First quarter, 1 January - 31 March 2025
- Net sales increased by 48 percent to SEK 45.4 million (30.6), mainly due to strong new sales of gaming projects.
- EBITDA amounted to SEK -3.1 million (-22.0). The reduced loss is mainly due to increased sales, combined with reduced operating expenses.
- Adjusted EBITDA amounted to SEK -3.1 million (-19.7). Adjusted EBITDA excludes non-recurring costs of SEK 0.0 million (-2.6).
- EBIT amounted to SEK -3.5 million (-24.7).
- Profit before tax amounted to SEK -5.4 million (-23.9).
- Earnings per share before and after dilution amounted to SEK -0.16 (-4.28)*.
- Cash and cash equivalents amounted to SEK 11.2 million (12.3) as of March 31, 2025.
* Comparative figures for earnings per share have been adjusted to reflect the reverse share split 100:1 resolved at the Annual General Meeting on January 30, 2024.
Significant events during the first quarter
- On January 18, 2025, Goodbye Kansas Studios received another large order from an existing international customer for the production of a game trailer for a game project. The total value of the order amounts to approximately SEK 39 million. The project started immediately and will run until the third quarter of 2025.
- On March 5, 2025, FUNTASTIK STUDIOS LIMITED, a subsidiary of NY VFXWAALA, subscribed for 11,111,111 shares in Goodbye Kansas Group through conversion of its entire convertible loan of SEK 15 million. Through the conversion, NY VFXWAALA became the owner of approximately 34 percent of all shares and votes in Goodbye Kansas, and thus the company's largest shareholder. The transaction consolidates and strengthens the strategic partnership between Goodbye Kansas and NY VFXWAALA.
Significant events after the period
- On April 14, 2025, Goodbye Kansas Studios received a significant order from a new commercial customer for the production of content for a large immersive video installation, in parts a new market with interesting opportunities. The total order value amounts to approximately SEK 20 million, the project began immediately and will run until the third quarter of 2025.
CEO comments
Dear shareholders,
Goodbye Kansas once again had a quarter with significantly increased sales and reduced operating expenses compared to the corresponding period last year. Although we do not match the strong development for the fourth quarter of 2024, I see a clear recovery in the business. The outcome is in line with the outlook we communicated in the previous quarter and clearly shows that the achieved cost reductions means that we can approach a breakeven result, even at lower revenue levels. We can obviously not be content with a negative EBITDA for the period but the quarter was yet another step in the right direction on the road we have set out. The gaming market remains our most important market, while we continue to wait for a recovery for the VFX market. We have won a few smaller VFX-orders during the quarter and I remain optimistic that we will see a stronger VFX market during the year. The strategic restructuring, in combination with our India-initiative, has created a stronger company with the right prerequisites to drive profitable growth.
Game projects main driver of growth
During the quarter, we saw a positive development with significantly increased revenues compared to the corresponding period last year, and the development is driven by gaming-related revenues.
Sales in the first quarter increased by 48% to SEK 45.4 million and EBITDA amounted to SEK -3.1 million, while total cash flow amounted to SEK -6.3 million. Although the period's result is negative, it is my view that we yet again can sum up a quarter that shows the company's recovery and in particular our improved cost structure, which creates prerequisites for increased profitability as our revenues grow. We know, and have clearly communicated, that quarters will display volatility but we are on the right way to stabilize the company's financial performance. Our focus on new sales continues, while we have started to deliver on the important orders received during the previous and current quarter, from both existing and new customers, and in addition we continue to focus on strong cost control.
Improved competitiveness for VFX
We are making progress in building our joint venture with NY VFXWAALA in India and during the quarter we recruited a Head of Operations who has now also taken office and who will lead the business operations. An intensive recruitment process of both management and artists is underway, and we are very pleased with the strong response we have received in the form of many applications. An expanded production capacity in Mumbai, initially focused on VFX, is crucial for us to be able to meet growing demand, and an important factor in our work to achieve improved margins. It is also clear that our establishment of Goodbye Kansas Asia has created great interest among customers locally in the region.
Client activity in the VFX market has increased significantly and we are in concrete dialogues with a number of international clients, where we believe that we are in a good position to win new assignments. Overall, we see significant revenue potential, although it may be another quarter until we see more substantial revenues.
Financial outlook
In 2023, the company announced an outlook for net sales and EBITDA margin for 2024 and 2025. For 2025, net sales were forecast in the range of SEK 280-310 million with an EBITDA margin of 10%. The Group's business development is essentially in line with the positive assumptions that formed the basis for the outlook. However, uncertainty in the world around us has increased markedly in the second quarter of 2025, such as global instability regarding economic development and investment climate. This, combined with the risk for changed international conditions within our market segments, may have an adverse impact on the demand for the company's services. In addition, there is some uncertainty about the consequences of the restructuring that has taken place among our competitors, although it has, and should generate new business opportunities. As a result of these uncertainties, the Board of Directors has decided to withdraw the current outlook, and reformulate it as a target for the Group. The Group will continue to work towards the goal of reaching sales in the range of SEK 280-310 million and an EBITDA margin of 10%, but this should no longer be perceived as a forecast. I would like to emphasize that this does not mean that we are currently making a different forecast that deviates from the previous one, but we note that the uncertainty regarding the future has increased significantly. For the remainder of the year, we will not provide any new guidance or guidance for the financial year's revenue and profitability.
Goodbye Kansas on the right track
We are clearly continuing on our chosen path, with increased sales and retained cost control to deliver stable quarterly results and profitable growth.
We see more activity in existing markets going forward, in the US as well as Europe, but we also see uncertainty with both turbulence and a growing risk of increased protectionism, which may affect our markets going forward. The gaming market is still partly turbulent but with strong underlying demand and growth. We also continue to believe that film and TV companies will demand more VFX services in the coming year.
With our competitive customer offering, focus on delivering high-quality projects in combination with our lean cost structure, we are well equipped to take on opportunities in existing and new markets, and deliver profitable growth.
Stefan Danieli
CEO
Goodbye Kansas Group
For more information, please contact:
Stefan Danieli, CEO, Goodbye Kansas Group
E-mail: stefan.danieli@goodbyekansas.com
Tel: +46 701 981049
Goodbye Kansas Group
Goodbye Kansas Group AB (publ) is a leading supplier of technology-driven visual content and develops solutions for visual effects (VFX), animation, game trailers and In-Game. The Group has some of the world's leading entertainment companies as customers. Goodbye Kansas Group has its head office in Stockholm and is listed on Nasdaq First North Growth Market with Wildeco as Certified Adviser.
This information is information that Goodbye Kansas Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-04-29 08:00 CEST.
