Devolver Digital, Inc. Trading Update (5637O)
June 13 2022 - 1:00AM
UK Regulatory
TIDMDEVO
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 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
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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)
Richard Darlington, Daniel Harris (Investment
Banking)
Benjamin Robertson (Equity Capital Markets) +44 (0)20 3829 5000
FTI Consulting (Communications Adviser) devolver@fticonsulting.com
Jamie Ricketts / Dwight Burden / Valerija +44 ( 0)20 3727 1000
Cymbal / Usama Ali
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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