SOLID CLOUDS HF All figures in ISK m. Comparative figures from last year in parentheses.
- Game revenue 10.6 (35.7)
- Operating loss before depreciation & financial income & expenses -8 (-0.8)
- Net loss for the period 12.8 (profit 13.8)
- Total assets 1,441.6 (658.2)
- Interest-bearing debt 13.7 (0)
- Equity ratio 91.7% (96.3%)
“Our first half results reflect our IPO and continuing investment in our technology framework and in Frontiers, our forthcoming game,” says Stefán Gunnarsson, Solid Clouds’ Chief Executive Officer. “We believe the investment in our framework will reduce the development time and cost of Frontiers, which is scheduled for commercial release next year.” The Condensed Interim Financial Statements of
First Half 2021 Financial Highlights
Revenues from the Company’s first release, Sovereign Space, came to ISK 10.6 m, a decrease of 70.6% compared with the first half of 2020. This is because Solid Clouds is currently not focusing on marketing efforts for Sovereign Space, as it is prioritizing its resources on the development of its next game, Frontiers. Sovereign Space nevertheless has a loyal following of core players and it could be given more prominence later this year after further evaluation of its performance. The Company expects to release Frontiers commercially next year.
Solid Clouds finished a Pre-IPO investment from
The Icelandic state provides tax credits to stimulate research and development (R&D), which is where most of Solid Clouds’ expenses arise. R&D spending is capitalized and then depreciated over its expected lifespan. The R&D tax credits for 2020 are expected to reach ISK 91.7 m, an increase of 85% from 2019. The difference reflects both increased tax-related incentives and accelerated R&D development. Tax credits for 2020 will be paid to the Company in
Operating loss before income tax amounted to ISK 32.7 m, compared to a loss of ISK 17.3 m in the first half of 2020. The first-half 2021 results were impacted by recruitment of more staff and focus on the new game, Frontiers.
Other grants amounted to ISK 6.6 m; no comparable grants were received in the first half of 2020.
Advertising expenses totalled ISK 2 m compared to ISK 25 m in the first half of 2020, which is 92% lower than previous year. The decrease reflects the reduction in marketing efforts on Sovereign Space.
One-time expenses associated with the IPO came to ISK 68 m and lowers share premium in accordance with IFRS.
Financial Liquidity
As of
The interim financial statements are available on the Company’s website: https://www.solidclouds.com/investors/docs
Recent Business Highlights
Sigurlína Ingvarsdóttir took the helm of Solid Clouds as its new Chairman of the Board in
In 1H 2021, the Solid Clouds development team achieved several milestones. The latest build of the unreleased project, Frontiers, was tested internally to validate key design goals and implementations.
The next major milestone for Solid Clouds’ production team will be to open Frontiers to external testers. This is intended to generate in-depth feedback and data on the gameplay and user flow. This phase is scheduled for late Q4 2021. To achieve this, the development team will be seeking help from the Sovereign Space community and reaching out to prospective players to test user experience for both new and experienced strategy gamers.
Sovereign Space saw major changes to gameplay and monetization near the end of 2020. The game maps are now smaller and with fewer concurrent players, and while all Key Performance Indicators (KPIs) have improved, revenue is down; this is due to smaller marketing efforts as the Company is concentrating more on the development of Frontiers.
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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