tinyBuild plc (LON:TBLD), a leading video games publisher and developer with global operations, has announced its unaudited results for the 6 months ended 30 June 2021.
Financial highlights:
● Revenue of $18.6m (H1 2020: $18.5m), in line with expectations and reflecting a second-half weighted release schedule.
● Adj EBITDA¹ growth of 18% to $7.9m (H1 2020: $6.7m), with margins increasing to 42% (H1 2020: 36%), as contribution to revenues from own-IP increased to 78% of group revenue (67% in H1 20), supporting long-term margin expansion.
● Adj. Operating Profit² increased 94% to $5.1m (H1 2020: $2.6m), reflecting lower share-based payments
● Adj. Cash Flow from Operations² was $3.8m, lower than the previous year (H1 2020: $6.9m) due to timing differences in payments to developers and tax payments
● Net cash increased to $61.6m (Dec 2020: $26.3m), including $50m gross proceeds following the successful listing on AIM
1 Excludes expenses related to the IPO, share based compensation expenses; includes amortisation of Development costs
2 Excludes expenses related to the IPO
Operational highlights:
● Three new games published including first-party titles Cartel Tycoon (early access), Mayhem in a Single Valley and Hello Engineer (early access), growing tinyBuild’s portfolio to over 40 games, in addition to platform launches (Secret Neighbor on PS4 and iOS).
● Strong back catalogue sales representing 91% of total revenues, demonstrating the Company’s ability to extend games’ life cycles, while adding new titles.
● Three development studio acquihires We’re Five Games (Totally Reliable Delivery Service), Hungry Couch (Black Skylands) and DogHelm (Streets of Rogue).
● Successful admission to AIM, raising £36.2m ($50m) of gross proceeds, to accelerate organic growth and support our M&A strategy.
● Henrique Olifiers was appointed as Non-Executive Chairman, with Nick Van Dyk and Neil Catto appointed as Non-Executive Directors.
Post-Period End
● Acquihire of BadPixel, the studio behind successful shooter Deadside, currently in early access, for a total consideration of up to $17.1m (see separate announcement).
● Acquihire of Animal (Rawmen) announced in August 2021, for a total consideration of up to $10.2m.
● Released Black Skylands (early access), plus release dates announced for Potion Crafts (early access), Despot’s Game (early access) and Happy’s Humber Burger Farm.
● Secured a new credit facility of $25m (expiry September 2022) with Bank of America.
Outlook
● The pipeline for coming years now stands at 29 titles, including near launch games such as Potion Craft, Despot’s Game and Happy’s Humble Burger Farm.
● While tinyBuild reviews the impact of the pandemic, and the fluid macroeconomic situation, early indicators of traction across the pipeline, including KPIs for Hello Neighbor 2, are very encouraging.
● The Board remains confident the Company is on track to deliver results at least in line with expectations, plus accretive acquisitions.
Alex Nichiporchik, Chief Executive Officer of tinyBuild, commented:
“We are really excited about tinyBuild’s progress this year, with major titles in our pipeline showing strong KPIs ahead of launch. This includes new titles such as Tinykin and the widely anticipated Hello Neighbor 2.
“Our successful listing on AIM earlier this year and the additional expected $25m facility announced today, provide a platform from which we can deliver our organic and M&A growth ambitions. Our back catalogue has performed strongly, and we remain focused on finding new games at different stages of development. We are evaluating a number of M&A targets to help accelerate growth.
“Our goal is to expand our position as a leading global developer and publisher, focusing on IP ownership while creating long-term scalable franchises across multiple media formats. To date, 2021 has seen significant progress towards that ambition, and we look to the future with confidence.”
