Devolver Digital Inc - Austin, Texas-based digital publisher and developer of indie video games - Says performance in the first half of 2023 has been negatively impacted by delays to new title releases, a reduction in revenue from subscription deals and a lower contribution from its back-catalogue. As a result, now expects normalised adjusted earnings before interest, tax, depreciation and amortization to be negative in the half. For the full-year, normalised adjusted Ebitda is expected to be ‘at least’ break-even. Normalised Ebitda is expected to return to growth in 2024 and accelerate in 2025.

‘We are disappointed that 2023 performance will be lower than expected, as we see an impact from delays to new titles, fewer subscription deals and weaker back-catalogue revenues. We want to ensure that we invest the right amount of time, effort and money into our titles as the best way to do justice to our healthy pipeline of releases scheduled for the next 24 months. We continue to look for ways to improve our return from the back-catalogue, as well as taking the right steps to maximise revenues from our new releases,’ comments Chair Harry Miller.

Current stock price: 14.50 pence, down 26% on Thursday morning in London

12-month change: down 77%

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