TinyBuild ends first half 'slightly ahead' of expectations
By Josh White
Date: Tuesday 27 Sep 2022
(Sharecast News) - Video games publisher and developer tinyBuild reported first-half results "slightly ahead" of expectations on Tuesday, with revenue rising 54% year-on-year to $28.8m on the back of a "strong" catalogue performance.
The AIM-traded firm said adjusted EBITDA increased 25% in the six months ended 30 June to $9.9m, while its adjusted operating profit grew 33% to $6.8m.
Adjusted cash flow from operations increased "sharply" to $8.8m, from $3.8m in the first half of 2021, as the board described a "strong" balance sheet, with a net cash position of $42.6m, compared to $48.8m at the end of December.
Operationally, tinyBuild said the contribution from its own intellectual property increased further to 83% of group revenue, from 78% a year earlier.
The board put that down to "strong organic performance" in properties such as Hello Neighbor and Totally Reliable Delivery Service, and recent acquisitions such as Deadside.
Strong back catalogue sales represented 99% of total gaming revenues, up from 91% year-on-year, which the directors said demonstrated the company's ability to extend the life-cycle of games, and support investments in new titles.
"If the first half was a game, we would have been playing it on the 'very difficult' setting," said chief executive officer Alex Nichiporchik.
"We faced unprecedented challenges, including the war in Ukraine, having to extract staff out of Russia, a sharp increase in the cost of living and supply chain issues.
"Still, against all odds, the team pulled through and won."
Nichiporchik said that on one side, the company had taken further steps to de-risk the business by bringing external dependencies in-house and scaling up its publishing capacity to deliver games to more platforms.
On the other, it continued to invest in the future by re-establishing its "dominant presence" at consumer shows, starting development of more internal projects, and delivering on its 'cross-media promise'.
"We are thrilled to announce the first episode of the Hello Neighbor animated series will launch in December," Alex Nichiporchik added.
"Our goal is to expand our position as a leading global developer and publisher, focusing on intellectual property ownership while creating long-term scalable franchises across multiple media formats.
"To date, 2022 has seen significant progress towards that ambition, and we look to the future with confidence."
At 1400 BST, shares in tinyBuild were up 3.53% at 110p.
Reporting by Josh White at Sharecast.com.
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