Starbreeze AB (publ) Interim report Q3 2020
Third quarter 2020
- Net sales were SEK 32.1 million (21.1). PAYDAY accounted for SEK 31.1 million (17.5).
- EBITDA* amounted to SEK 11.7 million (-10.9).
- Amortization and depreciation totalled SEK 7.8 million (94.9).
- Loss before tax of SEK -8.2 million (-68.4).
- Basic and diluted earnings per share were SEK -0.02 (-0.21).
- The summer sale run by digital distribution platform Steam had positive impact on sales during the quarter.
- An extraordinary general meeting of shareholders in Starbreeze was held on 13 August. The EGM endorsed the board decision to execute a rights issue of Class A and B shares, which was carried out in September.
Nine-month period 2020
- Net sales were SEK 85.4 million (228.9). PAYDAY accounted for SEK 80.8 million (58.6).
- EBITDA* amounted to SEK 44.0 million (-143.3).
- Amortization and depreciation totalled SEK 28.7 million (166.9).
- Costs related to the reconstruction were SEK 8.9 million (28.1).
- Loss before tax of SEK -114.1 million (-295.7).
- Basic and diluted earnings per share were SEK -0.30 (-0.92).
- Cash and cash equivalents totalled SEK 193.2 million (113.2).
Acting CEO Tobias Sjögren remarks on the report: Reinforced PAYDAY IP generates stability
The positive trend persisted in the third quarter, characterized by healthy demand for PAYDAY 2 and an oversubscribed rights issue. Net issue proceeds of about SEK 220 million will enable reinforcement of the development team and equip the company to pass further project milestones according to the PAYDAY development plan.
The continued strengthened PAYDAY 2 sales demonstrate the power of PAYDAY and its community, which gives us a stable foundation for PAYDAY 3’s launch in the coming years. Our overall judgment is that development capital for development of PAYDAY franchise will now be sufficient through the end of 2021. It also enables us to close a publishing agreement for PAYDAY 3 in the best possible way.
In line with the reorganization plan, we carried out the first payments to creditors after the end of the period. The payments were a key step on the path towards reducing current financial expenses and strengthening the company’s financial position.
After the end of the period, CEO Mikael Nermark notified the company of his resignation, citing personal reasons. The board of directors has commenced an executive search process to find a permanent CEO.
I am truly looking forward to contributing to further developing the company and working with the highly skilled and goal-oriented team at Starbreeze. The strength of PAYDAY and completed and forthcoming content releases have created good conditions for continued and successful development of PAYDAY 3. With this, Starbreeze is taking further steps in the right direction with every day that passes, and I look to the future with confidence as we continue our journey ahead.
Tobias Sjögren
Acting CEO Starbreeze
For more information please contact:
Mats Juhl
CFO
Tel: +46 8 209 229
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 November 10, 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