GDEV Inc. Announces Historic $3.31 Special Dividend Per Share

GDEV Inc. Announces Special Cash Dividend of $3.31

In a significant move that highlights its financial strength, GDEV Inc. (NASDAQ: GDEV), an international gaming and entertainment powerhouse, has declared a one-time special cash dividend of $3.31 per share. This decision, approved by the Board of Directors, represents a remarkable yield of approximately 20% based on recent share performance.

Understanding the Special Dividend

This extraordinary dividend, translating to about $60 million in total, will be funded from GDEV’s accumulated profits. As of Q3 2024, the company reported a total cash balance of around $153 million. The distribution aims to not only reward shareholders but also optimize the company’s capital structure, enhancing operational efficiency.

Importance of Capital Efficiency

The move to issue a special dividend underscores GDEV's commitment to disciplined capital allocation. By giving back a portion of its retained earnings, GDEV can reduce excess liquidity and maintain a more streamlined operating model. This strategy is crucial in the gaming industry, which is often subject to rapid changes and varying levels of investment requirements.

Future Financial Outlook

GDEV intends to release audited results for the 2024 financial year at the onset of the first quarter of 2025. This transparency is part of the company's focus on maintaining investor confidence while continuing to foster growth in both existing ventures and future initiatives.

Leadership's Commitment

Andrey Fadeev, the Founder, CEO, and Chairman, remarked that this special dividend is a landmark event in the company’s history. It signifies not only a commitment to shareholder value but also reflects a strong financial position, enabling GDEV to balance immediate returns with long-term investments for future growth. The company expects to remain debt-free, protecting its substantial cash cushion for upcoming ventures.

GDEV's Expansion Strategy

GDEV is dedicated to expanding its franchise portfolio across multiple genres and platforms. With subsidiaries like Nexters and Cubic Games, it is well-positioned to create engaging, popular games. Titles such as Hero Wars and Pixel Gun 3D have amassed over 550 million installs, highlighting the company’s ability to connect with players globally.

The Impact of the Special Dividend

This special dividend is a one-time distribution and does not imply the establishment of a recurring dividend program. The Board of Directors has indicated that further dividends are not anticipated in the near future, reflecting a strategic focus on reinvesting in the company's growth while still rewarding shareholders.

Engagement with Shareholders

GDEV values its relationship with shareholders and aims to keep them informed about its strategic direction and financial health. With a strong balance sheet, the company is positioned to explore new opportunities while continuing to support the development of its current franchise portfolio and innovative gaming projects.

Frequently Asked Questions

What is the amount of the special dividend declared by GDEV?

The Board of Directors of GDEV has declared a special one-time dividend of $3.31 per share.

When will the special dividend be payable?

The special dividend will be payable to shareholders of record as of March 3, 2025.

Why is GDEV issuing a special dividend?

The issuance of the special dividend aims to reward shareholders while optimizing the company’s capital structure.

Will there be recurring dividends in the future?

Currently, the Board of Directors does not anticipate declaring any further dividends in the foreseeable future.

What is GDEV’s strategy for shareholder value?

GDEV focuses on capital efficiency and disciplined allocation to ensure long-term value creation while rewarding shareholders.

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