Beyond Frames Entertainment AB (publ)'s (FRA:8WP) Path To Profitability

Beyond Frames Entertainment AB (publ) (FRA:8WP) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Beyond Frames Entertainment AB (publ), a video game company, engages in the game creation and publishing business in Sweden. With the latest financial year loss of kr19m and a trailing-twelve-month loss of kr18m, the €16m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Beyond Frames Entertainment will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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According to some industry analysts covering Beyond Frames Entertainment, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of kr14m in 2026. The company is therefore projected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 114% is expected, 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, however, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for Beyond Frames Entertainment

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 5.8% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation 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 key aspects you should further examine:

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.

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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.