(Alliance News) - Digital Bros Spa has announced that its board of directors has approved the condensed half-year financial report as of Dec. 31, reporting a loss of EUR6.4 million for the first six months of the year, compared with a profit of EUR11.0 million in the first half of the previous year. This loss, the statement said, "will be recovered during the second half of the year."

Revenues for the period amounted to EUR47.1 million compared with EUR59.8 million in the first half of the 2022-2023 fiscal year. This decrease is mainly due to the completion of the development of the Crime Boss: Rockay City video game by subsidiary Ingame Studio, which was classified as capitalization on internal workings in the first half of last fiscal year, when it was still under development.

Ebitda as of Dec. 31, relating to the first half of the fiscal year, increased to EUR9.7 million from EUR18.6 million in the same period last year.

Ebit was negative EUR4.6 million from positive EUR11.3 million in the same period of the previous year.

Net financial debt is EUR50.5 million in line with last quarter and better than expected.

As for the future, "the positive forecast trend in the second half of the year will allow the company to close the entire year with growing revenues and an operating margin in line with what was achieved last year, also due to the savings on personnel costs that will become evident from the fourth quarter of the year, allowing it to recover the losses realized on December 31," the company's statement reads.

"Unlike last year, new product launches are not planned close to the end of the fiscal year, allowing better visibility on the prospective trend of revenues and margins with more timeliness than last year. The retrocession of rights related to the Control series, which took place in February, with the consequent reduction in investments during the second half of the year, together with the increase in sales volumes will allow a significant reduction in the net financial position, which, at the end of the year, is expected to be in line with the levels recorded as of last June 30," the note concludes.

Digital Bros' stock closed Wednesday in the green 1.1 percent to EUR8.07 per share.

By Chiara Bruschi, Alliance News reporter

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