(Oslo, 24 August 2022) – Play Magnus Group, a global leader in the chess industry, today published its financial results for the second quarter 2022 showing revenue of USD 5.9 million, a Y/Y growth of 16 percent. Second quarter 2022 bookings were USD 6.3 million, a growth of 4 percent Y/Y. Adjusted EBITDA was USD -2.0 million an improvement from USD -3.5 million in Q2 2021 and USD -2.5 million in Q1 2022.
“Play Magnus Group continues to grow, however we experienced a slowdown in our growth rate compared to previous quarters. This is a result of more challenging market conditions leading to a lower number of monthly paying users. We have during recent months enacted a significant program to adapt our cost base to the changed market environment, which has resulted in an improvement in adjusted EBITDA,” said CEO of Play Magnus Group Andreas Thome.
Play Magnus Group has previously communicated a target of reaching EBITDA break-even on a run-rate basis by the end of 2022 and continue with positive results in 2023.
“During the first quarter we reduced our cost base on an annual run rate basis by approx. USD 2 million, and now in the second quarter we have reduced our cost base on an annual run rate basis by an additional approx. USD 5 million, which is expected to begin showing impact from the third quarter 2022. This means that we are well on track to meet our EBITDA break-even target by the end of the year. We are also glad to see signs of recovery in the elearning segment in August,” Andreas Thome said.
Play Magnus Group sees a positive long-term outlook and maintains its annual run-rate bookings target of USD 100 million by the end of 2025.
Financial highlights in the second quarter 2022:
* Bookings USD 6.3 million (+4% Y/Y)
* Revenue USD 5.9 million (+16% Y/Y)
* Monthly Paying Users 57,300 (-5% Y/Y)
* Average Revenue per Paying User (ARPPU) USD 18.7 (+14% Y/Y)
* Adjusted EBITDA USD -2.0 million (-3.5 million in Q2 21)
This release is an announcement issued pursuant to legal information obligations and is subject of the disclosure requirements pursuant to the Market Abuse Regulation (MAR) Article 17 no. 1 and section 5-12 of the Norwegian Securities Trading Act, and was submitted for publication by Arkus Fredriksson, Chief Strategy Officer of Play Magnus Group.