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Nitro Games, a Finnish game development company, reported its first profitable year in a long time for 2023. According to InvestingPro data, the company achieved impressive revenue of $12.51M with a healthy gross profit margin of 75.12%. Despite this achievement, the company's stock fell by 10.26% to $3.12, indicating a negative market reaction. The stock is closer to its 52-week low of $1.8, reflecting investor concerns despite the positive financial performance. InvestingPro analysis suggests the stock may be undervalued at current levels.
Key Takeaways
- First profitable year in a long time for Nitro Games.
- Stock price fell by 10.26% to $3.12 post-earnings.
- Six active game projects highlight product innovation.
- Record year in terms of revenue and EBITDA.
- Market sentiment slightly negative despite positive earnings.
Company Performance
Nitro Games achieved a record year in 2023, marking its first profitable year in a long time. The company reported increased revenues with a remarkable 36.08% growth rate and improved EBITDA of $2.07M, maintaining cost control while achieving growth. This performance is noteworthy as it represents a significant turnaround for the company. InvestingPro subscribers can access 8 more key insights about Nitro Games' financial health and market position.
Financial Highlights
- Revenue and profitability reached record levels in 2023.
- EBITDA showed marked improvement.
- First profitable year for Nitro Games in a long time.
Outlook & Guidance
Looking forward to 2025, Nitro Games aims to grow its game portfolio, expand to new platforms, develop new partnerships, and reach new audiences. The company also plans to maintain financial stability and continue operational efficiency improvements. InvestingPro data shows the company's overall financial health score is GREAT, supporting its expansion plans. Two key ProTips indicate the company operates with moderate debt levels and maintains strong liquidity, with liquid assets exceeding short-term obligations.
Executive Commentary
CEO Jussi Tatlinen highlighted the company's achievements, stating, "Last year was our record year on all fronts," and "We turned the company profitable at the end of 2023." These statements underscore the company's positive performance and ambitious future goals.
Risks and Challenges
- Sustaining growth and profitability in a competitive industry.
- Potential market saturation in the gaming sector.
- Macro-economic pressures that could impact consumer spending.
- Maintaining innovation and product development pace.
- Managing operational efficiency while scaling up or down.
Q&A
During the earnings call, questions focused on Supersonic's marketing strategy for Ottergan Heroes, potential shareholder value, and company acquisition. The company confirmed minimal costs for PC platform expansion and noted reduced competition in its service business. These discussions highlighted strategic initiatives and market positioning.
Full transcript - Nitro Games Oyj (NITRO) Q4 2024:
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Good morning. Good morning, Ron.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: It's your guys, Jussi and Ante here from Nytor Games. Good morning, indeed. So for those of you who are new, I'm Jussi Tatlinen, the CEO and Co founder here of Nytor Games.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: I'm Ant Wilhelm, Co founder and Chief Strategy Officer.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Indeed, indeed. And we are here to deliver you the results from 2024. So we're Nytro. We are action and shooter brands across platforms.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Exactly. We were last week at the largest video game executive summit in DICE.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes, yes, in Las Vegas.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: What was your feeling about the market sentiment, where the market is going?
Jussi Tatlinen, CEO and Co-founder, Nytor Games: I was pretty positively surprised to see increasing amount of positiveness on the market, to be honest, because it's no secret that there's been a lot of turmoil in the game's business overall. And that also meant that we've had to navigate through a lot of that uncertainty overall. And quite a few events in the past, people have been pretty negative because there's always news about big companies doing layoffs and what have you. But this time, it was also like finally a lot of light at the end of the tunnel. So
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: I felt the same. And I think the tight focus that we have on the category where we are operating is definitely something that resonates on the market and seems that the shooters are somehow very spotlight when the new games and new projects are launched.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes, yes, definitely. And the way it seems to me is that like we're in a pretty prime spot to take advantage of that because you don't have too many companies out there like Nitro who know how to do mobile but also know how to do the other platforms. And like I think it's good to see that there's finally more and more concrete cases with bigger companies with bigger brands pushing to mobile, which is a no brainer if you are
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: still Yes. And I think also the market us expanding into the other platforms was well received and there seems to be a market need for the company that is capable of operating in more than one platform and capable of cross platform, multi platform, cross play, all of those areas of the game development and publishing.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes. And one thing that was super cool to see is that like we've had what we call our MVP process, so the concept of testing games before they go live, testing the marketability of the games and the audience and everything and tweaking things before you make the big investments. That's something that has kind of like now returned in a way. So I was happy to see that there's more and more bigger companies sort of adapting something quite similar and sharing the mindset. And that, of course, means there are opportunities for Nitro moving forward.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Exactly.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes. So overall, last year, next we're going to look through the numbers and then we go through who we are here in Nitro. Stuff. But I think it's safe to say that last year was our record year on all fronts definitely. And one of the big themes for last year was that we continued our expansion to other platforms.
And especially towards the end of the year, we increased our investment on new opportunities that will become fruitful moving forward. But if we look at the numbers, it's like obvious that we improved on all fronts. So the revenues increased, EBITDA improved and last year was the first year when we delivered our profit in a long, long time. So that's definitely a big shift in the history of Nitro. So we turned the company profitable at the end of twenty twenty three and have continued with that route ever since.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Another good theme of the year was very successful last year to see stable growth while keeping the stability in all of the operations and cost control is still we're able to find the growth areas and building the platform expansions, introducing new projects and all of those are paving the opportunities into the future and for this year. Yes. And especially, I
Jussi Tatlinen, CEO and Co-founder, Nytor Games: think, something that puts last year in a good spot is that like it was definitely a year of a lot of turbulence on the market and a lot of uncertainty. And as a result, of course, we were super mindful about our cash and spending and all of those things. But still, despite of all of that, we managed to deliver profitable year, profitable growth. We managed to deliver opportunities for new things moving forward. So I think if that's something we can do in tight conditions, I'm super excited to see what we can pull off now when things are opening up and things are better.
Yes. In terms of the recent highlights from the fourth quarter, those were mostly circulating around Other Bunny Heroes, which is a good testament of the platform expansion. So we launched the game on web, on the first platform on web R and R, then we introduced the game on PC, which we will launch later.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: It's very interesting kind of going back into the platform where we started and now refreshing all the knowledge and processes and ways of working in the
Jussi Tatlinen, CEO and Co-founder, Nytor Games: PC platform. Indeed. Indeed. And also during the last quarter, we raised a little bit of funding from Business Finland. This is tied into the project we have with them.
And the funding from Business Finland comes in the form of soft loader. And this funding mostly goes into supporting our things that we do around AI. So there's a lot of R and D on that front in Nitro and a lot of concrete use cases already. And we are doing whatever everybody else is doing. Like we use all that industry standard tools and stuff.
But in addition to that, we're also building things of our own like, educating our own models and building our own AI stuff. And I can easily see that becoming more and more relevant in the long term and helps us to continue improving our efficiency.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Exactly. Yes.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Then for those of you who might be new to Nitro games, we have been seeing quite a lot of new shareholders towards the end of the year joining Nitrogen.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Happy to see the news.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Happy to see. Yes.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Lots of new shareholders.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: So maybe as a quick introduction to who we are and what we do.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: We've been around for more than eighteen years. Yes. And it feels like a lifetime and at least for us, it is a kind of lifelong journey. And I think we have proven couple of things that we can be resilient on the chassis on the market. There has been several turbulent phases in the gaming industry throughout this eighteen years.
And we have gone through on all of those turbulent times and enjoyed all of those financial good times also that there has been on the industry since 02/2007 and
Jussi Tatlinen, CEO and Co-founder, Nytor Games: still continuing strong. Definitely have a fun. I think it's this sort of our ability to evolve and is what I sometimes consider pretty unique mix of like creativity, but also the very heavy business sentiment. So we've always been pretty strong in terms of deal making and building new opportunities. So we don't get stuck up, hung up on any one single thing, but we're always able to evolve as the market continues
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: to grow in different directions. And always focusing on delivering the fun gaming experience to the gamers and kind of players and real gamers being in the core of the our audience or the other time in the core when we are designing the new games and also with our customer projects.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: And quality is, of course, that's one of our core values here in Nitro. And that's something that I think, especially last year, proved to be super important on many fronts. And that results in Nitro being reliable towards our customers and players on all fronts. And that's something that I think moving forward, we will continue taking advantage from the scalable model we have and putting more and more and more and more views on the quality of our games. Coolness.
So let's then have a look see about how this scalable model we have looks like. So here in Nitro, the way that we work is that we have a combination of our in house staff. We have two studios here in Finland, so we're Finland based. But that mindset how we operate is pretty much global, especially on the Western markets point of view. So we are on many different time zones.
We work with our partner studios and contractors in different countries. We'll be building this network of great partners for fifteen years
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: and years. So started from the very early days to build up the reliable and scalable network of good partners. Scaling up, scaling down based on the needs of the projects and keeping the ability to grow through the network is definitely the clear thing here in our Pro and resonates very well on the market also. Yes, when we are discussing with our bigger clients, they seem to be valuing the model quite a lot and especially now when the times have been a little tough on the industry, it has been a current benchmark for many companies that you can actually do like that also.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes. And I think it's good because it also allows us to do our share in the industry because I think Nitro, especially last year, has been pretty much a lifeline for some of the smaller studios we work with and the work that we do together with them has been very much key in keeping those studios alive and kicking on. And I think that's very positive and that helps to build these super long relationships and so on moving forward. And last year, I think it's a good testament to this model and way of working because as you can see in the numbers, we were able to increase our revenues and profitability without increasing our fixed outcome here in Finland too much.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Also, I think a good testament for the model is that even the big U. S. Players and big U. S. Companies, they are starting to acknowledge and approve the model even though it used to be a little bit scary and kind of different for them.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes, yes. Like some years ago or
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: ten years ago, it was quite new that somebody is operating with this kind of model. Yes, yes. But I think the benefits
Jussi Tatlinen, CEO and Co-founder, Nytor Games: to them are also clear because especially when you deal with bigger B2B customers, they always want everything to happen like yesterday. So this gives us the ability to react fast when the needs change. We're obviously a games company. So here's the game portfolio. So at the moment, we have six things cooking here in Nitro.
So that's six. And first and foremost, let's talk about Ottergan Heroes. This is our action platformer on mobile and also now on web.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Also web. There was lots of activity on the
Jussi Tatlinen, CEO and Co-founder, Nytor Games: last year with the game. Yeah. I think the biggest sort of shift with Other Gun Heroes was when during the first half of the year, we started the game with a publishing partner, Supersonic from Unity. And those of you who don't know who they are, they are a publishing entity owned by Uniti and they are pretty damn strong in terms of driving downloads. And the deal that we have with them is that Nitro takes care of the development of the game, the live operations providing updates and so on, and they are in charge of the marketing and acquiring new users for the game.
Game.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: And they have a huge reach of the users and being on top three in a global scale for several years.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes. And last year then after we signed the deal, then we're continuing forward with the roadmap for the game with new updates and stuff. And what we're working towards together with Supersonic is to get the game to so called scalability. And that's like ever tightening raise by us improving the game and increasing the monetization of the game while on their end they're working to lower the cost of the user languages. So the optimization
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: of the CPI and hopefully we find the sweet spot step by step.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: And then we have Crazy Games there. That's our first platform on the web. And essentially, what that means for the case is that there's exactly the same game running on mobile and also running on web. And on web, the dynamics are completely different. So the user inflow looks radically different.
The type of users are radically different because you basically play
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: the game on your browser
Jussi Tatlinen, CEO and Co-founder, Nytor Games: as you go. You don't need to download anything or anything like that. And for us, in the long run, we see this type of expansion to web and new platforms moving forward as a way to kind of like get advantage on that user acquisition versus the game monetization game that we're playing all the time because it definitely acts as an influx of new users in the game.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Also the dynamics between us and the players are a little bit different as we have a direct contact to the players. Building the community, our community activities are starting to play more and more and more important role with the web game.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes. We're definitely seeking to engage more and more with the player communities directly. And also this web interface also means that moving forward, we're getting closer and closer to the point where you don't necessarily need to rely on the app stores on the mobile phone fully for your revenue because on web, you can go directly to the end customers. Next (LON:NXT) up on the mobile
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Sorry, Supercharged. Supercharged, very exciting platform extension or how would you call
Jussi Tatlinen, CEO and Co-founder, Nytor Games: it? Return. Return into the
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: old, lovely platform of PC and Steam. And this has been a really nice initiative to take that IP and a brand rather than game into the PC platform. And it's also not only the one game, but it's a kind of segue paving the role for the whole PC business.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes, definitely. Definitely. And for those of you who might be new to Nitro, our first game ever that was published globally was called East India Company. That was in 02/2009 on PC and therefore also Steam. Back in those days, we still sold games in boxes as well.
Something about this going back to Steam Steam that I found super interesting is that on one hand, the platform is sort of exactly the same as it looks like every day, but it has also evolved a lot. So how you're supposed to do things on that platform has changed a lot. So we are like learning new things with Autogrand Heroes as we go now in many ways. So I'm super excited to see this new journey expanding on PC's team. And also worth maybe highlighting that Autogrand Heroes Supercharged, that will be a whole new game experience that comes out of Steam.
And hopefully, many of you are soon going to be able to try out the first playable demos of the game and so on as we work our way towards the launch.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Not only the platform have evolved, but also the marketing. Now it's all about the short videos in several channels and also the community side of the things are playing very big part on a PC, okay, publishing and the marketing. Yes. And sometimes you need to take things a
Jussi Tatlinen, CEO and Co-founder, Nytor Games: little bit less seriously and go a little bit more crazy on the marketing for PCV test as well. And that seems to be resonating well. Then we have Nerve Superblast, one of the leading toy brands or not toys necessarily if you use them as an adult.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: But still you have to Blasters.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yeah. Blasters, yes. And with Hasbro (NASDAQ:HAS), we're continuing the relationship with them. We're proud of the game that we built with them and very happy that they are also happy with the game as well. And we're busy exploring different options and opportunities, what we can do with the brand and the game that we have moving forward.
So that's something to keep an eye on as we progress through this year. Then we have Warframe. With the Digital
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Extreme. Already old partner, Digital Extreme, we've been working for quite a few years already and are the prime example of kind of returning customer and how well we've been able to serve the needs that they have and not only serving the needs they are, but creating the demand on their end and providing them all sort of improvement suggestion for the game. And iOS have been out and now looking for the Android, most likely going to be even bigger platform for them than iOS. And I think the relationship is very strong and the project going very nicely. We must connect the guys in two weeks ago or
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: So week, before last
Jussi Tatlinen, CEO and Co-founder, Nytor Games: week, yes. And I think Warframe is a prime example of the type of longevity you get when you really pay attention to the quality and to your audience. And something that I find super inspiring about Digital Extremes is that they know their customer really, really, really well. They put a lot of effort in understanding their player community, which is huge. And as a result, they're able to build super long term plans and move ahead for long times to come.
And that's something that I think also we plan to do more and more moving forward as our position gets better, we're profitable and we keep growing and we're able to take more and more long term thinking into our approach with our games.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: As a project, it's also very good reference for our new potential cases that we might have and what we've been discussing. It's a very good preference for the technical point of view and how great of the experience you can create on the mobile, high fidelity graphics and all that experience. It's there is not that many companies can have that kind of experience on mobile.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: And it wasn't that long ago when there was still a lot of big shots in the industry saying that you can never bring those type of experience on mobile, but here we are. And there's a whole new generation who actually uses it as a sort of first priority platform and then a little bit older generations that kind of use both and so on. So that's very interesting how things evolve in that direction because years go by so fast and that just keeps expanding more. Then next up, we have Netflix (NASDAQ:NFLX). Obviously, everybody knows who they are.
The project that we have with them hasn't been announced yet. So we can't talk too much because our mouths are sharp. Thanks to the pretty tight NDAs that we have in this industry, that's quite normal how we operate.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: The project is very good fit to our strategy and what we are generally working on. So Yes, it's not a big stretch.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes, yes. And I'm personally excited to see how things roll forward with that one and when we get to talk about it a little bit more. And then we have something in the category of unannounced.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: As always, there's always something in cooking. Yes. In overall, I think we are paying more and more attention for the new things also. And there are lots of great initiatives within the Nitro but also outside of the Nitro, not only our partner network but widely in the industry. Lots of great creative stuff brewing here and there and everywhere.
And I think we
Jussi Tatlinen, CEO and Co-founder, Nytor Games: are going to keep our eyes open for those opportunities. Definitely, definitely. And I think the sort of increased attention to new product and new opportunities in our game portfolio moving forward is something that for the first time ever in our history, we've been able to do that without a significant backlash on the P and L and on the profitability. And that's largely thanks to all the great technology that we built during the previous five years, all the great game concepts that we built and those modules from one game to another, all the great IT that we have and so on, and especially the fantastic team that we have. So as a result, we're now able to put more effort on new things with less in terms of investment.
And that's very good for the long term. Speaking of numbers, this is how our previous five years looks like. So we've now had five years of consecutive growth since 2020. And I think this slide pretty well illustrates our sort of our persistent focus on building things. And especially last year, our team was stable growth.
So we wanted to make sure that the profitability we achieved during the last quarter of twenty twenty three would continue throughout 2024. So that's what we did. And parallel to that, we also delivered increasing revenues. So this is something that obviously we don't do financial guidance moving forward. We only report things backwards.
But I think it's obvious that we're not done yet. We want to stay hungry and we want to keep reaching out for more. And looking at the numbers in a little bit more detail from last year. On the left side, you can see our income statement. We report all our numbers in IFRS.
And on the right side, you can see some of the key financials. And I think if you look at the revenue growth last year, that is obviously the main thing driving the improving profitability. But there's also a couple of other things. So we are like making those depreciations from our balance sheet, basically capitalized development costs from previous years, which obviously hurt the profitability and bring the profits down. But that's something that at the same time, our balance sheet keeps cleaning up as we go moving forward.
This combined with the fact that we were able to pay pretty considerable amounts of our loans last year and so on means that we're getting in a better and healthier shape all the time. So that gives us more and more leverage moving forward to deliver even better profitability. And then if we turn our eyes from last year into looking forward, so what are we now seeking to do in 2025? Obviously, we want to grow our game portfolio in many ways. Obviously, we want the existing products and games to grow.
But new games? Yes. New partnerships? Yes.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: And most likely new platforms?
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes. So those are the things that new games, new partnerships, new platforms. And basically, all those combined mean new audience. So that is something that we always want to keep in the back of our heads that it's all about the players. So we want to service our existing ones but also reach out
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: to new type of audiences this year. Also, we want to take all out from the efficiency from the global team that we are working. We want to always be better in our operations and improve the ways of working and processes and share the values and tools and all that. We are already very far with our partnerships, but still keep on improving those and those are ways
Jussi Tatlinen, CEO and Co-founder, Nytor Games: to more efficient and that way more profitable operators. Yes. And we always have some people in Nitro who are basically looking into that side of things like how are we doing things now, how can we improve our process, how can we get maybe get rid of something that isn't needed anymore. And I think the big theme on that global theme is that we want to take so many of the learnings that we have here in house in Nitro to our existing partners and continue improving those ways.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: And sometimes in another ways also.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes, yes.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: That's a good idea. And while working with those several teams across the world and also with a lot of exploration of the new opportunities, there are strategic opportunities coming to our way every now and then. And those are also something that we are, of course, evaluating some sort of strategic opportunities. Sometimes some games we are checking out and sometimes there might be a small team or something like that.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Indeed. And especially since we want to continue improving our financial stability, it gives us more and more tools to act on the new opportunities. So last year, there were so many great opportunities that we had to hold back a little bit because we wanted to make sure that we deliver financial stability. And this year, of course, we want to maintain that financial stability as we move forward and keep building new revenue streams and keep finding new things. But now maybe time to get some questions from you guys.
Let's see what we have here. So where's the first one? There's the first one. So Daniel is asking why hasn't Supersonic doing more to scale Autogon? They're doing nothing.
That's not exactly correct. They're doing quite a lot. So they are quite
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: a big team. They're working with the game and going through the rule of AP testing and data analytics and analyzing the best performing campaigns and whatnot. And it's safe to say that they are doing quite a lot.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes, yes, yes. And what both Nitro and they are focusing on at the moment is getting closer to the point of scalability. And that's something that obviously until we reach that point, it doesn't make sense to overspend too much because of course you always want to look at the game performance in the long run. So you want to make sure that you reserve your ammunition for the moments when you actually are part of an oscillator.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: But step by step, update by update and campaign by campaign we are closer to that point.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes. And in terms of the cadence, there's also a question about when do we expect the game to get scalable. That's something that of course you never know beforehand. But the cadence we have at the moment is that we're rolling out roughly an update per month type of thing and different updates focusing on different parts of the gameplay. For example, just earlier this year, we released an update where we introduced a new pacing to the core gameplay for new users, because old players don't really see it at that point for new players and stuff.
Then what do we expect from 2025? Hopefully, we little bit answered that already. This question that do we see better shareholder value and maybe even an offer for acquiring the company. Obviously, those are things that you can never predict because we don't have the crystal ball. But of course, our motivation is very much we keep improving the business.
We are performing better than ever at the moment. We have no intentions of slowing down. And of course, when you build better games, better business, we have a better and better team moving forward. Of course, we expect it to translate into positive progress on other fronts as well. Then question about associated cost of expanding Autogrand Heroes brand to PC.
So that's Autogrand Heroes Supercharged. The costs on that side are not huge. Yes. Compared
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Even compared to potential payback of the first project, it's very, very reasonable. Breakeven is not very high on first drive.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes. And I think that's the sentiment that we have with pretty much all new product development at the moment that we have done, bigger investments in the recent years. And how we're approaching these things now is that we're taking advantage of those investments we have already done, which means that, for example, Overland Kirals, we've built tech wise in a way that we can then later on expand it to our platform. So we don't need to redo everything and so on. So that brings down the price tag.
And then update in our competitive landscape in the service business. So this refers to the part of business where we operate with bigger B2B competitors.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: That is incorrect. There has been lots of consolidation in the industry past past years. And some of the colleagues who we faced as a competitor like three years, five years ago, they might not be there. They might be part of something bigger. And then again, the turbulence that there has been in the industry have also affected.
There are some companies no more. And I think overall, there are less competition in a category and in a manner where we are operating. So in that sense, it might be a little bit easier to position for us.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes, I can easily see that. Yes. And also at the same time, I think as it seems that there's more and more positivity and concrete new opportunities and concrete new cases out there. Of course, when people want to be careful with where they put their spending in, something like Nitro, who has almost twenty years of proven track record, we have countless approaches we've delivered for big buyers out there. So of course, it's different compared to some new studio that has just started who doesn't really have the track record yet because the bigger the projects get, the more reliability matters
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: in the mix. And that's something we can deliver. And also, I think one key benefit that we have is that there has been so many different projects. So somebody asking that have you ever been working with the big IPs? Yes.
Yes. Yes. Yes. Yes. Have we been working with different time zones?
Yes. Yes. So many of those kind of obvious questions that any of the newcomers might be falling down is something that we already have. And do you have expertise on several platforms? Yes, one of them.
Yes. So in a sense, I think we are stronger positioned than ever on the B2B service business. Yes. And maybe still about the landscape there. I think one thing that was different last
Jussi Tatlinen, CEO and Co-founder, Nytor Games: year compared to many years before that was that there was quite a lot of these bigger companies who wanted to do these preparation things. So do those due diligence, technical due diligence. They didn't necessarily have the mandate to buy yet, but just to prepare for the funds when they actually get the mandate.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: They were already the code base that it's capable for the new platform. And so evaluating some IPs whether they would be found in, for example, mobile and this kind of fix, there was quite a lot of that and the kind of risk mitigation before the big investment.
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes, indeed. Then looks like the last one. Netflix stated in Q4 report that it aims to increase its gains investments. Have we noticed any impact from this yet? Well, we cannot comment on what they do, but the reports are publicly available out there.
So you can just read what they wrote.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Yes. And naturally, we are in constant discussions with them. So what they report, you have to be very much in line with the
Jussi Tatlinen, CEO and Co-founder, Nytor Games: year. Let's still quickly check from here. I think it seems like that's it. So we are done with this webcast.
Ant Wilhelm, Co-founder and Chief Strategy Officer, Nytor Games: Thank you so much. We see April. April, is it?
Jussi Tatlinen, CEO and Co-founder, Nytor Games: Yes, yes. That's when we roll out the numbers for Q1. Yes. Until then, have a good one. Bye bye.
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