• Revenue: Continued to deliver revenues despite portfolio transformation.
• Profitability: Delivered a profitable quarter with positive EBITDA.
• Financial Stability: Focus on maintaining existing profitability and cash flow.

Release Date: April 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Nitro Games PLC (OSTO:NITRO) delivered a profitable quarter despite undergoing a transformation in its brand portfolio.
• The company has a strong technical foundation, enabling it to deliver high-quality gaming experiences across multiple platforms.
• Nitro Games PLC (OSTO:NITRO) is expanding its game portfolio and exploring new platforms and audiences, aligning with its strategic goals for the year.
• The company has a flexible and scalable team structure, allowing it to adjust costs and resources efficiently.
• Nitro Games PLC (OSTO:NITRO) has a history of successful B2B partnerships and is actively seeking new opportunities in this area.

Negative Points

• The cancellation of a project with Netflix was a setback, impacting potential revenue streams.
• There is concern about maintaining cash positivity without new significant deals following the Netflix project cancellation.
• The company is in a transition phase, which has resulted in higher costs during the first quarter.
• Scalability challenges persist, particularly in balancing user acquisition costs with revenue generation.
• There is uncertainty regarding the timeline for new platform expansions and the realization of potential new partnerships.

Q & A Highlights

• Warning! GuruFocus has detected 3 Warning Signs with OSTO:NITRO.

Q: How does Nitro Games plan to stay cash positive after the cancellation of the Netflix project? A: Jussi Tahtinen, CEO, explained that Nitro Games has historically demonstrated financial stability by scaling costs according to staffing needs. The company maintains flexibility through specific arrangements and continues to pursue new deals, such as the recent iGaming deal, which, although smaller, offers potential upside over time.

Q: Is there a risk of a rights issue moving forward? A: Jussi Tahtinen, CEO, stated that Nitro Games is not planning any fundraisers at the moment, indicating confidence in their current financial strategy and stability.

Q: What is the plan for Autogun Heroes, given that it can be played for free on the web? A: Jussi Tahtinen, CEO, clarified that while Autogun Heroes is free to play on the web, revenue is generated through advertisements. The company is considering platform expansion, including potential launches on PlayStation and Xbox, given the game's design for cross-platform connectivity.

Q: Should we expect costs to come down in the upcoming quarters? A: Antti Villanen, Chief Strategy Officer, mentioned that while the first quarter involved transition-related costs, Nitro Games is cost-cautious and scales operations up or down as needed. Costs are expected to stabilize post-transition.

Q: How long is Nitro Games willing to invest in Autogun Heroes if scaling becomes expensive? A: Jussi Tahtinen, CEO, emphasized that decisions are data-driven. If scaling proves too costly, Nitro Games may scale down efforts and focus on live maintenance to keep the product profitable. They also explore other platforms and sectors to maximize asset value.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.