Last checked at 13 Jun 2022 07:00
13th June 2022
The information contained within this announcement is deemed by the company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (as amended) ("UK MAR"). Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
Devolver Digital, Inc.
("Devolver Digital" or the "Company")
Trading Update
The Board of Devolver Digital (AIM: DEVO), an award-winning digital publisher and developer of indie video games, releases updated guidance for the current financial year ending 31st December 2022 ("FY22").
Sales from new games released in the first five months of FY22 have been slower than expected, reflecting a competitive release window and specific factors for each title which are being actively addressed for future titles. At the same time there has been an expected step-up in amortisation costs related to these heavier-investment games upon release, as well as increases in general operating expenses due to inflation, headcount and marketing.
As a result, 2022 revenues are expected to range between US$130 million and US$140 million, implying year-on-year growth of over 30%, while adjusted EBITDA is expected to range between US$27 million and US$32 million, implying year-on-year growth of c.15%. The Board expects a continuation of Devolver's track record of growth, driven by a diversified business model, where the majority of revenues come from a back catalogue of more than 90 proven titles. Devolver has a robust balance sheet with c.US$75m net cash on hand as at end May 2022.
The Board expects revenues and profit to be weighted towards the second half of FY22, supported by highly anticipated new title releases, strong demand from subscription platforms and continued evergreen back catalogue sales at year-end. Adjusted EBITDA is expected to be higher in the second half of the year, as a result of increasing revenues, improved gross margins and operational leverage.
Harry Miller, Founder and Executive Chairman of Devolver, said:
"Our founders and employees are majority shareholders in the company, fully committed to publishing and developing creative and exciting titles and delivering our long-term growth strategy. This reflects Devolver's diversified business model, based on a proven back catalogue of over 90 titles across varied platforms and regions. Looking forward, Devolver's pipeline of titles is as strong as it has ever been, with visibility well into 2024."
The Company will hold its Annual Meeting on 24 June 2022 at 4.30pm UK time.
Enquiries
Devolver Digital, Inc. Harry Miller, Executive Chairman Douglas Morin, Chief Executive Officer Daniel Widdicombe, Chief Financial Officer
| ir@devolverdigital.com
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Zeus (Nominated Adviser and Broker) Richard Darlington, Daniel Harris (Investment Banking) Benjamin Robertson (Equity Capital Markets) | +44 (0)20 3829 5000 |
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FTI Consulting (Communications Adviser) Jamie Ricketts / Dwight Burden / Valerija Cymbal / Usama Ali
| devolver@fticonsulting.com +44 (0)20 3727 1000
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About Devolver Digital
Devolver Digital is an award-winning video games publisher in the indie games space with a balanced portfolio of third-party and own-IP. Devolver has an emphasis on premium games and has published more than 90 titles, with more than 30 titles in the pipeline scheduled for release over the next two years and beyond. Devolver has in-house studios developing first-party IP titles and a complementary publishing brand. Devolver is registered in Wilmington, Delaware, USA.