INTERIM REPORT 1 JANUARY- 31 MARCH 2020

Record low customer acquisition costs, collaborations with more Minecraft YouTubers, an established advertising model, the development of a more mobile-friendly social user interface for new content sharing, Adventure Box Pro and Academy concepts, and a further strengthened organization pave the way for an exciting second quarter.

QUARTER JANUARY 1 - MARCH 31 IN SUMMARY

· The company's net sales during the quarter was SEK 0,0 million (SEK 0.0 million)

· Net profit amounted to SEK -5,1 million (SEK -0,9 million)

· 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 -5,8 million (SEK -2.9 million)

· The company's cash and cash equivalents amounted to SEK 4,8 million (SEK 0.6 million) at the end of the quarter.

· The company's equity at the end of the quarter amounted to SEK 27,0 million (SEK 18,2 million)

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

· 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 April, 1,701,756 visitors visited www.adventurebox.com, of which 359,556 were return visitors.

· The average cost of purchased traffic in January was SEK 0.12 per website visitor

· Advertising messages were viewed 819,929 times in January

· Average revenue per thousand advertising views during January was SEK 26

CEO STATEMENT

The video game industry's revenue is twice that of the movie industry and eight times greater than that of the music industry. This growing market motivates our company's mission; to make it easy and fun to create, share and play computer games. We break down barriers that prevent people from expressing themselves through computer game creation.

To achieve our vision of becoming the globally leading sharing platform for consumer-created games, we involve our users. Our users' recommendations to friends and acquaintances to create, share and play can make our growth exponential.

During Q1 we saw our already low user acquisition costs drop further. We now acquire users at much lower cost levels than that for mobile app downloads. We tested a video advertising solution, which will be rolled out within weeks. This, together with product improvements that lead to user staying longer, can increase advertising revenue. In Q2 we will release a new mobile friendly social interface and improvements that allow users to create and share not only games but also game components such as their own designs for buildings, weapons or body-parts. We are trialing the Adventure Box Pro program that will allow users to earn real world cash from their creativity.

RECORD LOW CUSTOMER ACQUISITION COSTS

During the period January to April 2020, the number of website visitors increased from 821,519 to 1,701,756. The number of returning users increased from 195,980 to 359,556. Our average cost of purchased traffic (per website visitor) was SEK 0.23 in January, SEK 0.21 in February, SEK 0.15 in March and SEK 0.12 in April. This can be compared with industry average costs per install for mobile app games of SEK 20-30. It is the attractiveness of our offering and the simplicity of our one-click streaming technology, which avoids downloads and installs, that allows us to achieve such low Customer Acquisition Costs.

ADDITIONAL MINECRAFT YOUTUBERS

In December, we conducted our first marketing campaign with Minecraft YouTubers. Minecraft YouTubers are idols and role models. When they recommend Adventure Box to their followers it strengthens our brand. In Q1 we added several YouTubers with a slightly larger following, including JonesGotGame, Beautiful O.B, and The Frustrated Gamer. Allowing Minecraft YouTubers to sell copies of their popular gaming worlds through Adventure Box will be an important source of income. We target offering them this possibility during Q2.

ADVERTISING REVENUES

January

February

March

April

Number of displayed advertising messages

439,355

556,026

734,766

819,929

Total advertising revenue (SEK)

17,698

20,573

24,982

21,318

Revenue per 1000 showed advertising messages (SEK)

40

37

34

26

Lately we have been testing video advertising, which we expect to release to production in May. Video advertising will increase advertising revenues over our current still image advertising (banners). Product improvements that will keep visitors longer, so they see more advertising messages, will also increase advertising revenues from current very low levels.

MOBILE FRIENDLY SOCIAL INTERFACE FOR SHARING NEW CONTENT

During Q1 a lot of effort has been focused on a new mobile friendly social interface and an updated content engine. Users will be able to not only create games, but also game components, such as their own buildings, weapons and body parts. The social interface will promote sharing and connecting with friends. The new social interface is currently being tested and its first iteration will be released in May. The next step is allowing users to resell their unique content.

ADVENTURE BOX PRO AND ACADEMY

Users who wish to earn money from their Adventure Box game making capabilities can now apply to become Adventure Box Pros at pro.adventurebox.com. Prior to market launch of the program we have already received 40 signups. We are also experimenting with the Adventure Box Academy where users will be able to sign up to learn new game design skills. Adventure Box Pros shall be able to quality to be coached in the Adventure Box Academy.

STRENGTHENED OUR ORGANIZATION

We have continued strengthening our development organization to allow us to improve our product faster. During Q1 we added to highly qualified programmers to our Stockholm office.

At the end of Q1 2020, our organization consisted of 11 full-time employees, 3 full-time consultants and 4 part-time consultants. We have staff in Stockholm (13), Paris (2), Seville (1), Malta (1) and Kerala, India (1).

CASH

The company's revenue is still modest, the costs mainly relate to salaries, product development, operations and marketing. Cash and cash equivalents as of March 31, SEK 4,795 thousand. Following a new share issue in April, the company has approximately SEK 13 million in liquid funds. Until May 31, options can be exercised for 47,340 shares at SEK 9.40 for a total of SEK 444,996.

COVID-19 RELATED MEASURES

We closely monitor the spread of COVID-19 around the world. We have taken proactive measures to reduce the risks to our employees and ensure that our operations continue to run smoothly.

These measures include working from home and cancelling all business travel. Since we are an online company with employees in five countries, virtual meetings are already established working methods. We observe that Customer Acquisition Costs continue to decrease. 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 usual daily chores change drastically.

The deep technology work done by our development group during Q1 is resulting in a new content engine and a new mobile friendly social interface to be released during May and refined over the coming months. These new capabilities will bring further improvements in returning users, user creativity and monetization.

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 14 May 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,chris@adventurebox.com, corp.adventurebox.com

Certified Advisor FNCA Sweden AB, +46(0)8-528 00 399, info@fnca.se

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.

NY CFO TILL ADVENTURE BOX

Adventure Box rekryterar som ny Chief Finance Officer Sofia Nilsson. Sofia kommer närmast från en position som VP GROW and Head of Accounting hos Nordic Insource Solutions AB. Hon tillträder sin tjänst den 20 april 2021 och efterträder nuvarande CFO Hans Richter.


ADVENTURE BOX WELCOMES NEW CFO

Adventure Box welcomes Sofia Nilsson as new Chief Financial Officer. Sofia leaves her current position as VP GROW and Head of Accounting at Nordic Insource Solutions AB and will begin her new role on April 20,th 2021, replacing the current CFO Hans Richter.


DECEMBER: ÖKAT ANVÄNDARENGAGEMANG MED FÄRRE ANVÄNDARE

Användarstudier och därpå genomförda produktförbättringar har resulterat i bättre användarbeteende, ökad tid spenderad på webbplatsen och fler återvändande användare.


DECEMBER: INCREASED USER ENGAGEMENT WITH FEWER USERS

User experience research followed by product improvements have resulted in better user behavior, increased time spent on site and more returning users.


ADVENTURE BOX JULBREV 2020-12-23

Kära Adventure Box-ägare och/eller Adventure Box-följare!


ADVENTURE BOX CHRISTMAS LETTER 2020-12-23

Dear Adventure Box owner and / or Adventure Box follower,


MICHAEL BENDSEN NY CREATIVE DIRECTOR PÅ ADVENTURE BOX

Efter ett framgångsrikt samarbete under 2020 går nu Michael Bendtsen, välkänd spelentrepenör och en av skaparna av spelplattformen KOGAMA, in i Adventure Box ledningsgrupp som Creative Director.


ADVENTURE BOX SIGNS MICHAEL BENDTSEN AS CREATIVE DIRECTOR

After an autumn of close and successful collaboration, Michael Bendtsen, a well-known games entrepreneur and one of the creative minds behind the gaming platform KOGAMA, joins the leadership team at Adventure Box AB as Creative Director.


Adventure Box byter likviditetsgarant till Pareto Securities

Adventure Box Technology AB (publ) ("Adventure Box" eller "Bolaget") meddelar härmed att Bolaget byter likviditetsgarant till Pareto Securities AB ("Pareto Securities"). Det nya avtalet träder i kraft den 1 februari 2021.


Adventure Box appoints Pareto Securities as liquidity provider

Adventure Box Technology AB (publ) ("Adventure Box" or "the Company") hereby announces that the Company is changing liquidity guarantor to Pareto Securities AB ("Pareto Securities"). The new agreement enters into force on February 1, 2021.


FOKUS GER FÄRRE BESÖKARE

Adventure Box sedan tidigare kommunicerade marknadsföringsstrategi, att fokusera på de användare som skapar och delar innehåll resulterar, som väntat, i initialt färre användare. 1-6 dec sjunker antalet webbsidesbesökare med 67% jämfört med 1-6 november.


FOCUS RESULTS IN FEWER USERS

Adventure Box's previously communicated marketing strategy, focusing on users who create and share content results, as expected, in initially less users. December 1-6, the number of website visitors decreases by 67% compared to November 1-6.


ANDELEN REGISTRERADE ANVÄNDARE ÖKAR TROTS MINSKAD ANNONSERING

Adventure Box har påbörjat en ny strategi fokuserad på att attrahera spelskapare som registrerar sig och skapar spel och har som en del i denna strategi avslutat marknadsföring mot andra kundsegment. Strategin har fallit väl ut och antalet nyregistrerade konton har ökat med 26% jämfört med oktober trots en total minskning av antalet webbsidesbesökare med 42%.


Registered Adventure Box Users Increase Despite Reduced Ad Spend

New strategy places focus on game makers


Adventure Box Technologies Delårsrapport 2020Q3

Ett kvartal kännetecknat av produktleverans och stark användartillväxt följdes upp med en nyemission som gör bolaget finansiellt starkare än någonsin förr.


Adventure Box Technologies Interim Report 2020Q3

A quarter characterized by product delivery and strong user growth was followed by a new share issue that makes the company financially stronger than ever before.


STABILT ANVÄNDARINTRESSE EFTER ÄNDRAT STRATEGIFOKUS

I linje med förväntningarna från den nya strategin fokuserad på organisk tillväxt, visar oktober på endast en mindre minskning av det totala antalet användare. Detta trots, sedan andra halvan av oktober, kraftigt minskad marknadsföring.


STABLE USER INTEREST AFTER CHANGED STRATEGY FOCUS

In line with expectations from the new strategy focused on organic growth, October shows only a small reduction in the total number of users. This despite sharply reduced marketing since the second half of October. User interest remains stable.


EN YTTERLIGARE FOKUSERAD TILLVÄXTSTRATEGI

Med stärkt kassa prioriterar nu Adventure Box fullt ut viral tillväxt.


A MORE FOCUSED GROWTH STRATEGY

With strengthened liquidity, Adventure Box now fully prioritizes viral growth.


Följ oss

Om beQuoted

beQuoted publicerar nyheter, analyser och pressmeddelanden för investerare och journalister. Viktiga företagshändelser bevakas av vår egen nyhetsredaktion och vidaredistribueras i ledande finansiella medier.

Vi uppdaterar även nyhetsrum, Investor Relations och IR-webbplatser för företag som vill utveckla sina relationer med finansmarknaden.

Kontakta oss

beQuoted AB
Sturegatan 32
114 36 Stockholm

08-692 21 90

Om beQuoted