Starbreeze (STAR) Q4 2024 earnings summary

Executive summary

• Strong quarter for the Payday franchise, with new collaborations, content releases, and expansion into PUBG: Battlegrounds and Roblox.

• RoboQuest continues to perform well, with PlayStation launch upcoming and added to the publishing portfolio.

• Project Baxter (Dungeons & Dragons) in full production, targeting 2026 release, with positive partner feedback.

• Ongoing organizational review led to workforce reductions, cost controls, and plans to consolidate operations in Sweden.

• Maintained a strong cash position and limited debt, supporting continued execution of growth strategy.

Financial highlights

• Q4 net sales: SEK 46.4 million, down from SEK 69.2 million in Q4 2023; full-year net sales: SEK 185.9 million, down from SEK 633.5 million.

• Q4 EBITDA: SEK 19.7 million, a turnaround from SEK -20.6 million last year; full-year EBITDA: SEK 97.6 million, down from SEK 439.3 million.

• Q4 loss after tax: SEK 49.2 million; full-year loss after tax: SEK 199.3 million.

• Year-end cash position: SEK 191.9 million, with positive operating cash flow of SEK 64.9 million for the year.

• No dividend proposed for 2024 in line with policy.

Outlook and guidance

• Expecting lower burn rate in 2025 due to cost reductions and work-for-hire revenue.

• Anticipate increased revenue in Q1 from PlayStation Plus deal and paid DLC releases.

• RoboQuest to launch on PlayStation 4 and 5 in H1 2025, expected to drive third-party publishing revenue.

• Ongoing development of Project Baxter and new third-party titles to support future growth.

• Focus on self-publishing, IP expansion, and exploring media and licensing opportunities beyond games.