XOAS:5PG ESEF Annual Report
5TH PLANET GAMES (XOAS:5PG)
ESEF Annual Report
2022-12-08
For: 2022-09-30
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Added on
September 23, 2026
5th Planet Games A/S - Interim report, Q3 2022 Page 1
INTERIM REPORT Q1 – Q3 2022
Nine months ended 30 September 2022
Table of Content:
- Company announcement No. 42-2022 2
- CEO Letter: Q3 2022 3
- Guidance 2022 4
- Key Figures and Financial Performance 5
- 5th Planet Games at a glance 7
- Statement by the Board of Directors and the Executive Board 8
- Independent Auditor’s review report 9
- Consolidated statement of comprehensive income 11
- Consolidated balance sheet 12
- Consolidated statement of changes in equity 13
- Consolidated cash flow statement 14
- Notes 15
5th Planet Games A/S - Interim report, Q3 2022 Page 2
Company announcement No. 42-2022
Announcement no. 42
Copenhagen, Date November 24
th
, 2022
5th Planet Games is profitable in Q3 2022 and improve YoY performance on all core financial metrics
COPENHAGEN, November 24, 2022: 5th Planet Games A/S (OAX: 5PG) is pleased to declare profitability in
Q3 2022 with a positive EBITDA of DKK 459.000 for the quarter.
Furthermore 5th Planet Games A/S is showing YoY improvement on all core financial metrics, both for Q3
2022 alone and also on the Q1-3 2022 combined result.
By the end of Q3 we had a cash position of DKK 41m with a future guaranteed cash inflow of another DKK
22m to reach a total cash position of DKK 63m, this puts in a position to execute on our strategy.
Out of a total revenue of DKK 6.7m in Q1-3 2022, almost DKK 4.4m in Q1-3 2022 revenue comes from
Before Your Eyes royalties. On top of this, we have signed new co-financing for Escape Academy (already
released), WrestleQuest (to be released in 2023), VICE NDRCVR (to be released in 2023) and the recently
announced new game based on The Walking Dead IP.
Looking into the next 3 month, the most significant events are the financial performance of Before Your
Eyes and Escape Academy together with expected signing of more co-financing agreements.
Highlights:
- EBITDA positive in Q3 2022 with DKK 459k, which is an improvement of DKK 2.0m from DKK -1.6m
in Q3 2021.
- Revenue Q1-3 2022 was DKK 6.7m, which is 225% higher than DKK 2.1m in Q1-3 2021.
- EBITDA Q1-3 2022 was DKK -0.7m, which is an improvement of DKK 7.5m from DKK -8.2m in Q1-3
2021.
- Cashflow positive Q1-3 2022 by DKK 27.4m, which is an improvement of DKK 34.8m from DKK -
7.4m in Q1-3 2021
Guidance 2022:
- Revenue maintains guidance of DKK 10m to 20m (mainly from Before Your Eyes and Escape
Academy) for the full year of 2022.
EBITDA guidance is also maintained of a level between DKK +0.1m to +2.0m for the full year of 2022
as we expect to deliver a positive EBITDA in Q4 2022.
5th Planet Games A/S - Interim report, Q3 2022 Page 3
CEO-letter: Q3 2022
Once again, I am pleased to be able to share improving financial metrics for Q3 2022 that speak to our
continued vigilance on costs, the impressive contribution of titles such as Before Your Eyes and the
performance of our back catalogue. The company made a EBITDA of DKK 459k in the quarter, and I am truly
delighted to be to announce that fact, I believe it represents a significant turning point for the company.
In reviewing our financial results for Q1-3 2022, I note the following highlights:
- EBITDA positive in Q3 2022 with DKK 459k, which is an improvement of DKK 2.0m from DKK -1.6m
in Q3 2021.
- Revenue Q1-3 2022 was DKK 6.7m, which is 225% higher than DKK 2.1m in Q1-3 2021.
- EBITDA Q1-3 2022 was DKK -0.7m, which is an improvement of DKK 7.5m from DKK -8.2m in Q1-3
2021.
- Cashflow positive Q1-3 2022 by DKK 27.4m, which is an improvement of DKK 34.8m from DKK -
7.4m in Q1-3 2021.
- Net profit / loss exclusive loss from fair value of derivative financials instruments was a profit of
DKK 1.7m in Q3 2022 against a loss of DKK-4.7 in Q3 2021 (on a 9 month basis Q1-3 2022 was DKK
1.2m, which is an improvement of DKK 23.5m from DKK -22.3m in Q1-3 2021).
One of my main priorities for this year was firmly proving the value of the partnership with Skybound
Entertainment and the games that have resulted from that partnership; when I now look at the
contribution that a game like Before Your Eyes is making to our business, I am extremely excited for the
future and the potential of games that we have already announced such as Escape Academy, WrestleQuest
and VICE NDRCVR, not to mention the new game based on The Walking Dead IP, clearly the potential for
this catalogue is huge and there are expected other, similar announcements in the coming weeks.
Our back catalogue of mobile and real-money games continues to make a meaningful contribution to the
business and are performing to expectation through Q3; I expect that to continue into next year with new
product launches planned.
We are happy to maintain our guidance for the full year and look forward to again reporting on a now
profitable business by the end of the year.
Yours sincerely,
Mark Stanger, CEO, 5th Planet Games A/S
5th Planet Games A/S - Interim report, Q3 2022 Page 4
Guidance 2022
- Revenue maintains guidance of DKK 10m to 20m (mainly from Before Your Eyes and Escape
Academy) for the full year of 2022.
- EBITDA guidance is also maintained of a level between DKK +0.1m to +2.0m for the full year of 2022
as we expect to deliver a positive EBITDA in Q4 2022.
5th Planet Games A/S - Interim report, Q3 2022 Page 5
Key figures and financial performance
- Revenue for Q3 2022 amounted to DKK 2.0m, a 166% increase from DKK 0,8m in Q3 2021 (continued
operations).
- Gross profit for Q3 2022 amounted to DKK 2.0m, a 175% increase from DKK 0.7m in Q3 2021
(continued operations).
- Costs for Q3 2022 decreased by DKK 0.7m (continued operations). Development expenses in Q3 2022
amounted to DKK 0.3m a decrease from DKK 0.6m in Q3 2021 (continued operations). Other expenses
amounted DKK 1.3m decrease from DKK 1.7m (continued operations).
- EBITDA before special items was a profit of DKK 0.5m in Q3 2022 against a loss of DKK 1.6m in Q3 2021
(continued operations).
- Financial income was an income of DKK 49.6m, covering financial income from exchange rate
adjustments on DKK 1.6m m and calculated change in loss from derivative financials instruments of
DKK 48.0m. The amount DKK 48.0m is the fair calculated value change of Tranche 4 from the
investment agreement with Skybound. For further explanation please see note 4.
- Financial expenses were a cost of DKK 0.01 DKK covering an interest expense.
- Profit before tax amounted to DKK 49.6m in Q3 2022 an increase from DKK -20.9m in Q3 2021
(continued operations).
- Profit exclusive change in fair value of derivative financials instruments was amounted DKK 1.6m
(DKK +49.6m - DKK 48.0m) in Q3 2022 compared to a loss of DKK -4.7m in Q3 2021 (continued
operations) an increase from DKK 6.3m in Q3 2021.
- Cash flows from operating activities. Cash flows from operating activities was negative by DKK 12.9m
in Q3 2022 against an outflow of DKK 2.2m in Q3 2021.
Q3 Q3 Q1-3 Q1-3 FY
DKK ´000 2022 2021 2022 2021 2021
*Revenue 2,020 759 6,747 2,073 4,809
*Gross profit 1,988 722 6,622 1,967 4,688
*Profit / loss before special items (EBITDA) 459 -1,556 -659 -8,212 -9,465
*Operating profit / loss (EBIT) 46 -1,627 -1,606 -13,024 -15,066
*Net Financials exclusive change in derivative instruments 1,604 159 2,825 418 656
Change in derivative financials instruments, fair value 47,972 11,762 -20,310 11,762 7,729
Loss from discontinued operations 0 -2,787 0 -9,651 -9,651
Profit / loss for the period 49,622 7,043 -19,091 -10,495 -16,254
Profit / loss exclusive fair value of derivative financials instruments 1,650 -4,719 1,219 -22,257 -23,983
Total assets 59,470 33,136 59,470 33,136 28,359
Investments other equipment 0 0 0 0 0
Capitalized development costs 12,953 0 12,953 0 0
Equity 42,844 27,402 42,844 27,402 23,461
Equity exclusive fair value derivative financials instruments 55,426 15,640 55,426 15,640 15,732
*Figures for Q3 2021, Q1-3 2021 and FY2021 are only for continued operations.
5th Planet Games A/S - Interim report, Q3 2022 Page 6
- Cash flows from financing activities. Cash flows from financing activities was DKK 20.0 in Q3 2022
against DKK 13.8m in Q3 2021. The amount is the net proceed regarding trance 3 in Investment
Agreement with Skybound Games Studios Inc received in August 2022.
- Cash position as of 30 September 2022 amounted to DKK 41.0m against DKK 16.3m as of 30
September 2021.
- The Group’s equity as of 30 September 2022 amounted DKK 42.8m. Calculated value of the derivative
financials instruments amounts DKK -12.6m as of 30 September 2022. Without the calculated value of
the derivative financials instruments the group´s equity would have been DKK 55.4m.
5th Planet Games at a glance
- 5th Planet Games A /S , Gothersgad e 1123 C openhagen Denmark 3359 714 2 .
- CEO Mark Stanger, E-mail: mstanger@ 5thplanetgam es.com ,
- An international, publicly traded games financing company founded in 2011.
- A company that financ es and publish es games on global basis .
- Strong portfolio of titles available across all platforms.
- Truly passionate about games and committed to making and publishing titles that will engage and
bring genuine joy to people for years.
- Enters into strategic partnerships with global IP holders for increased visibility, awareness and games
performance.
- Focused on games of the highest quality and a publishing function managed by an experienced
executive team from Europe and the USA
5th Planet Games A/S - Interim report, Q3 2022 Page 8
Statement by the Board of Directors and the Executive Board
Executive Board
Board of Directors
5th Planet Games A/S - Interim report, Q3 2022 Page 9
Independent Auditor’s review report
The Board of Directors’ and the Management’s responsibility for the interim consolidated financial
statements
Auditors’ responsibility
Conclusion
5th Planet Games A/S - Interim report, Q3 2022 Page 10
Company reg. no. 34209936
MNE-nr 35423 MNE-nr. 47837
5th Planet Games A/S - Interim report, Q3 2022 Page 11
Consolidated statement of comprehensive income
DKK´000 Note Q3 2022 Q3 2021 Q1-3 2022 Q1-3 2021 FY 2021
Revenue 2 2,020 759 6,747 2,073 4,809
Costs of sales 32 37 125 106 121
Gross Profit 1,988 722 6,622 1,967 4,688
Research and development costs 274 621 811 2,869 3,998
Marketing expenses 0 0 0 0 0
Other expenses 1,255 1,657 6,470 7,310 10,155
Profit / loss before special items, deprecation and amortisation (EBITDA) 459 -1,556 -659 -8,212 -9,465
Special items 0 0 0 4,741 5,262
Depreciation and amortisation 413 71 947 71 339
Operating profit / loss (EBIT) 46 -1,627 -1,606 -13,024 -15,066
Financial income 49,586 11,942 2,878 12,255 8,483
Financial expenses 10 21 20,363 75 98
Profit / loss before tax 49,622 10,294 -19,091 -844 -6,681
Tax on loss for the year 0 464
Profit / loss for the year from continuing operations 49,622 9,830 -19,091 -844 -6,603
Loss for the year from discontinued operations 0 -2,787 0 -9,651 -9,651
Profit / loss for the year 49,622 7,043 -19,091 -10,495 -16,254
Other comprehensive income 0 0 0 0 0
Comprehensive income 49,622 7,043 -19,091 -10,495 -16,254
Distribution of comprehensive income:
Parent company´s shareholders 49,622 7,043 -19,091 -10,495 -16,254
Non-controlling interests 0 0 0 0
Total 49,622 7,043 -19,091 -10,495 -16,254
Basic earnings per share:
From Continued operations (DKK) 3 0.277 0.093 -0.124 -0.008 -0.058
From discontinued operations (DKK) 3 0.000 -0.031 0.000 -0.065 -0.069
Total DKK) 0.277 0.061 -0.124 -0.072 -0.127
Diluted earnings per share:
From Continued operations (DKK) 3 0.277 0.093 -0.124 -0.008 -0.058
From discontinued operations (DKK) 3 0.000 -0.031 0.000 -0.065 -0.069
Total DKK) 0.277 0.061 -0.124 -0.072 -0.127
5th Planet Games A/S - Interim report, Q3 2022 Page 12
Consolidated balance sheet
DKK´000 Note 30.09.2022 30.09.2021 31.12.2021
Non-current assets
Acquired rights 1,009 2,083 1,814
Completed development projects 994 0 0
Development projects in progress 12,953 0 0
Plant and equipment 0 0 0
Right-of-use assets 0 0 0
Income tax receivables 0 0 0
Total non-current assets 14,956 2,083 1,814
Current Assets:
Trade receivables 3,120 739 1,924
Income tax receivable 94 2,228 52
Expenses prepayments 105 0 0
Other receivables 5 5 2,911
Accrual expenses 159 0 322
Derivative financials instruments 4 0 11,762 7,729
Cash 41,031 16,319 13,607
Total current assets 44,514 31,053 26,545
Total assets 59,470 33,136 28,359
EQUITY AND LIABILITIES
DKK´000 Note 30.09.2022 30.09.2021 31.12.2021
Equity:
Share capital 10,374 6,400 6,400
Reserves 0 0 0
Retained earnings 32,470 21,002 17,061
Total Equity 42,844 27,402 23,461
Non-current liabilities
Other payables 372 930 930
Total non-current liabilities 372 930 930
Current liabilities
Accrual income 409 0 572
Derivative financials instruments 4 12,582 0 0
Trade payables 1,612 1,411 1,746
Other payables 1,651 3,393 1,650
Total current liabilities 16,254 4,804 3,968
Total Liabilities 16,626 5,734 4,898
Total equity and liabilities 59,470 33,136 28,359
5th Planet Games A/S - Interim report, Q3 2022 Page 13
Consolidated statement of changes in equity
Other
DKK´000 reserves
Equity as at 01.01.2022 6,400 0 0 17,061 23,461
Net Loss -19,091 -19,091
Other comprehensive income 0
Comprehensive income 0 0 0 -19,091 -19,091
Capital increase 3,974 33,045 37,019
Costs related to capital increase -450 -450
Share-based payments 1,905 1,905
Transfer of reserves -32,595 32,595 0
Transactions with owners 3,974 0 0 34,500 38,474
Equity as at 30.09.2022 10,374 0 0 32,470 42,844
Equity as at 01.01.2021 5,316 0 0 15,573 20,889
Net Loss -10,495 -10,495
Other comprehensive income 0 0 0
Comprehensive income 0 0 0 -10,495 -10,495
Capital increases 9,567 9,567
Costs related to capital increase -1,995 -1,995
Share-based payment 0 9,436 9,436
Transfer of reserves -7,572 7,572 0
Transactions with owners 0 0 0 17,008 17,008
Equity as at 30.09.2021 5,316 0 0 22,086 27,402
Total equity
Share capital
Share premium
Retained
earnings
Reserves
5th Planet Games A/S - Interim report, Q3 2022 Page 14
Consolidated cash flow statement
DKK´000 Q3 2022 Q3 2021 Q1-3 2022 Q1-3 2021 FY 2021
Profit / loss before tax 49,622 3,943 -19,091 -10,495 -16,332
Depreciation, amortisation and impairment losses 413 4,945 947 5,095 5,364
Share-based payments 540 -40 1,905 2,542 4,360
Financial income, reversed -1,614 -11,942 -2,878 -12,255 -8,484
Financial expenses, reversed -47,962 32 20,363 112 135
Change in working capital -13,887 902 3,792 433 -4,523
Operating cash flow -12,888 -2,160 5,038 -14,568 -19,480
Financial income, received 0 0 0 0 0
Financial expenses, paid -9 -32 -52 -112 -135
Income tax received 58 23 -42 0 2,222
Cash flow generated from operations -12,839 -2,169 4,944 -14,680 -17,393
Purchase of intangible assets 0 0 -14,089 0 0
Sale of right of use assests 0 544 0 544 544
Purchase of IP rights 0 -6,895 0 -6,895 -6,895
Cash flow from investing activities 0 -6,351 -14,089 -6,351 -6,351
Proceeds from cash capital increase 20,010 7,572 36,569 7,572 7,573
Purchase of IP rights financed by issue of warrants 0 6,895 0 6,895 6,895
Lease liabilities, repayment 0 -660 0 -783 -783
Cash flow from financing activities 20,010 13,807 36,569 13,684 13,685
Total cash flow for the period 7,171 5,287 27,424 -7,347 -10,059
Cash, beginning of period 33,860 11,032 13,607 23,666 23,666
Net foreign exchange difference 0 0 0 0 0
Cash, end of period 41,031 16,319 41,031 16,319 13,607
5th Planet Games A/S - Interim report, Q3 2022 Page 15
Notes:
1. Basis of preparation
The interim report has been prepared in accordance with IAS 34 Interim financial reporting, as adopted by
the EU, and additional Danish interim reporting requirements for listed companies.
The interim report does not include all the information and disclosures required in the annual consolidated
financial statements and should be read in conjunction with the Group’s annual consolidated financial
statements as at 31 December 2021.
The accounting policies adopted in the preparation of the interim report are consistent with those followed
in the preparation of the Group’s annual consolidated financial statements for the year ended 31
December 2021.
Significant accounting estimates and judgments
The most significant accounting estimates and judgments in the interim consolidated financial statements
remain unchanged compared to those used in Annual Report 2021. The principles and key assumptions are
described in the Annual Report 2021 in note 2.
2. Revenue
3. Earnings per share
DKK´000 Q3 2022 Q3 2021 Q1-3 2022 Q1-3 2021 FY 2021
Sales of games and advertising for mobile devices 292 261 1,063 707 1,205
License income 1,728 498 5,535 1,366 3,589
Other revenue 0 0 149 0 15
Total 2,020 759 6,747 2,073 4,809
DKK´000 Q3 2022 Q3 2021 Q1-3 2022 Q1-3 2021 FY 2021 Q3 2022 Q3 2021 Q1-3 2022 Q1-3 2021 FY 2021
Profit/loss for the period 49,622 10,351 -19,091 -844 -6,603 0 -3,322 0 -6,864 -7,797
Average number of shares (in thousands) 178,895 111,797 154,057 108,151 113,148 127,996 106,318 154,057 106,318 113,148
Average number of treasury shares 0 0 0 0 0 0 0 0 0 0
Average number of shares in circulation 178,895 111,797 154,057 108,151 113,148 127,996 106,318 154,057 106,318 113,148
Diluted average number of shares in circulation 178,895 111,797 154,057 108,151 113,148 127,996 106,318 154,057 106,318 113,148
Earnings per share of DKK 0,05 each (in DKK) 0.277 0.093 -0.124 -0.008 -0.058 0.000 -0.031 0.000 -0.065 -0.069
Diluted earnings per share of DKK 0,05 each (in DKK) 0.277 0.093 -0.124 -0.008 -0.058 0.000 -0.031 0.000 -0.065 -0.069
Discontinued operations
Continued operations
5th Planet Games A/S - Interim report, Q3 2022 Page 16
4. Derivative financial instruments
On 7 September 2021, the parent company of the group entered into an investment agreement with
Skybound Games Studios (the investor). The investor receives right to subscribe mandatorily and
investment shares and warrants (collectively “rights”) which can be exercised on different dates depending
on the tranches. Each right can be exercised for one share (i.e., 1:1 conversion ratio) and the number of
shares that will be issued are fixed for all these tranches. Upon settlement, the fixed exercise amount in
Norwegian kroner (NOK) is settled by the investor by paying its US dollar (USD) equivalent. The functional
and presentation currency of the parent company and the Group is Danish kroner (DKK). Hence, although
the exercise amount is fixed in NOK, the equivalent amount in DKK is variable depending on the prevailing
exchange rate between DKK and USD at settlement date. This variable amount does not qualify the
definition of equity instrument and therefore, these rights are classified as derivative financial assets /
liabilities.
The technical accounting liabilities amount to DKK 12.6m as per 30 September 2022 is a variable amount
that incorporates the development in exchange rate between NOK and DKK together with 5
th
Planet
Games’ share price. The amount DKK -12.6m is the fair calculated value change of Tranche 4 from the
investment agreement with Skybound. These DKK -12.6m will come positive back into the accounting books
before the last payment in September 2023.
Capital resources
The company has resolved the tranche 3 payment from the Skybound agreement of DKK 20m end August
2022. According to most recent budgets and plans the existing capital resources are sufficient to continue
the operation.
Events occurring after the balance sheet date
No important events have occurred after the end of Q3 2022.
Contingent liabilities
Based on management’s assessment the group is not involved in any lawsuits, arbitration cases or other
matters which could have a material impact on the group’s financial position or results of operations.
Acquired IP rights / co-productions rights
As a part of the investment agreement with Skybound the company has entered into two co-production
agreements with a total co-funding obligation for the company on USD 5.5m.
5th Planet Games A/S - Interim report, Q3 2022 Page 17
As part of the investment agreement, 5th Planet Games has provided certain representations and
warranties to Skybound. Should Skybound suffer a loss due to certain specific warranties not being true,
accurate and not misleading, Skybound will, at its own discretion, have the option of being indemnified
from its loss by exercising up to 2,200,000 warrants (depending on the loss), each warrant entitling
Skybound Games to subscribe for 1 share of nominal DKK 0.05 at par value (the “Indemnification
Warrants”). The potential loss from this warranty is estimated to be unsignificant.