REG - Devolver Digital - Half Year Results
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RNS Number : 1070B Devolver Digital, Inc. 29 September 2025
29 September 2025
Devolver Digital, Inc.
("Devolver Digital", "Devolver" or the "Company", and the Company together
with all of its subsidiary undertakings "the Group")
Unaudited results for the six months ended 30 June 2025
On track to meet FY 2025 guidance
Exciting release pipeline for 2H 2025
Devolver Digital, the award-winning digital publisher and developer of
independent ("indie") video games, announces its unaudited results for the six
months ended 30 June 2025. All figures relate to this period unless otherwise
stated.
· Resilient revenues in line with expectations against a strong prior
year comparator, which benefitted from outperformance in platform deals and
back catalogue revenues.
· Strong group-wide performance from new releases.
o High Metacritic ratings and user reviews for new titles, reflecting
quality and future back catalogue potential.
· Visibility on 2H - currently on track underpinned by:
o At least 8 releases in 2H 2025, with pleasing early sales;
o Strong current trading on back of recent positive Steam publisher sale
held in 2H 2025, vs 1H in 2024;
o >65% of signed platform deals for 2025 expected to be recognised in 2H
(2H 2024: c. 20% of 2024 platform deals)
Harry Miller, Chief Executive Officer of Devolver, said:
"Our performance in the first half of 2025 was resilient against a tough prior
year comparator. We have good visibility on the second half of the year,
supported by signed platform deals, Steam publisher and seasonal sales, a
healthy release schedule and strong current trading since the half year end.
We're delighted with the new titles we've delivered so far in 2025. These
exciting new games have been very well received and will bolster the back
catalogue in the future.
We are also very excited about the potential of Switch 2, with three Devolver
games featured in the recent Nintendo Direct showcase and several games due to
be launched on the platform this year and next. We are building momentum going
into 2H 2025, with at least 8 new titles including the highly anticipated
releases of BALL x PIT and Quarantine Zone, on the back of the recent
successes with Monster Train 2, Stronghold Crusader: Definitive Edition and
Baby Steps. We remain confident in the rest of year and reiterate our guidance
for FY 2025."
Current trading and outlook
· At least 15 new titles expected for full year 2025, with 8 or more
releases in 2H 2025 including Stronghold Crusader: Definitive Edition,
Mycopunk, Stick it to the Stickman, Baby Steps, BALL x PIT and Quarantine
Zone.
· On track to meet our guidance: revenues over US$100m and Adjusted
EBITDA(1) after non-cash impairments in the high-single digit US$ millions.
· Healthy pipeline of more than 30 new titles due for release in the
future 3-year cycle to mid 2027.
Key Performance Indicators*
6 months ended 6 months Year-on-year
ended
30-June-25 30-June-24 Change
US$ Million US$ Million (%)
Revenue 38.8 51.6 (24.8%)
Gross profit 12.1 15.3 (20.4%)
Gross profit margin (%) 31.3% 29.6% 170 bps
Pre-tax loss for the period(3) (4.1) (4.8) 15.9%
Net loss for the period (11.0) (4.5) (147.0%)
Basic and diluted loss per share ($) (0.023) (0.010) n.m.
Adjusted EBITDA(1) before performance-related impairments
0.1 4.7 n.m.
Adjusted EBITDA(1) 0.1 3.0 n.m.
* Preliminary unaudited results - refer to full statutory tables below in
this report.
1H in line with expectations; good front catalogue momentum
· 1H 2025 trading in line with expectations, on track for a stronger
2H.
· Exciting new releases such as Look Outside and Monster Train 2
exceeding expectations and contributing strongly to front catalogue sales
across the Group in 1H.
· Multiple Devolver games featured in Nintendo Switch 2 global reveal
showcase.
· Signed platform deals: 80% / 20% in 1H/2H FY24 versus <35% /
>65% in 1H/2H FY25.
· Steam publisher sale in 2H 2025 vs 1H 2024 supports expected 2H
revenue weighting.
Front catalogue rises 76%, cash costs down 6%
· Revenues in line with FY 2025 full year expectations, with new
release revenue up 76% v 1H 2024.
· Back catalogue fell 38% due to high revenue cliff in 1H last year,
with platform deals and Steam publisher sale 2H weighted this year.
· Tight control of adjusted operating costs(2), down 5.6%
year-over-year as management continues to focus on cost discipline.
· 1H included a non-cash write-down of deferred tax assets totalling
$6.8 million ($5.9 million related to previous period stock option expense tax
losses), given lack of visibility if such deferred tax assets would be
utilised.
· Statutory net loss of US$11.0m(3) (1H 2024: US$4.5m loss).
· Cash holdings of US$34.7m as of 30 June 2025 (year-end 2024:
US$41.6m).
Notes:
1. Adjusted EBITDA is a non-IFRS measure and is defined as earnings before
interest, tax, depreciation, amortisation (but does not exclude amortisation
of capitalised software development costs), share-based payment expenses,
foreign exchange gains or losses, fair value adjustments and one-time
non-recurring items and non-trading items. Impairments of capitalised software
development costs relating to released game performance are included in
Adjusted EBITDA.
2. Adjusted operating costs reflect recurrent cash operating expenses and
include: payroll, professional fees, travel & entertainment and other
administrative expenses. Total statutory operating costs fell 23.3%
year-over-year in 1H 2025.
3. Including non-cash impact of US$0.6m of share-based payments and
US$7.0m of tax expense, which includes a US$6.8m write-down of deferred tax
assets relating primarily to stock options.
About Devolver Digital
Devolver 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 135 titles, with more than 30
titles in the pipeline scheduled for release over the next three years.
Devolver has in-house studios developing first-party IP titles and a
complementary publishing brand. Devolver is registered in Wilmington,
Delaware, USA.
Enquiries:
Devolver Digital, Inc. ir@devolverdigital.com
Harry Miller, Chief Executive Officer
Graeme Struthers, Chief Operating Officer
Daniel Widdicombe, Chief Financial Officer
Zeus (Nominated Adviser and Joint Broker) +44 (0)20 3829 5000
David Foreman / Kieran Russell (Investment Banking)
Ben Robertson (Equity Capital Markets)
Panmure Liberum (Joint Broker) +44 (0)20 3100 2000
Max Jones / Dru Danford / Shalin Bhamra (Investment Banking)
Rupert Dearden (Corporate Broking)
FTI Consulting (Communications) devolver@fticonsulting.com
Jamie Ricketts / Dwight Burden / Valerija Cymbal / Usama Ali +44 (0)20 3727 1000
OPERATING REVIEW
1H 2025 - robust performance with increase in new titles to 7 releases
Devolver released 7 new well-received titles in 1H 2025 - Look Outside, The
Talos Principle - Reawakened, Moroi, Gorn 2, Shotgun Cop Man, Monster Train 2
and Tron: Catalyst. High Metacritic scores and positive user ratings are
important as they help to bolster the longevity of releases, with the average
Metacritic rating of 77 secured in 1H 2025.
1H 2025 front catalogue revenues rose 76% year-over-year, with a number of new
releases exceeding expectations so far. After two quieter years of new
releases in 2023 and 2024, and with only 3 new game releases in 1H 2024, the
new wave of content this year will inject fresh impetus into prospective back
catalogue next year and beyond.
We expect that 1H 2025 revenues will account for less than 40% of the full
year 2025 projected total, with the majority of revenues being generated in
the seasonally stronger second half. 1H 2024 had a high first-half weighted
revenue profile, driven by the timing of platform deals for front and back
catalogue, the Steam publisher sale in May 2024, and a large content update
from fan favourite Cult of the Lamb earlier in January 2024. These three
factors drove 1H 2024 revenues up to 49% of full year revenue. The absence of
these drivers in the first half of 2025 resulted in a 38% fall in back
catalogue versus last year.
Strong front catalogue performance and continued excitement for 2H
1H 2025 saw the release of some exciting new games including Look Outside, an
inexpensive early-year survival horror RPG release developed by Francis
Coulombe which garnered an overwhelmingly positive response from gamers and a
high Metacritic score of 83. A user review on Gamespace.com captured the
excitement, noting that this "gameplay-rich masterpiece" was created in just
half a year and is "capable of delivering many indescribable emotions that are
worth experiencing for yourself." We look forward to much more from Look
Outside as more content-drops come to the market in future.
Monster Train 2 ("MT2") is the sequel to the extremely popular roguelike
deck-builder developed by Shiny Shoe and released in 2020. MT2, published by
our subsidiary Big Fan Games, is another game that came hot out of the traps
this year also with an overwhelmingly positive response from gamers and a very
high 87 Metacritic score, further bolstered by a Game Pass subscription deal
upon release.
The Talos Principle: Reawakened, the Definitive Edition of the original game
released in 2014, was developed by our studio subsidiary Croteam. Its release
in April 2025 was met with an 87 Metacritic score as well as very positive
reviews elsewhere in the market.
Gorn 2, a Virtual Reality-only sequel to the highly successful original game
released in 2019, was also released in April this year. It was developed by
Cortopia and Free Lives and received very positive reviews in the market. Meta
has identified it as the best-selling Premium Game on its platform to date in
2025.
While the first half of the year was marked by a number of high quality
well-received releases, titles scheduled for release in the second half will
drive further momentum as Devolver continues to excite its fans with unique,
creative games. Among those already released at the start of the second half,
Stronghold Crusader: DE already exceeded our high expectations for the title,
while recently released Baby Steps has secured a positive initial Metacritic
score of 77 on PC.
Nintendo Switch 2 reveal event
Another area of excitement was the full reveal of Switch 2 at Nintendo's April
2025 showcase event, in which three future Devolver games were highlighted.
Subsequent to the 1H period end, the Tokyo Games Show featured three Devolver
game reveals which will come to Switch 2 - BALL x PIT, Skate Story and
Possessors - with a positive reception worldwide for the reveal.
We see this as an indication of Nintendo's view of the ongoing importance of
indie games publishing. Devolver has historically had success with Switch 1,
publishing over 40 games on the platform over the years. Since Switch 2 sales
began in June 2025 it has already sold c.6m units, ahead of expectations to
date, which is an early sign that it could become as popular as the original.
We look forward to several Devolver games coming to Switch 2 later this year
and into 2026.
Summer Game Fest 2025
2025's Summer Game Fest in June this year highlighted several pending Devolver
releases including a showcase dedicated to Kenny Sun, the solo developer of
BALL x PIT, developer Heart Machine's Possessors, and Sam Eng's Skate Story.
Continued focus on cost control
Devolver successfully controlled adjusted operating expenses in 1H 2025, with
a 5.6% fall versus 1H 2024, led by control of travel, entertainment and other
administrative expenses. Total statutory operating costs fell by 23.3%
year-over-year, as non-cash stock compensation expense and amortisation of
acquired IP diminished during the period. The company is continuing to focus
on cost savings from operations at the same time as working to reduce
development costs of first-party and third-party games.
FINANCIAL REVIEW
Unaudited first half 2025 results to 30 June 2025
The unaudited financial results included in this announcement cover the
Group's combined activities for the six months ended 30(th) June 2025
(prepared in accordance with applicable International Financial Reporting
Standards, "IFRS").
Adjusted results
The following refers to Adjusted results, as presented in the financial
statements contained within this release. Adjusted results exclude any
one-time exceptional items during the respective half-year periods.
Adjusted EBITDA results are not intended to replace statutory results and are
prepared to provide a more comparable indication of the Group's core business
performance by removing the impact of certain items including exceptional
items (material and non-recurring), and other, non-trading, items that are
reported separately. These results have been presented to provide users with
additional information and analysis of the Group's performance, consistent
with how the Board monitors results. Further details of adjustments are given
in Note 4 to the condensed financial statements contained within this
semi-annual results release.
P&L results and margins
Devolver Digital's first half 2025 performance was in line with expectations,
with 7 new title releases compared to 3 titles released in 1H 2024. New
release revenues rose 76% versus the 1H of 2024, on the back of the increased
number of titles.
As anticipated however, overall revenues and back catalogue revenues in
particular had a difficult year over year comparison, falling 38% versus 1H
2024, for three reasons:
1) Front- and back-catalogue platform deals in 2024 were unusually highly
weighted to the first half, with c. 80% of total deals for the year recorded
by the end of June 2024. By contrast, based on signed deals for 2025, <35%
of the full year projected total was reflected in 1H 2025, with the balance to
be reflected in 2H 2025.
2) Fan favourite Cult of The Lamb released a major content update in early
2024 which boosted 1H 2024 revenues significantly. The next significant
content update for the title will come in early 2026 and will include a paid
DLC, providing an expected early boost to the start of next year, but will not
benefit back catalogue contribution from this title in 2025.
3) The Devolver Steam publisher sale was held in May last year, whereas
this year it was held in mid-September, providing a solid contribution to
second half revenues. As such the substantial back-catalogue revenue surge
from 1H 2024's publisher sale was not repeated in 1H 2025.
As a result of the above factors 1H 2025 revenues of US$38.8m fell 24.8%
year-over-year. Gross profit fell in line with revenues while gross margins
after impairments held steady at 31.3% in the first half of 2025 (1H 2024:
29.6%). Margins remained stable, balanced by the benefit in the first half of
greater new release revenue in recoup (with no royalty outpayments) offset by
a lack of first-party IP platform deals which were substantial in 1H 2024
particularly with the renewal of a Microsoft Game Pass deal for Astroneer,
System Era's popular expandable game.
1H 2025 Adjusted EBITDA after non-cash impairments was US$0.1m, compared to a
US$3.0m profit in the first half of 2024, primarily due to the higher
weighting of revenue in 1H 2024 compared to this first half.
Cost control initiatives helped reduce adjusted operating expenses for the
period, down by 5.6% to US$12.7m (1H 2024: US$13.4m), principally due to a
reduction in travel, entertainment and other administrative expenses. Overall
operating costs fell 23.3% to US$16.4m (1H 2024: US$21.4m), due largely to
falls in non-cash stock compensation expense and amortisation of acquired IP.
During 1H 2025, the Group made a non-cash write-down of deferred tax assets
totalling $6.8 million, of which $5.9 million related to previous period Stock
Option Expense tax losses, given lack of visibility if such deferred tax
assets would be utilised. Statutory net loss for 1H 2025 was US$11.0m, versus
a US$4.5m loss in 1H 2024.
Cash Balances
Cash holdings at end of June 2025 were US$34.7m, a reduction of US$6.9m
compared to year-end 2024's level of US$41.6m, on the back of continued
investment into game development. Devolver has no borrowings across the Group.
CURRENT TRADING OUTLOOK
Our busy release schedule for 2H 2025 has already featured Stronghold
Crusader: Definitive Edition (DE) from our subsidiary Firefly, Stick it to the
Stickman and Baby Steps. Stronghold Crusader: DE has been a great success with
over 300,000 units sold since release, exceeding our already high expectations
for the title. Baby Steps recently released with an initial Metacritic score
of 77 on PC and very positive user reviews. We look forward to several pending
releases for the coming months, including BALL x PIT, Quarantine Zone and
Possessors, as well as Megatech, the second Paid Downloadable Content (PDLC)
release from System Era for their game Astroneer due for release this
November.
Trading for the full year 2025 continues to be in line with guidance with
revenues exceeding US$100 million and Adjusted EBITDA in the high single-digit
US$ millions and expected improvements through 2026 and 2027. We are
encouraged by the recent string of positive releases during the first nine
months of this year, with multiple new games outperforming our expectations so
far. We hope to continue this trend to combine with our ongoing focus on cost
control to meet our guidance and keep marking improvements in performance. The
Board believes that we will continue to show steady progress, and we look
forward to reporting more success moving into 2026.
Harry Miller
Chief Executive Officer
Condensed Consolidated Statement of Profit or Loss
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30-Jun-25 30-Jun-24 31-Dec-24
Note US$'000 US$'000 US$'000
Revenue 2 38,780 51,583 104,781
Cost of sales (26,631) (36,327) (74,716)
Gross profit 12,149 15,256 30,065
Administrative expenses (16,445) (21,439) (38,729)
Other (expenses) / income (157) 1,134 1,496
Operating loss (4,453) (5,049) (7,168)
Finance costs (81) (61) (288)
Finance income 467 272 769
Loss before taxation (4,067) (4,838) (6,687)
Income tax (expense) / benefit (6,980) 366 328
Loss for the period (11,047) (4,472) (6,359)
Loss for the period is attributable to:
Equity holders of the parent (11,043) (4,414) (6,141)
Non-controlling interests (4) (58) (218)
Loss for the period (11,047) (4,472) (6,359)
Basic and diluted loss per share ($) 3 (0.023) (0.010) (0.013)
Non-IFRS measures
Adjusted EBITDA* before performance-related impairments
4 135 4,713 9,610
Adjusted EBITDA* 4 135 2,967 5,083
* Adjusted EBITDA is a non-IFRS measure and is defined as earnings before
interest, tax, depreciation, amortisation (but does not exclude amortisation
of capitalised software development costs), share-based payment expenses,
foreign exchange gains or losses, fair value adjustments and one-time
non-recurring items and non-trading items. Impairments of capitalised software
development costs relating to released game performance are included in
Adjusted EBITDA.
Condensed Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30-Jun-25 30-Jun-24 31-Dec-24
US$'000 US$'000 US$'000
Loss for the period (11,047) (4,472) (6,359)
Other comprehensive income: Items that may be reclassified
subsequently to profit or loss
Exchange differences on translation of foreign operations
1,496 (329) (644)
Total comprehensive loss for the period
(9,551) (4,801) (7,003)
Total comprehensive loss is attributable to:
Equity holders of the parent (9,547) (4,743) (6,785)
Non-controlling interests (4) (58) (218)
Total comprehensive loss for the period
(9,551) (4,801) (7,003)
Condensed Consolidated Statement of Financial Position
Unaudited Unaudited Audited
As at As at As at
30-Jun-25 30-Jun-24 31-Dec-24
Note US$'000 US$'000 US$'000
ASSETS
Non-current assets
Intangible assets
- goodwill 5 31,902 31,902 31,902
- software development costs 5 71,999 60,340 64,828
- purchased intellectual property 5 31,875 37,166 34,509
Property, plant and equipment 187 190 162
Right of use asset 835 845 967
Employee loans 327 594 327
Deferred tax assets 743 10,968 7,554
Total non-current assets 137,868 142,005 140,249
Current assets
Trade and other receivables 11,862 21,561 16,855
Cash and cash equivalents 34,726 31,926 41,645
Employee loans 450 227 442
Short-term investments - - 464
Current tax asset 1,699 1,227 1,570
Total current assets 48,737 54,941 60,976
Total assets 186,605 196,946 201,225
EQUITY AND LIABILITIES
Equity
Share capital 47 45 47
Share premium 157,683 146,106 157,683
Retained earnings 32,048 44,219 43,514
Translation reserve 258 (923) (1,238)
Capital redemption reserve (33,868) (34,505) (34,469)
Equity attributable to owners of the parent 156,168 154,942 165,537
Non-controlling interest (306) (142) (302)
Total equity 155,862 154,800 165,235
Non-current liabilities
Trade and other payables 1,524 10,332 10,569
Deferred tax liabilities - 238 -
Lease liability 748 782 876
Total non-current liabilities 2,272 11,352 11,445
Current liabilities
Trade and other payables 25,667 26,977 19,953
Lease liability 251 173 228
Deferred revenue 2,000 1,985 3,950
Current tax liability 553 1,659 414
Total current liabilities 28,471 30,794 24,545
Total liabilities 30,743 42,146 35,990
Total equity and liabilities 186,605 196,946 201,225
Condensed Consolidated Statement of Changes in Equity
Share capital Share premium Translation reserve Retained earnings Capital redemption reserve Total Devolver equity Non-controlling interest Total equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 31 December 2024 (audited) 47 157,683 (1,238) 43,514 (34,469) 165,537 (302) 165,235
Loss for the period - - - (11,043) - (11,043) (4) (11,047)
Currency translation differences - - 1,496 - - 1,496 - 1,496
Other movements - - - (267) 601 334 - 334
Transactions with owners in their capacity as owners:
Share Transfer from EBT - - - (767) - (767) - (767)
Share-based payments - - - 611 - 611 - 611
Total transactions with owners - - - (156) - (156) - (156)
Balance at 30 June 2025 (unaudited) 47 157,683 258 32,048 (33,868) 156,168 (306) 155,862
Share capital Share premium Translation reserve Retained earnings Capital redemption reserve Total Devolver equity Non-controlling interest Total equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 31 December 2023 (audited) 45 146,106 (594) 47,092 (34,531) 158,118 (84) 158,034
Loss for the period - - - (4,414) - (4,414) (58) (4,472)
Currency translation differences
- - (329) - - (329) - (329)
Other movements - - - (150) 26 (124) - (124)
Fair value adjustment - - - (647) - (647) - (647)
Transactions with owners in their capacity as owners:
Other movements - - - (76) - (76) - (76)
Share-based payments - - - 2,414 - 2,414 - 2,414
Total transactions with owners - - - 2,338 - 2,338 - 2,338
Balance at 30 June 2024 (unaudited) 45 146,106 (923) 44,219 (34,505) 154,942 (142) 154,800
Share capital Share premium Translation reserve Retained earnings Capital redemption reserve Total Devolver equity Non-controlling interest Total equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 31 December 2023 (audited) 45 146,106 (594) 47,092 (34,531) 158,118 (84) 158,034
Loss for the period - - - (6,141) - (6,141) (218) (6,359)
Currency translation differences
- - (644) - - (644) - (644)
Other movements - - - (106) 62 (44) - (44)
Fair value adjustment - - - (737) - (737) - (737)
Transactions with owners in their capacity as owners:
Other movements - - - (105) - (105) - (105)
Share-based payments - - - 3,511 - 3,511 - 3,511
Share placement 2 9,785 - - - 9,787 - 9,787
System Era deferred share consideration - 1,792 - - - 1,792 1,792
Total transactions with owners 2 11,577 - 3,406 - 14,985 - 14,985
Balance at 31 December 2024 (audited) 47 157,683 (1,238) 43,514 (34,469) 165,537 (302) 165,235
Condensed Consolidated Statement of Cash Flows
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30-Jun-25 30-Jun-24 31-Dec-24
US$'000 US$'000 US$'000
Loss for the period before taxation (4,067) (4,838) (6,687)
Adjustments for:
Depreciation of tangible fixed assets 66 94 155
Depreciation of right of use assets 131 108 220
Amortisation of intangible assets 11,004 13,335 24,861
Impairment of intangible assets 499 1,746 4,527
Finance income (467) (326) (769)
Finance costs 81 115 288
Share-based payment charge 611 2,398 3,511
Foreign exchange movements 288 (150) (141)
Fair value adjustments 320 - -
Other non-cash movements (446) (119) (2,208)
Movements in working capital:
Receivables 5,672 (7,693) 3,997
Payables (4,207) (115) (3,956)
Cash inflow from operations 9,485 4,555 23,798
Taxation paid (1,923) (83) (1,534)
Taxation received 64 -
Net cash inflow from operating activities 7,626 4,472 22,264
Cash flows from investing activities
Purchase of intangible assets (15,491) (15,009) (30,654)
Purchase of tangible assets (90) (56) (51)
Net cash outflow from investing activities (15,581) (15,065) (30,705)
Cash flows from financing activities
Share placement - - 9,785
Interest received 459 317 751
Interest paid (524) (77) (171)
Repayment of lease liabilities (106) (72) (160)
Net cash (outflow)/inflow from financing activities (171) 168 10,205
Cash and cash equivalents
Net (decrease)/increase in the period (8,126) (10,425) 1,764
At 1 January* 41,645 42,651 40,424
Foreign exchange movements 1,207 (300) (543)
At 30 June / 31 December 34,726 31,926 41,645
* In its financial reporting for the year ended 31 December 2024, the Group
revised the classification of certain investment balances in its reported
financials for the year ended 31 December 2023, reclassifying $0.4 million to
long-term investments and $1.8 million to short-term investments from cash and
cash equivalents.
Note 1: Basis of preparation
These condensed consolidated financial statements have been prepared in
accordance with the recognition and measurement requirements of International
Accounting Standard 34 Interim Financial Reporting. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for fair presentation have been included. The condensed
consolidated financial statements as at and for the six months ended June 30,
2025 have been prepared on the same basis as the audited annual financial
statements.
Operating results for the six months ended June 30, 2025 are not necessarily
indicative of the results that may be expected for the year ending December
31, 2025. For further information, refer to the consolidated financial
statements and footnotes thereto included in the Group's annual report for the
year ended December 31, 2024.
The Directors are confident that the Group will remain cash positive and will
have sufficient funds to continue to meet its liabilities as they fall due for
a period of at least 12 months from the date of this first half 2025
announcement and have therefore prepared this unaudited semi-annual
announcement on a going concern basis.
Tax charged within 6 months ended 30 June 2025 has been calculated by applying
the effective rate of tax which is expected to apply to the Group for the year
ending 31 December 2025 as required by IAS 34 Interim Financial Reporting.
The financial presentation in this release should be read in conjunction with
the notes to the consolidated financial statements as at and for the first
half ended 30 June 2025, as contained within this release.
These preliminary unaudited financial statements were approved by the Board of
Directors on 26 September 2025.
Note 2: Revenue
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30-Jun-25 30-Jun-24 31-Dec-24
US$'000 US$'000 US$'000
Revenue analysed by class of business:
Game publishing 38,780 51,583 104,781
Revenue analysed by timing of revenue:
Transferred at a point in time 38,780 51,583 104,781
The Group does not provide any information on the geographical breakdown of
revenues, as game publishing revenue is earned via third-party distribution
platforms which hold the sales data of end consumers.
Note 3: Earnings Per Share
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30-Jun-25 30-Jun-24 31-Dec-24
US$'000 US$'000 US$'000
Loss attributable to owners of the company (11,043) (4,414) (6,141)
Weighted average number of shares 474,500,242 444,832,441 456,953,855
Dilutive effect of share options - - -
Weighted average number of diluted shares 474,500,242 444,832,441 456,953,855
Basic and diluted loss per share ($) (0.023) (0.010) (0.013)
Note 4: Adjusted Results
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30-Jun-25 30-Jun-24 31-Dec-24
US$'000 US$'000 US$'000
Revenue
Reported Revenue 38,780 51,583 104,781
Reported Revenue growth (24.8)% 18.0% 13.5%
Gross Profit
Reported Gross Profit 12,149 15,256 30,065
Reported Gross Profit margin 31.3% 29.6% 28.7%
Performance-related impairments - 1,746 4,527
Impairment of cancelled unreleased titles 499 - -
Adjusted Gross Profit 12,648 17,002 34,592
Adjusted Gross Profit margin, pre performance-related impairment
32.6% 33.0% 33.0%
Adjusted EBITDA*
Adjusted EBITDA 135 2,967 5,083
Adjusted EBITDA margin 0.3% 5.8% 4.9%
Performance-related impairments - 1,746 4,527
Adjusted EBITDA pre performance-related impairment
135 4,713 9,610
Adjusted EBITDA margin, pre performance-related impairment
0.3% 9.1% 9.2%
* Adjusted EBITDA is a non-IFRS measure and is defined as earnings before
interest, tax, depreciation, amortisation (but does not exclude amortisation
of capitalised software development costs), share-based payment expenses,
foreign exchange gains or losses, fair value adjustments and one-time
non-recurring items and non-trading items. Impairments of capitalised software
development costs relating to released game performance are included in
Adjusted EBITDA.
A reconciliation from the operating loss to adjusted EBITDA is set out in the
table below:
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30-Jun-25 30-Jun-24 31-Dec-24
US$'000 US$'000 US$'000
Operating Loss (4,453) (5,049) (7,168)
Share-based payment expenses 611 2,414 3,511
Amortisation of intellectual property 2,634 4,840 7,497
Depreciation of property, plant and equipment 66 94 155
Depreciation of right-of-use asset 131 108 220
Loss / (gain) on foreign exchange differences 288 (150) (141)
Impairment of cancelled unreleased titles 499 - -
Present value adjustment to deferred consideration 320 - 251
Other taxes - - 48
Non-recurring, one-time expenses 39 710 710
Adjusted EBITDA 135 2,967 5,083
Performance-related impairments - 1,746 4,527
Adjusted EBITDA pre performance-related impairments 135 4,713 9,610
Note 5: Intangible Assets
Purchased intellectual property Software development cost Subtotal other intangibles
Goodwill Total
US$'000 US$'000 US$'000 US$'000 US$'000
Cost
As at 31 December 2024 (audited) 79,959 154,709 234,668 79,569 314,237
Additions - 16,040 16,040 - 16,040
As at 30 June 2025 (unaudited) 79,959 170,749 250,708 79,569 330,277
Amortisation and impairment
As at 31 December 2024 (audited) 45,450 89,881 135,331 47,667 182,998
Amortisation charge for the period 2,634 8,370 11,004 - 11,004
Impairment charge for the period - 499 499 - 499
As at 30 June 2025 (unaudited) 48,084 98,750 146,834 47,667 194,501
Carrying amount
As at 31 December 2024 (audited) 34,509 64,828 99,337 31,902 131,239
As at 30 June 2025 (unaudited) 31,875 71,999 103,874 31,902 135,776
Purchased intellectual property Software development cost Subtotal other intangibles
Goodwill Total
US$'000 US$'000 US$'000 US$'000 US$'000
Cost
As at 31 December 2023 (audited) 79,959 121,920 201,879 79,630 281,509
Additions - 16,652 16,652 - 16,652
Fair value adjustment - - - (61) (61)
As at 30 June 2024 (unaudited) 79,959 138,572 218,531 79,569 298,100
Amortisation and impairment
As at 31 December 2023 (audited) 37,953 67,990 105,943 47,667 153,610
Amortisation charge for the period 4,840 8,496 13,336 - 13,336
Impairment charge for the period - 1,746 1,746 - 1,746
As at 30 June 2024 (unaudited) 42,793 78,232 121,025 47,667 168,692
Carrying amount
As at 31 December 2023 (audited) 42,006 53,930 95,936 31,963 127,899
As at 30 June 2024 (unaudited) 37,166 60,340 97,506 31,902 129,408
Intellectual property Software development cost Subtotal other intangibles
Goodwill Total
US$'000 US$'000 US$'000 US$'000 US$'000
Cost
As at 31 December 2023 (audited) 79,959 121,920 201,879 79,630 281,509
Additions - 32,789 32,789 - 32,789
Fair value adjustment - - - (61) (61)
As at 31 December 2024 (audited) 79,959 154,709 234,668 79,569 314,237
Amortisation and impairment
As at 31 December 2023 (audited) 37,953 67,990 105,943 47,667 153,610
Amortisation charge for the period 7,497 17,364 24,861 - 24,861
Impairment charge for the period - 4,527 4,527 - 4,527
As at 31 December 2024 (audited) 45,450 89,881 135,331 47,667 182,998
Carrying amount
As at 31 December 2023 (audited) 42,006 53,930 95,936 31,963 127,899
As at 31 December 2024 (audited) 34,509 64,828 99,337 31,902 131,239
Note 6: Impairment to Software Development Costs
The Group assessed software development costs for indicators of impairment,
considering both qualitative and quantitative factors.
During the period ended 30 June 2025, management discontinued development of a
title. Following a reassessment of the project's commercial prospects, the
title was determined to be no longer commercially viable and the related
development costs no longer expected to generate future economic benefits.
The Group therefore recognised an impairment loss of $0.5 million within Cost
of Sales, reducing the carrying value of software development costs
attributable to this cancelled, unreleased title as at 30 June 2025.
In assessing value in use for games identified with indicators of impairment,
the Group has prepared a cash flow forecast reflecting management's
estimations of future performance of these titles. Key assumptions on which
this forecast was based includes title revenue generation and revenue decay
curves.
The cash flows were discounted to their present value utilising a pre-tax
discount rate of 20.6%, calculated based on the particular circumstances of
the Group and its CGUs, derived from its Weighted Average Cost of Capital.
Based on this assessment, none of the titles tested under this method showed
impairment, as the discounted future cash flows supported their carrying
amounts.
Note 7: Financial Instruments
Financial assets and liabilities analysed by the categories were as follows:
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended
30-Jun-25 30-Jun-24 31-Dec-24
US$'000 US$'000 US$'000
Financial assets at amortised cost:
Trade and other receivables 12,639 22,382 15,268
Short-term investments - - 464
Cash and cash equivalents 34,726 31,926 41,645
47,365 54,308 57,377
Financial liabilities at amortised cost:
Trade and other payables 14,726 17,685 15,910
Lease liabilities 999 955 1,104
Deferred consideration 9,506 11,366 9,186
25,231 30,006 26,200
Financial liabilities at fair value through profit or loss:
Contingent consideration 1,524 1,405 1,391
Fair values of financial assets and liabilities
The Group measures financial instruments at fair value using the following
hierarchy:
· Level 1 - Quoted prices in active markets.
· Level 2 - Valuations based on observable market data.
· Level 3 - Valuations based on unobservable inputs.
Except for contingent consideration, which is measured using Level 3 inputs,
all of the Group's financial instruments are classified as Level 1 in the fair
value hierarchy.
At 30 June 2025, the Group recognised contingent consideration of $1.5 million
(31 December 2024: $1.4 million), relating to share option grants issued to
the sellers of an acquired subsidiary. The fair value is based on the exercise
price of the options, with fluctuations arising primarily from:
· the denomination of exercise prices in GBP and retranslation into
USD; and
· changes in the estimate of the number of options expected to be
exercised.
Contingent
consideration
$'000
Balance at 1 January 2025 1,391
Unrealised fair value changes recognised in profit or loss 133
Balance at 30 June 2025 1,524
Financial Risk Management
The Group's financial risk exposures and management approach remain consistent
with those disclosed in the annual financial statements for the year ended 31
December 2024. There have been no material changes in the nature of the
Group's risks or the processes applied to manage them during the six-month
period ended 30 June 2025.
Foreign exchange risk
The Group continues to receive and remit payments in Euros, US Dollars and
Pounds. Foreign currency risk is managed through natural hedging, with excess
balances transferred into USD or GBP at the earliest opportunity.
Liquidity risk
Management continues to monitor cash balances and forecasts on a regular basis
to ensure sufficient liquidity is maintained to meet obligations as they fall
due. No liquidity issues were encountered in the period.
Credit risk
Credit risk management processes remain unchanged. The Group's exposure to
credit losses continues to be low, reflecting the blue-chip nature of its
customers and the absence of significant historical write-offs. Expected
credit losses on financial assets measured at amortised cost remain
immaterial. Cash and cash equivalents are held with counterparties rated
investment grade or above, and investments continue to be focused on bonds and
senior unsecured debt instruments with recognised credit ratings.
Note 8: Deferred Tax
Deferred tax assets have been recognised in respect of all tax losses and
other temporary differences giving rise to deferred tax assets where the Group
believes it is probable that these assets will be recovered. During the
period, the Group reassessed the recoverability of the deferred tax assets
relating to US federal and state taxes. Given the history of tax losses and
the challenges in reliably estimating when the deferred tax assets would be
recognised, in particular for deferred tax assets relating to Stock Options,
the Group derecognised deferred tax assets totalling $6.8 million, of which
$5.9 million related to Stock Options. Management will continue to monitor and
reassess the recognition of deferred tax assets as appropriate.
Note 9: Events After the Reporting Date
On July 4, 2025, the "One Big Beautiful Bill Act" (OBBBA) was signed into law.
Key corporate tax provisions of the OBBBA include the reinstatement of 100%
bonus depreciation, immediate expensing of domestic research and experimental
expenditures (Section 174) , modifications to Section 163(j) interest
limitations, updates to GILTI and FDII provisions, amendments to energy
credits, and expanded Section 162(m) aggregation requirements.
The effects of newly enacted tax legislation will be recognized in the period
of enactment. Consequently, the impact of the OBBBA will be reflected in the
Group's financial statements for the year ended 2025. The Group is currently
evaluating the implications of the OBBBA. While no material change in tax
expense is anticipated, the Group expects that certain balance sheet items,
including tax payable and deferred tax assets, may be materially affected as a
result of the new legislation, largely in relation to the changes in Section
174 R&D cost treatments.
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