Starbreeze (STAR) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales were SEK 40.2 million, mainly driven by PAYDAY 3 and third-party publishing, with PAYDAY 3 contributing SEK 22.0 million and third-party publishing SEK 8.8 million; PAYDAY titles remained the main revenue driver.

• EBITDA for Q2 2024 was SEK 8.1 million, impacted by non-recurring items and higher depreciation; pre-tax result was a loss of SEK 70.6 million.

• Cash and cash equivalents stood at SEK 334.6 million at quarter-end, supporting ongoing investments and strategic flexibility.

• Project Baxter (Dungeons & Dragons®) remains in full production, targeting a 2026 release.

• New Chairman of the Board appointed; interim CEO named during the quarter.

Financial highlights

• Q2 2024 net sales: SEK 40.2 million (Q2 2023: SEK 43.2 million); H1 2024 net sales: SEK 96.8 million (H1 2023: SEK 69.9 million).

• Q2 2024 EBITDA: SEK 8.1 million (Q2 2023: SEK 14.1 million); H1 2024 EBITDA: SEK 56.6 million (H1 2023: SEK 18.1 million).

• Q2 2024 depreciation, amortization & impairment: SEK 78.9 million (Q2 2023: SEK 17.0 million).

• Q2 2024 loss after tax: SEK 70.6 million (Q2 2023: profit of SEK 24.1 million); H1 2024: loss of SEK 91.5 million (H1 2023: loss of SEK 0.6 million).

• Cash flow from operations in Q2: SEK 2.7 million; cash at period end: SEK 334.6 million.

Outlook and guidance

• Continued investment in PAYDAY 3 and Project Baxter, with Baxter planned for 2026 release.

• Two major PAYDAY 3 DLCs and a free heist are scheduled for release in the coming months, with further updates planned.

• Game development budget for PAYDAY 3 expected to decrease as content pipeline normalizes.

• Depreciation expenses for PAYDAY 3 will drop significantly after the first 12 months post-release.

• No anticipated royalty payments to Digital Bros in the near future.