INTERIM REPORT 1 APRIL- 30 JUNE 2020
With the introduction of video ads and the ability for users to create and trade computer game components Adventure Box take important steps towards monetization.
QUARTER APRIL 1 - JUNE 30 IN SUMMARY
· The company's net sales during the quarter was SEK 50 thousand (SEK 10 thousand)
· Net profit amounted to SEK -3,194 thousand (SEK -393 thousand)
· Earnings / share was SEK -0.56 (SEK -0,76). Not comparable due to split 1: 5 during summer 2019
· Net cash flow before financial items was SEK -4,421 thousand (SEK -1,095 thousand)
· The company's cash and cash equivalents amounted to SEK 9,900 thousand (SEK 18,533 thousand) at the end of the quarter.
· The company's equity at the end of the quarter amounted to SEK 34,428 thousand (SEK 40,633 thousand)
· In the beginning of April a share issue of 1,412,231 shares at a rate of SEK 6.50 was carried out. Based on the average rate of SEK 7.61 for the preceding 20 days of the share issue, the rebate was approximately 15% on the rate. The capital injection of equity was SEK 9.2 million. The number of shares is 10,625,242 following upon the share issue.
· During June, 1,144,703 visitors visited www.adventurebox.com, of which 256,273were return visitors.
· The average cost of purchased traffic in June was SEK 0.12 per website visitor
· Advertising messages were viewed 647,153 times in June
· Average revenue per thousand advertising views during June was SEK 21
· In June Adventure Box changed Certified Advisor to Redeye AB.
· Video ads were shown on the platform in June
· The subsidiary Adventure Box Incentive AB was formed in June with the purpose of administering the group's incentive programs.
PERIOD JANUARY 1 - JUNE 30 IN SUMMARY
· The company's net sales during the period was SEK 94 thousand (SEK 10 thousand)
· Net profit amounted to SEK -7 270 thousand (SEK -1 287 thousand)
· Earnings / share was SEK -0.56 (SEK -0,76). Not comparable due to split 1: 5 during summer 2019
· Net cash flow before financial items was SEK -10 220 thousand (SEK -3 980 thousand)
SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD
· In June ALMI granted a loan of SEK 3,000 thousand.
· The ability to create and trade in game content using a platform currency was introduced.
· The changed marketing strategy and improved product leads to more users registering accounts and regularly returning to the platform.
· Test results from the video model show high revenues per advertising spot (18 USD per 1,000 shows in the U.S., compared to 6-8 USD which is normal for YouTube).
CEO STATEMENT: THE PIECES ARE STARTING TO FALL INTO PLACE
We continue to take great strides towards our vision to become the globally dominated sharing platform for user-created computer games.
Two of our business models are now in place. The advertising model has been expanded from still image advertising only to better paid video advertising. We have introduced a platform currency (Adventure BUX) and opportunities for users to buy and sell game components.
The rapid development during the summer has been made possible by the basic platform improvements we made during the winter and spring. We can now faster build new user interfaces for both PC/Mac and mobile devices (mobiles and tablets). Our users can now create and share not only computer games but also the components with which computer games are created.
We have started to introduce a more social user interface where users can invite friends and see when their friends play games or publish games or game content. When our users invite their friends to interact with them on Adventure Box, they make our growth organic and exponentially viral.
Today, we manually share revenue with a select few users. In the future, we will automate the process of sharing revenue with our users. Revenue sharing takes place within our Adventure Box Pro program (pro.adventurebox.com).
We have also started the prototype development of Adventure Box Academy where new game developers can learn how to make really good games and how to make money by creating games and game components (academy.adventurebox.com). Successful and licensed Adventure Box game developers describe how they create their games and are available as paid mentors to new game creators.
The changed marketing strategy and the improved product result in more users registering accounts and becoming returning users.
We continue to work on improving the opportunities for our users to create, interact and have fun and we continue to improve our business models. The goal is rapid viral exponential growth and over time increasing revenue.
A FOCUSED MARKET STRATEGY
Since the autumn of 2019, the number of Adventure Box visitors has increased by over 5000%, from 36,196 visitors in August 2019 to 2,112,754 in May 2020. We have learned how to reach different types of users and achieved customer acquisition costs more than 100 times lower than those for mobile app installations. As we now move towards the revenue generation phase, we have shifted our focus to users who are expected to generate higher revenue. We are now opting out of those visitors who are not expected to generate revenue. By shifting focus to high-value users, returning users and users who publish content, we lay the foundation for viral growth. It is only through virality that we reach the goal of becoming the dominant social platform for gaming.
During June and July, we started experimenting with the video advertising model. We now show fewer still image advertising messages. In the future, we will scale up the amount of video advertising that is shown.
Number of displayed still commercials
1 486 555
Revenue per 1000 displayed still advertising messages (SEK)
Early test results from the video advertising model show high revenue per ad impression ($ 18 per thousand ad impressions in the US compared to, say, $ 6-8 as is normal for YouTube).
CASH AND CASH EQUIVALENTS
The company's revenues are still modest, the costs mainly relate to salaries, product development, operations and marketing.
In July, ALMI granted the company a loan of SEK 3 million. This loan has not yet been repaid. Liquidity as of June 30 is SEK 9.9 million, the loan of SEK 3 million from ALMI not included.
Until 1 October 2020, options can be exercised for 110,110 shares at SEK 20 for a total of SEK 2,202,200.
The company assesses that there is great global commercial potential but cannot with certainty predict revenue levels. If revenues do not develop in accordance with the Company's assessments, the Company needs to consider measures including additional capital raising. The company may also decide that additional expansion capital is needed. As there is a great deal of interest in investing in the Company, the Company considers the opportunities to be good to obtain additional financing. The Board has a mandate from the Annual General Meeting to issue shares and / or convertibles and / or warrants in order to be able to handle the financing issue.
COVID-19 RELATED ACTIONS
We closely monitor the spread of COVID-19 around the world. We have taken proactive measures to reduce the risks for our employees and ensure that our operations continue to function smoothly. These measures include working from home and stopping all business trips. As we are an online company with employees in five countries, virtual meetings are already an established working method. The costs of customer acquisition have since Corona decreased. We cannot conclude that this is due to the spread of COVID-19, but it may be that more people choose to play and create their own games when their daily routine changes drastically.
Christopher Kingdon, CEO, Adventure Box Technology AB (publ)
This information is such that Adventure Box Technology AB (publ) is required to disclose in accordance with the EU Market Abuse Regulation. Information was provided through the above contact persons' publication for publication on 28 August 2020 at 8:00 CET.
The interim report is attached in its entirety.
FOR MORE INFORMATION CONTACT:
Christopher Kingdon, CEO Adventure Box, +46 (0)73 051 1414,
ABOUT ADVENTURE BOX TECHNOLOGY AB
Adventure Box makes it easy, and fun to make, share and play 3D games online. The company's world-leading streaming technology is patent protected. Founded in Stockholm 2014, the company also has staff in Paris, Seville, Malta and Kerala (India). Adventure Box is traded at Nasdaq First North Growth Market under the short name ADVBOX and ISIN code SE0012955276. Redeye AB with email email@example.com and phone number +46 8 121 576 90 is the company's Certified Adviser.
En av hjärnorna bakom spelplattformen KoGaMa har påbörjat sitt samarbete med Adventure Box. Arbetet består inte bara av att öka antalet nya användare, utan även av att hantera ett mycket stort flöde av duktiga spelskapare mellan KoGaMa och Adventure Box.
One of the brains behind the gaming platform KoGaMa has begun his collaboration with Adventure Box. His work consists not only of increasing the number of new users, but also of managing an exceptionally large flow of skilled game creators between KoGaMa and Adventure Box.
Adventure Box genomför en riktad nyemission om 4 444 444 aktier och tillförs härigenom cirka 60 miljoner kronor
Adventure Box Technology AB (publ) ("Adventure Box" eller "Bolaget") har, i enlighet med vad som offentliggjordes i Bolagets pressmeddelande, beslutat om och genomfört en nyemission om 4 444 444 aktier (den "Riktade Nyemissionen"). Teckningskursen för aktierna i den Riktade Nyemissionen uppgick till 13,5 kronor per aktie. Genom den Riktade Nyemissionen tillförs Adventure Box cirka 60 miljoner kronor före avdrag för transaktionskostnader.
Adventure Box completes a directed new share issue of 4,444,444 new shares, raising proceeds of approximately SEK 60 million
Adventure Box Technology AB (publ) ("Adventure Box" or the "Company") has, as communicated in its press release, resolved on and carried out a new share issue of 4,444,444 shares (the "Directed New Share Issue"). The subscription price of the shares in the Directed New Share Issue amounts to SEK 13.5 per share. Through the Directed New Share Issue Adventure Box will receive proceeds amounting to approximately SEK 60 million before deduction of transaction costs.
Adventure Box Technology AB (publ) ("Adventure Box" eller "Bolaget") offentliggör härmed sin avsikt att genomföra en riktad nyemission om cirka 50 miljoner SEK till svenska och internationella institutionella investerare (den "Riktade Nyemissionen").
Adventure Box Technology AB (publ) ("Adventure Box" or the "Company") hereby announces its intention to carry out a directed new share issue of approximately SEK 50 million directed to Swedish and international institutional investors (the "Directed New Share Issue").
Både antalet Adventure Box-besökare och antalet registrerade användare ökar kraftigt. Antalet nya registrerade användare stiger i september med 110% jämfört med augusti. Samtidigt stiger antalet besökare med 48%. Den mycket låga kundanskaffningskostnaden bibehålls.
Both the number of Adventure Box visitors and the number of registered users increase sharply. The number of new registered users during September increased by 110% compared to August. The number of visitors increase by 48%. Customer acquisition cost remain at an extremely low level.
Styrelseakademins grundare, och sextonde störste ägare i Adventure Box, Öjvind Norberg tar plats i Adventure Box valberedning tillsammans med tredje största ägaren Lorang Andreassen och elfte störste ägaren Jonas Nordström.
The founder of Styrelseakademin, and sixteenth largest owner in Adventure Box, Öjvind Norberg takes a seat on Adventure Box's nomination committee together with the third largest owner Lorang Andreassen and the eleventh largest owner Jonas Nordström.
Den sociala aktiviteten på Adventure Box-plattformen har ökat med 18 gånger sedan den 1 juli. Trenden med fler användarskapade dataspelkomponenter fortsätter.
Social activity on the Adventure Box platform has increased by 18 times since July 1. The trend with more user-created computer game components continues.
Adventure Box har en plattform där en användare kan skapa spel som sen andra användare kan spela. Att få användare att skapa flera spel är ett av Adventure Box mål. Nu presenterar bolaget ny data som visar att de som skapar spel numera skapar betydligt fler spel per person, vilket passar väl in i Adventure Box strategi med användarskapat innehåll.
Adventure Box has a platform where a user can create games which then other can play. Getting users to create more games is one of the goals of Adventure Box. Now the company presents new data indicating that those who create games now create significantly more games per person. This fits well with the strategy with growing user-created content.
Adventure Box-användare importerar egna spelkomponenter. På sex veckor har Adventure Box bibliotek av spelkomponenter vuxit med över 150%. Dessutom publiceras nu över 27% av spelen som skapats på Adventure Box, upp från under 10% i mars.
Adventure Box users import their own game components. In six weeks, the Adventure Box library of game components has grown by over 150%. In addition, over 27% of the games created on Adventure Box are now published, up from under 10% in March.
Kära Adventure Box-följare! (in English below)
Dear Adventure Box followers,
Adventure Box ser ett stort och ökande intresse bland sina användare världen över för att skapa innehåll och tjäna pengar på sina dataspel. Adventure Box spelplattform kräver väldigt låg bandbredd och fungerar därför bra även i länder med begränsad internetkapacitet.
Adventure Box sees a large and growing interest among its users around the world to create content and make money from their computer games. The Adventure Box gaming platform requires exceptionally low bandwidth and therefore works well even in countries with limited internet capacity.
Adventure Box Technology AB