Punktid Technologies
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 

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
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Consolidated income statement
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Consolidated statement of cash flows
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Consolidated statement of changes in equity
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Contacts for additional information

Hannes Niid
Management Board Member of Punktid Technologies AS

E-mail: invest@punktid.com