Qiiwi Games Q1 2025 slides: Backpacker Go! drives revenue despite mixed results

Qiiwi Games (QIIWI) reported mixed Q1 2025 results, with revenue declining year-over-year to 4.9 million SEK but improving sequentially from the previous quarter; EBITDA improved year-over-year but deteriorated sequentially to -1.6 million SEK. Backpacker Go! now accounts for 54% of revenue, driving a record ARPDAU of 1.78 SEK, up 36% year-over-year, though the company expressed disappointment in its overall performance. Qiiwi is focusing on cost reduction, efficiency improvements, and integrating AI to accelerate game development and diversify its portfolio beyond Backpacker Go!, aiming to capitalize on its agile structure and solid cash position of 16.5 million SEK.

Analysis

Qiiwi Games AB (QIIWI) presented a mixed financial performance in Q1 2025, with reported revenue of 4.9 million SEK representing a sequential increase from Q4 2024's 4.0 million SEK but a year-over-year decline from 6.1 million SEK in Q1 2024. The company's EBITDA improved year-over-year to -1.6 million SEK from -2.9 million SEK, yet deteriorated sequentially from a positive 0.4 million SEK in the previous quarter. A significant strategic shift is evident with 'Backpacker Go!' now constituting 54% of total revenue, a concentration acknowledged by management as not fully meeting expectations despite its contribution to a record-high Average Revenue Per Daily Active User (ARPDAU) of 1.78 SEK, a 36% year-over-year increase. User acquisition spending remained disciplined at approximately 2.3 million SEK, primarily focused on 'Backpacker Go!'. Qiiwi reported an improved net loss after tax of 2.69 million SEK compared to 3.84 million SEK in Q1 2024, with earnings per share at -0.29 SEK versus -0.42 SEK. The company maintains a solid cash position of 16.5 million SEK and is actively pursuing cost reductions, operational efficiencies, and AI integration to accelerate the development of new titles, aiming to diversify its portfolio and identify future growth drivers beyond its current key title. The stock reacted modestly, closing at 2.12 SEK on May 23, up 2.42%.

Key Decisions for Investors

• Investors should monitor Qiiwi's ability to successfully scale 'Backpacker Go!' further and, more critically, its progress in diversifying revenue streams through new game launches, given the current high concentration risk.
• The record ARPDAU and disciplined marketing spend are positive signals, but the sequential EBITDA decline warrants caution; future profitability hinges on effective cost management and the success of new titles developed via its accelerated AI-integrated pipeline.
• Consider the company's agile structure and solid cash position as potential enablers for its strategic pivot, but weigh these against the challenges of a competitive mobile gaming market and the historical performance of its game development efforts.