BoomBit Group’s financial results for H1 2024

BoomBit, an international mobile game producer and publisher, has summarized its results and achievements for H1 2024:

• $28.1M in sales revenue for H1 2024, including
  $27.1M from mobile games and $1.0M from blockchain projects
• $1.0M in adjusted consolidated net profit and $3.3M in adjusted consolidated EBITDA
• Impact of one-time events on H1 2024 results:
  (+) $2.5M from accounting recognition of loss of control of the ADC Games
  (-) $1.1M from impairment write-downs of expenditures on development work
• The release of Dawn of Ages and a major update to Hunt Royale – Dark Forest
• $1.2M of approved dividends ($0.09 per share), payable in two tranches

In the first half of 2024, the BoomBit Group achieved revenues of $28.1M, of which $27.1M came from mobile games. Among the most popular titles were Hunt Royale ($5.0M), Darts Club ($3.9M), and Falling Art Ragdoll Simulator ($1.8M). Revenue from Mid-Core games amounted to about $15.1M ($18.5M in H1 2023), with lower revenue from this game segment due to limited User Acquisition expenses, mainly in Hunt Royale. Hyper-Casual genre games generated about $12.0M ($11.3M in H1 2023). This year, BoomBit Group successfully introduced new titles in this genre, such as Offroad Runner and Downhill Race League.

As previously announced, about 10 Mid-Core game titles are planned for release in 2024, developed internally and in collaboration with experienced external studios. Among the most important titles released this year are Bowling Club, developed by Stratosphere studio Dawn of Ages, and Car Sales Simulator from Digital Melody. Additionally, June saw the premiere of Dark Forest, the largest update in the history of Hunt Royale, significantly increasing the content and adding new gameplay elements. In September, Clash of Destiny debuted, and Dawn of Ages received another significant update, which has been achieving solid, repeatable results since its premiere in May. The publishing plan for the rest of the year includes titles such as Rest Stop Tycoon, Train King Tycoon, and Loot Heroes.

In the blockchain project segment, revenues of $1.0M came from NFT sales for the Hunters on Chain game amounting to $0.1M, revenues from a grant received from the Immutable protocol operator totaling $0.2M, and revenues of $0.6M from grants received from the NEAR Foundation by PlayEmber. The group continues to work on projects based on this technology. During the analyzed period, the accounting recognition of BoomBit Group’s loss of control over ADC Games influenced the results. In subsequent reporting periods, ADC, along with its subsidiaries, will be valued in the Company’s consolidated financial statement according to the equity method as an associated company. Based on the valuation made, the fair value of our shares in ADC Games amounted to $2.1M, and the pre-tax profit from this title amounted to $2.5M. In the income statement, this was partially offset by another one-time event, i.e., impairment write-downs of expenditures on development work totalling -$1.1M. After eliminating the impact of all these events, the consolidated adjusted EBITDA of the BoomBit Group in the first half of 2024 was $3.3M, and the adjusted consolidated net result was shaped at $1.0M.

In Q2 2024 alone, the Group had $3.0M EBITDA ($1.6M adjusted EBITDA) and $1.6M in profit ($0.4M adjusted). In the mobile games segment alone, these results were $1.6M adjusted EBITDA and $0.6M adjusted net profit. The blockchain segment had -$0.1M adjusted EBITDA and $0.3M net loss.

In June 2024, the Ordinary General Meeting decided on the distribution of dividends from part of the net profit earned for 2023. The total value of the dividend amounted to $1.2M, which is $0.09 per share.