The Ranchers Delay - Guidance Downgrade

Company Announcement No. 4-2023

Copenhagen, 27. April 2023

- This message contains inside information -

The Ranchers, which Trophy Games is publishing, has been delayed from Q3 this year to Q1 2024. Subsequently, the budgeted Ranchers revenue of DKK 10m, EBITDA of DKK 3.5m, and EBT of DKK 3.5m will first be recognized next year. As a consequence of the delayed cash flow, we have to downgrade the 2023 guidance we announced in November last year of DKK 56-65m in revenue, 8-14m EBITDA, and 3-8m EBT to new guidance of DKK 46-55m revenue, 4.5-10.5m EBITDA, and -0.5-+4.5m EBT.

The delay of the Ranchers increases the project's financial potential for Trophy Games with no additional expenditures. The extra development cost is funded by the developing studio Red Pllz and the contract duration for the publishing agreement is set from the game's launch. 

The Ranchers was initially planned for release in Q3 2023 after Steams Next Fest in the summer. Still, the developer has decided to expand the game's scope to hit the market with optimal conditions and timing and to be strongly positioned against recently released titles such as Coral Island and Dinkum, both generating estimated sales of close to DKK 50m and 100m, respectively, within the first year of their launch. 

Steam Next Fest is the perfect event for releasing The Ranchers around. Next Fest is a tri-annual game festival on Steam and is the most critical marketing event for new games. Games can only participate once. After the June festival, the next one is in October. Still, due to many releases and huge advertising costs in Q4 because of Christmas, the developer has decided to expand the game's scope instead and polish it more for the Next Fest in February 2024. We support this decision as the launch reception of premium games on Steam is the most crucial success factor.

Here you can see four small videos from the latest big update from the game:

https://www.youtube.com/watch?v=uRmIeA0xS5Q

Apart from the delay of The Ranchers, the development and growth of the rest of the portfolio are going as anticipated.

Contact Information

TROPHY GAMES Development A/S

Søren Gleie, CEO

Office (+45) 7172 7573

Email: soren@trophy-games.com

Mikkel Bryggers Gade 4, 2. sal, 1460 Copenhagen K, Denmark

Certified Adviser

Norden CEF

John Norden

Email: jn@nordencef.dk 

A/S Kongevejen 365, 2840 Holte, Denmark

About Trophy Games

Trophy Games is an innovative, Denmark-based game studio that develops and publishes mobile and PC games.