Devolver Digital Inc (AIM:DEVO) shares leapt almost 10% higher as the boutique video games label broke back into the black.
Revenue grew by a double-digit percentage, helped by successful new releases such as Neva, The Plucky Squire and Anger Foot, along with continued demand for its back catalogue, including titles such as Cult of The Lamb and Inscryption.
Revenue topped $100 million, which was a key management target with City forecasts range of US$103-112 million, aided by a full-year contribution from Astroneer, which was added via the System Era acquisition.
EBITDA, including title impairments, is expected to be in line with market expectations, where the consensus is for US$5.2 million.
Discipline in cost control was flagged, with operating expenses similar to the previous year, while the balance sheet ended the year with roughly US$42 million net cash.
Chief executive Harry Miller said the returned to positive adjusted EBITDA was largely driven by strong back catalogue revenues supplemented by new releases, and the full year contribution from the acquisition of System Era.
"Our strong recovery owes to the creative enterprise we are, attributable in part to our innovative game designs and lasting relationships with talented developers. Combining this momentum from 2024 with the Group's strong release pipeline, we expect to see further profit improvement in 2025."
Broker Peel Hunt said: "Monetising a back catalogue typically yields a higher ROI than new games, likely playing a substantial role in driving EBITDA profitability.
"While the 2025 release schedule may not be as strong as 2024, we believe 2026 holds significant promise with potentially two major releases."