Digital Bros S.p.A. reported consolidated earnings results for the nine months ended March 31, 2018. For the nine months, the company's net revenue was EUR 57,598,000 compared to EUR 87,473,000 a year ago. Gross operating margin (EBITDA) was EUR 5,472,000 compared to EUR 9,590,000 a year ago. Operating loss was EUR 246,000 compared to profit of EUR 4,656,000 a year ago. Loss before tax was EUR 154,000 compared to profit of EUR 10,413,000 a year ago. Loss from continuous operations was EUR 413,000 compared to profit of EUR 7,066,000 a year ago. Profit was EUR 12,014,000 compared to EUR 7,784,000 a year ago. Diluted loss per share from continuing operations was EUR 0.03 compared to earnings per share of EUR 0.50 a year ago. Diluted earnings per share was EUR 0.84 compared to EUR 0.55 a year ago. Net investment on intangible assets was EUR 2,288,000 compared to EUR 15,371,000 a year ago. Cash flows from operating activities was EUR 17,719,000 compared to EUR 12,494,000 a year ago. As expected, net debt stood at EUR 2,064,000 on 31 March 2018.

The company provided earnings guidance for the fourth quarter of fiscal 2018. The directors expect results for the fourth quarter of the fiscal year 2018 to be in line with the previous two quarters of this fiscal year in terms of revenues and operating margin. The net financial position is expected to remain stable to what registered at March 31, 2018.

The company also provided earnings guidance for the fiscal year ending June 30, 2019. For the year, the company expects revenue of between EUR 145 million and EUR 190 million, as already indicated, due to the simultaneous release of major productions already in progress such as OVERKILL's the Walking Dead (Autumn 2018), the videogame which is the result of an agreement with Finnish company Remedy Entertainment and, not least, Bloodstained. In line with investment on new productions, the net financial position will deteriorate during the first half of the financial year before recovering strongly in line with the trend seen in previous annual reporting periods.