Punktid Technologies
Company Announcement

Punktid Technologies AS group's results for the Q2 2022 - growth of 23% compared to the same period last year

The sales of Punktid Technologies AS (hereinafter Punktid) in the second quarter of 2022 totaled EUR 623,000  and increased by 23% compared to the second quarter of 2021 (the sales of the second quarter of 2021 were EUR 505,000). Out of this, EUR 406,000 were the gross amount of mediation service* of the Punktid platform, which increased by 16% compared to the second quarter of 2021 (the amount of mediation service in the same period of 2021 was EUR 350,000).

In addition, in the second quarter, the wholesale of HVK Business OÜ increased by 40% compared to the same period last year (the wholesale of the second quarter of 2021 was EUR 155,000 and the second quarter of 2022 was EUR 217,000).

“The second quarter passed positively, in April we achieved the highest monthly sales of Punktid ever, surpassing the usually successful December. Although sales vary between the languages of the Punktid platform, the general trend on it is good and on the rise. To achieve this, we implemented different offers and tested approaches for new customers. At the end of June, the translations of the Lithuanian domain of Punktid were finally completed, as a result of which we started to implement our goals in the Lithuanian market. We also significantly expanded the product range of Punktid, focusing mainly on products from different regions, which help bring sales from different countries around the world. In the second quarter, we significantly improved the speed of the existing system and in addition, were able to start the development of the new web system more vigorously,” commented Hannes Niid, a member of the management board of Punktid.

The table below illustrates the gross amounts received from the mediation service through the Punktid sales platform in the second quarter of 2022 compared to the results of the same period on 2021.

*The intermediary service includes the online sale of digital codes for video games, Nintendo, Playstation, Xbox, etc. through the Punktid sales platform managed by Gamekeys OÜ, a member of the Punktid group, both in Estonia and abroad. The gross amount is money received from the customers through the Punktid platform, also referred to as sales.

Table 1*

Total sales of the Punktid group in Q1 2022

*Numbers above 4000 euros in the table are rounded to the nearest thousand euros. The numbers given in the table are not yet final (i.e., these may change slightly), as the second quarter of 2022 has not yet been closed in accounting. The sales via the Ukrainian domain Punktid.com.ua is not reflected in this table because the sales under this domain are conducted by the franchisee under a franchise agreement.. Sales prognosis by years can be found on page 67 of the company description of Punktid. The sales target for this year is set at a total of € 2,805,000.

Comparison of the gross amount of mediation services for the second quarter of 2021 and 2022 by domains aimed at target markets**

*Numbers above 4000 euros in the table are rounded to the nearest thousand euros. The numbers given in the table are not yet final (i.e., these may change slightly), as the second quarter of 2022 has not yet been closed in accounting. The sales via the Ukrainian domain Punktid.com.ua is not reflected in this table because the sales under this domain are conducted by the franchisee under a franchise agreement.. Sales prognosis by years can be found on page 67 of the company description of Punktid. The sales target for this year is set at a total of € 2,805,000.

More precisely about the markets

The gross amount of the intermediary service of the Estonian domain (Punktid.ee) decreased by an average of 16% in the second quarter of 2022 compared to the same period in 2021. We did not make major changes in our operations and continued to position ourselves in the market in the same volume as before, but the high inflation that hit Estonia has forced people to change their consumption habits, as a result of which we also suffered a slight decline in the global market.

The growth of the gross amount of mediation services provided via the Latvian domain (Punktid.lv) compared to the same period last year was 15%. We have achieved a stable position in the market there, and we apply our own tested methods to maintain growth.

Through Punktid’s international English-language domain (Punktid.com), the mediation service has grown organically by an average of 96% in the second quarter of this year compared to the same period last year. The largest increase occurred in April, where the increase was 980% compared to April 2021.

In the second quarter of 2022, the gross amount of the intermediary service of the Russian-language domain (Punktid.ru, which is mainly aimed at customers from the Baltic countries) fell by an average of 54% compared to the same period last year. The decrease is mainly due to the fact that in the second quarter, a large part of the sellers of the game sector stopped their activities on the Russian market, leaving the customers using products sold via Russian domain without service. For this reason, the sales of one of the favorite products of our Russian-speaking clients, Russian region cards for Playstation, also decreased, which affected the sales result of Punktid.ru. Several users of Russian products living in the Baltic countries have started using other regions, which helps to maintain a stable turnover.

We started active marketing of the Lithuanian domain (Punktid.lt) only in June, which is why the previous results were only organic.

The Finnish-language domain (Punktid.fi) has grown strongly organically this year. From June, we started to support this market with a more specific marketing plan. The largest increase occurred in April, where the increase was 12,400% compared to April 2021.

The number of new orders and customers in the second quarter of 2022

In the second quarter of 2022, a total of 10,949 orders were placed in the Punktid online sales environment, of which 3,950 in April, 3,346 in May and 3,652 in June. A total of 2,160 new customers were added in the same period –846 in April, 708 in May and 605 in June.

The information published in this announcement on the gross amount of mediation service is not reflected in the financial statements of Punktid as according to the Estonian Financial Reporting Standard (EFS), sales revenue from the mediation service is only the commission, but not the gross amount collected under agreements. Nevertheless, Punktid assesses its growth and success solely on the basis of sale by Gamekeys OÜ (i.e., the gross amount of the mediation service). Punktid gives investors a brief overview of sales results on a monthly basis and a more comprehensive overview every quarter.

Contacts for additional information

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

Punktid Technologies AS is a holding company established and operating in Estonia which has two subsidiaries, Gamekeys OÜ and HVK Business OÜ. Punktid group owns and develops the largest online sales environment for digital codes of video games, Nintendo, PlayStation and Xbox in Estonia, whereas:

• The main activity of Gamekeys OÜ is the mediation of the world's best-known video games and video game gift cards in an online environment and the related customer service and marketing both in Estonia and abroad; and
• The main activity of HVK Business OÜ is the wholesale of video games and gift cards for business customers, Punktid.com IT project development and sale of the right to use the Punktid.com platform.