JANUARY - MARCH 2025
- Net revenue amounted to MSEK 3.7 (4.7), a decrease of 21 percent, and a decrease of 22 percent in comparable currency.
- EBITDA amounted to MSEK 0.7 MSEK (-1.2).
- Operating result, EBIT, amounted to MSEK -2.3 (-3.9).
- Result for the quarter amounted to MSEK -2.3 (-3.9).
- Earnings per share were SEK -0.10 (-0.34) before and after dilution.
- Cash flow from operating activities was MSEK 0.4 (-1.8).
- Cash and cash equivalents amounted to MSEK 3.8 (1.8).
- Average Revenue Per Daily Active User (ARPDAU) amounted to USD 0.071 (0.083), a decrease of 14 percent compared to the previous year.
- Unique Monthly Active Users (MAU) during the quarter amounted to 0.7 million (0.9).
- The number of outstanding shares at the end of the period was 22,238,211. There were no subscription warrants issued at the end of the period.
A FEW WORDS FROM OUR CEO
We begin 2025 with a positive EBITDA, continued cost control, and improved cash flow from operating activities. While we have not yet reached full cash flow neutrality, the development confirms that we have strong control over both our business and cost structure - and are moving steadily in the right direction.
Based on this, our focus is clear, and we are working toward two key objectives:
- To launch the version of Fishing Tour that we have developed over an extended period and now consider scalable - and, by the third quarter, present clear results, strategy, and a business model for Fishing Tour - and thereby for SOZAP.
- To approach a cash flow neutral position during the year through the continued development of Questopia and through our partnership with Supersonic.
Fishing Tour has been developed with the ambition to create long-term engagement - to become a natural part of the user's daily digital experience, supported by a clear and measurable business model, quarter by quarter. That is the type of product needed in a market saturated with titles competing for short-term attention, often with weak long-term user retention.
In hindsight, this ambition has led to delays and higher development costs than we initially anticipated. But we are following the latest communicated timeline, and a major update is now set to launch during the second quarter. This update is not just another milestone in the development - it is a confirmation, or an ending. If the outcome lives up to the expectations, we will be able to present a product that generates shareholder value, quarter by quarter. If not, we may need to make strategic decisions, including further efficiency measures, alternative financing, or - as a last resort - evaluate a potential sale.
During the quarter, Questopia was updated with new content, which had a positive effect on both user retention and revenue per user. Our investments in user acquisition have yielded solid returns, and each update has the potential to accelerate growth. We continue development with the aim of improving key metrics and enabling increased marketing efforts.
Our partnership with Supersonic has evolved positively and was extended during the quarter. As an established player with deep experience, they have given us valuable insights - and confirmed that our team delivers at the level required in today's global mobile games market. In the event of a launch and successful scaling, we believe this title also has the potential to contribute to stronger cash flow.
Cost control remains a clear priority. During the quarter, we made further adjustments to our administrative structure. At the same time, it is clear that the cost of being a publicly traded company now represents a disproportionately large share of our overhead. This is an ongoing area of evaluation for us.
Fishing Tour must now prove itself. If the KPIs meet our expectations, we have a product that can carry weight - and clearly demonstrate SOZAP's potential to both investors and the market.
Rade Prokopovic
Chief Executive Officer
FINANCIAL CALENDAR
All financial reports are published on https://www.sozap.com/ir/financial-reports
- Interim Report first quarter 2025: 15 Aug 2025
- Interim Report first quarter 2025: 14 Nov 2025
- Year-End Report 2025: 13 Feb 2026
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, May 16, 2025
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.
For additional information, please contact:
Rade Prokopovic, VD
Email: rade@sozap.com
Telefon: +46 708 800 558
Certified Adviser
As a publicly traded company at Nasdaq First North Growth Market Stockholm, the company must have a certified adviser. SOZAP has chosen Augment Partners AB as Certified Adviser (www.augment.se).
About SOZAP
SOZAP is a Swedish digital entertainment company that develops qualitative and innovative games with the ambition of building a product portfolio which appeals to a broad target group. SOZAP was founded in 2014 and shortly after established its first development team, focusing on games in the shooter genre. SOZAP has offices in Nyköping (Sweden) and Niš (Serbia).
Important Information
This press release may contain forward looking statements reflecting the Company's current view on future events, as well as financial and operational development. Expressions like "intends", "aims", "expects", "may", "estimates", "plans" and other expressions that indicate or predict future development or trends, and which are not based on historical facts, are forward-looking statements. Such forward-looking statements are based on assumptions or estimates and the Company makes no assurance that such statements will be fulfilled or prove to be correct. The Company also does not assume responsibility for the future accuracy of the information.
This information is information that SOZAP 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 2025-05-16 07:00 CEST.
