SOLID CLOUDS HF All figures in ISK millions. Comparative figures from previous year in parentheses.
- Game revenue 14.4 (63.8)
- Operating loss before depreciation & financial inc. & expenses 17.8 (profit 9.0)
- Net loss for the period 34.1 (profit 9.6)
- Total assets 1,336.6 (658.2)
- Equity ratio 97.1% (96.3%)
“Our 2021 results reflect the IPO, our continuing investment in our technology framework and the development of our upcoming game, Frontiers,” says Stefán Gunnarsson, Solid Clouds’ Chief Executive Officer. “We are excited that we were able to enter into an external test with 2,000 players in
The Financial Statements of
Production update
Frontiers entered its first large-scale external test in December when the game was hosted for 2,000 players in
Monthly in-person user tests are conducted to assess accessibility regarding game mechanics and user interfaces. The incorporation of the user feedback has resulted in greater user understanding of game mechanics and user interfaces.
Reliable and flexible technical infrastructure is essential so that Frontiers will run smoothly on a variety of mobile devices and for the support of a large user base. Solid Clouds has enhanced client/server interactions and network stability, making live updates of the game possible without interrupting play sessions, and deployed the game client successfully to
A milestone is scheduled in April, when a new version of Frontiers will be hosted for external testers. This version will include an arena system where players can battle against each other, live events, a complete user interface overhaul and a system inbox for messaging game items and information to users.
A major development milestone is expected in mid-year when the Company plans to introduce the game’s first release candidate (MVP, Minimum Viable Product), which will include key game features. Following development, the release candidate will be subject to calibration until it meets KPI (Key Performance Indicator) requirements with regard to marketing, revenue and customer acquisition costs.
As the Company relies on direct marketing to acquire new users, the Lifetime Value (LTV) of each customer needs to be considerably higher than the cost of user acquisitions to ensure optimal revenue generation. Full marketing efforts can commence after the game reaches KPI requirements. The Company expects that the necessary calibration will be attained in the closing months of the year.
Financial Highlights
Solid Clouds concluded a Pre-IPO investment from
One-time expenses associated with the IPO came to ISK 67.8 m, lowering the share premium in accordance with IFRS.
Solid Clouds is the first gaming company that has been listed on the Icelandic growth market, which is a significant achievement both for the Company and the gaming sector in
Operating loss before income tax amounted to ISK 17.8 m, compared to a profit of ISK 9.0 m in 2020. The 2021 results were impacted by recruitment of more staff and focus on the new game, Frontiers.
Revenues from the Company’s first release, Sovereign Space, came to ISK 14.4 m, a drop of 77.5% compared with 2020. This is because Solid Clouds is not currently focusing on driving growth efforts for Sovereign Space, having switched its focus towards the development of its next game, Frontiers. This is reflected in the fact that advertising expenses totalled ISK 3.5 m compared to ISK 31.6 m in 2020, a reduction of 89.1%.
As of
The Financial Statements are available on the Company’s website: https://www.solidclouds.com/investors/docs
Other Business Highlights
Sigurlína Ingvarsdóttir took the helm of Solid Clouds as its new Chairman of the Board in
Forward-Looking Statements
This press release contains “forward-looking statements,” which are inherently uncertain. Readers should therefore be aware that a variety of factors could cause business conditions and results to differ materially from what is contained in our forward-looking statements, and that we do not undertake to update any forward-looking statements.
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