Starbreeze AB (publ) Year-end report 2022

Fourth quarter 2022

• Net sales totaled SEK 33.6 million (31.1). PAYDAY accounted for SEK 32.4 million (30.2).
• EBITDA* totaled SEK 19.4 million (15.6).
• Depreciation, amortization and impairment totaled SEK 15.0 million (15.0).
• Profit/loss before tax amounted to SEK -12.3 million (-13.0).
• Basic and diluted earnings per share totaled SEK -0.02 (-0.02).
• On October 6, Starbreeze signed an agreement with developer Walking Tree Games to publish the game THE TRIBE MUST SURVIVE.
• On October 26, Lost in Transit Heist was successfully released as part of the Texas Heat campaign.

Full year 2022

• Net sales totaled SEK 127.6 million (125.7). PAYDAY accounted for SEK 121.9 million (119.8).
• EBITDA* totaled 66.4 SEK million (6.3).
• Depreciation, amortization and impairment totaled SEK 59.6 million (60.0).
• Profit/loss before tax amounted to SEK -54.4 million (-105.2).
• Basic and diluted earnings per share totaled SEK -0.08 (0.14).
• Cash and cash equivalents amounted to SEK 108.2 million (128.6).
• In line with Starbreeze’s dividend policy, the Board of Directors proposes that no dividend is paid for 2022.

Significant events after the end of the period

• The year of PAYDAY 3 – Starbreeze presented the logo for PAYDAY 3 and opened the wish list for the game on Steam.
• From January 2023, Starbreeze receives a higher share of revenue from sales of PAYDAY 2 base game and DLC:s on Steam; 80% compared to previously 75%.

Tobias Sjögren, CEO, comments: We have stepped into the year of PAYDAY

We have worked hard in recent years to lay the foundation for the Starbreeze of the future, and in 2022 we have taken several important steps on our journey. We have built a stronger organization, made a return as third-party publisher and continued to invest in one of our greatest assets – our community – through our membership platform Starbreeze Nebula. On January 1st this year, we released the teaser trailer and logo for the next big step on our journey – this year’s launch of PAYDAY 3. The fact that the game is eagerly awaited is reflected not only in the reaction to the teaser, but also in that the game has quickly climbed Steam's global wish list of the most wished games.

Our strategy is launching high quality experiences for our players and delivering added value over a long period of time. Games-as-a-Service for Starbreeze means continuously releasing content, expansions and add-on packs for our games that increase the lifetime value of a game, for both players and for Starbreeze. During the quarter, we released the Lost in Transit DLC, as part of this year’s Texas Heat campaign. In total, our team delivered 13 DLCs for PAYDAY 2 in 2022.

During the quarter, our MAU reached a maximum of 695,000 players, making it the second-best quarter of the year. A continued high level of engagement drives our sales. Our Steam community page continues to grow and now stands at over 8.6 million members.

In early December, we opened a new studio in the UK and recruited two game veterans, Tancred Dyke-Wells and Lawrence Bishop. The studio, and the fact that Tancred and Lawrence have joined the Starbreeze family, will strengthen our capacity to create and develop strong IPs based on our Games-as-a-Service model. Our own presence in the UK market also gives us access to the large talent pool of game developers, recognized as one of the best in the world. 

Overall, Starbreeze grew during the quarter from 156 to 165 employees. Recruitments will not only strengthen the organization in the period up to the launch of PAYDAY 3, but in the period after this as well, and for our next project. Recruiting the right skills continues to be a challenge for the industry as a whole, with studies showing that there will be a shortage of 25,000 game developers by 2030 in Sweden alone, making our work to become the best employer in the industry a key factor in our continued success.

Net sales for the quarter totaled SEK 33.6 million (31.1) – an increase of approximately 8 percent, where PAYDAY accounted for the main part of the growth. EBITDA totaled SEK 19.4 million (15.6). 

Net sales for the full year increased by 2 percent to SEK 127.6 (125.7) million, compared to a strong comparative year in 2021. PAYDAY accounted for SEK 121.9 (119.8) million. EBITDA for the full year totaled SEK 66.4 million (adjusted 74.9). Although we saw a decrease compared to the previous year, we have a good result for the year, which shows the strength of our long-term business model.

We have an intense, inspiring and fun year ahead of us, with the launch of PAYDAY 3 as our highest priority. At the same time, we will continue to develop our own IP, the next major game development project will come into place, and we will continue to build Starbreeze in accordance with our strategy. We see that a combination of game development projects from our proprietary and licensed IPs, our publishing activities and the potential that exists to take the PAYDAY brand beyond gaming will ensure a long-term and differentiated revenue model and take Starbreeze to the next level.

Tobias Sjögren, CEO

WEBCAST 10.00

Time: Thursday, February 16, 10.00 CET

Participation: To join the presentation – click here.

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FOR MORE INFORMATION, PLEASE CONTACT:

Mats Juhl, CFO

Tel: +46 0(8) - 209 229

E-mail: ir@starbreeze.com

This disclosure contains information that Starbreeze AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 16-02-2023 07:30 CET.

About Starbreeze
Starbreeze is an independent developer, creator, publisher and distributor of PC and console targeting the global market, with studios in Stockholm, Barcelona, Paris and London. 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 www.starbreeze.com

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