Q4 2024 MOBA Network AB Earnings Call Transcript
Key Points
- MOBA Network AB (OSTO:MOBA) reported a strong quarter with a 13% increase in revenues.
- Cash flow before changes in working capital improved significantly to SEK10 million from SEK3 million.
- Adjusted EBITDA increased to SEK20 million from SEK18 million, indicating improved profitability.
- The company successfully repurchased bonds, owning 20% of the outstanding nominal amount, which strengthens its financial position.
- MOBA Network AB is strategically focusing on high-growth potential assets, enhancing user experiences and driving ad revenue and subscriptions.
- The company did not meet the ambitious targets set for the earnout related to the Wargraphs acquisition, due to a downturn in League of Legends' active users.
- The subscription model for Porofessor currently offers limited value with only ad-free features, which is not enough to scale effectively.
- MOBA Network AB is facing challenges in optimizing its diversified portfolio, requiring strategic prioritization of resources.
- There is a need for further bond repurchases to lower net debt, indicating ongoing financial optimization efforts.
- The company must balance its focus on both growth and profitability, with profitability being a top priority to improve the balance sheet.
Good morning, and welcome to this Q4 Q&A. We are here today with Anders Ribbing, the CEO of M.O.B.A. Network. But before we dive into the numbers, Anders, can you please give us a short introduction of M.O.B.A. Network?
Sure. M.O.B.A. Network, we operate a diverse portfolio of gaming community platforms, in-game apps, and creator network, with a vision to become the go-to destination for gamers and creators worldwide. We engage millions of users across many of the world's most popular games, and we monetize our business mainly through advertising. But also, we're increasingly focused on adding subscriptions to the revenue mix.
And you released your interim report this morning. Are you happy with the results?
Yes, it's a strong quarter. We
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