Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Nitro Games PLC (OSTO:NITRO) reported its fourth consecutive profitable quarter, indicating a stable growth trajectory.
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The company has a strong cash position, having reduced debt and paid all acquisition fees for Organ Heroes as planned.
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Nitro Games PLC (OSTO:NITRO) is recognized for its expertise in the shooter and action game category, which is benefiting the company in the long run.
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The company is expanding its focus beyond mobile to cross-platform development, enhancing its market reach.
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Long-term partnerships with key clients like Digital Extremes and Netflix demonstrate Nitro Games PLC (OSTO:NITRO)'s strong reputation and operational capability.
Negative Points
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The gaming market, particularly mobile free-to-play, is in constant evolution, presenting ongoing challenges.
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Geopolitical issues have impacted some partnerships, causing distractions and potential disruptions.
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The company faces fierce competition in the market, requiring continuous adaptation and innovation.
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Nitro Games PLC (OSTO:NITRO) has not capitalized any development costs this year, which could impact financial flexibility.
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The scalability of Organ Heroes is still a work in progress, requiring further development and marketing efforts.
Q & A Highlights
Q: What is the current focus for Nitro Games' title "Ogan Heroes" in Q4 and moving forward to next year? A: Jussi Tahtinen, CEO, explained that "Ogan Heroes" remains a primary focus in their games business. The full team, including external support, is dedicated to the game, with around 20 people involved. The focus is on technical improvements, retention-driving features, and making the game more accessible to a wider audience. Supersonic, their publishing partner, is investing in user acquisition to measure these changes.
Q: Can you provide an update on the collaboration with Digital Extremes, particularly regarding Warframe Mobile? A: Jussi Tahtinen, CEO, confirmed that the collaboration is focused on Warframe Mobile, which involves several subprojects. They are working on various aspects of this large game, but specific details about the Android version are not disclosed beyond what Digital Extremes has publicly shared.
Q: How is the collaboration with Supersonic progressing, and are there any challenges? A: Jussi Tahtinen, CEO, rated the collaboration as very positive, despite some geopolitical challenges affecting cooperation. The partnership is characterized by direct communication, which is beneficial. Supersonic's ability to quickly analyze market data is a significant advantage for Nitro Games.