Digital Bros Q3 FY2024 Results Presentation

Key insights

7 takeaways

01
Digital Bros is undergoing a major reorganization to improve long-term sustainability, including a 30% reduction in its global workforce from 435 to 305 employees as of March 31, 2024.See it on page 13
02
The company reported €75.8 million in revenue for the first nine months of FY2024, representing a 15% year-over-year decline, with EBITDA falling 33.6% to €20.2 million.See it on page 21
03
The firm is pivoting its strategy to prioritize high-margin, owned intellectual properties and sequels while reducing the number of lower-budget projects and traditional retail distribution activities.See it on page 13
04
The Assetto Corsa franchise remains a core financial driver, generating over €134 million in lifetime revenue and contributing €19.1 million to the company's performance in the first nine months of FY2024.See it on page 10
05
Digital Bros maintains a 21% stake in Starbreeze AB and holds a contractual earn-out on PAYDAY 3 net revenues up to $40 million, though no revenue from this title is currently included in the Group's financial projections.See it on page 20
06
The company operates within the 'AA' games market segment, utilizing a mix of internal and external studios to balance development costs against the ownership of intellectual property.See it on page 7
07
Financial results for the period ending March 31, 2024, show a net loss of €6.7 million, which the company expects to be fully recovered by the end of the fiscal year.See it on page 23

Summary

Digital Bros creates, develops, and publishes video games for all Consoles, PC, Mobile and Streaming platforms, and distributes them worldwide Listed on the Euronext STAR Milan and part of Euronext Tech Leaders, Digital Bros operates in both the Premium Games and Free to Play market segments through two 35 7 9 Years of Experience Development Studios Countries with Offices €118m €43.4m 58.9% FY2023 Revenue FY2023(1) EBITDA EBITDA CAGR...