RIGHTBRIDGE VENTURES GROUP AB SOLID FULL-YEAR GROWTH, EARNINGS WEIGHTED DOWN BY ONE - OFF, NON-CASH ITEMS and NEWLY ONBOARDED INVESTMENT.
GROUP RESULTS
FULL YEAR 2022
Revenues. The Group's net sales amounted to to
Earnings. The Group's net results for the full year were - 15
Earnings per share* amounted to
The equity/assets ratio** as of 31 December was 88.5% (96.5%).
FOURTH QUARTER 2022
Revenues. The Group's net sales amounted to 2,980 KSEK (0 KSEK).
Earnings. The Group's net results for the fourth quarter were -20 131 KSEK (
Earnings per share* amounted to
*Earnings per share: earnings are divided by the average number of shares for the period. The total number of shares in the company as of
The average number of shares for 2021 was 63 070 590.
**Equity ratio: adjusted equity (equity and untaxed reserves less deferred tax) as a percentage of the balance sheet total.
Significant events during the period
- On
October 5th, 2022 ,Agilit Holding AB's subsidiaryAgilit Svenska AB was distributed to the shareholders of the Company included in the company shareholders ledger before the closing of the Transaction. -
On
October 6th, 2022 , the reverse takeover was completed. The Consideration Shares were distributed toRightBridge Ventures AB shareholders, their registration into the Company's shareholders ledger was submitted and a new board of directors and management took office. The new board consists ofJohan Rooth as chairman of the board andStefan Lindeberg , Kenneth Arnström and Magnus Leppäniemi as non-executive board members.Carlos Barrios was appointed as CEO. The Company registered its change of name fromAgilit Holding AB toRightBridge Ventures Group AB (publ.). - The Company effected a share reverse split with a ratio of 25:1 bringing the number of outstanding shares in the Company from 3 billion to 128 million.
RightBridge Ventures Group closed the acquisition of approximately 80 % of the shares inTricked Esport ApS , a Danish esports and educational organization based inCopenhagen .-
The Company announced Team Singularity's commercial partnership with
MAS Holdings ,South Asia's largest apparel tech company and their gaming wearables, GamerTechTM -
RightBridge procures a
5MSEK credit facility for increased scale-up and transformation in portfolio companies. - Team Singularity APEX Legend squad won the APEX Legend South American championship.
Significant events after the period
- ESPL announced the completion of an IFO with PawnCake for the release of $ARENA, the utility token supporting the User Generated Tournament platform, ESPL ARENA. The value of the IFO was
1,4MUSD and the demand for tokens reached3.7MUSD . PawnCake has not yet fully released the funds of the IFO. -
ESPL listed $ARENA token in the Korean regulated exchange ProBit Global Exchange as result of the high demand of the token in the tournaments launched on
ESPL Arena -
Team Singularity's APEX Legend squad placed 11th in the world in the Apex Legends Global Series Playoffs in
Copperbox Arena inLondon . Rightbridge Ventures announced onJan 31st that there had been a breach in the lock-up agreement and that the company would seek fine payment for the breach. The company has sent letters of notice regarding the breach to the breaching party.- Knacks scouts a new CS:GO roaster for Team Singularity.
- 1337 esport signs a sales and advisory services agreement with sports and augmented reality technology provider YBVR.
ABOUT RIGHTBRIDGE VENTURES GROUP AB
The industry has ratified the Company's initial investment thesis "esport and gaming is not just playing games". Organisations that manage esports teams are increasingly developing media and entertainment companies or agencies. While 'original' business areas remain in the foreground of the activities, the revenue contribution of such areas is declining compared to 'expanding' business areas. In particular, content creation and influencer marketing play an important role. They enable esports teams to bridge the gap between video gaming, esports and streaming and authentically activate their players - and thus their most important assets - independent from the competitions, providing the opportunity to deepen the connection to their fan bases, in line with RightBridge developed synergies among the Company's portfolio firms.
Knacks Sp. Z.o.o. is a marketing and talent full-service esports agency based in
1337 eSports AB is an esports and gaming specialised corporate advisory firm founded by
1 Direct ownership: 4,73%; Through 100% owned holding company iCandy
eSports
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CEO Letter
Dear shareholders,
I imagine that this is not the first 2022 Q4 interim report in which you read that the macroeconomic environment is challenging: consumer purchase power has been drastically reduced, current digital marketing business models are questioned, leading to lay-offs and strategic realignments in tech business giants such as META or Google, esports front-page organisations such as 100 Thieves or FaZeClan are scaling down and pivoting in an effort to ride the wave of consolidation that the esports and gaming industry is immersed in.
In parallel, the esports and gaming market growth continues. The popularity of physical events and tournaments has increased after COVID, esports and gaming are increasingly used by brands to reach GenZ and Millennials, the gamers' Average Revenue per User in
With these mixed outlooks, the Company shows solid growth for 2022 for an esports and gaming company founded less than 3 years ago. Founded during one of the most turbulent economic periods in the last 20 years, we have managed to establish a challenger operator in the industry. Revenue has grown from zero in 2021 to nearly
During 2022, the Company has focused on executing the variables that it controls: ITS execution strategy based on Investments - Transformation - Synergies. This choice has taken us to be ahead of the current wave of consolidations and business-pivoting that both large and small companies in the industry are going through at the moment.
Investments. During the year, the Company has finalised three international majority investments in two esports organisations in
Transformation and synergy puzzle. During the year the Company has worked in the transformation of 1) Lilmix to diversify their revenue streams, adding streaming and social media marketing to their already positive sports performance, 2) Knacks to address larger assignments and internationalise successfully launch products such as
While considering that the fundamentals of the transformation of all current portfolio companies, except the newly acquired Tricked, is well underway, the Company has also worked with the portfolio to find and execute several sales and community synergy projects, i.e., leveraging Team Singularity and Lilmix eyeballs with Knacks marketing, leveraging Knacks talent management expertise to recruit a brand new CS:GO Singularity team, etc...
Technology synergies. Taking steps into digital media distribution and web 3.0. Furthermore, during Q4 2022, ESPL spearheaded the Company's entry into web3.0 through the planning of the launch of the utility token $ARENA to enable the User Generated Tournament ("UGT") platform ESPL ARENA. The Company is actively working with the rest of the portfolio companies to replicate the model.
The financial results of the Company reflect its strategy and quick pace of execution. The 2022/Q4 and January -
During Q4/2022 the high pace of investment execution weighted down the net results of the Company: the closing of the reverse takeover transaction (adding a non-cash cost of 11
The full-year growth results and diversification confirm the solidity of the Company's investment thesis and portfolio management practices:
Healthy diversified revenue mix, one of the challenges of the industry
Improvement of adjusted net results by 11%, excluding one-off listing costs (1
Sales growth of 8
In summary, the Company's 2022 financial results represent the strategy of investments and transformation that the Company and the Company's assets have executed during the year, which has yielded solid sales growth for 2022.
2023 expectations. We expect that the challenging macroeconomic environment continues during 2023 as well as the ongoing wave of consolidations, and business pivoting among esports and gaming companies. Yet, we have identified several elements that make us cautiously optimistic and confident in our strategy:
Investments.
Transformation. The main project for the next months is to transform Tricked into a scalable and sustainable esports business with a focus on online growth and licensing of know-how and content rights. Several organisations in
Synergies. We continue the execution of synergy projects across 3 main categories: Sales - Community - Technology.
Finally, I would like to thank our employees, board and shareholders for their continued support and contribution to the success of the RightBridge journey.
CEO
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PARENT COMPANY RESULTS
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LIQUIDITY AND CASH FLOW
Fourth quarter 2022 (
Cash Flow from operating activities amounted to -3 581 KSEK. Cash Flow from financing activities amounted to 2 794 KSEK. Net cash flow for the period amounted to -753 KSEK. Cash and cash equivalents at the end of the period amounted to 3 068 KSEK.
Twelve months 2022 (
Cash flow from operating activities amounted to -13 382 KSEK. Cash Flow from investing activities amounted to -413 KSEK which is attributable to acquisitions. Cash Flow from financing activities amounted to 15 039 KSEK, mostly coming from several rights issues totaling 12 100 KSEK as well as raising additional debt of 2 794 KSEK during Q4. Net cash flow for the period amounted to 1 245 KSEK. Cash and cash equivalents at the end of the period amounted to 3 068 KSEK.
The Company plans to continue enhancing its liquidity position for existing transformational operations and additional acquisitions through a combination of subsequent rights issues, operational changes to improve the profitability of its subsidiaries and the use of additional efficient credit facilities where possible.
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REVERSE TAKEOVER
On the 22nd of
The operating company
The K3 rulebook does not give any clear guidance on how to account for a reverse acquisition.
This affects the consolidated profit and loss with a negative value of 11 379 KSEK which is a non-cash flow affecting post.
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CONSOLIDATION
In accordance with 7 kap § 23 ÅRL the acquiring company of
In the financial statements of
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THE SHARE
Up until
The number of shares in
Ticker First North - RIGHTB
ISIN code SE0019070749
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ACCOUNTING PRINCIPLES
This report is prepared in accordance with the Annual Accounts Act and BFNAR 2012:1(K3). The company is applying the same accounting principles and calculation methods which were applied to the 2021 Annual Report. The board has decided to postpone the adoption of IFRS until the annual report of 2023 meaning the first report prepared in accordance with IFRS will be the annual report of 2023 which will be released during 2024.
The postponement of adopting IFRS is due to the complexity of changing the accounting framework and the board believes that the organisation needs more time in order to carry the change.
Auditors
Certified Adviser
PO Box 5855,
SE - 102 40 Stockholm
info@amudova.se
DECLARATION BY THE BOARD OF DIRECTORS
The Board of Directors and the CEO of
The board of
This year-end report has not been reviewed by the Company's auditor.
Magnus Leppäniemi
Chairman of the board CEO
FINANCIAL CALENDAR
Annual report
31.05.2023 Q1 January -
02.06.2023 Annual General Meeting
31.08.2023 Q2 April -
30.11.2023 Q3 July -
For more information, please contact:
Telephone: +46 70 511 25 79
Email: carlos.barrios@rightbridge.se
Telephone: +46 70 536 77 33
Email: johan.rooth@abelco.se
Address:
Norrlandsgatan 24
SE - 111 43
DISCLOSURE
This information is information that
END
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For further questions, please contact:
Telefon: +46 705 112579
E-post: carlos.barrios@rightbridge.se
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