Analysts Are Optimistic We'll See A Profit From Beyond Frames Entertainment AB (publ) (FRA:8WP)

With the business potentially at an important milestone, we thought we'd take a closer look at Beyond Frames Entertainment AB (publ)'s (FRA:8WP) future prospects. Beyond Frames Entertainment AB (publ) engages in the game creation and publishing business in Sweden. The €30m market-cap company announced a latest loss of kr7.6m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Beyond Frames Entertainment's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Beyond Frames Entertainment

Beyond Frames Entertainment is bordering on breakeven, according to the 2 German Entertainment analysts. They expect the company to post a final loss in 2023, before turning a profit of kr6.0m in 2024. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 82% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Beyond Frames Entertainment's growth isn’t the focus of this broad overview, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that Beyond Frames Entertainment has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Beyond Frames Entertainment, so if you are interested in understanding the company at a deeper level, take a look at Beyond Frames Entertainment's company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:

1. Valuation: What is Beyond Frames Entertainment worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Beyond Frames Entertainment is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Beyond Frames Entertainment’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.