REG - Devolver Digital - Trading Update

Devolver DigitalAnnouncement

04/02/2025 07:15

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250204:nRSD7437Va&default-theme=true

RNS Number : 7437V  Devolver Digital, Inc.  04 February 2025

 

 

4 February 2025

 

Devolver Digital, Inc.

("Devolver", the "Group" or the "Company")

Trading Update

Double-digit revenue growth in FY24

Return to positive Adjusted EBITDA, in line with market expectations

Devolver Digital, Inc. (AIM: DEVO), an award-winning digital publisher and
developer of indie video games, announces a trading update for the financial
year ended 31(st) December 2024.  All financial figures relate to that
period unless otherwise stated.

Performance improved steadily as Devolver returned to positive Adjusted
EBITDA(1). Adjusted EBITDA is expected to be in line with market
expectations(2), including non-cash title impairments, of which US$1.7m was
reflected  in the Group's 1H 2024 results. Revenues saw double-digit
year-on-year growth, meeting management guidance of more than US$100m for the
year.

New games released in 2024 achieved a new record high full-year average
Metacritic score of 79. Award winning games such as The Plucky Squire and Neva
garnered high quality scores and user reviews which bolstered front catalogue
revenues. This was supported by continued strength in back catalogue revenue
(over 19% year-on-year growth) including titles such as Cult of The Lamb and
Inscryption which continue to enjoy strong demand. Cult of the Lamb's paid
down-loadable content (PDLC) performed strongly as part of the strategy of
ongoing investment into successful franchises. System Era also made a strong
contribution, with Astroneer reaching a new milestone with the successful
release of Glitchwalkers PDLC generating new revenues and boosting base game
sales.

Devolver has continued its disciplined approach to cost control, with
operating expenses being maintained at similar levels to FY23. The Board
remain committed to delivering efficiencies across the Group, with a continued
focus on cost management going into 2025. Devolver has a robust balance sheet
with c.US$42 million net cash as at 31 December 2024.

Harry Miller, Chief Executive Officer at Devolver, said: "We returned to
positive Adjusted EBITDA in 2024 largely driven by strong back catalogue
revenues supplemented by exciting new releases such as The Plucky Squire, Neva
and Anger Foot, and a full year contribution from new acquisition System Era
and their iconic title Astroneer. Our strong recovery owes to the creative
enterprise we are, attributable in part to our innovative game designs and
lasting relationships with talented developers. Combining this momentum from
2024 with the Group's strong release pipeline, we expect to see further profit
improvement in 2025."

The Group will announce its results for the year ended 31 December 2024 in 1H
April 2025.

 

-ENDS-

 

Notes:

1.    Adjusted EBITDA ("EBITDA") makes the following adjustments: it
excludes: 1) stock compensation (share-based payment) expenses and revaluation
of contingent consideration; 2) one-time expenses and other non-recurring
items; 3) amortisation of IP (but does not exclude amortisation of capitalised
software development costs), and; 4) impairments of goodwill and acquired
IP.  Title performance impairments are included in Adjusted EBITDA.

2.    Analyst consensus for FY24: Revenue US$106.5m; Adjusted EBITDA
US$5.2m

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 120 titles, with more than 30
titles in the pipeline scheduled for release over the next few 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 Sole Broker)                       +44 (0)20 3829 5000

 Nick Cowles, Kieran Russell (Investment Banking)

 Ben Robertson (Equity Capital Markets)

 Panmure Liberum (Joint Broker)                                 +44 (0)20 3100 2000

 Max Jones (Investment Banking)

 FTI Consulting (Financial PR)                                                             devolver@fticonsulting.com

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

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTTJMPTMTAMBIA