JANUARY – MARCH 2025
A FEW WORDS FROM OUR CEO
We begin 2025 with a positive EBITDA, continued cost control, and improved cash flow from operating activities. While we have not yet reached full cash flow neutrality, the development confirms that we have strong control over both our business and cost structure – and are moving steadily in the right direction.
Based on this, our focus is clear, and we are working toward two key objectives:
Fishing Tour has been developed with the ambition to create long-term engagement – to become a natural part of the user’s daily digital experience, supported by a clear and measurable business model, quarter by quarter. That is the type of product needed in a market saturated with titles competing for short-term attention, often with weak long-term user retention.
In hindsight, this ambition has led to delays and higher development costs than we initially anticipated. But we are following the latest communicated timeline, and a major update is now set to launch during the second quarter. This update is not just another milestone in the development – it is a confirmation, or an ending. If the outcome lives up to the expectations, we will be able to present a product that generates shareholder value, quarter by quarter. If not, we may need to make strategic decisions, including further efficiency measures, alternative financing, or – as a last resort – evaluate a potential sale.
During the quarter, Questopia was updated with new content, which had a positive effect on both user retention and revenue per user. Our investments in user acquisition have yielded solid returns, and each update has the potential to accelerate growth. We continue development with the aim of improving key metrics and enabling increased marketing efforts.
Our partnership with Supersonic has evolved positively and was extended during the quarter. As an established player with deep experience, they have given us valuable insights – and confirmed that our team delivers at the level required in today’s global mobile games market. In the event of a launch and successful scaling, we believe this title also has the potential to contribute to stronger cash flow.
Cost control remains a clear priority. During the quarter, we made further adjustments to our administrative structure. At the same time, it is clear that the cost of being a publicly traded company now represents a disproportionately large share of our overhead. This is an ongoing area of evaluation for us.
Fishing Tour must now prove itself. If the KPIs meet our expectations, we have a product that can carry weight – and clearly demonstrate SOZAP’s potential to both investors and the market.
Rade Prokopovic
Chief Executive Officer
FINANCIAL CALENDAR
All financial reports are published on https://www.sozap.com/ir/financial-reports
BOARD OF DIRECTORS
The Board of Directors and the CEO affirm that the interim report provides a fair overview of the Parent Company’s and the Group’s operations, financial positions and results, and describes the significant risks and uncertainties which the Parent Company and the Group are facing.
Nyköping, May 16, 2025
Daniel Somos
Chair of the Board
Stefan Janse
Board member
Hanif Bali
Board member
Rade Prokopovic
CEO & Board member
This report and press release are translated versions of the Swedish originals. Every care has been taken in the translation of this document. In the event of discrepancies, the Swedish original will supersede the English translation.