Sweden's Starbreeze Q2 net sales fall as third-party publishing ends
Sweden's Starbreeze Q2 net sales fall as third-party publishing ends
Overview
Sweden video game developer's Q2 net sales fell 52% yr/yr as third-party publishing ended
Q2 EBITDA remained positive but declined from a year earlier
PAYDAY 2 revenue grew, while PAYDAY 3 revenue declined on lighter content slate
Outlook
Company expects continued growth in PAYDAY franchise player base and revenue momentum
Starbreeze plans to launch a second PAYDAY game on Roblox later this year
Company will continue to manage costs closely to protect margins and cash generation
Result Drivers
PAYDAY FOCUS - Co said decline in net sales was largely due to ending third-party publishing and work-for-hire, as it sharpened focus on PAYDAY franchise
CONTENT UPDATES - Co said steady monthly content releases and improvements for PAYDAY 3 led to improved player sentiment and lays foundation for further growth
PLATFORM EXPANSION - Co said collaborations with PUBG, Roblox and Fortnite are part of its strategy to expand PAYDAY's reach to new audiences
Company press release: ID:nMFN1LjQ9M
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | SEK 25.60 mln | SEK 32 mln (2 Analysts) |
Q2 EBITDA |
| SEK 3.40 mln |
|
Q2 Loss Per Basic Share |
| SEK 0.02 |
|
Q2 Pretax Loss |
| SEK 36.80 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Starbreeze AB is SEK0.14, about 32.9% above its August 19 closing price of SEK0.10
Reuters Recommended Reads
Aug 19 - Sweden's EG7 Q2 revenue rises 25% on game launches
Aug 19 - Sweden's Fractal Gaming Q2 revenue falls 65% on weak demand, posts net loss
Aug 17 - Finland's Nitro Games swings to profit in Q2 on loan waiver, cost cuts
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)