Starbreeze (STAR) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were SEK 40.2 million, with PAYDAY titles as the main revenue driver and third-party publishing also performing well.

• EBITDA for Q2 2024 was SEK 8.1 million, impacted by higher depreciation and items affecting comparability.

• Loss after tax for Q2 2024 was SEK 70.6 million, mainly due to aggressive depreciation of PAYDAY 3.

• Cash and cash equivalents stood at SEK 334.6 million at quarter-end.

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

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); H1 2024: SEK 150.7 million (H1 2023: SEK 32.7 million).

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

• Cash flow from operations in H1 2024: SEK 81.1 million (H1 2023: SEK 40.8 million).

Outlook and guidance

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

• PAYDAY 3 content updates and monetization through paid and free DLCs planned, with two major DLCs and a free heist scheduled for August and September.

• 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.

• Sales and earnings expected to increase in Q3 2024 as PAYDAY 3 content accelerates.