Maximum Entertainment (MAXENT) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales were €17.2M, down 32% year-over-year due to a lighter release schedule versus a strong Q3 2023 with major Owned IP launches.

• Adjusted EBITDA was -€0.2M for the quarter, with a year-to-date figure of €3.0M.

• Gross margin for Q3 was 24%, down from 33% in Q3 2023, reflecting a shift in product mix and fewer high-margin Owned IP releases.

• EBIT was -€16.3M, including a one-off €13.2M impairment on capitalized development; adjusted EBIT was -€3.1M, an improvement over last year.

• Headcount reduced to 181, a 24% decrease year-over-year, as part of ongoing cost-saving measures.

Financial highlights

• Net sales for Q3 2024: €17.2M (Q3 2023: €25.3M); year-to-date: €54.5M (2023: €65.5M).

• Adjusted EBITDA margin: -1% in Q3 2024 (Q3 2023: 16%).

• Gross margin: 24% in Q3 2024 (Q3 2023: 33%).

• EBIT: -€16.3M in Q3 2024 (Q3 2023: -€6.8M); adjusted for impairment, EBIT was -€3.1M.

• Net loss for Q3 2024: -€20.3M (Q3 2023: -€9.8M); EPS before/after dilution: -€0.40.

Outlook and guidance

• Q4 to feature key launches including Maximum Football (early access), new Fantasy Friends, and Diesel Legacy.

• Focus for 2025: strengthen financial position, increase revenue, improve cost control, and prioritize faster turnaround, lower-risk projects.

• Asset divestments and internal cost reductions planned to address cash flow needs.