505 Games parent company Digital Bros has released its financial results for the quarter ended September 30, 2021, and reported a 35.8% drop in revenue year-on-year.
The company made €25 million during Q1 FY2022, compared to €38.9 million during the same period last year, a quarter which had seen the company release Death Stranding and Control on PC.
Revenues from Digital Bros' back catalogue increased 35% year-on-year (representing €6.1 million), as it didn't release any new game during this quarter. Assetto Corsa was the company's best selling title, generating €4 million in revenue.
The company noted that 86% of its revenue came from digital marketplaces, and 97% of it came from international markets. Actually, it's Italian distribution services declined 64.9% year-on-year to €599,000, versus €1.7 million last year, due to ongoing issues caused by the COVID-19 pandemic and the continued decline of brick-and-mortar businesses.
Premium games represented 90% of Digital Bros' total revenue, generating €22.5 million (versus €34.9 million last year, a 35.6% drop), while free-to-play declined 19.1% to €1.8 million.
"Video games developed by the internal studios and intellectual properties owned by the group accounted for 32% of the consolidated revenues in the period," the report noted. "52% of revenues came from the sale of co-owned IPs and long-term agreements (more than ten years)."
Recent acquisitions and studio openings for Digital Bros included Australian developer Infinity Plus Two, Canadian studio Chrysalide Jeux et Divertissement, and new in-house development studio Supernova. It also took a 60% stake in Czech development studio Ingame.
Looking ahead, the company said it expects "to match the record hitting revenues levels realised in the previous fiscal year."