Punktid Technologies
Company Announcement

Punktid Technologies AS group's results for the Q3 of 2022 - growth of 10% compared to the same period last year, and the goal of global sales for this year was reached

The sales of Punktid Technologies AS (hereinafter Punktid) in the third quarter of 2022 totalled EUR 585,000 and increased by 10% compared to the third quarter of 2021 (the sales of the third quarter of 2021 were EUR 532,000). Out of this, EUR 376,000 were the gross amount of mediation service* of the Punktid platform, which decreased by 1% compared to the third quarter of 2021 (the amount of mediation service in the same period of 2021 was EUR 381,000).

In addition, in the third quarter, the wholesale of HVK Business OÜ increased by 38% compared to the same period last year (the wholesale of the third quarter of 2021 was EUR 151,000 and in the third quarter of 2022 it was EUR 209,000).

“The third quarter was positive for the whole group, the results of July and August were slightly lower due to the warmer summer weather, which favoured outdoor activities. In turn, September came with a record result compared to the same month of previous years.

The goal of global sales on Punktid.com website was also reached –  for 2022 it was EUR 243,000 and by the end of September we had reached EUR 324,000, which exceeds the forecast by 33%.

Although sales results on the Punktid platform vary by language, the general trend is good. We see a trend where local market sales are struggling to match last year’s highs, but we are compensating for this by expanding into foreign markets.

In the Baltics, the punktid.lt platform has shown a good start, with sales increasing in the last three months (July-September) by ten times. We continue to expand the product range at a fast pace and are looking for new cooperation partners.

We have added 310 new products to the selection, which has increased the turnover rate by an additional EUR 51,000. In the third quarter, we improved and amended the existing system, and at the same time we are engaged in the development of a new platform according to the set goals. In addition, we recruited three people (one in the field of marketing, one in SEO and one in development),” commented Hannes Niid, a member of the management board of Punktid.

*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.

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

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

**Numbers above 10,000 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 third quarter of 2022 has not yet been closed in accounting. The sales cia 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 EUR 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 4% in the third quarter of 2022 compared to the same period in 2021. We did not make any 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 well, as a result of which we also suffered a slight decline in the local market.
• The gross amount of mediation services provided by the Latvian domain (Punktid.lv) decreased by 3% compared to the same period last year. We have achieved a stable position on the market there, and we apply our own tested methods to maintain the position. We also saw a bigger drop in the summer months compared to the same time last year, but September showed a strong increase on the contrary.
• Through Punktid’s international English-language domain (Punktid.com), the mediation service has grown by average of 10% in the third quarter of this year, compared to the same period last year. The largest increase occurred in September, where the increase was 167% compared to September 2021. International sales were boosted in September by the launch of several well-known games and the opportunity for us to offer them at the best price on the market.
• The gross amount of the mediation service of the Russian-language domain (Punktid.ru, which is mainly aimed at customers from the Baltic countries) decreased by an average of 15% in the third quarter of 2022 compared to the same period last year. The decrease is mainly due to the fact that in the II quarter, a large part of the sellers of the game sector stopped their activities on the Russian market, leaving customers using products sold via Russian domain without a service. For this reason, the sales of one of the favourite 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 us maintain a stable turnover.
• We started active marketing of the Lithuanian domain (Punktid.lt) in June, which is why we can clearly see the increase in sales numbers in the third quarter. The difference between the sales results of July and September is already 10 times.
• The Finnish-language domain (Punktid.fi) has grown very strongly organically this year. Although we started to support the Finnish market with a more specific marketing plan from June, the timing was bad because it coincided with the Finnish summer holidays. Therefore, the turnover also decreased compared to the second quarter. The biggest increase took place in August, where the increase was 500% compared to August 2021.

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

In the third quarter of 2022, a total of 12,470 orders were submitted in the online sales environment of Punktid, of which 3,677 in July, 3,904 in August and 4,899 in September. A total of 2,609 new customers were added in the same period – 596 in July, 676 in August and 1,337 in September.

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 Reposting 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.