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Introduction & Market Context
Qiiwi Games AB (publ) (QIIWI) presented its first quarter 2025 financial results on May 15, revealing a mixed performance characterized by sequential revenue growth but year-over-year declines. The company’s stock closed at 2.12 SEK on May 23, up 2.42% from the previous close, as investors digested the mobile game developer’s strategic shift toward operational efficiency and its increasing reliance on its Backpacker Go! title.
Quarterly Performance Highlights
Qiiwi reported Q1 2025 revenue of 4.9 million SEK, down from 6.1 million SEK in the same period last year but showing sequential improvement from Q4 2024’s 4.0 million SEK. The company’s EBITDA stood at -1.6 million SEK, which represents an improvement from the -2.9 million SEK recorded in Q1 2024 but a deterioration compared to the positive EBITDA of 0.4 million SEK achieved in Q4 2024.
As shown in the following chart of quarterly revenue trends:
The company’s portfolio composition has shifted significantly, with Backpacker Go! now accounting for 54% of total revenue, followed by Wordington (17%) and Extreme Makeover (10%). This concentration represents both an opportunity and a risk for Qiiwi, as the company acknowledged that Backpacker Go! "doesn’t quite reach all the way" to expectations despite becoming its primary revenue driver.
Detailed Financial Analysis
Qiiwi’s EBITDA performance shows year-over-year improvement but sequential deterioration, as illustrated in this quarterly comparison:
The company maintained disciplined marketing spending with user acquisition (UA) investments of approximately 2.3 million SEK during Q1 2025, slightly down from 2.5 million SEK in the same period last year. The majority of these investments were directed toward Backpacker Go!, reflecting the company’s strategic focus on its top-performing title.
A significant bright spot in Qiiwi’s performance metrics was the record-high Average Revenue Per Daily Active User (ARPDAU), which reached 1.78 SEK in Q1 2025—a 36% increase compared to the same period last year. This improvement is primarily attributed to Backpacker Go!, which has a significantly higher ARPDAU than the portfolio average.
The comprehensive financial results for Q1 2025 show a net loss after tax of 2.69 million SEK, improved from a 3.84 million SEK loss in Q1 2024. Earnings per share were -0.29 SEK compared to -0.42 SEK in the prior year. The company maintained a solid cash position of approximately 16.5 million SEK at the end of the quarter.
Strategic Initiatives
Qiiwi is implementing several strategic initiatives to improve efficiency and accelerate growth. The company is transitioning Backpacker Go! to Live Operations while continuing to develop and test new games in the "Board/Word" and "Word" genres. However, a trivia game tested during the period failed to meet expectations and was discontinued.
The company has extended agreements for its Extreme Makeover and MasterChef titles while updating other games to maintain stable revenue streams. Qiiwi’s Live Operations team continues to enhance existing titles with new content and features, as exemplified by the ongoing development of Wordington.
Forward-Looking Statements
Looking ahead, Qiiwi is focusing on trimming costs and improving operational efficiency. The company acknowledged its disappointment in not scaling Backpacker Go! to higher levels but highlighted the advantages of its smaller, more agile organizational structure that allows for quick strategic pivots.
Qiiwi is fully committed to integrating AI services into its workflow and accelerating its prototype evaluation process—reducing evaluation times from months to weeks. This approach aims to identify the next game that can drive significant growth and profitability for the company.
The management emphasized that despite the sequential EBITDA deterioration, the company’s record ARPDAU and more efficient organizational structure position it well for future growth, particularly if it can successfully diversify its portfolio beyond its current reliance on Backpacker Go!.
Full presentation:
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