While we enjoy the last hours of Summer Game Fest 2022, a piece of news has set off the alarms: the value of Devolver Digital shares have fallen by 47%, around 75p. This has happened after the company reported sales results in the last 5 months, that is: since the beginning of 2022.
According to the statements of Return Digitalthe “sales of new games released in the first five months of 2022 have been lower than expected due to competitive release windows and other specific factors“. The performance of any specific title has not been commented on.
Things have not improved when the company has announced a rising costs: “Increased costs related to higher investment games are expected upon release, as well as increases in general operating expenses due to inflation, headcount and marketing“.
It’s not all bad news. The company has indicated that it trusts that the 2022 revenues improve by at least 30%specifically between 130-140 million dollars, and that there be a 15% growth, which would mean between 27-32 million dollars. These figures are backed by its catalog of up to 90 previously released titles plus all those that are yet to come.
“The board expects revenue and earnings to level off for the second half of fiscal 2022, supported by highly anticipated new title releases, strong demand from subscription platforms and continued year-end back catalog sales. “
Finally, founder and CEO Harry Miller says: “Devolver Digital’s future in gaming remains as strong as ever, with great gaming visibility well into 2024“.
We remind you that a few days ago we saw the conference of Return Digital at the Summer Game Fest, where he presented a series of very exciting titles: The Plucky Squire, Anger Foot and more. The company expects to release 10 to 15 new games in 2022.