Sections

Starbreeze Studios reports pre-tax loss of $4.1m as it enters phase of expansion

Developer states intention to achieve revenues of $237 million in 2020 [UPDATE: Dead by Daylight has sold 3m]

The latest financial report from Starbreeze Studios shows a pre-tax loss of $4.1 million as the Swedish developer enters a phase of expansion.

It's a mixed picture overall for Starbreeze, with Payday and Dead by Daylight both generating revenues on par with the same period in 2016, earning $2.9 million and $5.6 million respectively.

Net sales for the quarter reached $9.2 million, an increase by 11% excluding non-recurring revenue last year.

However, Raid: World War II has underperformed and Starbreeze will be working closely with Lion Game Lion to improve and update the game in line with their games-as-a-service approach.

"We had expected a larger contribution from the game as of this quarter, although we knew it takes time and is riskier to build a new IP," said Ann Charlotte Svensson, head of investor relations and corporate communications at Starbreeze Studios.

According to the report, the studio is in a period of expansion which has having a short-term impact on profitability.

The studio reported a loss of $2.6 million before interest, taxes, depreciation, and amortization, compared to positive earnings of $2.2 million over the same period last year. Cashflow from operating activities was stronger however, at $7 million.

Looking to the future, Starbreeze has stated the intention to achieve revenues of at least $237 million in 2020, not including Payday 3, through revenues generated by game development.

"We also see tremendous growth potential in a continued expansion of the publishing game portfolio, new platforms like VR, and new geographical markets," said Svensson.

Update: Starbreeze also announced today that Dead by Daylight has sold 3 million units. The publisher is preparing to launch a special digital PS4 edition across Asian territories.

More stories

Starbreeze reports pre-tax loss as it sheds non-core assets

Sale of Psychonauts 2 and 10 Crowns publishing rights nets Starbreeze around $14 million

By Haydn Taylor

Starbreeze lays off a quarter of its staff in further efforts to cut costs

Struggling Swedish publisher makes organisational changes that will save 310,000 per month

By James Batchelor

Latest comments

Sign in to contribute

Need an account? Register now.