & Scanning, Real Time expertise, Design, Animation, production of Game Cinematics, Digital Humans and development of IP’s & scalable products.

The Group comprises of: Goodbye Kansas Studios (Visual experiences for film, TV and games), Infinite Entertainment (Film/ TV co-productions & IP development), Vobling (Virtual training and XR) Sayduck (3D/AR SaaS solutions for e-commerce), Virtual Brains (Location based mobile games) and Plotagon (3D animation film engine). Goodbye Kansas Group is listed on the Nasdaq First North Growth Market and has studios and offices in Stockholm (HQ), London, Helsinki, Vilnius, Belgrade, Los Angeles, Beijing & Manila.

The Company has G&W Fondkommission as Certified Adviser, Kungsgatan 3, Stockholm, Stockholm, email: ca@gwkapital.se, phone. +46 (0)8-503 000 50.

This information is inside information that Goodbye Kansas Group AB (publ) is obliged to make public under the EU Market Abuse Regulation 596/2014. The information was provided by the contact person set out above for publication at 2021-07-21 08:30 CEST.

Attachments


Goodbye Kansas Group Interim Report Q2 2021

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