Good morning! God morgon! Hello and welcome to our webcast! Nice to see you all! Yes, yes. It's October now, third quarter is behind us. Third quarter is behind us, and winter is ahead. Yes, yes indeed, we're well prepared for that. Yes. Without further ado, I'm Jussi Tähtinen, the CEO and Co-founder here in Nitro Games, and with me we have... I'm Antti Villanen, CSO and Co-founder together with Jussi. Indeed, indeed. Let's go forward. Yeah. Here in Nitro Games, we are your powerhouse for action and shooter games and action and shooter brands as well. Across all of the platforms nowadays. Yes, yes. This has been our vision and North Star for quite a few years now, as we focused on becoming better and better in this focus segment and exploring it with a variety of different angles and directions. It seems to be paying off as there are more and more opportunities. Yeah. We now have even some new opportunities that we can present today. Yeah, yeah. I think the one key thing is cross-platform, so we've been widening our operations from not only mobile but cross-platform, and there are interesting cases where we are operating not only mobile platforms but other platforms and also in a cross-platform fashion. Yeah, I think this is now when we start to look into the Q3, which is behind us, but also a bit looking forward. This is also something that's behind our new stuff that we've now started to work on after the summer since the transitional period during the first half of the year, still very much living this one. Maybe one thing worth mentioning at this point on top of that, our vision has been in action and shooter brands and now in cross-platform and all platforms is our development model. Yeah. Our partnership model, where we are operating with the various studios around the world and scaling up, scaling down when the time needs. Yeah, I think that's a good one because despite the things that we've seen here in Nitro Games recently and how we have navigated through all of this, one thing that still dictated the third quarter, despite what we hoped for, is that the industry around us still seems to be going through this turmoil, and we have learned quite a lot of not so positive news from the big boys, especially on the U.S. side. Yeah, especially it seems like the U.S. side, that there are still some sort of uncertainty of how the future will shape up, and there are very big transactions going on and whatnot, but that comes down into our model. How we have built our development capabilities is to have this flexible model when scaling up and scaling down. That is good because it reflects here in our numbers for the third quarter as well. It definitely hasn't been the easiest quarter in the history of Nitro Games, but in many ways it's been a quarter of building many things new. Yeah. As part of that, we've been going through all sorts of changes, not just in our project and game portfolio like we describe later on in this webcast, but also when it comes to our staffing model and how we prioritize what we're doing and so on. I think the bottom line, pun intended, is that we're again reporting positive bottom line, and that is thanks very much to that flexible model that we have. On top of that, kind of cash flow neutral quarter, which is also a lot to thank our model. Yeah, revenues declining from the previous year is nothing to celebrate, but we're still proud that we're able to continue navigating through this thing in the industry and the low point of the second quarter that's now behind us, and now we're back on black, as they say. Speaking of new during this third quarter, here's a mention of a couple of the events recently that we've done. We're happy to first announce new partnerships that we started towards the beginning of the period, but then after the period and during the period, we've been able to like a little bit build up on those and already seen first follow-up orders come in, and that's obviously something very good for us considering moving a little bit forward. All of you who have been following us longer might remember that quite often our new partnerships, projects, and clientships are starting with something a little bit smaller, and then we intend to build on top of those. Quite often we've been able to do that. Yeah, that is definitely in our DNA and way of working that whenever we're building something new, whether it's our own games or whether it's projects with partners, we do exactly that. We start small, then we take things step by step, and as we learn more about the opportunity and become more comfortable that this is what we want to do, we take things bigger and longer. Minimizing the risks while going like a step-by-step model. Yeah, yeah, and I think that is now well reflected here in our game portfolio and in our updated view. Like mentioned earlier, when building something new, you always need to let go of something old, and in our case, that means that the three ones here at the bottom of the slide, so Autogun Heroes brand, but also some of the new opportunities we were exploring with Nerf Super Blast brand, those we have now decided to put into the so-called maintenance mode. What that means in practice for us is that we are heavily reducing investments on those, also including the staffing and so on. It doesn't mean that the products would be like suddenly offline or things like this, but we just reduce the focus that we put onto those. There might be some things spawning up from these things moving forward if, you know, things match, but basically you shouldn't expect too much on that front for the time being. Instead, we now have four active MVPs. We spoke about this. Yeah, Gustav Bruhing and many of those already gone in the initial steps in our product lifecycle process. Yeah. I think that's a good way of building the future, investing in the new products, new games, and every now and then some of them become a real product. Indeed, indeed. I think on the previous time we discussed how we had, after the summer, we had two free-to-play mobile things cooking, and two premium PC console things cooking. Things. The numbers are still the same, and what we have seen now during Q3 is that on the free-to-play mobile side, we have evolved some of the first ideas we had a little bit further. We have let go of some of the things and built up something new based on the data and the results. Now we're at a point where we're again exploring the data for the latest releases that we've done after the quarter. It will be very exciting to see how those play out and what happens as a result with the next steps. I think we mentioned in the report with the PC console stuff, with both, we're now moving forward in the early steps towards some next phases. We've been showing those a little bit around to our industry friends and publishers and so on, and really encouraging response. Encouraging feedback this far, and reason to progress with those projects. Yeah, very much so. We have something new also in our B2B service business. Yes, yes. We have been capable of signing something new and balancing a bit of a client risk in that sense that we are not relying only on a few, but now there are more clients to serve and more projects to operate. Yeah. There are some old and there are some new on that portfolio also. Indeed, indeed. We obviously have, from the old ones, we had during the quarter very much the collaboration with Digital Extremes on Warframe, and that's something where our focus has very much been on preparing Android. Largely still in a soft launch in iOS. Yeah. There are also some of the pre-registration numbers and whatnot that are quite encouraging, and when the time is right with the client, then Android will show what is the capability and performance of the whole mobile with that brand. Yeah, we are very much looking forward to getting our stuff for the Android version delivered and see then how it plays out over time. Exactly. To the new stuff, we have One Interactive, we're working with Starbreeze, and we have what we mentioned in the report, also like a third new one, which is still super early. We haven't dropped that name even yet, but that's brewing. It's a little bit different than these action and shooter things, so a little bit something else, but that's brewing, and I think safe to say that during this year we expect to learn a little bit how that. How it works. Yeah, how it works and if it continues moving forward. The One Interactive and Starbreeze, both of the projects are very spot on our vision and capabilities and expertise in the action and shooter category, and those are prime examples where all this cumulative expertise and experience that we've been collecting during the years are now materialized within great companies and great products and great projects. Yes, and even if we are not in a position where we could drop details about what exactly we're doing, I think, like you said, it's a good match for what we're doing, good emphasis on our platform expansion things that we have discussed in the past and how those are starting to pay off. I think it's safe to say that many of us here in Nitro Games, including us, we're big fans of the games that these companies have put out, so it's always cool if you get to work on something that you also love to play, so that's nice. We have Pistolos. Yes, yes, yes, this is our, as we call it, a little bit proof of concept and exploration in the iGaming side or iGaming meets skill gaming, however you want to frame it. This is something that we've said earlier that we're pretty excited about what we saw during the initial launch before the summer, and we continue to be that. This is something that we're keen on learning more as we go forward and really understanding better that could something like this, what role it could and should have in the future of Nitro Games. Not only understanding this product, but the whole that side of the industry. Yeah, yeah. Could there be opportunities for us in a bigger scale, or is it just one approach? Yeah, so. That is yet to be seen. Yeah, quite a lot of activities on this front during Q3, even if, you know, teams as well and so on, this is a fairly small initiative for us, but I think very interesting in many ways. We've definitely learned a lot. I think moving forward towards the end of the year and so on, let's see how this one develops and what role it will play in the little bit longer run. I think overall the portfolio looks more healthy than a long time. Yeah. We've been able to minimize the client concentration risk by having more of those clients. We have new things brewing of our own. Yeah. We are lowering the investments to those maintenance-based games, and I think it's in a healthy stage, the whole portfolio at the moment. Yeah, I think it is something that I know not a lot of people expected this from Nitro Games, but I think something that you should have expected if you've been following us for quite a long time because, like, in the long run, Nitro Games has always been super resilient. We've always been able to figure stuff out and all those things, and how we usually go about things in many ways is that there are times when we kind of like widen the funnel, if you will, and do a little bit more. Any of those things might be a little bit smaller in size, and then we try to find the ones that pay for the long term, and then we go a little bit more focused. This is where we were very much end of last year. Exactly. We went through the transition during the first half, but now we're again in this widening phase and exploring more avenues, and then something like this. It seems that this is bumping all the time. Yeah, that's very much in our DNA, I guess. Yeah. The sort of solid management of our game portfolio throughout the years is also the secret behind our five years of consecutive growth that we have behind us. Games come and go, projects come and go, situations and quarters come and go, but in the grand scheme of things, this is where we come from. Despite the fact that as of now we are a little bit lower in the revenues, and there was a sort of a low point behind us, in the grand scheme of things, we have no intentions of slowing down either. Currently, if we look at where we are, there's no previous 12 months and a little bit more in terms of quarters and stuff. I think Nitro at the moment, we are more sort of like stronger. We are more adaptive to different things. I think we are more multitasking in the positive sense of the word, so we're more adaptive to different types of potential future scenarios, and as a result, a little bit more profitable compared to the scaling revenues. I think the resilience is a very good way of describing our way of working and how we've been navigating through several cycles of the industry now for close to 20 years. Yeah. Coming out as a survivor from those and quite often in a better position when the industry has again settled into something new, new normal, I think we have in the industry, it's again this kind of cycle going on that something new will come out after this turmoil in the industry. I'm confident that due to us being resilient and our development model, we are coming out as stronger from this cycle than before. Yeah, that's definitely the case, and I think something that in the grand scheme of things, that's different for us compared to any of the previous cycles. We've been always good at navigating through those, but now this time, we are navigating through those while being profitable, and that gives us so many more options to tap into the opportunities that we see along the way. I would say that despite the lower revenue base, this linear and more resilient base is super important for us when we are building the future towards the different potential outcomes that we see. I think the one key thing also being there is that we are cash flow neutral in Q3, so even if revenues are a little bit lower, we are not bleeding. Yeah, definitely, definitely. This is how this all looks in our P&L. Not much to highlight from this one compared to anything and everything that we've already said earlier, but maybe worth noting that compared to where we were one year ago, it's not just that the revenues are a little bit smaller than one year ago, but so are our costs. The materials and services, which for us includes our outsourced service fees, part of our scalable team structure, also includes all sorts of recouping by our partners and so on, what might come to some sales of the games and stuff. Our employee personnel costs are a little bit lower than previous year this time, and our depreciation and amortization is also lower because we have been able to kind of clean up the balance sheet in that sense step by step as well. Our operating expenses, the other operating expenses, those are also a little bit lower than one year ago. This is part of us adjusting to the world around us and the needs moving forward. It is also safe to say that us becoming better in doing more with a little bit less because that's one of the key points behind focusing on something that you become better and better in doing, so more effective. I think in the long run, it should help us to explore new opportunities in a more effective fashion as well. I think that concludes the update from our side, but let's see if we have any questions. Please, yes, please. There was at least some in the email I noticed, so let's check from here. Question about the potential for the games segment and what could change to become more positive on that front. Okay, I think that's a good one. That's a good one. I think relatively stable development, I guess, is like if you look back at the previous quarters, then you know that's usually how things tend to look moving forward unless something surprising happens. I think that's a good way of looking at things, what comes to Nitro Games and the games segment performance. What could change to become more positive, that's the beautiful thing about working in games. We are operating heavily in free-to-play. We do have some premium PC console games too, but the thing with free-to-play is like we've discussed so many times earlier that things tend to be a little bit binary, and when things click and good things start to happen, then things happen quite fast. We've seen that with our previous games a few times when things start to materialize and grow quite fast, and that's something that moving forward. It's all whether how high you can scale. Yeah, yeah. In a profitable fashion. Yeah. I think worth understanding also that when it comes to our free-to-play mobile MVPs, despite the fact that we're building something new, we are building on top of everything we have done before. Once something clicks and ticks, it's not like we're looking away too many years and too many millions in investment to get those to market. We're able to ramp up those things quite quickly, utilizing and taking advantage of what we've already built. Anything happening on that front, I think with anything with regards to the MVPs and potential collaborations, whether it's with publishers or whatever those might be, those are things that can change things somewhat quickly, I would say. When something like that happens, you never know, and that's part of the great thing here. I think that answers that question as well. That's quite well. Yeah. What is the capacity of service business? Yeah. Can you continue to expand? Yeah, I think that's a good question, and I think we are quite confident on that area, especially due to the model that we are operating on, our development model with those great partners that we have in our network. I think the expanding is something that we are not that worried about. I would say that those are pretty happy things to be working on figuring out. It's like the beauty of our way of working on the model is that we scale both ways. Sometimes we've been telling you guys how we've scaled up and how we've grown in that sense, and that's something that we know how to do, and sometimes we need to go the other direction. This part, what comes to Nitro, I wouldn't worry about because both because we have demonstrated that so many times in the past that we can do it when the time comes, but also, secondly, the flip side of the unfortunate situation in the games business overall at the moment is that there is talent out there available in many different places, and whoever is building something new has a lot of options. Yeah, I think that nowadays it could be even that we could scale up in a more cost-efficient way because what has happened in the industry has pushed a bit of a cost structure down in many areas, so I think scaling up with a reasonable cost structure is something that we could do. Yeah, yeah. Not easily, but we could do it in a proper fashion and quite fast. Yeah, yeah. That's actually the next question. How fast can you do it? We've been building the teams in, it's rather weeks than months, but several weeks rather than one or two. We are not talking about months. Yeah. It's maybe six weeks, eight weeks, something like that, but it's still like count it in weeks rather than months. Yeah, indeed. This question about the new third partner and if we can give any further information on what could be the size of potential contract compared to our current ones and stuff like that. Obviously, we don't talk about any news until they happen, so no, nothing to report in that sense. Further information, I think what we can say at the moment is that this is a player who is sort of outside of the more traditional game space, but utilizing. Still in the games, in a sense. Yeah, still in the games, in a sense. In a sense. Yeah, yeah, and utilizing stuff that we have done many times, so in that sense, a very good fit for us. Let's see if it continues to be something more interesting, and then I'm sure we will talk more about it. Yeah, there was something about the partnership with Digital Extremes. Yeah, so what to expect from that and release of Warframe Mobile for Android, and yeah, obviously, we don't know when it's going to be launched, so that is something that I'm sure they will communicate when the time is right. Of course, it's publicly out there that the game is in this type of pre-registration, early access on Google Play, and then I think what to expect from the future, I think whenever you think about what to expect from Nitro in the future, you should always look back into what we have done earlier. The way we work with most of our partnerships is that we do agreements that are certain lengths, so that's normal close-up business. This agreement that we are now going through, the latest expansion, that is something we're expecting to complete this year, like we have said earlier, and in the grand scheme of things, sometimes we continue things when things go to certain steps, and sometimes we don't. That's the normal part of how things go with Nitro. In other words, we're not answering those questions yet, but whenever you try to think how things go in Nitro moving forward, just look what we have done earlier. That's, I think, a pretty good way of tackling those. Let me check if there's something more here. Nope, and then there's some here. Do you expect similar activity levels in Q4 compared to Q3 in the service business? We don't give forward-looking state sort of guidance when it comes to financials, but again, if you want to see what Nitro likely does next, look at what we've done in the past. I think that's a good way of answering that one too. There's a question about can we explain our debt structure? When is the debt due and what interest is it running? That's a great question. In our balance sheet, earlier this year and last year, we have cleared everything that is, let's call it, traditional debt. Traditional. Yeah, so the debts towards banks, the debts towards our previous owner, Nordisk Games, those we have paid and cleared. What we have in our balance sheet is from this entity called Business Finland. Governmental offices supporting the technological development of the Finnish export companies. Indeed, they support tech companies that do export, and this support comes in the form of a loan, technically, and I think we've sometimes referred to that as a soft loan, and the reason for that is that the interest rates are very small. The payback terms are very beneficial for the company in terms of time and how those move de facto, so it is very much support rather than doing business with loans. That's not the idea with the government. Sometimes those projects where those loans are associated with succeed, in which case the companies have no problems paying back the loans, and sometimes the projects to which the loans are associated with fail for whatever the reason, usually commercially. In those cases, Business Finland might decide that they are not going to demand the payback of the loan either completely or in part. Part, yeah. In our case, what we have in our balance sheet, it's basically two of these projects. The first one we have completed already some years ago. This was to build like a mobile eSports ecosystem. This is an area where, if you follow Nitro Games, you see that we haven't done much in the recent years, so it's not definitely part of our business anymore in any shape or form. We have another one, which is a more newer one, which is something that we are busy wrapping up and completing soon, and this is related to the research and development surrounding all sorts of use cases for artificial intelligence and how we could use those to boost the business. This is something which obviously can't be concluded yet in any way because we're just about wrapping it up and doing the final reporting and so on. Long story short, what we have in our balance sheet, we don't have any traditional loans in that sense, and we have two loans specifically from an entity called Business Finland, governmental support organization, and those are related to two different projects with two different timelines. I think that's all. That's all. Yes, good questions this time. Yeah. Yeah, as always. Thank you so much. Yes. Tusen tack. We'll see you next time, which is. In February. February, yeah. Yeah, yeah, I think before the skiing holidays in Sweden, if I remember correctly. Yes, but between now and then, we still have a lot to do this year, a lot to achieve, so we'll stay busy and look forward to delivering Q4 then. Thank you. Have a good one. Bye-bye. Bye now.