Shares in Devolver Digital Inc (AIM:DEVO) tumbled almost 20% in early trade as the company announced delays to several new game releases, a reduction in revenue from subscription deals, and a softer performance in back-catalogue sales.
The digital publisher and developer of indie video games, known for its award-winning titles, revealed in its trading update for the first half of 2023 that these challenges would impact its performance for the current financial year.
Devolver expects to be break-even for the year on an underlying basis, with a return to growth forecast for 2024.
A robust balance sheet with around US$64 million in net cash as of the end of June 2023 lends some stability to the company's outlook, the company told investors.
At 8.25 am, the stock was down 3.8p at 15.7p.