Devolver Digital Inc (AIM:DEVO), the video games publisher and developer, slipped 13% to 55p after informing investors that it has downgraded its forecast for full-year underlying earnings.
Costs involved with underperforming titles and weak December sales resulted in a lower-than-expected performance in the second half of the year.
As a result, normalised adjusted EBITDA for 2022 is expected to be in the range of US$20mln-US$22mln, compared to previous guidance of US$27mln-US$32mln.
“Moving into 2023, we believe market conditions will remain difficult for our industry, however, we believe we are well placed to consolidate our greater scale of revenues and focus on improving margins as we move through the year,” said executive chairman Harry Miller.