Profit and loss, in summary, group
Oct-Dec
Jan-Dec
SEK thousands
2023
2022
2023
2022
Revenue
1.029
2.980
6.802
8.445
EBITDA
-2.858
-17.225
-14.579
-23.598
Adjusted EBITDA
-1.858
-5.846
-9.205
-12.219
Depreciation, amortization and impairment losses
-951
-53.198
-27.350
-54.208
Earnings Before Interest and Taxes (EBIT)
-3.822
-70.426
-41.945
-77.828
Profit/loss for the period
-22.160
-72.025
-58.254
-67.680
EPS
-0,14
-0,49
-0,36
-1,58
GROUPRESULTS
Twelve months january – december2023
REVENUE.The group's net sales amounted to6,802 TSEK (8,445), a decrease of 19% compared to the corresponding period lastyear.
EBITDA.The group's EBITDA for the periodamounted to –14,579 TSEK (-23,598 TSEK). The adjusted EBITDA amounted to –9,205(-12,219 TSEK) excluding EBITDA losses for Tricked and one-off items.
RESULTS.The group's net result for theperiod amounted to -58,254 TSEK (-67,680 TSEK), an improvement of 14%. Earningsper share* were -0.36 SEK (-1.58 SEK).
Fourthquarter 2024
REVENUE.The group's net sales amounted to1,029 TSEK (2,980 TSEK), a decrease of 65% compared to the corresponding periodof the previous year.
EBITDA.The group's EBITDA for the periodamounted to –2,858 TSEK (-17,225 TSEK). The adjusted EBITDA amounted to –1,858TSEK (-5,846 TSEK) excluding one-time items.
RESULTS.The group's net result for theperiod amounted to -22,160 TSEK (-72,025 TSEK). Earnings per share* were -0.14SEK (-0.49 SEK).
*Earningsper share: the result is divided by theaverage number of shares for the period. The total number of shares in thecompany as of December 31, 2023, amounts to 162,116,244. The average number ofshares for the fourth quarter of 2023 was 161,446,178. The average number ofshares for 2023 was 161,894,513.
SIGNIFICANTEVENTS AFTER THE END OF THE PERIOD
February2: Outcome of the rights issue.
February7: Rightbridge signs a licensingagreement for the world-famous non-violence foundation about Knot OK.
February16: Rightbridge's portfolio company1337 signs an agreement with Adventure Box to promote the growth of the Kogamaplatform.
February22: Rightbridge and Adventure Box enterinto a strategic partnership to develop Crazy Frog.
CEO'sLetter
Dearshareholders,
Ithas been an intense and transformative period since October 2023 when I tookover the role as CEO of Rightbridge Ventures. The fourth quarter, and also thebeginning of the year, have been characterized by a major transition. In ashort time, we have taken significant steps in the creation of the futureRightbridge. An investment company that owns and manages growth companieswithin gaming, digital media, and IP rights.
Wehave quickly taken several important steps to realize this ambition. At thesame time, powerful actions have been taken to reduce exposure to unprofitableassets, which is clearly reflected in the report for the fourth quarter. Athorough review of our holdings has been conducted. Where values of assets thatno longer reflect their true potential have been consistently written down.
Wehave not only revised and renewed our business strategy, but we have alsoimplemented critical actions to optimize our portfolio and create a strongfoundation for growth.
Weare now ready to take the next step, which briefly means a focus on building anecosystem with clear synergies between a number of assets. Our ecosystem todayconsists of the IP rights around the phenomenon Crazy Frog, tech/Web 3, and theconsulting part where, among other things, the educational concept with Knot OKis included.
Wenow have a clear strategy going forward and an established change plan, whichincludes three exciting projects. One is Crazy Frog with over 8 billion viewson YouTube, which is an IP well-suited for all forms of online games. Anotheris several substantial discussions with actors within gaming forcollaborations. The third is Knot OK (based on the world-famous revolver wherethe barrel is a knot), which is still in the concept stage, but the interest inthe project is very positive. We are in full swing in developing Knot OK into amarketable product.
Wehave also invested in the Adventure Box platform with half a million monthlyusers. There we see clear synergies with both 1337 and Crazy Frog. We are herein a development stage where we expect to be able to present exciting projectsduring the spring.
Wehave created a platform where innovation and value creation are at the center.The focus is on securing further funding to accelerate our growth ambitions andcreate a solid foundation for growth.
Witha solid foundation, a passionate team, and exciting projects ahead, we lookforward to building the new Rightbridge Ventures. Together we will shape thefuture of the company and with good conditions to deliver a good return to ourshareholders.
ClaesKalborg
CEO
RightbridgeVentures Group
GROUPRESULTS
TheGroup's revenues for the fourth quarter amounted to 1,029 TSEK (2,980 TSEK).The majority of the decrease in revenue is attributable to fewer companies inthe group.
Externalcosts (64%) and personnel costs (36%) during Q4 2023 amounted to 3,877 TSEK(17,742 TSEK). The reduction is due to a decreased cost base for the group as aresult of divestitures of unprofitable assets.
EBITDAfor the period amounted to -2,858 TSEK (-17,225 TSEK) and adjusted EBITDAamounted to -1,858 TSEK (-5,846 TSEK). EBITDA for the full year amounts to-14,579 TSEK (-23,598 TSEK), where Tricked contributed a negative EBITDA of2,633 TSEK for the first 2 months of the year.
Thenet result for Q4 2023 amounted to -22,160 TSEK (-72,025 TSEK), which isattributable to write-downs of assets.
GroupBalance Sheet
Asshown in the Group's balance sheet as of December 31, 2023, the liabilitiesexceed the assets by 10,960 TSEK, which constitutes reported negative equity atthe group level. Short-term liabilities are significantly higher than currentassets. Other indications of significant uncertainty regarding continuedoperations include the size of net loans.
Thenegative equity at the group level is a result of an adjustment of the bookedvalue of the wholly-owned subsidiary Icandy Digital ("ICD"), whoseoperations are conducted in Singapore. The booked value of ICD amounted to31,000 TKR at the beginning of 2023. After the end of the quarter, the localauditors of ICD have reviewed the underlying asset ESPL, which is owned by ICDto 17%, and concluded that the future cash flows generated by the asset are notsatisfactory to justify the valuation of 31,000 TSEK, upon which the asset hasbeen written down to 0 TSEK. This adjustment is made in ICD's annual report forthe fiscal year 2021, which has a significant effect on Rightbridge's value ofICD. The adjustment has been booked against equity as a correction of errorsfrom previous years and together with currency adjustments, the adjustmentamounts to 45,000 TSEK resulting in negative equity at the group level.
Duringthe first quarter of 2024, Rightbridge has conducted a rights issue of 9,721TSEK to strengthen the balance sheet as a result of the write-downs anddivestments made during 2023. The company has carried out a thorough review ofthe business during Q4 and divested non-satisfactory assets as well as writtendown previous valuations. The equity of the parent company is positive as ofthe end of 2023.
TheBoard assesses and evaluates the conditions for continued operations andclosely monitors the financing and liquidity on an ongoing basis. The Boardbelieves that there are good conditions to carry out a new share issue and/orloan financing. Thereby, the Board considers it can manage the debts as theyfall due and ensure a sufficient capital base. The year-end report and groupaccounts for 2023 have been prepared on the assumption that operations willcontinue.
Sincethe appointment of the new board and management in the fall of 2023, thecompany has conducted a thorough review of the business and divested assetsthat do not align with the new strategy or written down assets whose potentialfuture cash flows are no longer considered achievable. As a result of this,significant write-downs have been made which have had a significant impact onthe group's financial position.
LIQUIDITYAND CASH FLOW GROUP
FourthQuarter 2023
Thecash flow from operating activities amounted to -1,000 TSEK (-3,582 TSEK). Cashflow from investing activities amounted to -22 TSEK (-11 TSEK). Cash flow fromfinancing activities amounted to 1,500 TSEK (2,840 TSEK).
Thenet cash flow for the period amounted to 477 TSEK (-753 TSEK). Cash balanceamounted to 902 TSEK (3,068 TSEK) at the end of the period.
Cashas of December 31, 2023, amounts to 902 TSEK. After the end of the quarter, thecompany completed a rights issue of 9,721 TSEK to strengthen the cash andbalance sheet in order to continue investing in new assets and manage the debt.The Board is continuously evaluating additional financing solutions and ispositive about being able to raise additional capital to continue financingoperations during 2024.
LIQUIDITYAND CASH FLOW GROUP
January– December 2023
Thecash flow from operating activities amounted to –10,714 TSEK (-13,180 TSEK).The cash flow from investing activities amounted to -30 TSEK (-441 TSEK). Thecash flow from financing activities amounted to 8,728 TSEK (15,039 TSEK).
Thenet cash flow for the period amounted to –2,016 TSEK (1,459 TSEK). Liquidassets at the end of the period amounted to 902 TSEK (3,068 TSEK).
PARENTCOMPANY'S RESULTS
Theparent company's revenues for the fourth quarter amounted to 0 TSEK (0 TSEK).EBITDA for the quarter amounted to –298 TSEK (-317 TSEK) The result for theperiod amounted to -69,884 TSEK (-102,903 TSEK).
LIQUIDITYAND CASH FLOW PARENT COMPANY
FourthQuarter 2023
Thecash flow from operating activities amounted to -362 TSEK (2,097 TSEK). Thecash flow from investing activities amounted to -1,146 TSEK (0 TSEK) which isrelated to shareholder loans to subsidiaries. The cash flow from financingactivities amounted to 1,674 TSEK (-162 TSEK). The cash flow for the periodamounted to 166 TSEK (1,935 TSEK). Liquid assets at the end of the periodamounted to 362 TSEK (2,000 TSEK).
January– December 2023
Thecash flow from operating activities amounted to -2,705 TSEK (-3,292 TSEK). Thecash flow from investing activities amounted to -6,107 TSEK (-1,234 TSEK) whichis related to shareholder loans to subsidiaries. The cash flow from financingactivities amounted to 7,174 TSEK (5,534 TSEK).
Thenet cash flow for the period amounted to -1,638 TSEK (1,008 TSEK). Liquidassets at the end of the period amounted to 362 TSEK (2,000 TSEK).
For more information, please contact:
Claes Kalborg, CEO
Phone: +46 73 444 55 07
Email: claes.kalborg@rightbridge.se
Mads Jorgensen, Chairman of the Board
Phone: +45 28 97 15 75
Email: mvj@bluehorizoninvestment.com
DISCLOSURE
This information is such that RightBridge Ventures Group 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 above contact person, on 2024-02-29 at 8.32 am
