Devolver Digital Inc on Tuesday said it expects to report a rise in earnings in 2024, as the group begins to recover from a steep revenue decline in 2023.

Shares in the Austin, Texas video game publisher were up 8.4% at 24.40 pence in London on Tuesday morning.

Devolver Digital said it expects to report adjusted earnings before interest, tax, depreciation and amortisation for 2024 in line with market expectations, citing a company-compiled consensus of $5.2 million.

This would be more than triple the $1.7 million reported for 2023, excluding one-off non cash impairments, but would still represent a fall from $23.2 million in 2022.

The group said revenue saw double-digit growth throughout the year, meeting management guidance of more than $100 million.

It cited a market consensus of $106.5 million in revenue, which would be up 14% from $92.4 million last year, but a 23% decline from $134.6 million in 2022.

Devolver Digital maintained its ‘disciplined approach’ to cost control throughout the year, with operating expenses expected at similar levels to 2023.

Chief Executive Officer Harry Miller 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.’

Devolver Digital will release its full-year results in the first half of April.

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