Beyond Frames Q1 2025: Navigating Market Shifts
Beyond Frames reports a challenging Q1 2025, with sales down 34% YoY. Despite this, strategic launches and financing pave the way for future growth.
Sammanfattning
Beyond Frames faced a challenging Q1 2025 with a 34% drop in sales. Strategic launches like GORN 2 and financing solutions are set to drive future growth.
Beyond Frames Entertainment AB has released its financial results for the first quarter of 2025, revealing a challenging start to the year. The company reported a 34% decline in sales compared to the same period last year, with total sales amounting to 39,133 kSEK. This decline is largely attributed to the absence of the substantial milestone payments and the successful re-launch of Ghost of Tabor that bolstered Q1 2024 figures.
Operating profit before depreciation and amortization (EBITDA) also saw a significant drop, standing at 3,061 kSEK compared to 8,010 kSEK in Q1 2024. Despite these challenges, the company's CEO, Ace St. Germain, expressed satisfaction with the quarter's results, highlighting progress in various areas of the business.
Key to this optimism is the successful launch of GORN 2, which has quickly become a top seller on platforms like SteamVR and Meta Quest. This success underscores Beyond Frames' strategic focus on leveraging strong intellectual properties and robust development capabilities. The company plans to continue supporting GORN 2 with additional content, aiming to establish it as a long-term platform for consumer engagement.
Furthermore, Beyond Frames has secured a 20 MSEK credit facility with AROS Kapital and initiated a financing process with Alpha Nordic. These financial arrangements are intended to support ongoing projects and new opportunities, including the development of the Teenage Mutant Ninja Turtles VR game.
Looking at market trends, the company notes a shift towards a younger consumer demographic, which has influenced Meta's revenue decline in its Reality Labs division. However, Beyond Frames remains optimistic about the overall growth of the XR market, which has shown a compound annual growth rate of 32% from 2019 to 2024.
In conclusion, while Beyond Frames faces immediate financial challenges, its strategic initiatives and market positioning suggest potential for future growth. Investors are advised to hold their positions as the company navigates this transitional period, with promising projects on the horizon.
Källa
Sammanfattning
During the first quarter of 2025, Beyond Frames Entertainment reported sales of 39,133 kSEK, a 34% decrease compared to the same period in 2024. This decline is attributed to the previous year's successful re-launch of "Ghost of Tabor" and substantial milestone payments, which were significantly higher than those in 2025. The EBITDA was 3,061 kSEK, and the profit after financial items was -3,760 kSEK. Cash at the end of the quarter was 14,730 kSEK, and equity attributable to shareholders was 69,945 kSEK. CEO Ace St. Germain acknowledged the tough comparison with the previous year but expressed satisfaction with the revenue and progress made in various projects, including the launch of "GORN 2" and the ongoing development of "TMNT VR." The company secured a 20 MSEK credit facility and initiated a financing process with Alpha Nordic to support new projects. The quarter's revenue was primarily driven by "Ghosts of Tabor," which launched on PlayStation VR2 and achieved significant player engagement. The publishing division launched two new games, "GRIM" and "Silent North," in Early Access. "GORN 2" achieved early success, validating the company's strategy of leveraging intellectual property and strong development capabilities. The market saw a 6% revenue decline in Meta's Reality Labs, reflecting a shift toward a younger consumer base. Despite this, Beyond Frames' titles remained largely unaffected. The company is preparing for the shift to mixed reality devices, with Meta and Apple reportedly developing new hardware. Looking ahead, Beyond Frames plans to replicate the success of "GORN 2" with future projects and continue to secure funding to scale operations, aiming to become a leading provider of immersive entertainment.
