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.