REG - Devolver Digital - Unaudited preliminary results
10/04/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250410:nRSJ4151Ea&default-theme=true
RNS Number : 4151E Devolver Digital, Inc. 10 April 2025
10 April 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 year ended 31 December 2024
Return to profit and growth; strong performance in line with guidance
Devolver Digital, an award-winning digital publisher and developer of
independent ("indie") video games, announces its unaudited results for the
twelve months ended 31 December 2024. All figures relate to this period unless
otherwise stated.
· Strong performance in line with FY24 guidance and return to profit
and growth
· Record Metacritic scores for new titles
· Back catalogue momentum driven by our expandable games strategy for
1(st) party IP
· Improving our game technology with strong pipeline of exciting new
titles
Harry Miller, Chief Executive Officer of Devolver, said:
"In 2024, Devolver returned to Adjusted EBITDA profitability, driven by
successful new releases like The Plucky Squire and BAFTA-winning Neva, strong
back catalogue revenue growth from titles such as Astroneer, and improved
platform deals. The company also saw success with paid downloadable content
releases for Astroneer and Cult of the Lamb, and achieved a record high
average 79 Metacritic rating. This momentum is a direct result of delivering
on our strategic priorities, including our focus on curating a diverse
portfolio of high-quality games, investing in our existing franchises, and
building strong relationships with our partners and communities. Looking ahead
to 2025, Devolver has a strong pipeline of at least 13 new releases in 2025,
including highly anticipated titles like Baby Steps, Stronghold Crusader:
Definitive Edition, and Gorn 2, and is excited about the potential of the
Switch 2, with three Devolver games featured in the recent Nintendo Direct
showcase. We reiterate guidance for FY 2025 with expected sequential
improvements through 2025 and 2026, as we continue to execute on our strategic
plan and drive long-term growth and success."
Key Performance Indicators*
Year ended Year ended Year-on-year
31-Dec-24 31-Dec-23 Change
US$ Million US$ Million (%)
Revenue 104.8 92.4 13.5%
Gross profit 30.1 24.5 22.6%
Loss for the period (6.4) (12.7) 50.0%
Basic and diluted loss per share ($) (0.013) (0.029) n.m.
Adjusted EBITDA(1) before performance-related impairments
9.6 1.7 473.0%
Adjusted EBITDA(1) 5.1 (0.5) n.m.
* Preliminary unaudited results - refer to full statutory tables below in
this report.
A focused strategy driving return to profit and growth
· FY24 revenue and Adjusted EBITDA(1) in line with previous guidance.
· Growth and profitability driven by momentum in our back catalogue, a
strong performance from System Era (4Q 2023 acquisition) and a recovery in
platform deals.
· Platform deals saw a recovery from 2023's low level, driven by
continued strong demand for back catalogue titles and deal renewal cycles.
Strong performance in line with FY24 guidance
· Revenues in line with FY24 guidance, up 13.5%.
· Gross Profit up 22.6%.
· Operational cost discipline supported the improvement in Adjusted
EBITDA, pre non-cash impairment, to US$9.6m (2023: US$1.7m).
· Non-cash impairment of US$4.5m recorded in 2024 (2023: US$2.1m) from
previous underperforming releases.
· Statutory net loss of US$6.4m(2) (2023: US$12.7m loss).
· Cash holdings of US$41.6m as of 31 December 2024, including US$9.8m
net proceeds from secondary issuance of shares in early July 2024.
Critical success for new titles and back-catalogue momentum
· 10 new titles released in 2024 (2023: 11), with record full-year
Metacritic score of 79 for released titles (2023: 76).
· Front catalogue boosted by creative games such as BAFTA- and Game
Awards-winning Neva and BAFTA- and Games Awards-nominated The Plucky Squire.
· Back catalogue revenues up 20%, accounting for 88% of total revenues
(2023: 83%), supporting revenue visibility and reflecting the continued strong
performance of Cult of the Lamb, BAFTA-winning Inscryption, and a full year
contribution from System Era's iconic Astroneer, underscored by the
performance of Glitchwalkers, the paid downloadable content (PDLC) update
released in Q4.
Current trading and outlook
· Strong pipeline of at least 13 new titles (second half weighted)
expected for FY25 and more than 30 new titles due for release in the next
three years.
· Ongoing planned releases of further PDLC updates for successful
titles Astroneer and Cult of the Lamb.
· Post-period, Nintendo's recent showcase revealed Switch 2, where
future Devolver titles Starseeker (link), Enter the Gungeon 2 (link) and Human
Fall Flat 2 (link) were all featured, underlining the strength of Devolver's
brand and track record.
· Expect single digit revenue growth in 2025 and an increase in Adjusted
EBITDA compared to FY2024 levels, with EBITDA expected to be significantly
second half weighted due to the cadence of scheduled game releases.
Notes:
1. Adjusted EBITDA ("EBITDA") makes the following adjustments: it
excludes: i) stock compensation (share-based payment) expenses and revaluation
of contingent consideration; ii) one-time expenses and other non-recurring
items; iii) amortisation of IP (but does not exclude amortisation of
capitalised software development costs), and; iv) impairments of goodwill and
acquired IP. Released game performance impairments are included in Adjusted
EBITDA.
2. Including non-cash impact of US$3.5 million of share-based payments.
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 130 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 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)
Nikhil Varghese (Investment Banking)
FTI Consulting (Communications) devolver@fticonsulting.com
Jamie Ricketts / Dwight Burden / Valerija Cymbal / Usama Ali +44 (0)20 3727 1000
OPERATING REVIEW
2024: Resumption of revenue growth and increase in Adjusted EBITDA
Devolver released 10 new well-received titles in 2024 (2023: 11), including
BAFTA- and Games Awards-winning Neva, and BAFTA- and Games Awards-nominated
The Plucky Squire that both garnered high-quality scores and positive user
reviews. The Group recorded an average Metacritic rating of 79, a record
annual high as we continue to publish exciting, high-quality games. Positive
Metacritic scores and user ratings are important as they can help to bolster
the longevity of releases.
2024 overall revenue also benefitted from an improved contribution from
platform deals for front and back catalogue, compared to 2023, as well as the
addition of a full year profit contribution from Seattle-based System Era and
its iconic game Astroneer. Platform deal demand rose compared to a trough in
2023 due to renewal cycles of back catalogue titles and specific front
catalogue deals. These factors drove a 13.5% year-on-year increase in total
group revenue in 2024 compared to 2023, and an increase in Adjusted EBITDA to
US$5.1 million post non-cash impairments (2023: US$1.7 million).
Back catalogue maintains momentum
Overall revenue growth was bolstered by continued strength in back catalogue
revenue (20% year-on-year growth) including titles such as Cult of The Lamb
and BAFTA-winning Inscryption which continue to enjoy strong demand alongside
other evergreen titles in Devolver's back catalogue. Cult of the Lamb's paid
downloadable 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.
Back catalogue revenues accounted for 88% of total game sales revenues (2023:
84%). Our back catalogue includes all titles released in or prior to the last
financial year (2024 or earlier). As of 1 January 2025, the back catalogue
consists of over 130 titles, including numerous indie cult classics spanning a
variety of genres to cater to different tastes, supporting highly diversified
revenues.
Devolver 15-Year Anniversary, COTL Wedding & Devolver Delayed
Devolver marked June 2024 with celebrations in the summer showcase to mark the
company's 15(th) year anniversary of its founding. Devolver's iconic live
broadcast formed part of the Summer Game Fest 2024 in June, featuring reveals
of future new releases and expansions to Cult of the Lamb and The Talos
Principle 2.
In the autumn of 2024 Cult of the Lamb developer Massive Monster hosted two
Cult of the Lamb weddings at Pax Australia which saw two devoted couples
commit their love for each other in front of the Lamb. The two weddings were
conducted in a faithful life-size replica of the Cult of the Lamb Temple
featured in the game. The ceremonies were real and legally binding, recognised
by both the Victorian Government, and more importantly, the Lamb itself. Fans
of the game attending PAX Aus joined the congregation and celebrated with the
happy couples as they tied the knot.
Also in 2024, Devolver Delayed saw a glorious return. This segment - a
tongue-in-cheek reality check for the game-publishing world - highlighted and
showcased some of the extraordinary releases that didn't reach the market
during the year, yet at the same time hinted of the promise of more excitement
in coming periods as we remain committed to publishing outstanding games.
FINANCIAL REVIEW
Unaudited results to December 31 2024
The unaudited financial results included in this announcement cover the
Group's combined activities for the twelve months ended 31(st) December 2024
(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 annual
results release.
P&L results and margins
Devolver Digital posted a solid and improved 2024 performance, with 10 new
title releases throughout the year (2023: 11). Revenue performance was in
line with guidance given at the start of the year, rising 13.5% year-on-year
to US$104.8 million, a strong resumption in growth after starting to rebuild
in 2023. Revenue growth was driven by new title releases including Anger Foot,
Pepper Grinder, BAFTA-winner Neva and BAFTA-nominee The Plucky Squire, and
Children of the Sun. Growth was supported by steady back catalogue sales,
platform subscription deals, and a full year contribution from System Era
(acquired in October 2023).
Gross Profit after non-cash impairments increased 22.6% year-on-year to
US$30.1 million. Gross margins expanded to 28.7%, up from 26.5% in 2023,
primarily due to: a) revenue growth that outstripped the step-up of
amortisation expense from new releases in 2024; b) reduced marketing costs,
and; c) slightly lower in-period game development costs (that are expensed and
not capitalised).
Adjusted EBITDA and Adjusted EBITDA margins - pre impairments
Adjusted EBITDA pre impairments rose to US$9.6 million, up substantially from
US$1.7 million in 2023. Adjusted EBITDA margins pre impairments improved to
9.2% for full year 2024, compared to a low of 1.8% in 2023.
Impairments to carrying value of already-released games
At year-end 2024 the Group assessed the balance sheet carrying value of
capitalised development costs of certain titles published in 2024 and previous
periods. It was determined that there was a need to impair their carrying
value based on continued low unit sales through to year end 2024 and reduced
future projections. The total non-cash charge of US$4.5 million as a
write-down for impairment in their carrying value reduces 2024 Adjusted EBITDA
to US$5.1 million (2023: US$0.5 million loss).
Disciplined Cost Control
Devolver has continued its disciplined approach to cost control, with
operating expenses being maintained at similar levels to FY23. Operating
expenses in 2024 were successfully controlled to only 0.5% growth, contrasting
with a 13.5% increase in revenues, resulting in tangible margin expansion in
Adjusted EBITDA. Almost all cost items saw annual reductions compared to 2023,
a trend which the management is committed to continue, taking cost control
actions across the Group where required.
Statutory Net Loss
Statutory net loss for 2024 was US$6.4 million, a significant reduction from a
loss of US$12.7 million in 2023.
Cash Balances
Cash holdings at end of December 2024 were US$41.6 million, including a
secondary share placement in July 2024 that yielded net proceeds of US$9.8
million. Devolver Group has no borrowings.
CURRENT TRADING OUTLOOK
We have a busy schedule for 2025 with at least 13 titles due for release,
including Baby Steps, The Talos Principle: Reawakened, Monster Train 2,
Possessors and Stronghold Crusader: Definitive Edition. We are also planning
further releases of PDLC for some of our most successful titles in the wake of
the success of that strategy in 2024. The combination of more title releases
and increased investment into our own IP should support gross margin expansion
during the year. As a result, we expect modest revenue growth and further
growth in Adjusted EBITDA in 2025, which we expect to be significantly second
half weighted due to the cadence of scheduled game releases.
Another area of excitement for the company is the recent full reveal of Switch
2 in April's Nintendo showcase event, in which several of our games were
highlighted, which we see as an indication of Nintendo's view of the ongoing
importance of Indie games publishing.
We are pleased to have maintained a robust balance sheet at year end 2024 and,
while gaming market conditions remain challenging, we face the future with
confidence. The Board believes that we are well positioned for future success,
and we look forward to reporting on our progress into 2025.
Harry Miller
Chief Executive Officer
Consolidated Statement of Profit or Loss
Unaudited Audited
Year ended Year ended
31-Dec-24 31-Dec-23
Note US$'000 US$'000
Revenue 2 104,781 92,356
Cost of sales (74,716) (67,838)
Gross profit 30,065 24,518
Administrative expenses (38,729) (38,537)
Other income 1,496 1,011
Operating loss (7,168) (13,008)
Finance costs (288) (58)
Finance income 769 1,361
Loss before taxation (6,687) (11,705)
Income tax benefit / (expense) 328 (1,019)
Loss for the period (6,359) (12,724)
Loss for the period is attributable to:
Equity holders of the parent (6,141) (12,742)
Non-controlling interests (218) 18
Loss for the period (6,359) (12,724)
Basic and diluted loss per share ($) 3 (0.013) (0.029)
Non-IFRS measures
Adjusted EBITDA* before performance-related impairments
4 9,610 1,677
Adjusted EBITDA* 4 5,083 (458)
*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 and one-time non-recurring items and
non-trading items.
Consolidated Statement of Comprehensive Income
Unaudited Audited
Year ended Year ended
31-Dec-24 31-Dec-23
US$'000 US$'000
Loss for the period (6,359) (12,724)
Other comprehensive income: Items that may be reclassified
subsequently to profit or loss
Exchange differences on translation of foreign operations
(644) 1,673
Total comprehensive loss for the period (7,003) (11,051)
Total comprehensive loss is attributable to:
Equity holders of the parent (6,785) (11,069)
Non-controlling interests (218) 18
Total comprehensive loss for the period (7,003) (11,051)
Consolidated Statement of Financial Position
Unaudited Audited
As at As at
31-Dec-24 31-Dec-23
Note US$'000 US$'000
ASSETS
Non-current assets
Goodwill 5 31,902 31,963
Other intangible assets 5 99,337 95,936
Property, plant and equipment 162 266
Right of use asset 967 953
Employee loans 327 320
Long-term investments* - 428
Deferred tax assets 7,554 8,100
Total non-current assets 140,249 137,966
Current assets
Trade and other receivables 16,855 13,778
Cash and cash equivalents* 41,645 40,424
Employee loans 442 487
Short-term investments* 464 1,799
Prepaid income tax 1,570 2,354
Total current assets 60,976 58,842
Total assets 201,225 196,808
EQUITY AND LIABILITIES
Equity
Share capital 47 45
Share premium 157,683 146,106
Retained earnings 43,514 47,092
Translation reserve (1,238) (594)
Capital redemption reserve (34,469) (34,531)
Equity attributable to owners of the parent 165,537 158,118
Non-controlling interest (302) (84)
Total equity 165,235 158,034
Non-current liabilities
Trade and other payables 10,569 10,361
Deferred tax liabilities - 259
Lease liability 876 873
Deferred revenue - 1,309
Total non-current liabilities 11,445 12,802
Current liabilities
Trade and other payables 19,953 24,457
Lease liability 228 155
Deferred revenue 3,950 634
Current tax payable 414 726
Total current liabilities 24,545 25,972
Total liabilities 35,990 38,774
Total equity and liabilities 201,225 196,808
* The Group has revised its reported financials for the year ended December
31, 2023, to reflect a revision in Cash and cash equivalents. This adjustment
followed the reclassification of an amount in an investment account holding
securities with maturities of within one year or more than one year from the
reporting date. As a result, US$0.4 million has been reclassified from Cash
and cash equivalents to Long-term investments and US$1.8 million to Short-term
investments.
Consolidated Statement of Changes in Equity
Share capital Share premium Capital redemption reserve Translation reserve Retained earnings Attributable to owners of the parent Non-controlling interest Total equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 31 December 2023 (audited) 45 146,106 (34,531) (594) 47,092 158,118 (84) 158,034
Loss for the period - - - - (6,141) (6,141) (218) (6,359)
Currency translation differences
- - - (644) - (644) - (644)
Other movements - - 62 - (106) (44) - (44)
Fair value adjustment - - - - (737) (737) - (737)
Transactions with owners in their capacity as owners:
Gain on EBT - - - - (105) (105) - (105)
Share-based payments - - - - 3,511 3,511 - 3,511
Share placement 2 9,785 9,787 9,787
SES deferred share consideration - 1,792 - - - 1,792 - 1,792
Total transactions with owners 2 11,577 - - 3,406 14,985 - 14,985
Balance at 31 December 2024 (unaudited) 47 157,683 (34,469) (1,238) 43,514 165,537 (302) 165,235
Share capital Share premium Capital redemption reserve Translation reserve Retained earnings Attributable to owners of the parent Non-controlling interest Total equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 31 December 2022 (audited) 45 146,044 (27,707) (2,267) 54,618 170,733 (102) 170,631
Loss for the period - - - - (12,742) (12,742) 18 (12,724)
Currency translation differences 1,673
- - - 1,673 - - 1,673
Transactions with owners in their capacity as owners:
Issue of shares - - - - - - - -
Exercise of share options - 62 - - (312) (250) - (250)
Treasury share repurchase transactions
- - (6,824) - - (6,824) - (6,824)
Share-based payments - - - - 5,528 5,528 - 5,528
Total transactions with owners - 62 (6,824) - 5,216 (1,546) - (1,546)
Balance at 31 December 2023 (audited) 45 146,106 (34,531) (594) 47,092 158,118 (84) 158,034
Consolidated Statement of Cash Flows
Unaudited Audited
Year ended Year ended
31-Dec-24 31-Dec-23
US$'000 US$'000
Loss for the period before taxation (6,687) (11,705)
Adjustments for:
Depreciation of tangible fixed assets 155 186
Depreciation of right-of-use assets 220 -
Amortisation of intangible fixed assets 24,861 15,552
Impairment of intangible fixed assets 4,527 2,455
Finance income (769) (1,361)
Finance costs 288 58
Share-based payment charge 3,511 5,528
Foreign exchange movements (141) 9
Other non-cash movements (2,208) -
Movements in working capital:
Receivables 3,997 1,465
Payables (3,956) (2,095)
Cash inflow from operations 23,798 10,092
Taxation paid (1,534) (778)
Taxation received - 2,416
Net cash inflow from operating activities 22,264 11,730
Cash flows from investing activities
Purchase of intangible assets (30,654) (27,883)
Purchase of tangible assets (51) (51)
Acquisitions of businesses, net of cash acquired - (18,033)
Net cash outflow from investing activities (30,705) (45,967)
Cash flows from financing activities
Share capital issuance - 62
Share placement 9,785 -
Share repurchase transactions - (6,824)
Interest received 751 1,338
Interest paid (171) (58)
Repayment of lease liabilities (160) (22)
Net cash inflow/(outflow) from financing activities 10,205 (5,504)
Cash and cash equivalents
Net increase / (decrease) in the period 1,764 (39,741)
At 1 January 40,424 79,493
Foreign exchange movements (543) 672
At 31 December 41,645 40,424
Note 1: Basis of preparation and consolidation
After reviewing the Group's forecasts and projections and taking into account
current net cash balances, the Directors have a reasonable expectation that
the Group has adequate resources to continue in operational existence for the
foreseeable future, which is defined as period of not less than 12 months from
the date of publication of this Annual Report. The Group has therefore adopted
the going concern basis in preparing the Annual Report.
The financial presentation in this release should be read in conjunction with
the notes to the consolidated financial statements as at and for the full year
ended 31 December 2024, as contained within this release.
These preliminary unaudited financial statements were approved by the Board of
Directors on 8 April 2025.
Note 2: Revenue
Unaudited Audited
Year ended Year ended
31-Dec-24 31-Dec-23
US$'000 US$'000
Revenue analysed by class of business:
Game publishing 104,781 92,356
Revenue analysed by timing of revenue:
Transferred at a point in time 104,781 92,356
The Group does not provide any information on the geographical breakdown of
revenues, as game publishing revenue is earned via third-party distribution
platforms which hold the sales data of end consumers.
Note 3: Earnings Per Share
Unaudited Audited
Year ended Year ended
31-Dec-24 31-Dec-23
US$'000 US$'000
Loss attributable to owners of the company (6,141) (12,742)
Weighted average number of shares 456,953,855 444,825,531
Dilutive effect of share options - -
Weighted average number of diluted shares 456,953,855 444,825,531
Basic and diluted loss per share ($) (0.013) (0.029)
Note 4: Adjusted Results
Unaudited Audited
Year ended Year ended
31-Dec-24 31-Dec-23
US$'000 US$'000
Revenue
Reported Revenue 104,781 92,356
Reported Revenue growth 13.0% (31.4%)
Gross Profit
Reported Gross Profit 30,065 24,518
Reported Gross Profit margin 28.7% 26.5%
Performance-related impairments 4,527 2,455
Adjusted Gross Profit 34,592 26,973
Adjusted Gross Profit margin pre performance-related impairment margin
33.0% 29.2%
Adjusted EBITDA*
Adjusted EBITDA 5,083 (458)
Adjusted EBITDA margin 4.9% (0.5%)
Performance-related impairments 4,527 2,135
Adjusted EBITDA pre performance-related impairment
9,610 1,677
Adjusted EBITDA pre performance-related impairment margin
9.2% 1.8%
*Adjusted EBITDA is a non-IFRS measure and is defined as earnings before
interest, tax, depreciation, amortisation (but not excluding 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.
A reconciliation from the operating loss to adjusted EBITDA is set out in the
table below:
Unaudited Audited
Year ended Year ended
31-Dec-24 31-Dec-23
US$'000 US$'000
Operating Loss (7,168) (13,008)
Share-based payment expenses 3,511 5,528
Amortisation and depreciation of non-current assets 7,497 3,918
Depreciation of property, plant and equipment 155 150
Depreciation of right-of-use asset 220 36
Foreign exchange losses (gains)/losses (141) 9
Non-recurring, one time expenses 710 2,589
Impairment of capitalised software developments costs - 320
Fair value adjustment 251 -
Other taxes 48
Adjusted EBITDA 5,083 (458)
Performance-related impairments 4,527 2,135
Adjusted EBITDA pre performance-related impairments 9,610 1,677
The operating loss is arrived at after charging the following items to cost of
sales:
Unaudited Audited
Year ended Year ended
31-Dec-24 31-Dec-23
US$'000 US$'000
Cost of sales
Royalty expense 43,112 42,151
Software development costs 3,306 4,278
Marketing expenses 6,407 7,320
Amortisation of software development costs 17,364 11,634
Impairment of software development costs 4,527 2,455
Total 74,716 67,838
Note 5: Intangible Assets
Purchased intellectual property Software development cost Subtotal other intangibles
Goodwill Total
US$'000 US$'000 US$'000 US$'000 US$'000
Cost
As at 31 December 2023 (audited) 79,959 121,920 201,879 79,630 281,509
Additions - 32,789 32,789 - 32,789
Fair value adjustment - - - (61) (61)
As at 31 Dec 2024 (unaudited) 79,959 154,709 234,668 79,569 314,237
Amortisation and impairment
As at 31 December 2023 (audited) 37,953 67,990 105,943 47,667 153,610
Amortisation charge for the period 7,497 17,364 24,861 - 24,861
Impairment charge for the period - 4,527 4,527 - 4,527
As at 31 December 2024 (unaudited) 45,450 89,881 135,331 47,667 182,998
Carrying amount
As at 31 December 2023 (audited) 42,006 53,930 95,936 31,963 127,899
As at 31 December 2024 (unaudited) 34,509 64,828 99,337 31,902 131,239
Purchased intellectual property Software development cost Subtotal other intangibles
Goodwill Total
US$'000 US$'000 US$'000 US$'000 US$'000
Cost
As at 31 December 2022 (audited) 59,817 94,037 153,854 66,820 220,674
Additions - business combinations 20,142 - 20,142 12,810 32,952
Additions - 27,883 27,883 - 27,883
As at 31 December 2023 (audited) 79,959 121,920 201,879 79,630 281,509
Amortisation and impairment
As at 31 December 2022 (audited) 34,035 53,901 87,936 47,667 135,603
Amortisation charge for the period 3,918 11,634 15,552 - 15,552
Impairment charge for the period - 2,455 2,455 - 2,455
As at 31 December 2023 (audited) 37,953 67,990 105,943 47,667 153,610
Carrying amount
As at 31 December 2022 (audited) 25,782 40,136 65,918 19,153 85,071
As at 31 December 2023 (audited) 42,006 53,930 95,936 31,963 127,899
Note 6: Impairment to Software Development Costs
The Group assessed software development costs for indicators of impairment,
considering both qualitative and quantitative factors. For the titles
exhibiting indicators of impairment, the Group recorded an impairment loss of
$4.5 million against the carrying value of software development costs at 31
December 2024.
The impairment is related to titles published in 2024 by Devolver Digital Inc.
and Good Shepherd Entertainment. As a result of lower than expected sales and
future projections, these titles were impaired to their recoverable amounts,
being value in use.
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 calculated based on the particular circumstances of the Group
and its CGUs, derived from its Weighted Average Cost of Capital.
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 FR XKLLBEZLBBBVRecent news on Devolver Digital
See all newsREG - Devolver Digital - Publication of 2024 Annual Report and Accounts
AnnouncementREG - Devolver Digital - Unaudited preliminary results
AnnouncementREG - Devolver Digital - Notice of Results
AnnouncementREG - Devolver Digital - Trading Update
AnnouncementREG - Devolver Digital - TR-1: Notification of Major Holdings
Announcement