Devolver Digital's Share Price Drops After Less Than Expected Sales
After such a good presentation too...
Devolver Digital’s share price took a significant hit today after their announced revision of expected sales for 2022, dropping down to 59.90 GBX, its lowest price ever. This is a considerable drop, considering just 4 days ago the share price was 136.50 GBX. According to Devolver:
“Sales from new games released in the first five months of FY22 have been slower than expected, reflecting a competitive release window and specific factors for each title which are being actively addressed for future titles,”
“At the same time there has been an expected step-up in amortisation costs related to these heavier-investment games upon release, as well as increases in general operating expenses due to inflation, headcount and marketing.”
“The board expects revenues and profit to be weighted towards the second half of FY22, supported by highly anticipated new title releases, strong demand from subscription platforms and continued evergreen back catalogue sales at year-end,”
With so many anticipated upcoming games such as Cult of the Lamb and the recently announced The Plucky Squire, it’s likely these sales won’t stay down long.