Digital Bros (DIB) Q4 23/24 earnings summary

Executive summary

• Consolidated revenue reached €118 million, stable year-over-year but slightly below expectations due to delayed contracts.

• EBITDA was €42.2 million (35.8% margin), down 2.8% from last year, impacted by €1.4 million in non-recurring reorganization costs.

• EBIT turned negative at €1.4 million, mainly due to €8.2 million in asset impairments and €2.6 million in non-recurring items; EBIT before non-recurring items was €1.2 million.

• Net loss was €6.2 million, compared to a €9.6 million profit last year, driven by asset impairments and non-recurring charges totaling €10.8 million.

• Net financial debt improved to €24.8 million, down from €39.7 million, reflecting reduced investment and reorganization.

Financial highlights

• Gross profit declined to €79.8 million from €82.2 million year-over-year.

• Depreciation and amortization rose to €35.2 million, up €16.5 million, due to new game launches.

• Basic and diluted EPS were -€0.16 and -€0.15, down from €0.68 and €0.66.

• Cash and cash equivalents increased to €12.0 million from €9.4 million.

Outlook and guidance

• Revenue is expected to decline in the next fiscal year, with margins maintained through reorganization and investment focus.

• Free to Play revenue is forecasted to recover with new features and relaunches.

• Net financial debt is projected to rise in H1 and decline in H2 of the next fiscal year.

• PC version of Assetto Corsa EVO to launch in Early Access on Steam in January 2025.