Fragbite Group AB (publ) ("Fragbite Group" or "The Company") hereby issues the interim report for the period 1 January to 30 June 2025.
Second quarter 2025
| Revenue | SEK 43.7 million | (49.8) |
| EBITDA | SEK 1.4 million | (-6.6) |
| Adjusted EBITDA | SEK -0.4 million | (-1.1) |
| Operational EBIT (1) | SEK -1.2 million | (-9.4) |
| EBIT | SEK -57.3 million | (-41.6) |
| Result after tax (2) | SEK -46.5 million | (-2.1) |
| Cash flow from operating activities | SEK -1.2 million | (-6.0) |
| Diluted earnings per share (3) | SEK -6.27 | (-9.83) |
First six months 2025
| Revenue | SEK 86.0 million | (102.3) |
| EBITDA | SEK 2.1 million | (-1.5) |
| Adjusted EBITDA | SEK 0.2 million | (4.0) |
| Operational EBIT (1) | SEK -3.5 million | (-7.0) |
| EBIT | SEK -75.1 million | (-80.9) |
| Result after tax (2) | SEK -64.0 million | (-62.6) |
| Cash flow from operating activities | SEK 0.9 million | (-3.4) |
| Diluted earnings per share (3) | SEK -8.60 | (-286.56) |
1) Operational EBIT is defined as EBIT excluding non-operational amortisation and impairment of intangible assets
2) In the Group's earnings for the quarter, SEK -29.7 million relates to the sale of subsidiaries Lucky Kat and Wagmi.
3) Per number of shares at the end of the period
CEO Stefan Tengvall comments
Revenue amounted to SEK 43.7 (49.8) million, a decline of SEK 6.1 million compared with 2024, partly due to currency effects and partly due to lower revenue in the Esports and Gaming business areas. The quarter was mainly affected by Playdigious having few game releases. However, the releases later in the summer have shown a very strong performance. EBITDA continues to reflect the cost reductions carried out during 2024 and the Company's ability to subsequently maintain lower cost levels, particularly in the Parent Company.
Subnautica - milestone for Playdigious
Subnautica was finally released in July. After several postponements of the release over the course of a long period, we are delighted to have both announced and seen the effects of Playdigious' most significant ported IP to date. The successful release resulted in high rankings on Google and Apple, high player ratings and a satisfied IP owner. The game's revenue contributed to a strong result for Playdigious in July, and the title is expected to continue generating good results going forward.
The second quarter as a whole was financially weak for Playdigious, as major titles did not reach the market until the third quarter. Fretless, which was also successfully released in July, had been pushed back from May, which had a significant negative impact on the second quarter. Teenage Mutant Ninja Turtles: Shredder's Revenge was released on Apple and Google in April and Crown Gambit for PC was released in June. Crown Gambit has not met expectations during its initial post-release period and Playdigious is working on new marketing activities to address this.
Looking ahead, the next game will be the mobile version of Chants of Sennaar, releasing this week. Popular title Don't Starve Together is in the pipeline and is one of the IPs in which the subsidiary has most confidence over the long term. In addition, two not yet announced mobile titles are scheduled for release in the fourth quarter, and after receiving approval in China, Playdigious is in dialogue with its publishing partner to finalise the release date for Spiritfarer on the Chinese market. Work is in progress to further increase the portfolio's exposure in China.
FunRock Prey expands
Since early 2024, FunRock Prey has successfully delivered a turnaround and achieved profitability in both proprietary game development and the hybrid work-for-hire (WFH) vertical. The subsidiary reported a stable quarter with revenue slightly above forecast and is well on the way to achieving updated financial targets for the full year 2025, including a forecast EBITDA of SEK 4 million compared with SEK 0.6 million for the full year 2024. Growth is mainly driven by hybrid WFH, which recently reached a milestone with the release of the first white-label game, for which FunRock Prey is entitled to revenue share - an additional upside if the title performs well. Expansion and rebranding of the business vertical is ongoing. Since the start of the year, the establishment of hybrid WFH has also enabled the subsidiary to allocate time in periods to the development of a new mobile game, and we hope to present the concept in connection with the next interim report.
New esports IP but challenges for Config
During the period, the Swedish CS League (sv: Svenska CS-ligan) was introduced - a new IP with an inaugural tournament that was both profitable and well received by viewers. The tournament also served as the Swedish qualifier for Elisa Nordic Championship 2025. However, the quarter was very weak for the Esports business area, mainly due to Config generating lower revenue than expected, driven by a significantly subdued consultancy market. In March, the Config Ads business vertical was launched - an advertising network focused on gaming and esports. To date, the business has only been run at test level as third-party technical integration has unfortunately been delayed. The subsidiary expects to roll out full operations towards the end of the year. In the near term, we look forward to the start of the qualifiers for this year's edition of Sweden's largest esports tournament the Swedish Cup.
Sale of Lucky Kat and Wagmi
On 31 May, the Company signed an agreement to sell all its remaining shares in subsidiaries Lucky Kat and Wagmi. The decision to divest was difficult and made with a heavy heart, particularly with regard to the Lucky Kat employees who have delivered with commitment and on a high, professional level over a long period of time. I would like to extend my personal gratitude to them. The sale was prompted by the negative financial trend that had persisted since the beginning of 2024, the subsidiaries' repeated inability to meet their own forecasts, operational leadership that did not meet expectations and the significant strain that the negative cash flow placed on the Group as a whole. Given Fragbite Group's decentralised governance model, the Board concluded there was insufficient time to step in and establish a new organisation and capitalise on all the subsidiaries' assets - IPs, digital assets, structural capital and expertise - without draining the other subsidiaries too much. In this situation, the sale was the best solution for the Group.
The agreement includes revenue-sharing from the hyper-casual portfolio for 30 months, which fits well with Fragbite Group's strategy of an IP-centric business. We hope that Lucky Kat and Wagmi will continue operations, and realise the potential of their assets, and that these IPs will continue to generate revenue for the Group over time.
Bitcoin Treasury - charting new paths forward
On 30 June, Fragbite Group established the Bitcoin Treasury business area, which has had a flying start and gotten a very positive response. The new business area enables surpluses to be invested in Bitcoin with the aim of building a strong capital structure, while also opening up new financing opportunities. Bitcoin Treasury has raised SEK 11 million in seed liquidity through favourable convertible loans, and the Bitcoin holding is growing. The decision to introduce Bitcoin on the balance sheet is based on the Company's conviction in its potential as a long-term store of value and strategic asset for Fragbite Group's growth.
Increasing shareholder value using Bitcoin as leverage is a long-term strategy, and we see an opportunity here to be at the forefront in the Nordic region with active Bitcoin investment alongside continued development of our core operations in gaming and esports. We know our shareholders are already familiar with blockchain-based digital assets and modern financial structures, making this a natural next step for Fragbite Group. The Company is now working towards closing 2025 with 100 bitcoin on the balance sheet, which has been adopted as a financial target.
Strategic review and focus on profitability
The strategic review initiated in conjunction with the sale of Lucky Kat and Wagmi is ongoing. We have made solid progress in terms of restructuring and finding solutions to reduce the debt level and
close 2025 with profitability across the entire Group. We look forward to establishing a new, clear and competitive strategic platform this fall and sharing it with our shareholders.
Stockholm 26 August 2025
Stefan Tengvall, President and CEO
The report is attached to this press release and available for download from the Fragbite Group website: www.fragbitegroup.com/financial-reports
For questions, please contact:
Erika Mattsson, Chief Communications Officer
ir@fragbitegroup.com
Phone: +46 8 520 277 82
Redeye AB is the Company's Certified Adviser.
About us
Fragbite Group (publ) is a Swedish corporate group with a portfolio of established subsidiaries that develop, adapt and publish games and esports content within GAMING, ESPORTS and WEB3. Our products are developed for both traditional platforms - PC, mobile and console - and modern platforms built on blockchain technology. The Group is headquartered in Stockholm and listed on Nasdaq First North Growth Market.
This information is information that Fragbite Group AB 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 2025-08-26 08:00 CEST.
