Digital Bros Group has reviewed its projects to align with the new competitive environment. This is expected to represent a reduction of approximately 30% of the global workforce, but no significant effect of restructuring costs is expected on the annual projected results for FY2024.

The videogame market has evolved since the pandemic to be more selective in terms of new games, with consumers increasingly reverting to well established Intellectual Properties and playing these same games for longer periods. Digital Bros strategy has had to adapt to this new and evolving competitive scenario and will focus its efforts moving forward on the release of sequels and new versions of previously successful and established games, with a limited number of new larger budgets productions.

In order to prioritize high-quality and long-standing successful titles, Digital Bros has reconsidered the number of projects under development and as such, will review the organization structure accordingly to align with the evolving competitive environment in the medium to long-term to ensure maximum operational efficiency.

The restructuring program is expected to represent a reduction of approximately 30% of the global workforce, with the predominant portion concentrated within the studios.

Digital Bros management believes that this program will not impact the expected Profit and Loss statement for FY 2023-2024, with no significant effect of the restructuring costs on the annual projected results, due to the savings resulting from reduced payroll costs.