tinyBuild Inc (LON:TBLD), the indie video games publisher and publisher, saw adjusted underlying earnings (EBITDA) double in 2020.
Adjusted EBITDA rose to US$15.3mln in 2020 from US$7.7mln on revenue that rose 35% to US$37.6mln from US$28.0mln in 2019.
Net cash at the end of 2020 was US$26.3mln, up from US$17.0mln at the end of 2019. Since then, the company has floated on AIM, raising £36.2mln (US$50mln)
READ Video game developer tinyBuild plans AIM float
The board remains confident the company is on track to deliver results at least in line with expectations this year and remains on the look-out for acquisitions.
Talking of which, the company has acquired DogHelm for a maximum of US$6.5mln. The consideration will be split roughly equally between cash and 166,204 newly issued tinyBuild shares at an assumed price of 254p.
The acquisition will bring DogHelm in-house ahead of the sequel to the “Streets of Rogue” game, along with its developer Matt Dabrowski.
“Our goal is to expand our position as a leading global developer and publisher, focusing on IP [intellectual property] ownership while creating long-term scalable franchises across multiple media formats. We are actively looking at a number of potential acquihires [sic] and larger-scale acquisitions to enhance the company's strategic and operational position,” said Alex Nichiporchik, the chief executive of tinyBuild.”
“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.
"With a strong pipeline of high-quality titles set for release in the next two years, the majority of which are first and second-party titles, we have the potential to build more multimedia franchises and emulate the success of Hello Neighbor. Hello Neighbor was one of our first own-IP franchises and has gone from strength to strength. It is great to now see the fanbase engaging with Hello Neighbor 2 and actively contributing to the game's progress by playing the alpha release. With books, graphic novels, and early talks for a potential animated TV series, Hello Neighbor provides a template for many of our future games,” Nichiporchik said.
Shares in tinyBuild were up 1.3% at 268.5p after an hour of trading.
MIDAS SHARE TIPS: Games firm tinyBuild a winner for investors - This is Money https://t.co/eOIA1NEw6K
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