REG - Devolver Digital - Trading Update

Devolver DigitalAnnouncement

13/06/2022 07:00

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RNS Number : 5637O  Devolver Digital, Inc.  13 June 2022

13(th) June 2022

The information contained within this announcement is deemed by the company to
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(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
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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 31(st) 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.                                         ir@devolverdigital.com

 Harry Miller, Executive Chairman

 Douglas Morin, Chief Executive Officer

 Daniel Widdicombe, Chief Financial Officer

 Zeus (Nominated Adviser and Broker)                            +44 (0)20 3829 5000

 Richard Darlington, Daniel Harris (Investment Banking)

 Benjamin Robertson (Equity Capital Markets)

 FTI Consulting (Communications Adviser)                        devolver@fticonsulting.com

 Jamie Ricketts / Dwight Burden / Valerija Cymbal / Usama Ali   +44 (0)20 3727 1000

 

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.

 

 

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