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Analyst Comment

Starbreeze partners with KRAFTON to expand PAYDAY into PUBG: Battlegrounds

By Christoffer JennelAnalyst
Starbreeze

Starbreeze announced this morning a strategic partnership with KRAFTON Inc, a large South Korean gaming developer and holding company, to bring the PAYDAY franchise’s heisting gameplay experience into the well-known multiplayer game PUBG. The collaboration operates under a work-for-hire agreement, engaging approx. 25% of Starbreeze’s development team over the next year. Starbreeze retains full ownership of PAYDAY’s IP.

This agreement not only provides Starbreeze with direct compensation for its development services but also allows the company to optimize its workforce while minimizing financial risk through secured funding. Furthermore, the partnership offers significant exposure to PUBG’s massive player base, strategically positioning PAYDAY to reach new audiences and broaden its global presence.

The collaboration aligns with Starbreeze’s long-term strategy to expand PAYDAY’s market footprint and diversify its project portfolio. Although further updates are expected closer to the launch, we view the deal as a good fit for Starbreeze and will update our forecasts accordingly in the near future.

Starbreeze

0.17SEK04.12.2024, 18.00
0.22SEKTarget price
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Recommendation updated:15.11.2024

Starbreeze operates in the gaming industry and focuses on the development, publishing and distribution of computer games and interactive entertainment. The company's portfolio includes both its own games and collaborations with other game developers. The business is aimed at gamers and distributors globally, with the largest operations in Europe. Starbreeze was founded in 1998 and is headquartered in Stockholm, Sweden.

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Key Estimate Figures15.11.2024

202324e25e
Revenue633.5182.6139.3
growth-%396.5 %-71.2 %-23.7 %
EBIT (adj.)190.3-226.7-72.6
EBIT-% (adj.)30.0 %-124.1 %-52.2 %
EPS (adj.)0.19-0.16-0.05
Dividend0.000.000.00
Dividend %
P/E (adj.)2.5neg.neg.
EV/EBITDA0.80.87.1
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