Digital Bros (DIB) Q2 24/25 earnings summary

Executive summary

• Net revenue for H1 FY25 was €43 million, down 8.7% year-over-year, driven solely by back catalogue sales as no significant new games launched in the period.

• EBITDA increased by 35.3% to €13.1 million, supported by lower payroll and service costs after a major reorganization.

• Net loss narrowed to €3.5 million from €6.4 million in the prior year, reflecting cost reductions and reorganization.

• Workforce was reduced by over 30% year-over-year, mainly in development studios.

• Portfolio refocused on premium and free-to-play games in sim racing, heist, action RPG, and match-three verticals.

Financial highlights

• Gross profit declined to €28.2 million from €31.2 million, reflecting lower sales.

• EBITDA margin improved to 30.4% from 20.5% in the prior year.

• EBIT loss narrowed to €0.4 million from €4.6 million.

• Net financial debt increased to €29.7 million, up €4.9 million from June 2024.

• Cash and cash equivalents at period end were €4.6 million, down from €12 million at the start of the period.

Outlook and guidance

• Full-year FY25 revenue is expected to decline, but H2 revenue is projected to improve with launches of Assetto Corsa EVO (Early Access Jan 2025), Blades of Fire (May 2025), and Free to Play games converted to Unity.

• EBIT for FY25 is expected to remain in line with the prior year, benefiting from cost reductions.

• Net financial debt is forecasted to remain stable at year-end, with improvement expected in Q1 FY25/26.