Q1 19/20

Aug 14, 2019

Hello. Welcome to this Q1 presentation for TQ Nordic. We have the CEO and Founder, Lars Vingerfoers, here as always, which is a pleasure. Solid Q1 numbers, I think, and I think a record amount of acquisitions as well, 6 total acquisitions, of which some, I think, are larger than others. But one of the more interesting ones, Milestone, of course, and I think we have someone presenting here today as well. So without further ado, I'll leave it over to you, Lars. Please go ahead. Thank you, Oscar, and good morning, everyone. I'm happy to announce another stable quarter. Our revenues grow 36 percent to over SEK 1,100,000,000 Our operation will grow close to 200 percent to SEK204,000,000. The cash flow was also stable with CHF441,000,000 in the quarter. Overall, the quarter was driven by a very strong back catalog sales with high digital sales percentage. Titles that drove the back catalog sales was Metro Exodus and Satisfactory, amongst many others. Also in the quite extensive Q1 report, I'm happy to say that we had record investments into our game development pipeline with €356,000,000 in the quarter, and that will drive our organic growth in the coming year years. In total, we currently have 81 pipeline projects, whereof 34 of them have been announced by end of the quarter. Also happy to confirm this morning that we got at least 2 AAA projects expected to be released in the next financial year. Also happy to announce that we are continuing building also the parent company. And this morning, I assigned the duty of group CFO to Johan Ekstrom from Bernhard, Arvika, and promoted my cofounder since 20 years, Erik Stenberg, to Deputy Group CEO, Viss Konshenschaft. So looking more into the numbers. The net sales grew, as stated, 36 percent to SEK 1.1 €42,000,000 The EBITDA grew 88% to SEK390,000,000 in the quarter and operational EBIT to SEK 204,000,000. The overall operational EBIT margin grew from 8% to 18% in the quarter. We're also disclosing new alternative KPI adjusted EFS earnings per share that grew in the quarter to DKK1.53. Looking at the depreciation and amortization in the quarter. The EBITDA were, as stated, SEK390 1,000,000 Our operational D and A were games development, €162,000,000 of released products. Furthermore, we had other intangibles, mainly films, €17,000,000 that comes to the operational EBIT of €204,000,000 And then we have the acquisition related DNA. And as you all remember, it's all written down on a straight 5 years basis. IP rights, €69,000,000 surplus values, CHF 8,000,000 and furthermore, goodwill of CHF 46,000,000 coming into a reported EBIT of CHF 81,000,000 in the quarter. Investments in total were CHF 378,000,000 in intangible assets. External games development were SEK225 1,000,000 for our upcoming game pipeline, and our internal investments that were capitalized was SEK 131,000,000 in the quarter. And as you can see on this slide here, our investments continues to grow quarter by quarter, and that will drive the organic growth in the future. Cash flow remained stable. Worth to notify that we did not use any foresighting compared to the last quarter end. So the cash flow from operating activities after the change in working capital were SEK 441,000,000 in the quarter compared to SEK 165,000,000 in the comparable period last year. And the balance sheet. I always think it's good to run through the balance sheet because it's becoming bigger and bigger. As of end of June, we had intangible assets of SEK3.8 billion whereof 427,000,000,000 and the quarter was finished completed games that are under the 2 years amortization, 2 thirds the 1st year. We have capitalized ongoing game development projects of close to SEK1.3 billion. Other intangible assets, mainly Finns, CHF 163,000,000 And then we got the IP rights from acquisitions of exactly SEK 1,000,000,000 the surplus values in the business areas of SEK 161,000,000 and furthermore or finally, the goodwill of SEK787 1,000,000. In the end of the quarter, we had over SEK3.1 billion in cash and available liquidity of more than SEK4.5 billion. So digging into the business areas. First of all, the combined games business areas. Looking at the net sales. The combined net sales in the quarter was SEK641 1,000,000. And on a trailing 12 months basis, that's over SEK 2,500,000,000. And the quarter had a 33% growth, both within Tissue Nordic Deep Silver, but also obviously by the addition of coffee stain compared to last year. The digital share of the revenues was in the quarter a record of 71%. But I would say it's more relevant to look at the trailing 12 months basis and that are now at 58%. Also, the owned titles share are on a trailing 12 month basis, continue to increase, currently at 75%. In the quarter, we did not have any strong own new releases. So the share of new releases in the quarter were 18% only compared to 75% in the previous quarter. So Deep Silver. Looking at the KPIs to start with, We had net sales in the quarter of SEK373 1,000,000 compared to the SEK338 1,000,000 in the same period last year. We had strong back catalog sales driven by a number of titles: Metro Exodus, Kingdom Come: Deliverance, Outward and many others. We had a number of releases, 7 in the quarter. For example, we had Saints Row III, a port on Switch. That did fairly well. We had Kingdom Come Deliverance, Royal Collector's Edition and the new and last DLC for that game. But also in the Q1 report this morning, I have given update of the deep silver business, and I think this is important. At our own studio Volition in Champagne, I'm confirming that they are working on a new Saints Row game, and they're well into the development. Also confirming that Dan Busters Studios are now leading the development of Dead Island 2. I'm also confirmed that Fish Labs is working on a new IP and a number of other unannounced projects out from their studio in Hamburg. Already last quarter, I confirmed that 4A Games are we have new contracts with 4A Games. I'm very happy to have them as external studio within Deep Silver, and they continue to work on the Metro franchise. And War Horse are into the development of the next coming project, as I previously have stated. And finally, I'm confirming that we had Steve Ellis, one of the co creators of Time Splitters. Time Splitters is an IPV that we acquired last year. And he's helping us to plot the future course of the IP. So stay tuned. Other than this update, they have a number of releases in the pipeline. Already confirmed earlier in the year, we have moved the Shenmue tree release from this current quarter to November or our financial Q3. Looking at the coffee stain business area. They have continued to overperform according to our expectation at the time of the acquisition. Satisfactory is performing well. Steady daily sales, but as well, they had a successful promotion on the Epic Games Store in the quarter that also drove a lot of units. In the end of the quarter or early in July, they had a major content update called Trains and Nuclear. But they did not have any other new releases from the Koffenstein Publishing in the quarter. The other products continues to perform well, notably Deep Rock Galactic. At E3, they announced 2 new PC titles, Songs of Conquest from our partly owned studio in Gothenburg and Midnight Ghost Hunt from the external studio. Both was very well received, I'd say. And looking at the Partner Publishing business area. We had another stable quarter with CHF501 1,000,000 compared to SEK 354 1,000,000 in the comparable period last year. The growth is mainly attributable to the earlier release of F1 this year than the previous year. This year, it was released in June and last year in August. Notable other releases were from our friends at Siga, the Team Sonic Racing, the Total War 3 Kingdoms and from our friends at Solutions To Go, the World War Z. Looking at releases in the current quarter, we have 2 products from our Frances Square Enix, Dragon Quest Builders 2 and Final Fantasy 14 and from our Frances Bethesda to Wolfenstein products. Also stating in the reporting this morning that we have signed 2 notable agreements with independent major independent games developers for their physical Partner Publishing business. And one I mentioned this morning is Dying Light 2 from Techland, Also stating that we will have notably fewer releases in the current quarter than we had in the comparable period last year. Again, F1 was last year, but we also had Tomb Raider from Square Enix, for example, in the comparable period last year. The physical market in general has headwinds, but we see this as opportunity to drive market share growth. And we increasingly see the outsourcing from other publishers or the need for that. We are still committed to the physical market. On the M and A side, we have been well, that was promising to have vacation, but things turns out that there were a job to do in the end of the vacation period especially. So we have I would say, in general, the M and A prospects looks solid. We have a solid pipeline of companies and talents that we want to bring into the family, both within the current 3 operating groups, but potentially also candidates to become the 4th operating groups in the future. And this is everyday job that is taking place at the parent company as well as within the operating groups. We had 3 Partner Publishing acquisitions I'm proud of to announce this morning in the reporting, 1 being or 2 companies being 2 companies that I partly owned with my cofounder management that has been disclosed in the reporting. So the decision of these 2 acquisitions has been made by the independent part of the board. One of them being Gaia, a leading European manufacturer of gaming IP merchandise and collectibles. And it fits well to the need for collector's editions and merchandise. And we could obviously use all our IP portfolio against this business as well as working with other leading IP holders across the world. It's an entrepreneur driven business founded by the 2 founders, Andre and Markus Smith, 29 employees, net sales of €6,000,000 last year 2018. And I sold it for the record price of €1, not generating any goodwill or badwill. And with synergies, for example, the consolidation of shipments, we're expecting this business to have profitability in the future in line with the rest of the Patent Publishing business. As proud and happy to welcome Game Outlets Europe, the origin of actually TSU Nordic, into the group. This is the business I founded when I was very young, 1994 in Carlstad. It's a very today, it's a very stable business with about SEK 90,000,000 in revenues and a healthy profit margin with SEK 9,500,000 EBIT 2018. It's well managed and well run by the CEO, David, and along with other team that has been in the business, partly from the '90s. The price is CHF 10,000,000 for 100 percent of the shares, equivalent to the equity, unrestricted equity, which implies SEK 2.3 enterprise EBIT on a cash and debt free basis. Their business is hardcore gaming, retro products, hardware accessories as long as value software business that are supplying e commerce partners such as Amazon and Cerion and others across Europe. So they don't carry full price new releases. So they are not in a competition with our other business at Koch Media. They are a complement to the Party Publishing business. And finally, we acquired within Kochsmedia in Germany KSM Films that are focused on ANIMEA Films. Also stable business founded by Entrepreneur, 45 employees, euros 17,500,000 in net sales, euros with close to €2,000,000 profit last year. This will be a lot of synergies with the current film business. And we made or the management made a strategic review of the group's film business and concluded that we need to have a critical mass in order to stay relevant in the business and to improve the return of the capital. And this transaction is not either generating any goodwill. So we're actually paying the equity value of the FilmBright catalog. And it's a digital and physical business. They are very welcome into the group. That was the Q1 presentation. I know you probably have a few questions, Oskar, this morning. But my plan is that we are continuing presenting the acquisitions and then some other things. And then we do all the Q and A in order to find have the time, yes. So what excites me the most this morning is to welcome Milestone to the group. And I would like to welcome Luisa up on stage here. Hello. Hello. Good morning, everybody. Yes, please. I'm Luisa Vixio. I'm Mison's CEO, and I'm very happy about this deal. And thanks to us for the opportunity to be here with all of you. Thank you, I'm honored to have you here and to have you in the group. I would like to present the deal and the transaction with you and share the financial details. And then I will let Luisa to present the actual business. So in general, the business are impressive, having an impressive track record with more than 50 games developed, 8,000,000 games sold. It's a leading racing developer. It's very efficient. It's stable. It's recurring in the sense of the products are coming yearly or bi yearly. And they have an attractive business model that increasingly are becoming digital. And you have a and you have a strong pipeline. You will tell us more about that in the future. But looking at the transaction, we paid this morning, and it was a close call to sign this in Rome, this 6:30, but we made it, yes, our notaries and lawyers. But on the net cash basis, debt free basis, we're paying CHF 44,300,000 this morning, where of CHF 11 0.5 is by Tissue Nordic B shares. The company has a net cash as of yesterday of €10,900,000 And then we have agreed potential earn out of the accumulated adjusted EBIT levels of the coming 3 years in the current financial years of milestone starting 1st July. And we have set a business plan and a target that we both believe in. And if we are together hitting that business plan, the earn out is €28,900,000 whereof €15,000,000 are paid by shares as of this morning under lockup and clawback, which if you reach below 70%, there is no earnout, and you can increase the earnout up to 130%. It will have a financial contribution. I'm giving a forecast of the period of 1st July to end of June next year of net revenues of €27,500,000 to €25,000,000 with the EBITDA of €15,500,000 to €18,000,000 with the operational EBIT contribution of €10,750,000 up to €12,500,000 So milestone, Louise, the stage is yours. Thank you, Lars. You can flip here. It's this one. Milestone. Milestone has a long history in racing game, has been founded in 'ninety four by a small team of developers, very passion for games and for racing. And they have been soon noticed by from some of the major publisher at that time. And in a few years, they produced Screamer for Virgin. Screamer is one of the game that made the history of racing game. And they produced the Superbike series for EA, and they started to grow up. After we work for Infogram with Reis in the Volusone, we produce MotoGP for THQ and for Capcom. We produce the WSC series and SBK series for black bean, always in releasing. Until around 2012, we decided that it was time to produce for milestone. And we became, in 2013, developer and publisher of our title. We started to publish the MotoGP series, And we entered again in 2013 in the cross market with the MXGP series that we produce clearly even now. In 2015, we released what is the most important milestone IPs is Ride. Ride is the most complete is considered the most complete bike game released. And till in 2018, when we for the first time, we published Supercross, Monster Energy Supercross from an agreement with Feld to arrive to the current release. Today, we publish every year's MotoGP, MXGP and Supercross, and we publish every 2 years ride. Our goal for the future is, for sure, increase the value of our current IPs. Thank you very much. For sure, increase the value of our current IPs, increasing the quality, the technology level. But on the same time, we are already working on 3 not announced IP that I consider very, very important. And I think that will be a key for the growth of Milestone Business for the future. Who we are? We are 200 around 200 people. We are based in the very center of Milan. And in the same office, there are developers and publisher team. I'm very, very glad and proud of my team. If you come to see Milestone, you will see all people that is very passion for racing, very passion for game. But on the same time, we are the most important developer in Italy, And people is very proud to be Milestone and very committed on what we are doing and what we have to do for the future. Milestone, our culture is highly focused on process in day by day. So we give huge attention to process, to planning and efficiency. It's a key because we produce 3, 4 titles every year. So it's pretty complicated. But on the same time, it's very important the value of each person in Maison. Our door is always open to for new ideas, for new and there's a good atmosphere. I manage the team not alone, clearly. Beside me, there are 5 managers. We have been working together for many years, and I'm very convinced they are the right people to manage with me in the company through the goal we set in the THQ family. Our history, again, is racing game since 'ninety four, 4 wheels and 2 wheels. Even if in the past couple of years, we decided to focalize our attention to bikes, to wheels, becoming the most important company worldwide in this segment, and I think that we can grow even more. Okay. Our current IPs are 3 annual franchise, as I told, MotoGP, MX and Supercross and ride every 2 years. The strategy for the future is, for sure, invest in the quality of current IPs with the goal of consolidate our position and increase our market share in this segment. But on the same time, we worked a lot to find other IPs that are near milestone D and A, but they are different with a clear purpose to stick to a wider audience and to make Milestone Business grow a lot. The result is that we are already working on these 3 not announced important IP that will be released all in 2021. MotoGP. MotoGP is our historical franchise. We produced 9 MotoGP till today, 7 as a publisher. The last one has been launched June last year and has been very well perceived from the critic. We received around 8 metacritic, but has been very well received from the community with lots of enthusiasm. MotoGP 19, I consider this game a step forward compared with all the previous one. The major highlight we of the game were a completely new online based on Amazon server that really gave lots of enthusiasm in the community. And even more important for me because it's a milestone technology, For the very first time, we introduced in a game a new AI system for the single player experience that was based on neural network and machine learning on a technology we called internally any as artificial neural network agents, where in the single player experience, the AI agent compete with the player like a human being. That's the big difference in the gameplay experience. And Mison has been the 1st company ever to implement a neural network AI in a game. MotoGP is a game, is e sport. Since 2017, we started the e sport championship, official e sport championship together with Dorna and has been a big success. We have more than 15,000 participants. Last one has been broadcasted by more than 16 broadcaster. And we have very relevant sponsor like Red Bull, BMW, Michelin and many others. MXGP. MXGP is our cross has been the 1st cross title is inspired to the official motocross championship licensed by Ustream and has always been highly appreciated from the community for the realism of the game. We are going to launch the new edition in a few days, the 26 August. And this game will have many new feature inside. Supercross. Supercross is quite a new entry in our lineup. The first one has been launched in 2018 and has been a huge success mostly U. S. Supercross is the most new motocross sport in U. S. And we sold around 1,000,000 units between the 2 editions, February 18, February 2019. And the game has been appreciated in U. S, but even in Europe and Australia. Ride. Ride is our IP. And we like it very much even because it has been created from the studios with the desire to create the ultimate motorbike game. So Ride has always been very appreciated since the beginning. And the last one has been launched last year at the end of November and was featured with more than 300 official bikes, 1,000 of accessories, a very good livery editor. But what is most important for me is that we will launch the next ride, Ride 4, in 2020. And Ride 4 will be a step forward, really. It will be featured with the new multiplayer system. It will have the new AI we use for MotoGP, but advanced. And we are doing all the assets of the game that is very big in a very high quality level to be ready for the new generation console. Thank you very much, Lisa. Thank you very much. Very welcome to the group. Excellent presentation. Thank you. Okay. Next acquisition we announced this morning, also closed this night, were Gunfare Games from Austin, Texas. So I kind of feeling that Gunfire Games kind of already has been a member of the family, however, not owned by us, but we have been working with them since 2014. They are the creators and developers behind a number of IPs, and I will come back to that in a minute. They are the team behind Darksiders 3. So that game was our first major release within Tissue Nordic in Vienna, released in November. And previously, they've been working on Darksiders assets. They are a top development studio with a lot of talent. And we know obviously Dave and the management very well and we're working very well with them. But they've not only been working with Tischke and Nordic, they have been a partner to Oculus Drift and to Perfect World. And Perfect World together with Perfect World, they are releasing a new title next week called Remnant. We didn't disclose, as we normally don't do, on acquisitions, on developers, the purchase price, but we expect to recoup it within over the course of 3 to 4 years. It will financially contribute to Tissue Nordic mainly by the release of the content they are creating. And the management and the founders, they are committed to stay on board for foreseeable future. We will leave them with a lot of independence to maintain their creative freedom. And this is our first owned studio in Austin. Austin is the 3rd largest game industry hub in the States with a lot of talents. So looking at the team, Dave Adams, he was the founder and the head of Vigil Games that was part of THQ Inc, the previous THQ. And they have been created a number of titles, for example, Cronos that was very, very well received on Nokulus Drift. In total, they are 70 full time employees, whereof 63 are developers. And in our organization, they will be in the family of the TSU Nordic in Vienna. And looking at the history of the studio, In the past years, obviously, I mentioned Dark Side Story from other sons. They had their own IP. Deadbird, a licensed title, Oculus Drift, the major Cronos released with a very well received Metacritic. And then they worked with us on the current generation of Darksiders 2. Next week, they are releasing with Perfect Royal Estate Remnant. And finally, we announced the acquisition of Goodbye Kansas GameInvest this morning. Goodbye Kansas GameInvest is a team and a company we know very well since many years, and they are a very important part of the Nordic and especially Swedish ecosystem of games development and talents. And we were able to purchase this for what we deemed to have an attractive transaction of SEK42 1,000,000 this morning compared to the historical invested capital. But for most, we are building or acquiring a platform with 4 very talented people to both manage the current portfolio, including supporting and producing, but also building a platform for us to continue making investments into exciting smaller game development studios across Nordics, but also to support that established teams to set up their own company with the support of GoodBank Kansas GameInvest. Also in the transaction, it was included some royalty rights for the game Biomutant that we own and are to be published by us. And Experiment 101 was the studio a studio we acquired from GoodwillKansas GameInvest. And they have 5 exciting studios in their portfolio. And in the respect of the studios, I will not go into the details of the studio, but I've been hearing and trusting the management of Goodbye Kansas about these companies. So I would leave this I'm sure, Oskar, you have a few questions. The time is running, as usual. I have the last thing to announce this morning. And I stated already at the AGM and Capital Market Day last year in May that we will our intention is to change the name of the parent company. And I will today announce the name, not a lot of details, but the name. And there will be a proposal. So the reasons and the background to change the name of the public listed parent company is that one of the 3 operating groups are also named THQ Nordic. That has been a bit confusing to lots of people, the industry, employees, shareholders. And just to clarify, in order to avoid any misunderstanding, the 3 wholly owned operating subgroups we've got today, Koch Media, Coffee Stain and Tissue Nordic, all will remain with the same current name. So it's just the parent company that are changing the name. And the rationale behind the proposal is to clarify the group structure and strategy with the parent company as a holding company. And on that account, the Board of Directors proposed a change of the parent company name to Embraiser Group. Again, it's the Tissue Nordic public that are changing to Embracer Group. The 3 subdivisions remains with the same name. This is a proposal by the Board of Directors to the AGM. So it's subject to approval of the AGM September 17 in Carlstad. So you're very welcome as a shareholder. And there is a few other proposals coming out in the press release at this moment. The new website, the visual identity and a lot of other information to the Embracer Group name will be communicated September 'seventeen. Thank you. All right. So let's start the Q and A. But first off, I think a very fitting name for the group, So well done there. And I'll start off with some questions regarding the Q1 results, and let's start with Deep Silver. You mentioned that Metro you mentioned in the report that Metro continues to perform quite well. Can you say something about sort of digital and physical mix and potential contribution from other services and business models? Well, as all products, the mix after release are becoming more and more digital because the back catalog sales are increasingly digital. I wouldn't say we had notable digital revenues on Metro Exodus. It has been performing stable in the quarter on all digital formats. I mentioned that Satisfactory had successful games, for example, on Epic Game Store as also Metro. There's a number of channels on that. That's the color I can give you. All right. Perfect. And perhaps something about the Deliverance as well. You had 2 quite notable releases, DLC and also a combination pack. Are you happy with that release as well? I'm very happy to have War Horse and Kingdom Come within the group. They are the game has continued to performing. It has been stable. It's not my expectations is not this is a game that's released last year. So there is a fan base you sell this new content to, and think it was well received. And I think the game or the game continues to find new consumers, especially driven by discounts, for example, on the Steam summer sale. Yes. And I want to touch upon TSK Nordic as well. I mean, it was quite a few releases in the quarter, but still, I think it grew by 27% or so. What drove that reasonably strong performance? Yes. We had a number of releases within the Tissue Nordic, Fate of Silence, Monster Jam, Titan Quest expansion, Spellforce 3 expansion, a Dark Side of War Master System Switch. So there has been a number of new releases. None of them had any significant revenues. And I would say, for example, Fate of Silence did underperform according to my expectations, unfortunately. But they had a stable back catalog sales in the quarter. And as I mentioned in the report, we had 1 license and IP deal with 1 partner of a midsized game that we didn't do anything with. So we have not done any similar deals before, but perhaps there is a market for this as well. So we have a lot of IPs within the group. I think it was counting 138 IPs. And there is no way that we could develop and handle all these IPs at once. So we need to work with partners over the coming years. Perfect. And I want to I have to ask a little bit more about satisfactory, which is quite an important game, I think. You mentioned that it's performing well. It's exceeding your expectations. Can you say something about the effects from the large update now in June, I think it was, how that affected sales? I think all content updates are well received with the community, and the team are building a very, very long term plan for this game. And I let the team to run and manage this. I'm more watching and learning, to be honest. And they are happily surprising me. All right. And finally, Partner Publishing, quite a solid quarter, I think, but perhaps some weakness in Q2 now compared to last year, at least, where you had strong releases. Is there something to be worried about there that the market is getting tougher? Or is it more I'm not worried. Question of sort of scheduling and so on? I think key content has become increasingly important within the business. AAA titles, big titles are important to drive consumers to the retailers. And big titles will drive a lot of sales within the quarter. Overall, I'm not worried about the business. I remain committed. It's a stable business. It's an excellent team. We continue to consolidate. We are looking to add more content. But in this specific quarter, we are working with partners and we will support the partner bring out the products. But this quarter, there is not the comparable products to the last year. And I've asked this question before, but perhaps an update on it. Obviously, we have a console shift now coming where both Sony and Microsoft are expected to release new consoles in 2020, in Q4 likely, calendar Q4. What are you sensing in the industry in terms of scheduling releases? Are people hesitant to schedule releases for this console? Or what's happening there? I think it's very early for us to say anything about that. And I would let the console partners to say, but in general, we are embracing the future technologies and platforms. And I'm sure our teams are working hard to make this transition in the future as good as possible for the group. A consult shift is always a lot of decisions to be made about release date and timing and investments. And we will share more updates about this in the future with you. Okay. Great. And moving on to releases, some interesting announcements today. Let's start with Volition and the announcement there. You mentioned also that you will release at least 2 AAA titles in the next fiscal year. Does that say anything about releases this year that there won't be any AAA? I'm just saying that you're expecting 2 strong or I'll introduce the word strong AAA titles next year. Okay. And I guess it's like There is a big there is a lot of opportunities to communicate. We used this opportunity today to communicate this update from Deep Silver. There will be more updates, for example, on Gamescom next week on various things. So I think that is the best answer. Okay. And you mentioned that Volition is quite far along with its development for its main game, upcoming title. Is that one that is likely for the next I think we used the wording deep into development. Yes. So they are deep into the development of Saints Row. Fair enough. Fair enough. And moving on to Dead Island. I mean that is quite a troubled franchise with a lot of changes of development studios and so on. Now switching to internal studio, Dambuster, what is your comment there? And how does that affect the timing of the release? I don't think they have used the word switching. I'm not worried about the ambassador and their abilities, and I'm not worried about the development of that island too. So I'm excited. But I'm sure the team will share more details when they're ready. Great. And finally, did you confirm that 4A is working on another Metro franchise? Or did I hear it wrong there? I did confirm in the last quarterly result that we have signed a new agreement with 4A Games. And they are working on Metro because we are launching more content for Metro. Okay. I see. And before moving on to the acquisition It's important wording, isn't it, Oscar? Very important, very important. So before moving on to acquisitions, which I have a number of questions on, do you have any questions from the floor to start with here? Okay. Then I will switch over to the acquisitions, and let's start with the milestone that was presented here earlier, and I suppose you can answer most of the questions if it's recent here. But first of all, quite active with new IPs. What is the strategy of Milestone there? I guess it's focus on what's called 2 wheel racing also going forward. Yes. Well, I think Luisa played out her and her team's ambition, and I'm confident execute. They also showed a pipeline here today. They have 5 games under development in various stages where one is releasing next week and definitely more in the future. And we shared a plan for 10 year no, 10 games the coming 3 years. That's the ambition, and I think it's a very ambitious ambition. What I've seen is has I'm excited, yes. They are very efficient, very focused, very dedicated to this, so stable. And compared to, I mean, a similar company that you are cooperating within the Portable Publishing business is CodeMasters, of course, with F1. Could you compare sort of the dependency on certain titles? I mean Code Masters relies on F1 to a large extent. Is it similar with MotoGP for Milestone? Or is it less? I think order price has a similar range of revenues. There is not one that are kind of standing out of all. But there is a difference. That's the color I can give you, it's a difference. But all has its own business. And if it's less revenues, the investments into that product is also less. So they make profit on these investments and products. And it's becoming a bit of a racing hub now, the group, with also Rainbow Studios and Bag Beer, now Mile Stone. Is there any possibilities for cooperation and synergies between these different studios? I think we're always trying to find synergies, but we are embracing autonomy and independence and trying to avoid forcing synergies. And I really believe in people and the people to make their own decisions and feel that they are able to make their own decisions. There is a lot of synergies we could we can have in the group, including sharing assets, including sharing IPs. I'm sure the teams will find their ways to do this, But I'm not overly concerned about having hard synergies. That is not our strategy. I let people run their business. Perfect. And the Gunfire Games, Remnant coming up quite soon, I mean, in less than a week. Can you say something about the expectations for that game and the initial feedback? I guess you've tested it or the company has tested it with critics beforehand. I'm in general excited for Gunfire, and I like what they do. But I would let the publisher, Perfect Farell, in respect of them now as a business partner to talk for the product. Fair enough. And the other IPs that comes with acquisitions, anything that stands out, which I hope for in the coming years? Think Cronos is a very interesting game, for example. Obviously, Darksiders is an IP they know, But they have the ability to create new IPs. They are very creative, efficient. And to sort of give some indication of the team, 63 employees, they worked on DOGSAR 3 and now remnant, I guess, in parallel. What is the sort of relation there? How many is working on how many was working on Darksiders and how many on remnant? Just get a sense there. Oskar, it's a lot of good questions here. I can't give you full color on that, but I would say both game has sizable teams. They have been working on several products at the same time. And that is making a studio, as you've been looking at Meijer, more efficient that you have various stages of a product. That has been the case also with gunfire. So that is the question answer to the question. All right. And quickly on Goodby Kansas, the investment arm that you acquired for quite a low sum, What was the main rationale there? Is it the team, but also perhaps the Biomutant royalties that come with the deal? I guess that's an important game for you and now you increased the margin, I suppose, of that as well. On the long term basis, I'm excited about the team and the position to not the position, but the ability to work with great talents in new companies to find upcoming great teams and products. I think it's important for us that we're having this infrastructure, but it needs to be kept a bit separate from our other businesses and publishers that are very focused on different things. So that, I would say, is one of the key reasons. Obviously, I believe a lot in the 5 companies, but so it's a mixture of things. The royalty is nice, but that is not the key reason for the transaction. Okay. Great. And finally, I want to touch upon KSM as well, the largest acquisition in the Portrait Publishing business, which has some size and increases the scale of the film business, as you mentioned. But I have to ask, I mean, did you consider also divesting the film business instead? There has been a lot of tricky decisions about things. But if you're having a business, you need to run it efficiently and profitable. And then you have all possibilities to consider and consolidate or not. But in the respect of all businesses I have, we continue to invest in them. And I have to say, KSM are creating shareholder value because it's adding a contribution. It's a stable business. It's products that are well linked to our Partner Publishing business. Perfect. Understood. And do we have any questions from the floor? Yes, perfect. Thank you very much. One question on streaming. You announced partnerships with Google a couple of months ago and then also with Microsoft and Xbox Game Pass, where we saw Metro Exodus being one of the included games among 10 others. Has any of this been booked or notably booked in the quarter? There is no notable bookings. And the royalties for Biomutant that Goodbye Kansas has, can you let us know in the percentage? It's not notable. And finally on that island, a follow-up there when Dan Busters takes over. They have not started this project now from scratch, but they're not. So it's going accordingly. Any other questions? We're running over time. I can stand here all day. Do you have anything on the phone? Nothing there. All right. I guess then that's it. So thank you very much. Thank you, Oscar. Thank you.