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Digital Bros S.p.A. (IT:DIB)
:DIB
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Digital Bros S.p.A.
(Frankfurt:DIB)
57Neutral
Positive Factors
Cost Structure Improvements
Cost structure adjustment measures have paid off, with a 27% reduction in operating costs for the quarter.
Game Release Anticipation
The group owns one of the most anticipated titles of the year, Wuchang Fallen Feathers, which is expected to drastically change the group’s financial profile.
Microsoft Sponsorship
Wuchang is set to be 'sponsored' by Microsoft, offering it Day One to its subscribers, significantly reducing the risk for Digital Bros.
Negative Factors
EBITDA Margin Pressure
EBITDA margin is expected to decrease to 31.7% in FY25 from 35.8% largely due to a decrease in the margin from Premium Games.
Future Revenue Challenges
Revenue is expected to decrease in FY25 driven by ongoing challenges in the videogames industry and the company's continued portfolio rationalization process.
Revenue Decline
Revenue for the semester stands at €43.0M, showing a decrease of 9%.
Digital Bros S.p.A. (DIB) vs. S&P 500 (SPY)
Market Cap
€176.89M
Dividend YieldN/A
Average Volume (3M)23.69K
Price to Earnings (P/E)―
Beta (1Y)0.40
Revenue Growth8.19%
EPS Growth58.05%
CountryIT
Employees286
SectorTechnology
Sector Strength66
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.10
Shares Outstanding14,265,037
10 Day Avg. Volume23,391
30 Day Avg. Volume23,689
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€21.00Price Target Upside63.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Digital Bros S.p.A. Business Overview & Revenue Model
Company DescriptionDigital Bros S.p.A. develops, publishes, distributes, and markets video games in Europe, the Americas, and internationally. It operates through Premium Games, Free to Play, Italian Distribution, and Other activities segment. The Premium Games segment acquires and distributes video games content rights on digital marketplaces, such as Steam, Sony PlayStation Network, Microsoft Xbox Live, Epic Game Store, etc., as well as through an international sales network; and publishes video games under 505 Games brand name. The Free to Play segment develops and publishes video games and applications that are available free of charge on digital marketplaces under the 505 Games Mobile brand name. The Italian Distribution segment purchases and distributes video games under the Halifax brand; and Yu-Gi-Oh! trading card games through newsstand distribution channel in Italy. The Other Activities segment organizes video game training and professional update courses. Digital Bros S.p.A. was founded in 1989 and is based in Milan, Italy.
How the Company Makes MoneyDigital Bros S.p.A. generates revenue through multiple streams in the gaming industry. The primary source of income is the sale of video games, which includes both physical and digital distribution. The company also engages in publishing agreements, where it partners with game developers to bring their products to market, earning revenue through distribution rights and royalties. Additionally, Digital Bros makes money from in-game purchases and downloadable content, which enhance the gaming experience for users and provide ongoing income beyond initial game sales. Key partnerships with other gaming companies and platforms also contribute to its financial success, enabling broader reach and access to diverse markets.
Digital Bros S.p.A. Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 117.93M | 117.93M | 132.24M | 149.18M | 136.68M | Gross Profit |
| 79.67M | 82.23M | 86.78M | 89.45M | 56.95M | EBIT |
| 6.17M | 19.33M | 35.96M | 30.55M | 20.05M | EBITDA |
| 33.67M | 43.45M | 54.13M | 59.96M | 34.68M | Net Income Common Stockholders |
| -2.21M | 9.68M | 28.55M | 32.02M | 14.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 22.22M | 20.75M | 11.29M | 35.51M | 8.53M | Total Assets |
| 230.81M | 265.19M | 226.31M | 202.02M | 155.65M | Total Debt |
| 45.63M | 59.38M | 25.25M | 10.97M | 12.07M | Net Debt |
| 33.64M | 49.97M | 14.29M | -24.54M | 3.54M | Total Liabilities |
| 103.12M | 121.47M | 88.99M | 90.22M | 75.72M | Stockholders Equity |
| 131.00M | 142.34M | 135.90M | 110.90M | 78.95M |
| Cash Flow | Free Cash Flow | |||
| 13.16M | -36.90M | -35.87M | 43.49M | 19.28M | Operating Cash Flow |
| 30.75M | 37.53M | 21.53M | 99.12M | 53.80M | Investing Cash Flow |
| -14.78M | -78.33M | -53.72M | -61.34M | -35.73M | Financing Cash Flow |
| -13.40M | 39.24M | 7.42M | -10.80M | -14.32M |
Digital Bros S.p.A. Technical Analysis
Positive
12.82
Price Trends
10.91
Positive
11.58
Positive
10.38
Positive
Market Momentum
0.62
Negative
77.55
Negative
91.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DIB, the sentiment is Positive. The current price of 12.82 is above the 20-day moving average (MA) of 10.57, above the 50-day MA of 10.91, and above the 200-day MA of 10.38, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 77.55 is Negative, neither overbought nor oversold. The STOCH value of 91.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:DIB.
Digital Bros S.p.A. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Performance Comparison
IT:DIB
Digital Bros S.p.A.
12.82
2.74
27.18%
GB:0RH2
El.En. S.p.A.
9.06
-2.33
-20.46%
GB:0R8E
iGrandiViaggi S.p.A.
1.51
-0.53
-25.98%
GB:0NLD
TXT e solutions SPA
33.00
11.70
54.93%
IT:DHH
DHH S.p.A
20.20
1.80
9.78%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.