(Correcting executive change description.)
Devolver Digital Inc on Wednesday said new games released in the fourth quarter of last year had ‘good momentum’ as it predicts adjusted earnings to grow this year.
Meanwhile, the company said that Douglas Morin has stepped down as chief executive officer on Wednesday. He was replaced by executive chair, co-founder and former CEO Harry Miller.
Further, the company appointed Kate Marsh as new chair on a non-executive basis. She sits on the company board of FTSE 250-listed Nottingham, England-based miniature wargames maker Games Workshop Group PLC.
Finally, Chief Operating Officer Graeme Struthers has been appointed to the company board. He has been COO since 2022.
The Austin, Texas-based video game publisher said it was boosted by sales of shooter game Wizard with a Gun, and puzzle adventure game The Talos Principle 2.
The company said revenue will be in line with consensus expectations of at least $90 million in 2023, albeit that figure would be down about 33% from $134.6 million in 2022.
Further, normalised adjusted earnings before interest, tax, depreciation and amortisation excluding non-cash title impairments will be breakeven in 2023. For 2022, it had reported normalised adjusted Ebitda of $23.2 million, and $13.9 million after performance-related impairments.
Looking ahead, Devolver is targeting a return to growth on a normalised adjusted Ebitda basis in 2024, after it declined 9.7% to $23.2 million in 2022 from $25.7 million in 2021.
Chief Executive Officer Harry Miller said: ‘After a quiet year in 2023 for major title releases, we enter 2024 with a release schedule featuring wonderful titles such as Pepper Grinder, The Plucky Squire, Anger Foot and NEVA, with releases more evenly balanced throughout the year. In addition, we will enjoy a full year of contribution from recently acquired System Era which takes us into the exciting area of expandable games and has performed in line with expectations since acquisition.’
Devolver will release its 2023 results in early April.
Devolver shares were flat at 19.00 pence per share on Wednesday afternoon in London.
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