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Starbreeze AB (publ) Interim Half-Year Q2 2020 report

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Second quarter 2020

  • Net sales were SEK 31.3 million (160.0). PAYDAY accounted for SEK 28.1 million (14.4).
  • EBITDA* amounted to SEK 15.5 million (-25.8).
  • Amortization and depreciation totalled SEK 10.5 million (22.0).
  • Costs related to the reconstruction were SEK 3.8 million (12.6).
  • Loss before tax of SEK -2.2 million (-60.1).
  • Basic and diluted earnings per share were SEK -0.01 (-0.20).
  • The summer sale run by digital distribution platform Steam had positive impact on sales during the quarter.

First half 2020

  • Net sales were SEK 53.3 million (207.8). PAYDAY accounted for SEK 49.7 million (41.1).
  • EBITDA* amounted to SEK 26.0 million (-132.4).
  • Amortization and depreciation totalled SEK 20.9 million (71.9).
  • Costs related to the reconstruction were SEK 7.4 million (23.6).
  • Loss before tax of SEK -105.9 million (-227.3).
  • Basic and diluted earnings per share were SEK -0.31 (-0.71).
  • Cash and cash equivalents totalled SEK 90.9 million (137.8).
  • The board of directors decided to execute a rights issue of approximately SEK 250 million, due to the delay in closing a publishing agreement for PAYDAY 3 caused by the Covid-19 pandemic.
  • The annual general meeting of shareholders in Starbreeze was held 13 May and elected directors as proposed by the nomination committee.

CEO Mikael Nermark remarks on the report: Efficiency measures are paying off

We maintained our focus during the quarter on enhancing the organization and improving efficiency while continuing to work with all things PAYDAY.

We released two updates to PAYDAY 2 in June, which were enthusiastically received by our players and sales of the game remain good.

As a result of the persistently strong demand for PAYDAY 2 and the ongoing efficiency improvements, underlying earnings are showing a positive trend adjusted for costs related to the reconstruction.

Dialogue with several leading publishers regarding a publishing agreement for PAYDAY 3 are ongoing and negotiations have come a long way. However, the date and the time required to finalize the negotiations on an attractive publishing deal have been affected by factors including travel restrictions and the general downturn in worldwide business activity during the Covid-19 pandemic.

The decision on a fully guaranteed rights issue of approximately SEK 250 million will give us time to close the publishing agreements and improve our capacity to continue developing PAYDAY 3 as planned.

As we move forward, focus will remain on our intense efforts to reach a publishing agreement for PAYDAY 3, which we hope will be achieved in 2020.

Mikael Nermark

CEO Starbreeze

For more information, please contact:
Mats Juhl, CFO
Tel: +46(0)8-209 208, email: ir@starbreeze.com

Starbreeze AB is required to disclose this information under the EU Market Abuse Regulation and the Securities Market Act. The information was provided by the above contact person for publication on August 18, 2020 at 08:00 CET.

About Starbreeze

Starbreeze is an independent developer and creator of PC and console targeting the global market, with studios in Stockholm, Barcelona and Paris. Housing the smash hit IP PAYDAY, Starbreeze develops games based on proprietary and third-party rights, both in-house and in partnership with external game developers. Starbreeze shares are listed on Nasdaq Stockholm under the tickers STAR A and STAR B with the ISIN-codes SE0007158928 (A share) and SE0005992831 (B share). For more information, please visit starbreeze.com

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