Digital Bros, the parent company of 505 Games, has released its financial results for the quarter ending on September 30, 2021. The report shows a drop in revenue of 35.8 percent year-on-year, which is mainly being attributed to a lack of releases.
During Q1 for the company’s financial year 2022, €25 million in revenue was generated. This is down from the €38.9 million that the company made the year before. That quarter included the PC release of Death Stranding, which was a hugely popular release at the time.
Back catalogue revenue increased by 35 percent in this period, bringing in €6.1 million, though this is likely due to the lack of new releases. With nothing new to offer, consumers are simply resorting to the older titles the company has on the market.
The company also showed that 86 percent of all revenue came from digital marketplaces, showing the growth that the market has seen, particularly for older titles. 97 percent of all income came from international markets.
Italian distribution services saw a decline of 64.9 percent year-on-year to €599,000, compared to €1.7 million the year before. This has been caused by a lack of business in retail that was sparked by the pandemic. More and more people are shopping digitally, and that is causing the physical business to suffer.
Premium games brought in €22.5 million, 90 percent of the company’s revenue, compared to €34.9 million last year. This represents a drop of 35.6 percent year-on-year. Its free-to-play market also dropped by 19.1 percent year-on-year to €1.8 million.
32 percent of the company’s revenue came from games developed by internal studios and intellectual property that the company owns. 52 percent came from co-owned IPs and long-term agreements of 10 years or more.
The company has outlined that it wants to hit the same figures, and even beat them, from last year with big moves over the next year. It’s acquired new studios and has big plans to release more games and generate more revenue moving into 2022.