NEXT GAMES CORPORATION - TRANSITION TO IFRS REPORTING
Next Games Corporation Company Release 13 February 2019 at 13:00 EET On January 10, 2019, Next Games published preliminary information prepared in accordance with the FAS standard concerning its financial performance for fourth quarter 2018 and announced that the company will transition from Finnish Accounting Standard (FAS) to International Financial Reporting Standards (IFRS) reporting. Previously Next Games has prepared its published financial statements in accordance with Finnish Accounting Standards (FAS). Next Games has prepared the following unaudited IFRS financial information to provide its investors comparative information on Next Games’ previously published consolidated statement of comprehensive income, consolidated statement of financial position and key figures for the years ended December 31, 2016 and December 31, 2017 and the six month periods ended June 30, 2016, December 31, 2016, June 30, 2017, December 31, 2017 and June 30, 2018 as well as consolidated statement of financial position as at the transition date to IFRS January 1, 2016. Key differences to the Finnish Accounting Standards resulting from the transition to IFRS are described in accompanying notes to this company release. For additional information on the historical financial information prepared in accordance with FAS, refer to the audited historical consolidated financial statements and the unaudited half year consolidated financial information of Next Games on the company's website at www.nextgames.com. The financial information included in this release is unaudited except for the consolidated statement of financial position information for the year ended 2016 and 2017. As part of the accounting standard change, Next Games changed the presentation of expenses of the consolidated statement of comprehensive income from classification based on nature to classification based on function. Therefore, also the FAS income statement figures are unaudited from financial years 2016 and 2017. Next Games publishes its full-year financial bulletin on February 15, 2019. Key Financial Figures (IFRS)1000 EUR | 1.1-31.12.2018 | 1.7-31.12.2018 | 1.1-30.6.2018 | 1.1-31.12.2017 | 1.7-31.12.2017 | 1.1-30.6.2017 | 1.1-31.12.2016 | 1.7-31.12.2016 | 1.1-30.6.2016 | |||||||||
Revenue, gross bookings and gross Margin | ||||||||||||||||||
Revenue | 35,245 | 24,768 | 10,477 | 32,466 | 13,014 | 19,452 | 31,112 | 18,326 | 12,786 | |||||||||
Gross bookings | 35,788 | 25,339 | 10,449 | 30,930 | 12,641 | 18,289 | 33,594 | 19,828 | 13,766 | |||||||||
Gross Profit | 21,294 | 15,260 | 6,034 | 19,308 | 8,118 | 11,190 | 16,870 | 9,828 | 7,043 | |||||||||
Operating profit and adjusted Operating Profit | ||||||||||||||||||
Operating profit (loss) | -16,914 | -11.961 | -4,954 | -5,072 | -4,202 | -870 | -2,192 | 1,593 | -3,785 | |||||||||
Depreciation and amortisation (excluding IFRS 16) | 1,654 | -1,513 | 140 | 382 | 132 | 251 | 244 | 122 | 123 | |||||||||
Adjusted operating profit (loss) | -15,261 | -10,447 | -4,814 | -4,690 | -4,070 | -619 | -1,948 | 1,714 | -3,662 | |||||||||
As percentage of revenue | ||||||||||||||||||
Gross Profit (%) | 60 | % | 62 | % | 58 | % | 59 | % | 62 | % | 58 | % | 54 | % | 54 | % | 55 | % |
Operating profit margin (%) | -48 | % | -48 | % | -47 | % | -16 | % | -32 | % | -4 | % | -7 | % | 9 | % | -30 | % |
Adjusted Operating Profit (%) | -43 | % | -42 | % | -46 | % | -14 | % | -31 | % | -3 | % | -6 | % | 9 | % | -29 | % |
EUR thousand | FAS | Total IFRS adjustments | IFRS | ||
Jan 1 – Jun 30, 2018 | Jan 1 – Jun 30, 2018 | ||||
Revenue from contracts with customers | 10 477 | 10 477 | |||
Cost of revenue | -4 382 | -60 | -4 443 | ||
Gross profit | 6 094 | -60 | 6 034 | ||
Other operating income | 45 | 45 | |||
Research and development costs | -6 647 | 3 092 | -3 555 | ||
Sales and marketing costs | -5 338 | -68 | -5 405 | ||
Administrative costs | -2 145 | 72 | -2 073 | ||
Operating profit | -7 990 | 3 036 | -4 954 | ||
Finance income | 722 | 722 | |||
Finance costs | -1 461 | 995 | -466 | ||
Finance costs - net | -740 | 995 | 255 | ||
Share of associates' profit/loss | -116 | -116 | |||
Profit before taxes | -8 730 | 3 915 | -4 815 | ||
Income taxes | |||||
Change in deferred tax | 9 | -742 | -733 | ||
Total income tax expense | 9 | -742 | -733 | ||
Profit for the period | -8 721 | 3 173 | -5 547 | ||
Total comprehensive income for the period | -8 721 | 3 173 | -5 547 |
EUR thousand | FAS | Total IFRS adjustments | IFRS | ||
June 30, 2018 | June 30, 2018 | ||||
Assets | |||||
Non-current assets | |||||
Intangible assets | 6 664 | 3 229 | 9 893 | ||
Goodwill | 790 | 2 554 | 3 344 | ||
Property, plant and equipment | 232 | 1 434 | 1 666 | ||
Investments | 63 | -63 | 0 | ||
Share of associates | 393 | 393 | |||
Long-term debtors | 669 | 669 | |||
Deferred tax assets | 2 785 | -889 | 1 896 | ||
Non-current assets total | 11 204 | 6 658 | 17 863 | ||
Current assets | |||||
Trade and other receivables | 6 368 | -9 | 6 359 | ||
Cash and cash equivalents | 16 940 | 16 940 | |||
Current assets total | 23 308 | -9 | 23 300 | ||
Total assets | 34 513 | 6 650 | 41 162 | ||
Equity and liabilities | |||||
Shareholders’ equity | |||||
Share capital | 80 | 80 | |||
Invested non-restricted equity reserve | 53 307 | 589 | 53 897 | ||
Retained earnings | -16 755 | 2 922 | -13 832 | ||
Profit (loss) for the period | -8 721 | 3 173 | -5 547 | ||
Shareholders’ equity | 27 912 | 6 685 | 34 597 | ||
Liabilities | |||||
Non-current liabilities | |||||
Governmental agency loan | 663 | -35 | 628 | ||
Non-current liabilities total | 663 | -35 | 628 | ||
Current liabilities | |||||
Governmental agency loan | 112 | 112 | |||
Deferred revenue | 886 | 886 | |||
Trade payables | 2 042 | 2 042 | |||
Other liabilities | 192 | 192 | |||
Accruals and deferred income | 2 705 | 2 705 | |||
Current liabilities total | 5 937 | 5 937 | |||
Liabilities total | 6 600 | -35 | 6 565 | ||
Equity and liabilities total | 34 513 | 6 650 | 41 162 |
EUR thousand | FAS | Total IFRS adjustments | IFRS | ||
Jan 1 – Dec 31, 2017 | Jan 1 – Dec 31, 2017 | ||||
Revenue from contracts with customers | 32 466 | 32 466 | |||
Cost of revenue | -13 042 | -115 | -13 158 | ||
Gross profit | 19 423 | -115 | 19 308 | ||
Other operating income | 53 | 53 | |||
Research and development costs | -9 274 | 2 240 | -7 034 | ||
Sales and marketing costs | -12 579 | -135 | -12 714 | ||
Administrative costs | -3 981 | -705 | -4 686 | ||
Operating profit | -6 357 | 1 285 | -5 072 | ||
Finance income | 37 | 37 | |||
Finance costs | -507 | -34 | -541 | ||
Finance costs - net | -470 | -34 | -504 | ||
Share of associates' profit/loss | -455 | -455 | |||
Profit before taxes | -6 827 | 797 | -6 031 | ||
Income taxes | 0 | ||||
Change in deferred tax | 469 | -574 | -105 | ||
Total income tax expense | 469 | -574 | -105 | ||
Profit for the period | -6 359 | 223 | -6 137 | ||
Total comprehensive income for the period | -6 359 | 223 | -6 137 |
EUR thousand | FAS | Total IFRS adjustments | IFRS | |
Jul 1 – Dec 31, 2017 | Jul 1 – Dec 31, 2017 | |||
Revenue from contracts with customers | 13 045 | 13 045 | ||
Cost of revenue | -4 841 | -55 | -4 896 | |
Gross profit | 8 204 | -55 | 8 149 | |
Other operating income | 16 | 16 | ||
Research and development costs | -5 869 | 2 183 | -3 686 | |
Sales and marketing costs | -6 786 | -31 | -6 817 | |
Administrative costs | -1 946 | 81 | -1 865 | |
Operating profit | -6 380 | 2 177 | -4 202 | |
Finance income | 36 | 36 | ||
Finance costs | -347 | -6 | -353 | |
Finance costs - net | -311 | -6 | -317 | |
Share of associates' profit/loss | -290 | -290 | ||
Profit before taxes | -6 690 | 1 881 | -4 809 | |
Income taxes | 0 | |||
Change in deferred tax | 476 | -591 | -115 | |
Total income tax expense | 476 | -591 | -115 | |
Profit for the period | -6 215 | 1 290 | -4 924 | |
Total comprehensive income for the period | -6 215 | 1 290 | -4 924 |
EUR thousand | FAS | Total IFRS adjustments | IFRS | |
Jan 1 – Jun 30, 2017 | Jan 1 – Jun 30, 2017 | |||
Revenue from contracts with customers | 19 452 | 19 452 | ||
Cost of revenue | -8 201 | -60 | -8 262 | |
Gross profit | 11 251 | -60 | 11 190 | |
Other operating income | 6 | 6 | ||
Research and development costs | -3 405 | 57 | -3 348 | |
Sales and marketing costs | -5 794 | -103 | -5 897 | |
Administrative costs | -2 035 | -785 | -2 821 | |
Operating profit | 22 | -892 | -870 | |
Finance income | 0 | 0 | ||
Finance costs | -160 | -28 | -188 | |
Finance costs - net | -160 | -28 | -187 | |
Share of associates' profit/loss | -165 | -165 | ||
Profit before taxes | -137 | -1 084 | -1 222 | |
Income taxes | -1 | -1 | ||
Change in deferred tax | -7 | 17 | 10 | |
Total income tax expense | -8 | 17 | 9 | |
Profit for the period | -145 | -1 068 | -1 212 | |
Total comprehensive income for the period | -145 | -1 068 | -1 212 |
EUR thousand | FAS | Total IFRS adjustments | IFRS | ||
December 31, 2017 | December 31, 2017 | ||||
Assets | |||||
Non-current assets | |||||
Intangible assets | 5 917 | 859 | 6 776 | ||
Goodwill | 903 | 2 441 | 3 344 | ||
Property, plant and equipment | 136 | 139 | 275 | ||
Investments | 1 074 | -1 074 | 0 | ||
Share of associates | 509 | 509 | |||
Long-term debtors | 820 | 820 | |||
Deferred tax assets | 2 776 | -147 | 2 629 | ||
Non-current assets total | 11 626 | 2 727 | 14 353 | ||
Current assets | |||||
Trade and other receivables | 4 987 | -9 | 4 978 | ||
Cash and cash equivalents | 26 377 | 26 377 | |||
Current assets total | 31 364 | -9 | 31 356 | ||
Total assets | 42 990 | 2 719 | 45 709 | ||
Equity and liabilities | |||||
Shareholders’ equity | |||||
Share capital | 80 | 80 | |||
Invested non-restricted equity reserve | 53 277 | 589 | 53 866 | ||
Retained earnings | -10 395 | 1 958 | -8 437 | ||
Profit (loss) for the period | -6 359 | 223 | -6 137 | ||
Shareholders’ equity | 36 602 | 2 770 | 39 372 | ||
Liabilities | |||||
Non-current liabilities | |||||
Governmental agency loan | 691 | -49 | 642 | ||
Non-current liabilities total | 691 | -49 | 642 | ||
Current liabilities | |||||
Governmental agency loan | 84 | 84 | |||
Lease liabilities | 224 | 224 | |||
Deferred revenue | 914 | 914 | |||
Trade payables | 1 162 | 1 162 | |||
Other liabilities | 205 | 205 | |||
Accruals and deferred income | 3 331 | -227 | 3 104 | ||
Current liabilities total | 5 697 | -3 | 5 694 | ||
Liabilities total | 6 388 | -51 | 6 337 | ||
Equity and liabilities total | 42 990 | 2 719 | 45 709 |
EUR thousand | FAS | Total IFRS adjustments | IFRS | |
June 30, 2017 | June 30, 2017 | |||
Assets | ||||
Non-current assets | ||||
Intangible assets | 6 427 | -1 768 | 4 660 | |
Goodwill | 1 116 | 2 228 | 3 344 | |
Property, plant and equipment | 150 | 289 | 439 | |
Investments | 1 074 | -1 074 | 0 | |
Share of associates | 800 | 800 | ||
Long-term debtors | 258 | 258 | ||
Deferred tax assets | 2 300 | 443 | 2 744 | |
Non-current assets total | 11 326 | 919 | 12 245 | |
Current assets | ||||
Trade and other receivables | 5 250 | -14 | 5 236 | |
Cash and cash equivalents | 32 003 | 32 003 | ||
Current assets total | 37 253 | -14 | 37 239 | |
Total assets | 48 580 | 904 | 49 484 | |
Equity and liabilities | ||||
Shareholders’ equity | ||||
Share capital | 80 | 80 | ||
Invested non-restricted equity reserve | 53 255 | 589 | 53 845 | |
Retained earnings | -10 395 | 1 024 | -9 372 | |
Profit (loss) for the period | -145 | -1 068 | -1 212 | |
Shareholders’ equity | 42 795 | 545 | 43 341 | |
Liabilities | ||||
Non-current liabilities | ||||
Governmental agency loan | 691 | -49 | 642 | |
Non-current liabilities total | 691 | -49 | 642 | |
Current liabilities | ||||
Governmental agency loan | 84 | 84 | ||
Lease liabilities | 408 | 408 | ||
Deferred revenue | 1 316 | 1 316 | ||
Trade payables | 873 | 873 | ||
Other liabilities | 122 | 122 | ||
Accruals and deferred income | 2 698 | 2 698 | ||
Current liabilities total | 5 093 | 408 | 5 501 | |
Liabilities total | 5 784 | 359 | 6 143 | |
Equity and liabilities total | 48 580 | 904 | 49 484 |
EUR thousand | FAS | Total IFRS adjustments | IFRS | ||
Note | Jan 1 – Dec 31, 2016 | Jan 1 – Dec 31, 2016 | |||
Revenue from contracts with customers | 31 112 | 31 112 | |||
Cost of revenue | -14 106 | -135 | -14 241 | ||
Gross profit | 17 005 | -135 | 16 870 | ||
Other operating income | 1 238 | -147 | 1 091 | ||
Research and development costs | -6 515 | 156 | -6 359 | ||
Sales and marketing costs | -12 268 | -63 | -12 331 | ||
Administrative costs | -1 020 | -443 | -1 463 | ||
Operating profit | -1 560 | -632 | -2 192 | ||
Finance income | 0 | 0 | |||
Finance costs | -62 | -38 | -100 | ||
Finance costs - net | -62 | -38 | -100 | ||
Share of associates' profit/loss | -110 | -110 | |||
Profit before taxes | -1 622 | -780 | -2 402 | ||
Income taxes | 0 | ||||
Change in deferred tax | 2 400 | 97 | 2 496 | ||
Total income tax expense | 2 400 | 97 | 2 496 | ||
Profit for the period | 778 | -683 | 94 | ||
Total comprehensive income for the period | 778 | -683 | 94 |
EUR thousand | FAS | Total IFRS adjustments | IFRS | |
Jul 1 – Dec 31, 2016 | Jul 1 – Dec 31, 2016 | |||
Revenue from contracts with customers | 18 326 | 18 326 | ||
Cost of revenue | -8 423 | -75 | -8 498 | |
Gross profit | 9 902 | -75 | 9 828 | |
Other operating income | 1 189 | -147 | 1 042 | |
Research and development costs | -3 105 | 172 | -2 933 | |
Sales and marketing costs | -5 422 | -30 | -5 452 | |
Administrative costs | -572 | -319 | -892 | |
Operating profit | 1 991 | -399 | 1 593 | |
Finance income | 0 | 0 | ||
Finance costs | 50 | -21 | 30 | |
Finance costs - net | 50 | -21 | 30 | |
Share of associates' profit/loss | -110 | -110 | ||
Profit before taxes | 2 041 | -529 | 1 512 | |
Income taxes | ||||
Change in deferred tax | 2 400 | 76 | 2 476 | |
Total income tax expense | 2 400 | 76 | 2 476 | |
Profit for the period | 4 441 | -453 | 3 988 | |
Total comprehensive income for the period | 4 441 | -453 | 3 988 |
EUR thousand | FAS | Total IFRS adjustments | IFRS | |
Jan 1 – Jun 30, 2016 | Jan 1 – Jun 30, 2016 | |||
Revenue from contracts with customers | 12 786 | 12 786 | ||
Cost of revenue | -5 683 | -60 | -5 744 | |
Gross profit | 7 103 | -60 | 7 043 | |
Other operating income | 49 | 49 | ||
Research and development costs | -3 422 | -16 | -3 438 | |
Sales and marketing costs | -6 847 | -33 | -6 880 | |
Administrative costs | -434 | -124 | -558 | |
Operating profit | -3 551 | -233 | -3 785 | |
Finance income | 0 | 0 | ||
Finance costs | -112 | -18 | -130 | |
Finance costs - net | -112 | -18 | -130 | |
Share of associates' profit/loss | ||||
Profit before taxes | -3 663 | -251 | -3 914 | |
Income taxes | ||||
Change in deferred tax | 20 | 20 | ||
Total income tax expense | 0 | 20 | 20 | |
Profit for the period | -3 663 | -231 | -3 894 | |
Total comprehensive income for the period | -3 663 | -231 | -3 894 |
EUR thousand | FAS | Total IFRS adjustments | IFRS | ||
Note | December 31, 2016 | December 31, 2016 | |||
Assets | |||||
Non-current assets | |||||
Intangible assets | 389 | 279 | 668 | ||
Goodwill | 200 | 2 035 | 2 235 | ||
Property, plant and equipment | 145 | 519 | 664 | ||
Investments | 1074 | -1 074 | 0 | ||
Share of associates | 964 | 964 | |||
Long-term debtors | 258 | 258 | |||
Deferred tax assets | 2400 | 30 | 2 430 | ||
Non-current assets total | 4 465 | 2 753 | 7 219 | ||
Current assets | |||||
Trade and other receivables | 6413 | -269 | 6 144 | ||
Cash and cash equivalents | 3 664 | 3 664 | |||
Current assets total | 10 076 | -269 | 9 808 | ||
Total assets | 14 542 | 2 485 | 17 027 | ||
Equity and liabilities | |||||
Shareholders’ equity | |||||
Share capital | 3 | 3 | |||
Invested non-restricted equity reserve | 15 783 | 1 927 | 17 710 | ||
Retained earnings | -11 173 | 773 | -10 400 | ||
Profit (loss) for the period | 778 | -683 | 94 | ||
Shareholders’ equity | 5 390 | 2 017 | 7 407 | ||
Liabilities | |||||
Non-current liabilities | |||||
Deferred tax liabilities | 0 | 0 | |||
Governmental agency loan | 775 | -68 | 707 | ||
Lease liabilities | 224 | 224 | |||
Non-current liabilities total | 775 | 156 | 931 | ||
Current liabilities | |||||
Governmental agency loan | |||||
Lease liabilities | 313 | 313 | |||
Deferred revenue | 2482 | 2 482 | |||
Trade payables | 1178 | 1 178 | |||
Other liabilities | 125 | 125 | |||
Accruals and deferred income | 4 592 | 4 592 | |||
Current liabilities total | 8 377 | 313 | 8 689 | ||
Liabilities total | 9 152 | 468 | 9 620 | ||
Equity and liabilities total | 14 542 | 2 485 | 17 027 |
EUR thousand | FAS | Total IFRS adjustments | IFRS | |
June 30, 2016 | June 30, 2016 | |||
Assets | ||||
Non-current assets | ||||
Intangible assets | 212 | 453 | 665 | |
Goodwill | 467 | 1 768 | 2 235 | |
Property, plant and equipment | 169 | 746 | 915 | |
Investments | 0 | 0 | ||
Long-term debtors | 257 | 257 | ||
Non-current assets total | 1 105 | 2 968 | 4 072 | |
Current assets | ||||
Trade and other receivables | 2 329 | 2 329 | ||
Cash and cash equivalents | 2 402 | 2 402 | ||
Current assets total | 4 731 | 0 | 4 731 | |
Total assets | 5 835 | 2 968 | 8 803 | |
Equity and liabilities | ||||
Shareholders’ equity | ||||
Share capital | 3 | 3 | ||
Invested non-restricted equity reserve | 15 777 | 1 973 | 17 750 | |
Retained earnings | -11 163 | 529 | -10 634 | |
Profit (loss) for the period | -3 663 | -231 | -3 894 | |
Shareholders’ equity | 953 | 2 271 | 3 224 | |
Liabilities | ||||
Non-current liabilities | ||||
Deferred tax liabilities | 58 | 58 | ||
Governmental agency loan | 426 | -36 | 390 | |
Lease liabilities | 408 | 408 | ||
Non-current liabilities total | 426 | 429 | 855 | |
Current liabilities | ||||
Governmental agency loan | ||||
Lease liabilities | 256 | 256 | ||
Deferred revenue | 980 | 980 | ||
Trade payables | 1 260 | 1 260 | ||
Other liabilities | 103 | 103 | ||
Accruals and deferred income | 2 114 | 12 | 2 126 | |
Current liabilities total | 4 457 | 267 | 4 724 | |
Liabilities total | 4 883 | 697 | 5 579 | |
Equity and liabilities total | 5 835 | 2 968 | 8 803 |
EUR thousand | FAS | Total IFRS adjustments | IFRS | ||
January 1, 2016 | January 1, 2016 | ||||
Assets | |||||
Non-current assets | |||||
Intangible assets | 48 | 639 | 688 | ||
Goodwill | 623 | 1612 | 2 235 | ||
Property, plant and equipment | 157 | 838 | 996 | ||
Investments | 0 | 0 | |||
Long-term debtors | 257 | 257 | |||
Non-current assets total | 1 086 | 3 090 | 4 176 | ||
Current assets | |||||
Trade and other receivables | 3 032 | -12 | 3 021 | ||
Cash and cash equivalents | 4 645 | 4 645 | |||
Current assets total | 7 677 | -12 | 7 666 | ||
Total assets | 8 763 | 3 079 | 11 842 | ||
Equity and liabilities | |||||
Shareholders’ equity | |||||
Share capital | 3 | 3 | |||
Invested non-restricted equity reserve | 15 776 | 1 973 | 17 750 | ||
Retained earnings | -11 173 | 285 | -10 888 | ||
Profit (loss) for the period | |||||
Shareholders’ equity | 4 606 | 2 258 | 6 864 | ||
Liabilities | |||||
Non-current liabilities | |||||
Deferred tax liabilities | 78 | 78 | |||
Governmental agency loan | 426 | -46 | 380 | ||
Lease liabilities | 537 | 537 | |||
Non-current liabilities total | 426 | 569 | 995 | ||
Current liabilities | |||||
Lease liabilities | 251 | 251 | |||
Trade payables | 1 833 | 1 833 | |||
Other liabilities | 184 | 184 | |||
Accruals and deferred income | 1 714 | 1 714 | |||
Current liabilities total | 3 731 | 251 | 3 983 | ||
Liabilities total | 4 157 | 821 | 4 978 | ||
Equity and liabilities total | 8 763 | 3 079 | 11 842 |
EUR thousand | Note | June 30, 2018 | December 31, 2017 | June 30, 2017 | December 31, 2016 | June 30, 2016 | January 1, 2016 | ||
Equity, FAS | 27 912 | 36 602 | 42 795 | 5 390 | 953 | 4 606 | |||
IFRS adjustments | |||||||||
Depreciation method | 9. | 16 | 17 | 24 | 32 | 36 | 40 | ||
Licence acquisitions | 5. | 239 | 299 | 359 | 211 | 272 | 332 | ||
Tekes loans | 9. | 28 | 39 | 39 | 55 | 20 | 27 | ||
Business combinations and goodwill | 3. | 2 799 | 2 649 | 2 400 | 2 170 | 2 014 | 1 858 | ||
IPO transaction costs | 6. | -1 201 | -1 562 | -1 983 | -203 | ||||
Leasehold improvements | 9. | -28 | -14 | -12 | |||||
Leases | 7. | 0 | 2 | -168 | -114 | -58 | |||
GaaS platform | 2. | 1 213 | 654 | 323 | 137 | ||||
Armada investment | 8. | 196 | -699 | -409 | -244 | ||||
Bad debt provision | 9. | -7 | -7 | -11 | -11 | ||||
Development expenses | 1. | 3 402 | 1 378 | ||||||
Adjustments total | 6 685 | 2 770 | 545 | 2 017 | 2 271 | 2 258 | |||
Equity, IFRS | 34 597 | 39 372 | 43 341 | 7 407 | 3 224 | 6 864 |
EUR thousand | Note | Jan 1 – Jun 30, 2018 | Jan 1 – Dec 31, 2017 | Jul 1 – Dec 31, 2017 | Jan 1 – Jun 30, 2017 | Jan 1 – Dec 31, 2016 | Jul 1 – Dec 31, 2016 | Jan 1 – Jun 30, 2016 | ||
Profit for the period, FAS | -8 721 | -6 360 | -6 215 | -145 | 778 | 4 441 | -3 663 | |||
IFRS adjustments | ||||||||||
Depreciation method | 9. | -1 | -15 | -7 | -7 | -9 | -4 | -4 | ||
Licence acquisitions | 5. | -60 | -121 | -60 | -60 | -121 | -60 | -60 | ||
Tekes loans | 9. | -11 | -16 | -16 | 27 | 35 | -7 | |||
Business combinations and goodwill | 3. | 134 | 384 | 222 | 162 | 277 | 139 | 139 | ||
IPO transaction costs | 6. | 361 | 228 | 421 | -192 | -157 | -157 | |||
Leasehold improvements | 9. | 14 | 28 | -14 | -14 | -2 | -12 | |||
Leases | 7. | -2 | 116 | 171 | -54 | -114 | -56 | -58 | ||
GaaS platform | 2. | 559 | 517 | 331 | 186 | 137 | 137 | |||
Armada investment | 8. | 895 | -455 | -290 | -165 | -244 | -244 | |||
Bad debt provision | 9. | 4 | 4 | -11 | -11 | |||||
Development expenses | 1. | 2024 | 1378 | 1378 | ||||||
Share-based payments | 4. | -725 | -1813 | -907 | -907 | -454 | -227 | -227 | ||
Adjustments total | 3173 | 223 | 1290 | -1068 | -683 | -453 | -231 | |||
Profit of the year, IFRS | -5547 | -6137 | -4924 | -1212 | 94 | 3988 | -3894 |
- Capitalization of game development expenses
- In the financial period, 2017 the expenses of R&D function were decreased by EUR 1.723 thousand and change in deferred taxes (expense) was increased by EUR 345 thousand.
- As at 31 December 2017, intangible assets were increased by EUR 1.723 thousand, retained earnings were increased by EUR 1.378 thousand and deferred tax liabilities were increased by EUR 345 thousand.
- In the financial period January 1, 2018 - June 30, 2018 the expenses of R&D function were decreased by EUR 2.530 thousand and change of deferred taxes (expense) was increased by EUR 506 thousand.
- As at 30 June 2018, intangible assets were increased by EUR 4.252 thousand, retained earnings were increased by EUR 3.402 thousand and deferred tax liabilities were increased by EUR 850 thousand.
- Game as a Service platform capitalization
- In the financial year, 2016, expenses of R&D function were decreased by EUR 171 thousand and change in deferred taxes (expense) was increased by EUR 34 thousand.
- As at 31 December 2016, intangible assets were increased by EUR 171 thousand, retained earnings (profit for the period) were increased by EUR 137 thousand and deferred tax liabilities were increased by EUR 34 thousand.
- In the financial year, 2017, expenses of R&D function were decreased by EUR 646 thousand and change in deferred taxes (expense) was increased by EUR 129 thousand.
- As at 31 December 2017, intangible assets were increased by EUR 817 thousand, retained earnings were increased by EUR 654 thousand and deferred tax liabilities were increased by EUR 163 thousand.
- In the financial period January 1, 2018 - June 30, 2018, expenses of R&D function were decreased by EUR 699 thousand and change in deferred taxes (expense) was increased by EUR 140 thousand.
- As at 30 June 2018, intangible assets were increased by EUR 1.516 thousand, retained earnings were increased by EUR 1.213 thousand and deferred tax liabilities were increased by EUR 303 thousand.
- Business combinations and reversal of goodwill amortizations
- As at 1 January 2016, goodwill was increased by EUR 1.612 thousand, intangible assets were increased by EUR 307 thousand, invested unrestricted equity reserve was increased by EUR 1.611 thousand, retained earnings were increased by EUR 247 thousand and deferred tax liabilities were increased by EUR 61 thousand.
- In the financial year 2016, expenses of R&D function were decreased by EUR 277 thousand.
- As at 31 December 2016, goodwill was increased by EUR 1.924 thousand, intangible assets were increased by EUR 307 thousand, invested unrestricted equity reserve was increased by EUR 1.611 thousand, retained earnings were increased by EUR 559 thousand and deferred tax liabilities were increased by EUR 61 thousand.
- In the financial period 2017 expenses of R&D function were decreased by EUR 172 thousand.
- As at 31 December 2017, goodwill was increased by EUR 2.124 thousand, intangible assets were increased by EUR 307 thousand, invested unrestricted equity reserve was increased by EUR 1.611 thousand, retained earnings were increased by EUR 759 thousand and deferred tax liabilities were increased by EUR 61 thousand.
- As at 30 June, 2018, goodwill was increased by EUR 2.124 thousand, intangible assets were increased by EUR 307 thousand, invested unrestricted equity reserve was increased by EUR 1.611 thousand, retained earnings were increased by EUR 759 thousand and deferred tax liabilities were increased by EUR 61 thousand.
- In the financial year 2017, expenses of R&D function were decreased by EUR 291 thousand, expenses of admin function were increased by EUR 61 thousand and change in deferred taxes (expense) was increased by EUR 18 thousand.
- As at 31 December 2017, goodwill was increased by EUR 206 thousand, intangible assets were increased by EUR 92 thousand, invested unrestricted equity reserve was increased by EUR 41 thousand, retained earnings were increased by EUR 239 thousand and deferred tax liabilities were increased by EUR 18 thousand.
- In the financial period January 1, 2018 - June 30, 2018, expenses of R&D function were decreased by EUR 143 thousand and change in deferred taxes (expense) was increased by EUR 9 thousand.
- As at 30 June 2018, goodwill was increased by EUR 319 thousand, intangible assets were increased by EUR 138 thousand, invested unrestricted equity reserve was increased by EUR 41 thousand, retained earnings were increased by EUR 389 thousand and deferred tax liabilities were increased by EUR 28 thousand.
- Share-based payments
- In the financial year 2016, expenses of R&D function were increased by EUR 175 thousand, expenses of sales and marketing function were increased by EUR 42 thousand , expenses of admin function were increased by 237 and retained earnings were credited with same total amount EUR 454 thousand. Therefore, the balance sheet as at 31 December 2016 was not affected.
- In the financial year 2017, expenses of R&D function were increased by EUR 698 thousand, expenses of sales and marketing function were increased by EUR 169 thousand, expenses of admin function were increased by EUR 946 and retained earnings were credited with same total amount EUR 1.813 thousand. Therefore, the balance sheet as at 31 December 2017 was not affected.
- In the financial period January 1, 2018 - June 30, 2018, expenses of R&D function were increased by EUR 280 thousand, expenses of sales and marketing function were increased by EUR 68 thousand , expenses of admin function were increased by 378 and retained earnings were credited with same total amount EUR 725 thousand. Therefore, the balance sheet as at 30 June 2018 was not affected.
- License acquisitions
- As at 1 January 2016, intangible assets were increased by EUR 332 thousand, invested unrestricted equity reserve was increased by EUR 362 thousand and retained earnings were decreased by EUR 30 thousand.
- In the financial year 2016, cost of revenue was increased by EUR 121 thousand.
- As at 31 December 2016, intangible assets were increased by EUR 211 thousand, invested unrestricted equity reserve was increased by EUR 362 thousand and retained earnings were decreased by EUR 151 thousand.
- In the financial year, 2017, cost of revenue was increased by EUR 121 thousand.
- As at 31 December 2017, intangible assets were increased by EUR 299 thousand, invested unrestricted equity reserve was increased by EUR 571 thousand and retained earnings were decreased by EUR 272 thousand.
- In the financial period 1 January, 2018 - 30 June, 2018, cost of revenue was increased by EUR 61 thousand.
- As at 30 June 2018, intangible assets were increased by EUR 239 thousand, invested unrestricted equity reserve was increased by EUR 571 thousand and retained earnings were decreased by EUR 332 thousand
- Transaction costs related to the listing of Next Games’ shares
- In the financial year 2016, expenses of admin function were increased by EUR 197 thousand and change in deferred taxes (income) was increased by EUR 39 thousand.
- As at 31 December 2016, prepayments and accrued income was decreased by EUR 254 thousand, deferred tax assets were increased by EUR 51 thousand, invested unrestricted equity reserve was decreased by EUR 46 thousand and retained earnings (profit for the period) were decreased by EUR 157 thousand.
- In the financial year 2017, expenses of admin function were decreased by EUR 284 thousand and change in deferred taxes (expense) was increased by EUR 56 thousand.
- As at 31 December 2017, intangible assets were decreased by EUR 1.954 thousand, deferred tax assets were increased by EUR 392 thousand, invested unrestricted equity reserve was decreased by EUR 1.633 thousand and retained earnings were increased by EUR 71 thousand.
- In the financial period January 1, 2018- June 30, 2018, expenses of admin function were decreased by EUR 451 thousand and change in deferred taxes (expense) was decreased by EUR 90 thousand.
- As at 30 June 2018, intangible assets were decreased by EUR 1.503 thousand, deferred tax assets were increased by EUR 302 thousand, invested unrestricted equity reserve was decreased by EUR 1.633 thousand and retained earnings were increased by EUR 432 thousand.
- Leases
- As at 1 January 2016, non-current lease liabilities were increased by EUR 537 thousand and current lease liabilities were increased by EUR 251 thousand. The right-of-use assets under buildings and structures were increased by EUR 788 thousand.
- In the financial year 2016, expenses of R&D function were increased by EUR 95 thousand, expenses of sales and marketing function increased by 17 thousand and expenses of admin function increased by 8 thousand. Financial expenses were increased by EUR 23 thousand and change in deferred taxes (income) was increased by EUR 29 thousand.
- As at 31 December 2016, non-current lease liabilities were increased by EUR 224 thousand and current lease liabilities were increased by EUR 313 thousand. The right-of-use assets under buildings and structures were increased by EUR 394 thousand. Deferred tax assets were increased by EUR 29 thousand and retained earnings (profit for the period) were decreased by EUR 114 thousand.
- In the financial year 2017, expenses of R&D function were decreased by EUR 107 thousand, expenses of sales and marketing function increased by EUR 35 thousand and expenses of admin function increased by EUR 18 thousand. Financial expenses were increased by EUR 14 thousand and change in deferred taxes (expense) was increased by EUR 29 thousand.
- As at 31 December 2017, current lease liabilities were increased by EUR 224 thousand. Accruals and deferred income were decreased by EUR 227 thousand. Deferred tax assets were increased by EUR 45 thousand, deferred tax liabilities were increased by EUR 45 thousand and retained earnings were decreased by EUR 2 thousand.
- In the financial year January 1, 2018 - June 30, 2018, Financial expenses were increased by EUR 3 thousand and change in deferred taxes (income) was increased by EUR 1 thousand.
- No adjustments for balance sheet June 30, 2018
- Armada investment
- In the financial year 2016, other operating income was decreased by EUR 196 thousand and share of associates result was decreased by EUR 110 thousand. Change in deferred tax increase (income) EUR 61 thousand.
- As at 31 December 2016, goodwill was increased by EUR 111 thousand, intangible assets were decreased by EUR 307 thousand, investments were decreased by EUR 1.074 thousand, investments in associates were increased by EUR 964 thousand, retained earnings (profit for the period) were decreased by EUR 244 thousand and deferred tax liabilities were decreased by EUR 61 thousand.
- In the financial year 2017, share of associates result was decreased by EUR 455 thousand.
- As at 31 December 2017, goodwill was increased by EUR 111 thousand, intangible assets were decreased by EUR 307 thousand, investments were decreased by EUR 1.074 thousand, investments in associates were increased by EUR 509 thousand, retained earnings were decreased by EUR 699 thousand and deferred tax liabilities were decreased by EUR 61 thousand.
- In the financial period January 1, 2018 - June 30, 2018, share of associates result was decreased by EUR 116 thousand and amortization expenses of non-current investments were decreased by EUR 1.011 thousand euros
- As at 30 June 2018, goodwill was increased by EUR 111 thousand, intangible assets were decreased by EUR 307 thousand, investments were decreased by EUR 63 thousand, investments in associates were increased by EUR 393 thousand, retained earnings were increased by EUR 196 thousand and deferred tax liabilities were decreased by EUR 61 thousand.
- Other adjustments
- As at 1 January 2016, IFRS loan balance was EUR 380 thousand (FAS: EUR 426 thousand). Other receivables were decreased by EUR 12 thousand. Retained earnings were increased by EUR 27 thousand. Deferred tax liabilities were increased by EUR 7 thousand.
- In the financial year 2016, other operating income was increased by EUR 49 thousand. Interest expenses were increased by EUR -15 thousand. Change in deferred taxes were EUR -7 thousand.
- As at 31 December 2016, IFRS loan balance was EUR 707 thousand (FAS: EUR 775 thousand). Retained earnings were increased by EUR 27 thousand. Deferred tax liabilities were increased by EUR 14 thousand.
- In the financial year 2017, IFRS interest expenses were increased by EUR -20 thousand comparing FAS. Change in deferred taxes was EUR 4 thousand.
- As at 31 December 2017, IFRS loan balance was EUR 726 thousand (FAS: EUR 775 thousand). Retained earnings were increased by EUR 55 thousand. Deferred tax liability was increased by EUR 10 thousand.
- In the financial period January 1 - June 30, 2018, IFRS interest expenses were increased by EUR 14 thousand and change in deferred taxes (income) EUR 3 thousand.
- As at 30 June 2018, IFRS loan balance was EUR 740 (FAS: EUR 775 thousand). Retained earnings were increased by EUR 28 thousand. Deferred tax liability was EUR 7 thousand.