Digital Bros S.p.a. · MIL:DIB
Digital Bros — Q3 FY2024 Earnings Presentation
24 slides from Digital Bros's earnings presentation, May 24, 2024
Slide 1: Q3 FY2024
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Slide 2: Company Overview
Company Overview Digital Bros creates, develops, and publishes video games for all Consoles, PC, Mobile and Streaming platforms, and distributes them worldwide Listed on the Euronext STAR Milan and part of Euronext Tech Leaders, Digital Bros operates in both the Premium Games and Free to Play market
Slide 3: History and Milestones
History and Milestones Evolution of Digital Bros from a local Italian distributor, into a global gaming publisher and IP owner 2012 – 2016: 2016 – PRESENT: 1989 – 2006: 2006 – 2012: RETAIL AND DIGITAL GLOBAL PUBLISHER AND IP ITALIAN DISTRIBUTOR EUROPEAN DISTRIBUTOR PUBLISHER OWNER Rami and Raffi Gal
Slide 4: The Global Gaming Market is Currently Worth over $180bn
The Global Gaming Market is Currently Worth over $180bn Video games are the leading form of entertainment with over three billion people playing today and almost 3.8 billion expected by 2026 A LARGE, RESILIENT AND GROWING MARKET(1) PLAYER RECURRING SPEND EXTENDING GAME LIFECYCLE (2) 100 Traditional
Slide 5: Business Model
Business Model The Company operates through five main divisions and two key product lines, covering the entire gaming value chain ▪ Digital Bros manages the entire lifecycle of games from PREMIUM GAMES FREE TO PLAY development, to production to publishing ▪ Financing is provided in a risk-managed pr
Slide 6: Overview of Revenue Models
Overview of Revenue Models Multiple avenues of monetization and distinct revenue profiles ensures diversification of revenue streams MONETIZATION DESCRIPTION ILLUSTRATIVE REVENUE PROFILE ▪ One-time fee to purchase the full game Revenue DLCs ▪ Greater budgets in marketing required to improve Initial
Slide 7: Competitive Positioning In the Videogame Industry
Competitive Positioning In the Videogame Industry Well positioned within the “AA” games market and utilising both internal and external studios OUR FOCUS ON THE “AA” GAMES SEGMENT OUR COMPETITIVE POSITIONING Digital Bros’ competitive positioning is focused on the “AA” game segment AAA ▪ Reduces down
Slide 8: Overview of Digital Bros Game Portfolio
Overview of Digital Bros Game Portfolio Focus on building a highly diversified portfolio of IPs with different ownership strategies is core to the Company’s risk management strategy CURRENT PORTFOLIO MIX GENRES (BY NUMBER OF TITLES)(1) Adventure 4% 8% Platform games Co-Owned IP 8% 28% Wholly owned I
Slide 9: Studio / Developer Activities
Studio / Developer Activities Digital Bros connect and empower studios across the globe, unlocking each studios’ value IN HOUSE STUDIOS Latest technology, offering gamers realistic and innovative gaming experiences Digital Bros develops games led by its seven Group Studios* – development of Studio-o
Slide 10: Case study – Assetto Corsa
Case study – Assetto Corsa Successful initial launch with compelling DLC and sequels following studio acquisition Racing simulation video game developed by the Italian studio Kunos Simulazioni, designed with an emphasis on a realistic racing experience with support for extensive customization by pla
Slide 11: Financial Overview - Q3 FY24
Financial Overview - Q3 FY24 € 75.8 million revenue generated as of March 31st, 2024. New releases: Ghostrunner 2 and Brothers: A Tale Of Two Sons Remake. NET REVENUE (€m), EBITDA (€m) AND EBITDA MARGIN (%) Q3 FY2024 160 41% 45% Group revenue at €75.8 9M FY24 39% 37% 40% million (-15% Y.o.Y.) Italia
Slide 12: Financial Overview – Q3 FY24
Financial Overview – Q3 FY24 € 75.8 million revenue generated as of March 31st, 2024. New releases: Ghostrunner 2 and Brothers: A Tale Of Two Sons Remake. NET REVENUE BY OPERATING SEGMENT Premium Games Free to Play Italian Distribution and other activities Premium Game revenue at €59.6 million (-14%
Slide 13: Reorganization Plan
Reorganization Plan Strategic review of the Group’s operations in accordance with the latest market conditions NEW MARKET CONDITIONS Increased selectivity of consumers, playing Record number of video games launched in 2023 Slower growth across the whole industry Harder to meet volume and revenue tar
Slide 14: Business Outlook
Business Outlook Positive business outlook for Q4, benefitting from lower investments and expected increase in sales. April 1 April 23 June 18 Hundred Heroes Revenue expected to increase at fiscal New releases in Q4 year-end, compared to FY23 Nürburgring 24hr Pack DLC Steam release No significant la
Slide 15: Q4 Releases – Nürburgring 24hr Pack
Q4 Releases – Nürburgring 24hr Pack Successful franchise generating sales of more than €130 million to date Nürburgring 24hr Pack DLC April 1, 2024 Launched in 2018, Assetto Corsa Competizione is the official Fanatec GT World Challenge video game and the official video game of FIA Motorgames Esport
Slide 16: Q4 Releases – Eiyuden Chronicle: Hundred Heroes
Q4 Releases – Eiyuden Chronicle: Hundred Heroes Japanese Role Play Game with strong community support Eiyuden Chronicle: Hundred Heroes April 23rd, 2024 Developed by Rabbit & Bear Studios Ltd., Japanese studio founded by Yoshitaka Murayama, the late creator of the iconic Suidoken franchise, one of t
Slide 17: Q4 Releases – Crime Boss: Rockay City on Steam
Q4 Releases – Crime Boss: Rockay City on Steam New and improved version of the fun heist game with icons from the 90s Crime Boss: Rockay City Steam release scheduled for June 18, 2024 First person shooter game set in the thriving metropolis of Rockay City in the 1990s, with iconic actors: Michael Ma
Slide 18: FY 2025 - Upcoming releases
FY 2025 - Upcoming releases Strong pipeline ahead, prioritizing high margin titles and long-term value creation FY 2025 (July 1st, 2024 – June 30th, 2025) H1 FY2025 ASSETTO CORSA EVO NIVALIS • Cyberpunk slice-of-life sim, with realistic • Highly anticipated second version to Assetto Corsa, weather s
Slide 19: Appendix
Appendix Page 19 19
Slide 20: Investment in Starbreeze
Investment in Starbreeze Supporting Starbreeze’s strategic growth Digital Bros holds a strategic investment of 21% of the total capital and 39.67% of voting rights of Swedish videogame developer and publisher Starbreeze AB Initial investment acquired in February 2020, following the restructuring of
Slide 21: Summary tables
Summary tables 9M FY24 (July 1st, 2023 – March 31st, 2024) INCOME STATEMENT €/100 March 31,2024 March 31, 2023 Change (€m) Change % Total net revenue 75,800 89,177 (13,377) -15.0% Total cost of sales (25,108) (27,635) 2,527 -9.1% Gross profit (3+8) 50,692 61,542 (10,850) -17.6% Other income 8,218 12
Slide 22: Summary tables
Summary tables 9M FY24 (July 1st, 2023 – March 31st, 2024) BALANCE SHEET €/100 Q3 FY24 Q3 FY23 Change (€m) Change % Total non-current assets 185,854 199,212 (13,358) -6.7% Total current assets 46,166 65,977 (19,811) -30.0% Total Assets 232,020 265,189 (33,169) -12.5% Total Net Equity (124,734) (143,
Slide 23: Summary tables
Summary tables Q3 FY24 (December 31st, 2023 – March 31st, 2024) INCOME STATEMENT €/100 March 31,2024 March 31, 2023 Change (€m) Change % Total net revenue 28,700 29,386 (686) -2.3% Total cost of sales (9,253) (7,447) (1,806) 24.3% Gross profit (3+8) 19,447 21,939 (2,492) -11.4% Other income 1,993 4,
Slide 24: Digital Bros S.p.A. contact details
Digital Bros S.p.A. Via Tortona, 37 - 20144 Milan, Italy For more info: www.digitalbros.com - ir@digitalbros.com