Starbreeze (STAR) Q4 2024 earnings summary

Executive summary

• Focused on leveraging PAYDAY IP, expanding into PUBG: Battlegrounds and Roblox, and diversifying revenue streams with multiple titles on the market.

• Strong quarter for the Payday franchise, including new collaborations and content releases, with RoboQuest performing well and PlayStation launch upcoming.

• "Baxter" project in full production, with ongoing partner discussions and Dungeons & Dragons license secured for a 2026 release.

• Strategic cost control measures implemented, including organizational review, workforce reductions, and plans to consolidate operations in Sweden.

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

Financial highlights

• Q4 2024 net sales: SEK 46.4 million (Q4 2023: SEK 69.2 million); full-year: SEK 185.9 million (2023: SEK 633.5 million).

• Q4 EBITDA: SEK 19.7 million (Q4 2023: SEK -20.6 million); full-year EBITDA: SEK 97.6 million (2023: SEK 439.3 million).

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

• Cash and cash equivalents at year-end: SEK 191.9 million (2023: SEK 347.8 million); positive operating cash flow of SEK 64.9 million for the year.

• No dividend proposed for 2024.

Outlook and guidance

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

• Collaboration with PlayStation Plus in Q1 2025 expected to boost PAYDAY 3 exposure and revenue.

• Roboquest to launch on PlayStation 4 and 5 in H1 2025, expanding third-party publishing.

• Ongoing development of Project Baxter (Dungeons & Dragons®) with positive partner feedback.

• Continued focus on diversifying revenue and optimizing resource allocation.