(Finance) – Digital Brosa group active in the videogames market and listed on the Euronext STAR segment of the Italian Stock Exchange, closed on first quarter of the financial year 2022-2023 (ended September 30, 2022 with consolidated gross revenues equal to 22.4 million euros, down 10.5%, 28% on a like-for-like basis, compared to the 25 million euros recorded at 30 September 2021 and almost exclusively generated by sales of catalog products. The revenues generated by the newly acquired 505 Go amounted to Euro 4.4 million.
L’EBITDA was equal to 5.2 million euros, compared to 7.8 million euros at 30 September 2021 and equal to 23.1% of consolidated gross revenues. The Net income was 3.1 million euros, compared to the 4 million euros achieved at 30 September 2021. The net financial position was negative for 14,169 thousand euros compared to the positive 3,707 thousand euros recorded at 30 June 2022, decreasing by 17,876 thousand euros due to effect of the significant investments in the period.
With regard to the outlook, Digital Bros highlights that the investments in the development of video games will materialize with the launch of the first products starting from the second half of the current year. “The revenues for the year will therefore benefit from the new flow of revenues, but also from the contribution of the newly acquired American company 505GO! – reads the note on the accounts – The group expects to exceed 50 million in investments also during this period. exercise and as a function of this revenues are expected to grow at least for the next two years“.
In line with the significant investments of the period which will continue also during the next financial year, the company provides that the net financial positionpositive for 3.7 million euros at 30 June 2022, is reduced until the end of the third quarter, and then returns to improve during the last portion of the current year.
It was also announced that 505 Games, the Digital Bros Group’s international publisher, and Remedy Entertainment have signed the contract for the development and joint publication of Control 2, sequel to the award-winning Control. The initial investment for the production of the video game amounts to 50 million euros. Remedy will retain intellectual property rights. Production and all related costs, including post-launch investments, will be split equally between 505 Games and Remedy Entertainment as will the net revenue generated by the game.