The Swedish-listed subsidiary of technology venture capital firm Fatfish Group (ASX: FFG) has posted a record $15.1 million profit for the 2020 financial year.
Stockholm-based Abelco Investment Group AB reported the strong results after a strategic review led by Fatfish, which saw it dispose of non-profitable subsidiaries as a way of turning around a $3.5 million loss in the previous corresponding period.
The $15.1 million profit represents a 526% improvement on results from 2019.
Abelco also credited an appreciation of value in key investment vehicle and mobile gaming company iCandy Interactive (ASX: ICI), which demonstrated strong share price performance during the period.
Fatfish said it is pleased with Abelco’s positive financial results, and will continue to develop strategies and initiatives with Abelco’s team to assist in the creation of shareholder value.
“As a result [of the review], Abelco’s revenue for 2020 was $1.7 million and 29% lower than the prior year, but the strategy has paid off in improving [its] cost management significantly,” the company said.
Fatfish Group
With business interests in the southeast Asian and Nordic European regions, Fatfish Group focuses on emerging global technology trends, specifically across the video games, eSports, fintech and consumer internet sectors.
In March 2020, the company acquired a 50.1% stake in Abelco through the disposal of 81% of its shareholding in investee company Fatfish Global Ventures.
The transaction created a large investment company with an international presence and a portfolio of more than 20 investments within the technology sector.
Fatfish buys stakes in companies which shape the future of eSports and videogames as part of the global digital entertainment industry, and has some of the industry’s senior executives on its board of directors.
BNPL launch
Earlier this month, Fatfish subsidiary Smartfunding launched a buy now, pay later (BNPL) service in southeast Asia, increasing the group’s exposure to the region’s corporate financing market.
Applications for the service are automatically processed via Smartfunding’s proprietary online platform, developed primarily by Fatfish’s in-house venture builder team.
Fatfish’s management team believes BNPL financing – a proven business model in Australia – will resonate well in markets such as Singapore and the rest of southeast Asia.
The company has committed to focusing group resources into the development of its BNPL offerings to take advantage of a predicted growth in demand.
The post Fatfish Group subsidiary Abelco posts record full-year profit appeared first on Small Caps.
from Small Caps https://ift.tt/3qOOEzX
Post a Comment