Punktid Technologies
Company Announcement

Punktid Technologies AS group's results for the third quarter of 2023

Punktid Technologies AS (hereinafter Punktid) group ended the third quarter of 2023 with a profit of over EUR 23,000. Although the sales revenue decreased, the expenses also decreased, due to which we have already reached a profit that was planned as a goal by the end of the year.

The sales of Punktid Technologies AS (hereinafter Punktid) in the third quarter of 2023 totalled EUR 379 000 and decreased by 35% compared to the third quarter of 2022 (the sales of the third quarter of 2022 were EUR 586 000). Of this, EUR 256 000 were the gross sum of the mediation service of the Punktid platform, which decreased by 47% compared to the third quarter of 2022 (the gross sum of the mediation service in the third quarter of 2022 was EUR 376 000).

In addition, in the third quarter, the wholesale of HVK Business OÜ decreased by 71% compared to the same period last year (the wholesale of the third quarter of 2022 was EUR 209 000 and the wholesale of the third quarter of 2023 was EUR 122 000). 

The goal for the third quarter was to continue moving towards profit, which is why various investments were suspended. We worked on cost cutting and essential work, and we also minimized wholesale to keep the main focus on stabilizing the platform. The difference between platform sales in Q2 and Q3 is small. This tells us that platform sales have stabilized, as the third quarter has always been a low season. We saw a further drop in sales in July, which rebounded in September. Unfortunately, we do not see a similar increase as we have seen in Septembers of the previous years. One of the main reasons is the reduced purchasing power of people both in the Baltic region and across Europe. We can also conclude this from the fact that website traffic has not decreased, and the number of purchases actually increased in September compared to August, but the average shopping cart amount has decreased.

As a result of reducing the usual aggressive marketing, our turnover numbers have also fallen, similar to the previous quarter. At the same time, thanks to the new platform and improved SEO (search engine optimization for the homepage), the organic findability of the homepage has increased, which shows that our visibility in search engines is better and the homepage is more stable.

By the end of the third quarter, we had stabilized the Punktid platform, and in August and September we did not observe any factors hindering sales. The existing development work with the Punktid team and the main partner Trinidad Wiseman OÜ focuses mainly on the back-end work and the correction of the remaining errors there. At the end of the third quarter, we also terminated cooperation with one of the smaller development partners who failed to complete the development work assigned to them. This forced us to take over their work as well, which is a financial loss for Punktid for the work already paid and at the same time adds an additional burden to our team.

Progresses on the Punktid platform:

• Web page speed: We have solved problems related to web page loading speed. The shopping experience is now faster and more convenient.
• Order Status: We have fixed bugs related to checking order status. Users can now once again track the progress of their orders.
• Improved code sending speed: We have improved our code sending process. If there are no problems with the order and the codes are in stock with the suppliers, they will be sent out within minutes, allowing the user to start using their purchases immediately.
• Improved customer support system: We have improved our customer support system. In case there is a problem with the ordered code, one can easily upload all the necessary information to speed up the resolution of their concerns, and in addition, customer support will be able to solve problems and questions more quickly.
• 404 error messages: We have solved a lot of 404 error messages. This allows for smooth navigation in our online store again.
• ESTO payment options: We have restored the ESTO payment options for our Estonian users. This allows the user to split their payments into smaller, more manageable instalments.
• Gifts: As a completely new addition, the user can now add up to two special gifts to their order. These gifts may consist of free trials or subscriptions to various services. Gifts can be selected in the shopping cart and are offered by our partners.

In addition to the already difficult times, additional problems were added in the third quarter through our payment service provider Kevin EU, who covers all payments through our platform across Europe. Due to those problems, we were forced to partially limit our service. You can read more here: https://view.news.eu.nasdaq.com/view?id=bcfbe17a1baa71acfd10099f0f818fa62&lang=en

By mutual agreement, we will also end cooperation with the current payment service provider Kevin EU. Starting from November, Montonio Finance OÜ will cover the Baltic and Finnish payments of the Punktid platform.

Due to the unplanned change of payment service and the fact that, unlike Kevin EU, Montonio Finance OÜ does not cover German banks, the opening of the German market will be postponed until we find a stable partner for banks in the German market.

To survive the given period and maintain liquidity, the owner was forced to sell additional shares and lend the received money to the Punktid group. You can read more here: https://view.news.eu.nasdaq.com/view?id=b0021c0262dfd81f5443e209cf66ba588&lang=en

We thank all partners and customers who have been understanding and flexible during difficult times. We are getting back on track despite the difficulties of launching the platform and the added economic pressure. Platform performance and sales have stabilized, and we can now focus on profit and growth.

Additional information:

Hannes Niid
Management Board Member of Punktid Technologies AS
E-mail: invest@punktid.com