Proactive Investors - Devolver Digital Inc (LON:DEVO), the video game publisher, opened trading around 5% higher on Monday after announcing it expects profitable growth in 2024 before accelerating this growth in 2025.
Having reiterated expectations for a break-even result in 2023, the Texan video game group said it has over 30 new titles scheduled for release over the next three years, with seven set for launch over the second half of this year, including Wizard With A Gun and The Talos Principle 2.
Publishing nine titles directly itself, Devolver said it expects a ramp-up in engagement from customers and a continuation of quality from its games because of a return to live gaming events and improved targeted marketing.
Back catalogue success for the firm continues to be driven by Cult of the Lamb, with the company adding that revenues for already released games jumped by 10% to account for 87% of sales in the first half of 2023.
Declines in the prices of gaming subscriptions mean revenues from this channel have dropped significantly this financial year and this trend is expected to continue until the next.
Total sales for the first half fell from £53 million the year prior to £43.8 million, while pre-tax losses fell from £11.5 million in 2022 to £8.6 million, the company’s interim results revealed.
Harry Miller, chairman at Devolver, said: "The first half of 2023 was a reset for Devolver, with delays to new releases as we prioritise the quality and long-term potential of major titles scheduled for the second half of 2023 and 2024.
“As a result of our busy upcoming release schedule, steps to improve our return from our back catalogue and active management of our cost base, Devolver is on track to meet its previous guidance of break-even EBITDA profitability in 2023, a return to profitable growth in 2024 and then an acceleration in 2025."