Digital Bros Group FY2024-2025 First Quarter Results

Key insights

7 takeaways

01
Digital Bros Group reported Q1 FY2024-2025 revenue of 21.5 million euros, a 6.3% year-on-year increase driven entirely by back-catalogue sales.See it on page 1
02
EBITDA rose to 5.9 million euros from 2.3 million euros in the prior year, bolstered by a 26.9% reduction in operating costs following organizational restructuring.See it on page 3
03
The company narrowed its net loss to 2.3 million euros, down from 3.1 million euros in the same period last year, while EBIT improved to a loss of 1.4 million euros.See it on page 4
04
The Premium Games segment generated 79.1% of total revenue, with the Assetto Corsa franchise serving as a primary contributor.See it on page 3
05
Digital channels account for 89% of total sales, and 94% of the group's revenue is derived from international markets.See it on page 2
06
Management projects a full-year revenue decline compared to the previous fiscal year, with growth expected in the second half driven by the launch of Assetto Corsa EVO.See it on page 4
07
The group's net financial debt stands at 30.1 million euros, a figure the company reports is in line with its internal expectations.See it on page 4

Summary

Digital Bros Group’s first-quarter results for the 2024-2025 fiscal year reflect a period of strategic transition characterized by a focus on back-catalogue sales and operational efficiency. The company reported consolidated revenue of 21.5 million euros, a 6.3% increase year-on-year, driven entirely by existing titles in the absence of new product launches. Despite the lack of new releases, the group achieved an EBITDA of 5.9 million euros, a significant improvement over the 2.3 million euros recorded in the same period of the previous year, largely attributed to a higher-margin product mix and a successful organizational restructuring that reduced operating costs by 26.9%.

The financial performance shows a narrowing of losses, with the net loss decreasing to 2.3 million euros from 3.1 million euros in the prior year. EBIT remained negative at 1.4 million euros, though this represents a notable improvement from the 3.2 million euro loss reported in the first quarter of the previous fiscal year, even after accounting for increased depreciation and amortization costs. The group’s net financial debt reached 30.1 million euros, a figure management describes as being in line with expectations.

Geographically and operationally, the group maintains a global footprint with 284 employees and continues to derive 94% of its revenue from international markets, with 89% of sales generated through digital channels. The Premium Games segment remains the primary revenue driver, accounting for 79.1% of total income, with the Assetto Corsa franchise serving as a key contributor. Looking ahead, the company expects revenue to decline for the full fiscal year compared to the previous period, while maintaining stable EBIT levels. Future growth is anticipated in the second half of the fiscal year, supported by the scheduled release of Assetto Corsa EVO and a renewed focus on owned intellectual properties.