Jumpgate: Losses, Job Cuts, and Hoping for German Games Funding

The Swedish company Jumpgate is making progress in its efforts to weather the storm, according to its own statements. Although the 2024 results were not yet positive, losses were reduced. Now, the sale of Tableflip, recently implemented job cuts, and three submissions to the German games funding agency are expected to help.

The tough times in the games industry persist, and it has taken longer than expected to generate the additional business needed to keep all our teams working on externally financed projects. Because of this, we are further reducing costs to align with our current sales situation and to remain in a strong position for our upcoming 2025 game releases," says Harald Riegler, CEO of Jumpgate, regarding the sale of Tableflip.

Jumpgate has announced the sale of its subsidiary to its management for a symbolic price as part of its balance sheet restructuring. The reason given for the move is that Tableflip had a "significant negative impact" on cash flow in 2024. As a result of the management buyout, Don Geyer and Hakan Mattsson are also leaving the Jumpgate Group.

In connection with the Tableflip divestment, Jumpgate has also provided details of further cost-cutting measures. A total of 30 jobs have been cut at the group's German subsidiaries. Overall, these measures will reduce the number of employees at Jumpgate by approximately 50%.

The figures presented by Jumpgate for 2024 also show that further measures were necessary. Although the company's turnover was SEK 68.1 million - equivalent to around EUR 6.1 million at current exchange rates - this represents an increase of SEK 16 million (or 30%) compared to the previous year. However, EBIT remains negative. Nevertheless, the negative EBIT was halved to SEK 16.9 million (approximately EUR 1.52 million). According to Harald Riegler, a positive EBIT was even achieved in Q2 and Q3.

"With the substantial downsizing of the company mentioned above, we are positioning ourselves for profitability. Every week brings us closer to the game releases of the year, which have the potential to generate significant revenue and deliver a strong result for 2025," Riegler says.

Jumpgate is also pinning its hopes on German federal games funding. According to the company, it has submitted a total of three applications for new projects since the most recent application freeze ended. The company has also signed partnership agreements that secure Jumpgate's investment obligations for the publicly co-financed projects. In total, SEK 16.6 million (approximately EUR 1.49 million) in funding has been secured through current partnership agreements. If the applications are approved, this could enable a total production volume of up to SEK 30 million (EUR 2.7 million) for the three submitted projects. "We look forward to talking more about the projects and hope for positive replies within one to two months," Riegler says.