Devolver Digital: Admission Document

Key insights

6 takeaways

01
The document states that the back catalogue contributed an average of 60.8 per cent. of Normalised revenue from 2018 to 2020.See it on page 32
02
On a Normalised basis, Devolver reported revenue of $71.1 million for the year ended 31 December 2020, excluding the non-budgeted performance of Fall Guys.See it on page 41
03
Reported Adjusted EBITDA rose from $4.8 million in 2018 to $80.6 million in 2020, a change the document attributes primarily to Fall Guys.See it on page 42
04
Around 42 per cent. of titles in the pipeline are from developers who have already published a title with Devolver.See it on page 35
05
The Concert Party will hold approximately 39 per cent. of the Enlarged Share Capital immediately following Admission.See it on page 52
06
The Group expects to pay no dividend for the year ending 31 December 2021, and intends to reinvest a significant portion of its cash reserves and earnings.See it on page 51

Summary

This is the AIM admission document for Devolver Digital, Inc., a Delaware-incorporated video game publisher focused on indie games, issued in connection with the admission to trading on AIM of the entire issued and to be issued share capital, with trading expected to commence on 4 November 2021. The document covers the Group's business, pipeline, back catalogue, acquisitions, risk factors, governance, and historical financial information for the three years ended 31 December 2020 and the six months ended 30 June 2021. The placing is at 157 pence per share, with 21,288,428 new placing shares and 98,292,740 sale shares, and Zeus Capital is the nominated adviser and sole bookrunner.

The Group reports consolidated revenue of $212.7 million for 2020 and $46.4 million for the six months to 30 June 2021, with Adjusted EBITDA of $80.6 million and $118.3 million respectively. The document also presents Normalised figures that remove the financial impact of Fall Guys outperformance and the sale of publishing rights, showing Normalised revenue of $71.1 million for 2020 and Normalised Adjusted EBITDA of $15.8 million.

The back catalogue is described as contributing an average of 60.8 per cent. to Normalised annual revenues from 2018 to 2020. The Group also states that around 42 per cent. of pipeline titles come from repeat developer relationships.