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Published: 2022-09-27 14:59:00 CEST
Punktid Technologies AS
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 first half of 2022, investments for a total of €868,701 were included in various stages to finance development and growth plans, of which €75,000 came from private investors before the initial public offering of Punktid Technologies AS shares on the multilateral trading facility First North (IPO) organized by Nasdaq Tallinn Aktsiaselts. As part of the IPO, 176,378 shares were issued and €793,701 were raised. The purpose of the investments was the expansion of operations and the team, the development of the Punktid platform (IT services investments in the first half of 2022 in the total amount of €31,443, labor costs in the total amount of €122,128) and the increase of retail sales in local and foreign markets (marketing costs in the first half of 2022 in the total amount of €88,755) .

In addition, legal and consulting costs in the amount of €30,553 had to be paid as part of the IPO. The entire cost of conducting the IPO was approximately €120,000.

As a result of the IPO, the share capital of Punktid Technologies AS increased to €214,982. Intangible fixed assets increased from €75,993 to €98,603 in the first half of 2022, short-term loans decreased to €140,255 in the first half of 2022.

Economic indicators

In the period 01.01-30.06 of the 2022 interim report, the sales revenue was €477,575, which mainly consists of HVK Business OÜ's wholesale and to a lesser extent Gamekeys OÜ's commission from the mediation service.

Punktid Group’s main focus is to increase the turnover of Gamekeys OÜ mediation service. During the first half of the year, services were sold to retail consumers through the Punktid platform for €875,639, from which the company received a commission of €62,735.

The interim report provides comparative data for the first half of 2021 from 10.02.2021, when Punktid was established.

The volume of retail and wholesale sales totalled €1,290,476 in the first half of 2022. The increase compared to the same period in 2021 is 33%. It should be noted here that the investments involved in the spring went to the preparation of the IPO, and the IPO money was received only at the end of April, which means that we were actually able to direct the investments to the company's growth from May. The good work of the team played an important role in the good results.

 

Punktid group's loss of -236,431 € for the first half of 2022 is largely due to the costs related to the IPO and the expansion of the team. In the first half of 2022, the making of profit was not the main goal for Punktid Group.

Investments

Punktid Group made significant investments in marketing costs related to the IPO and expansion in 2022. A total of 4,750 new customers joined the Punktid website in the first half of 2022 (the number of new customers was 4,690 in the first half of 2021).

In 2022, Punktid Technologies AS has the main goal of using the investment to implement a new website (a website called "Marketplace" instead of the Punktid platform) and to hire additional employees for expansion.

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. The economy as a whole, despite the COVID-19 pandemic that started in 2020, was still in a growing trend, which gave our sales more momentum. We have also not been able to identify the impact of the Ukrainian war to our business area.

Grounding financial risks

During the first 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.

Key financial ratios 

  30.06.2022 30.06.2021
Operating profit margin (operating profit / sales revenue) -0,49 -0,23
Short-term debt coverage ratio (current assets / short-term liabilities)  5,93  1,77
Assets to equity ratio (assets / equity)  1,17  1,65

 

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)

 
                          
30.06.2022 30.06.2021 Note nr
Assets      
Current assets      
Cash and cash equivalents 591 313 83 774  
Financial investments 199 199  
Receivables and prepayments 21 932 16 176 2
Inventories 175 601 116 265 3
Total current assets 789 045 216 414  
Non-current assets      
Property, plant and equipment 23 546 24 064 6
Intangible assets 125 241 86 284 7
Total non-current assets 148 787 110 348  
Total assets 937 832 326 762  
Liabilities and equity      
Liabilities      
Current liabilities      
Loan liablities 9 750 63 592 8
Payables and prepayments 123 358 58 504 9
Total current liabilities 133 108 122 096  
Non-current liabilities      
Loan liablities 1 528 6 743 8
Total non-current liabilities 1 528 6 743  
Total liabilities 134 636 128 839  
Equity      
         Equity held by shareholders and partners in parent
company
     
Share capital 214 982 2 985 10
Share premium 983 260 256 554  
Own shares -1 0  
Retained earnings (loss) -158 614 0  
Annual period profit (loss) -236 431 -61 616  
               Total equity held by shareholders and partners
in parent company
803 196 197 923  
Total equity 803 196 197 923  
Total liabilities and equity 937 832 326 762  

 

Consolidated income statement
(in Euros)

    01.01.2022 30.06.2022   10.02.2021 30.06.2021 Note nr
Revenue 477 575 245 417 11
Other income 513 117  
Goods, raw materials and services -368 437 -197 833 12
Other operating expenses -211 236 -76 147 13
Labor expense -122 128 -23 306 14
Depreciation and impairment loss -8 427 -5 106 6,7
Other expenses -484 -645  
Operating profit (loss) -232 624 -57 503  
Interest income 0 46  
Interest expenses -3 682 -3 821  
Other financial income and expenses -125 -338  
Profit (loss) before tax -236 431 -61 616  
Annual period profit (loss) -236 431 -61 616  

 

Consolidated statement of cash flows
(in Euros)

  01.01.2022 30.06.2022 10.02.2021 30.06.2021
Cash flows from operating activities    
Operating profit (loss) -232 624 -57 503
Adjustments    
Depreciation and impairment loss (reversal) 8 427 5 106
Other adjustments -123 -100 624
Total adjustments 8 304 -95 518
    Changes in receivables and prepayments related to
operating activities
-2 700 1 885
Changes in inventories -61 285 19 930
    Changes in payables and prepayments related to
    operating activities
40 975 163
Total cash flows from operating activities -247 330 -131 043
Cash flows from investing activities    
    Purchase of property, plant and equipment and intangible
assets
-16 260 -21 018
Purchase of other financial investments 0 -199
Interest received 6 46
Total cash flows from investing activities -16 254 -21 171
Cash flows from financing activities    
Repayments of loans received -24 174 -15 518
Change in overdraft balance -10 593 -2 328
Repayments of finance lease liabilities -1 379 0
Interest paid -3 682 -3 821
Received from the issue of shares 868 701 219 000
Total cash flows from financing activities 828 873 197 333
Total cash flows 565 289 45 119
Cash and cash equivalents at beginning of period 26 154 38 993
Change in cash and cash equivalents 565 289 45 119
The effect of changes in foreign exchange rates -130 -338
Cash and cash equivalents at end of period 591 313 83 774

 

Consolidated statement of changes in equity
(in Euros)

 

     Equity held by shareholders in parent company  
     Share capital                           Share premium         Own shares Retained earnings(loss) Total                                 
10.02.2021 2 500 138 663 0 0 141 163
Restated balance 10.02.2021 2 500       138 663 0 0 141 163
Annual period profit(loss)     0 -61 616 -61 616
Changes in other contribution from owners 485 117 891 0 0 118 376
30.06.2021       2 985 256 554 0       -61 616 197 923
           
Restated balance 01.01.2022 195 390 134 151 -1 -158 614 170 926
Annual period profit(loss) 0 0 0 -236 431 -236 431
issued share capital 0 776 063 0 0 776 063
Changes in other contributions from owners 19 592 73 046 0 0 92 638
30.06.2022 214 982 983 260 -1 -395 045 803 169

 

Contacts for additional information

Hannes Niid
Management Board Member of Punktid Technologies AS

Tel: +372 53 095 817
E-mail: invest@punktid.com  


01. Konsolideeritud vahearuanne 30.06.22 - ENG.pdf