Digital Bros Corporate Presentation: May 2023

Key insights

7 takeaways

01
Digital Bros reported a 17.7% year-over-year increase in EBIT to €36 million for the last fiscal year, despite an 11.4% decline in net revenue.See it on page 3
02
The company is shifting its business model toward long-term stability, with a strategic plan to increase owned or co-owned IP from 49% in FY23 to 75% by FY27.See it on page 4
03
Premium games remain highly profitable, maintaining an EBITDA margin of 51% and an EBIT margin of 36% as of March 31, 2023.See it on page 7
04
Free-to-Play revenue grew by 31.6% year-over-year as of March 2023, bolstered by the acquisition of 505 Go! and the console launch of Puzzle Quest 3.See it on page 7
05
The company is pivoting its release strategy toward sequels, which are projected to account for 99% of new releases in the FY27 strategic plan compared to 63% in FY23.See it on page 5
06
Digital Bros is strengthening its financial ties to Starbreeze by committing to a rights issue subscription and underwriting for up to SEK 100 million, alongside the conversion of a SEK 215 million convertible loan.See it on page 16
07
The company operates in the 'AA' games segment (budgets between €10–100 million), utilizing a risk-hedging strategy that includes obtaining contractual way-outs at the prototype stage and securing long-term IP control.See it on page 11

Summary

MULTIPLATFORM GAMES WORLDWIDE digital entertainment Digital Bros is a global company that started operations in 1989 as a developer, publisher and distributor of videogames. The Group sales are mainly digital, with marginal sales realized on the retail market. Since 2000, the parent company Digital Bros S.p.A. is listed on the Euronext STAR segment of Borsa Italiana (DIB:MI) and since 2022 DB is part of the Euronext Tech Leaders segment.