Starbreeze's goal of positive EBITDA results for the full year 2019 remains unchanged and the management team was commissioned by the Board to review operations and develop a program to reduce costs and focus on core business. This is stated in a press release.
"The initial sales revenue from Overkill's The Walking Dead game is lower than expected, mainly because the share of sales from low-cost countries such as China and Russia is significantly higher than expected," the statement said. .
The fourth quarter results of Starbreeze in 2018 are negatively affected by the fact that a $ 10 million license fee of 505 Games for the console version of OVERKILL's Walking Dead will be recognized only after the period. However, the target of positive EBITDA results for the fourth quarter continues.
The company started a program to reduce costs and focus on core business, which is the development of internal and external games. The measures are expected to provide significant cost savings in 2019 compared to 2018, especially in non-core business areas.