tinyBuild revenue swells in first year on AIM; acquires DogHelm

(Alliance News) - tinyBuild Inc on Tuesday said it had grown annual revenue 35% after strong ...

Alliance News 8 June, 2021 | 10:03AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - tinyBuild Inc on Tuesday said it had grown annual revenue 35% after strong trading following its March initial public offering on the AIM market in London.

The Seattle, Washington-based video games developer generated revenue for the year to December 31 of USD37.6 million, a 35% increase on USD28.0 million the year prior. The significant revenue growth helped tinyBuild swing to a USD7.7 million pretax profit for the year, from a USD2.6 million loss the year before.

tinyBuild also announced the acquisition of video game developer DogHelm for up to USD6.5 million. The deal will bring the firm in-house ahead of the release of a sequel to its flagship game Streets of Rogue, along with its developer Matt Dabrowski. The payment is split roughly in half between cash and new tinyBuild shares, subject to certain operational targets being met.

Established by Alex Nichiporchik and Tom Brien in 2011, tinyBuild started trading on the AIM market in March with a market capitalisation of GBP340.9 million, the biggest AIM listing of 2021 at the time.

"Our successful listing on AIM earlier this year provides a platform from which we can deliver on our organic and M&A growth ambitions," commented Chief Executive Alex Nichiporchik.

"Our back catalogue has performed strongly, and we now have a highly diverse revenue mix. Our strategy to accumulate owned-IP has resulted in a strong financial performance and has translated into underlying gross margin improvement.

"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. 2020 has seen significant progress towards that ambition, and we look to the future with confidence."

Looking ahead, tinyBuild said it had a "strong pipeline of high-quality titles set for release in the next two years" and had the potential to build more multimedia franchises. It reiterated that it was confident of delivering results at least in line with expectations along with further acquisitions.

In a separate announcement tinyBuild said it had appointed former Activision Blizzard Studios co-president Nick Van Dyk as non-executive director. Prior to joining Activision, Van Dyk spent nine years at The Walt Disney Company as senior vice president of corporate strategy and business development.

tinyBuild did not propose a dividend for the year.

Shares were up 0.8% to 267.00 pence in London on Tuesday morning.

By Will Paige; willpaige@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
TinyBuild Inc 247.50 GBX 8.79 -
Activision Blizzard Inc 83.62 USD 0.06
The Walt Disney Co 176.02 USD -1.31

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies       Modern Slavery Statement