Digital Bros (DIB) Q1 2025 earnings summary

Executive summary

• Net revenue reached €21.5 million, up 6.3% year-over-year, driven entirely by back catalogue sales.

• EBITDA rose to €5.9 million, a €3.7 million increase, reflecting a higher-margin product mix and cost reductions.

• EBIT remained negative at €1.4 million but improved by €1.7 million year-over-year despite higher D&A.

• Net loss narrowed to €2.3 million from €3.1 million in the prior year quarter.

• Workforce reduced by 158 units, reflecting a major reorganization to lower fixed costs.

Financial highlights

• Gross profit increased 11.5% to €13.9 million, with gross margin at 64.5%.

• EBITDA margin improved to 27.5% of net revenue, up from 11.2% a year ago.

• Depreciation and amortization rose by €1.9 million due to recent game launches.

• Net financial debt increased by €5.3 million to €30.1 million, in line with expectations.

• Cash and cash equivalents fell to €3.4 million from €12.0 million at June 30, 2024.

Outlook and guidance

• Full-year outlook confirmed: revenue expected to decline versus June 2024, but EBIT to remain stable.

• H2 expected to see improved revenues and margins due to new launches and Free to Play relaunch.

• PC version of Assetto Corsa EVO to launch in January 2025; another major game release planned for Q4.

• Net financial debt projected to peak in Q2 and decrease by fiscal year-end.

• Guidance excludes any impact from the PAYDAY3 earn-out due to ongoing disputes.