Punktid Technologies
Interim information

Punktid Technologies AS consolidated six-month unaudited report

Management report

Punktid Technologies AS is a new generation computer game and gift card intermediary service provider, containing valuable content throughout the gaming sector.

The company provides all services under the Punktid brand and maintains a leading position in Estonia in the video game and gift card intermediary service market.

History

Punktid Technologies OÜ was established in February 2021, making it the parent company for HVK Business OÜ and Gamekeys OÜ (Punktid Group). In September 2021, Punktid Technologies OÜ was transformed into public limited company (Punktid Technologies AS).

Purpose

The purpose of Punktid Technologies AS is to consolidate all the activities of the Punktid Group under one parent company and also involve investments.

Gamekeys OÜ, a subsidiary of Punktid Technologies AS, is engaged in the digital mediation of computer games and various gift cards through the Punktid platform. The product range includes various brands such as Sony, Xbox, Steam, Origin, Blizzard, Rockstar, Nintendo, etc.

The activities of HVK Business OÜ, a subsidiary of Punktid Technologies AS, are wholesale trade related to the sale of games and game codes, development of the Punktid platform, and to a minimal extent retail trade in the form of selling sugar-free drinks on the GGSUPSS.ee page.

In the second half of 2022, we implemented the involved investments to fulfil development and growth plans.

Punktid platform development (IT service investments in the second half of 2022 totaling €174,808, of which €125,069 was the development of the Punktid platform and €49,739 other IT costs; labor costs totaling €143,206) and increasing retail sales in local and foreign markets (advertising costs in the total amount in the second half of 2022 €102,165).

In addition, as part of being on the stock exchange, legal and consultation costs in the amount of €18,919 had to be paid.

In the second half of 2022, intangible fixed assets increased from €125,241 to €239,676, equity changed from €803,196 to €559,188.

Economic indicators

In the period of 01.07-31.12 of the 2022 interim report, the sales revenue was €761,879, which consists of HVK Business OÜ sales and Gamekeys OÜ commission, and compared to the same period od 2022, the increase is 53.5%.

Punktid Group’s main focus is to grow Gamekeys OÜ’s brokerage service turnover. In the second half of 2022, services were sold to retail consumers through the Punktid platform for €974,351, from which the company received a commission of €180,308, which is an 83% increase in the commission compared to the same period of the previous year.

The volume of retain and wholesale sales totaled €1,561,051 in the second half of 2022. The increase compared to the same period in 2021 is 18%.

Punktid Group’s loss of €244,132 for the second half of 2022 is largely due to costs related to advertising and IT services, inventory and team expansion. In the second half of 2022, Punktid Group did not have profit making as its main goal.

Investments

Punktid Group made significant investments in marketing costs, team and platform development in the second half of 2022.

In 2022, Punktid Technologies AS had the main goal of using the investment to implement a new platform and to hire additional labor for expansion.

No additional investments were included in the second half of 2022.

Macroeconomic overview

In Estonia as a whole, in 2022 there was continued pressure on wage growth due to the shortage of skilled labor in the information and communication technology sector, which is why we were forced to find several team members from outside Estonia. In addition, in the second half of 2022, there was a very large increase in inflation, which in turn negatively affected the consumption of the local market, but we were able to compensate for it with the growth of foreign markets.

Grounding financial risks

During the second half of 2022, no significant financial risks have appeared.

Seasonality of business

Punktid Group’s activity is slightly dependent on the season, when as a rule the fourth quarter has significantly better sales figures compared to the summer months (June, July and August).

Environmental and social impacts

Punktid Grupp's activities do not have a significant impact on the natural environment, but based on the company's responsible behaviour, Punktid Grupp operates in an energy-efficient manner. Since computers, office spaces and servers are one of the biggest sources of energy consumption, Punktid Group uses only LED lighting in its office, employees have significantly more environmentally friendly laptops instead of large desktop computers, and the servers are located in the Netherlands, where nearly 14% of the country's energy comes from renewable energy sources.¹ All the products we sell are digital, and the digital delivery method reduces the ecological footprint by over 95% compared to the amount of waste and pollution associated with the production, packaging and delivery of game disks.²

Key financial ratios

1. https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Renewable_energy_statistics. 
2. https://www.euronews.com/green/2020/02/17/is-playing-video-games-making-climate-change-worse.

Consolidated statement of financial position
(in Euros)

Consolidated income statement
(in Euros)

Consolidated statement of cash flows
(in Euros)

Consolidated statement of changes in equity
(in Euros)

Contacts for additional information

Hannes Niid

Management Board Member of Punktid Technologies AS

E-mail: invest@punktid.com