Beyond Frames - Research Update Q2 2024

During the quarter, the revenue amounted to 41 MSEK, which represents a decrease of 5% compared to the same period last year. The lower revenue is mainly attributable to a slight decline in sales of Ghosts of Tabor as the game has been on the market for over a year. Despite this, the quarter was one of the best in the company’s history, and when considering the half-year, it was the best one ever. EBITDA amounted to -0,6 (4,4) MSEK, with the decline in profitability partly explained by the increased number of titles in production.
 

The XR market continues to grow. At the same time Beyond Frames will launch three new titles within the next 12 months. Besides these, the company has several other games in production, including one based on a major media franchise with billion-dollar revenues. One of the titles set to launch at the end of September this year is a sequel to a previous hit game, while the other two have already generated significant interest among players. We see good potential for these games to generate strong sales revenue once they are released.

In light of sales being somewhat weaker than expected, we are adjusting our full-year revenue forecast down by 8% to 198 MSEK. This would result in a pre-tax loss of -7,1 MSEK. For 2025 and 2026, we forecast revenue growth of 13% and 15%, respectively, driven primarily by upcoming game launches and additional revenue from Ghosts of Tabor. Based on our new forecasts, we estimate a market value of 550 MSEK or 32 SEK per share, which is more than double the current share price.

This publication (hereinafter the "Publication") has been compiled by TradeVenue AB (hereinafter "TV") exclusively for TV's customers. The content is  based on information from publicly available sources which have been deemed reliable. The accuracy and completeness of the factual content as well  as the forecasts cannot therefore be guaranteed. TV may have employees from another department or analyzed company (hereinafter the  "company") read facts or series of facts to have them verified. TV does not provide conclusions or judgments in advance in the Publication. Opinions  expressed in the Publication are those of the analyst at the time the Publication was prepared and may change. There is no assurance that future  events will be consistent with opinions expressed in the Publication.

The information in the Publication should not be construed as an invitation or advice to enter into transactions. The information does not target the  individual recipient's knowledge and experience of investments, financial situation, or investment goals. The information is therefore not a personal  recommendation or investment advice.

TV disclaims all liability for direct or indirect damage that may be based on this Publication. Investments in financial instruments are associated with  economic risk. The investment can increase or decrease in value or become completely worthless. The fact that an investment has historically had  good value development is no guarantee for the future.

The Publication may not be distributed to or made available to any physical or legal person in the United States (except as provided by Rule 15a - 16,  Securities Exchange Act of 1934), Canada, or any other country that has established restrictions on the distribution and availability of the material. 

Neither TV nor the persons who compiled this publication hold (either long or short) positions in the analyzed company's issued financial instruments.

This is a commissioned analysis in which the analyzed company has entered an agreement with TradeVenue.