The economy may be in strife but all that noise is being blocked out by people navigating the troubles with their heads down in video games. It’s just one of the reasons why game developer Playside Studios (ASX: PLY) has reported a bumper year with record revenue of $64.6 million for FY24.
The record-breaking year in terms of revenue represents a 68% increase from the previous year’s figure and flowed down to the earnings level where Playside reported net profit after tax of $11.3 million, a marked turnaround from last year’s $6.9 million net loss, an $18m turnaround.
PlaySide’s growth stems from both its Original IP and Work-for-Hire segments. Revenue from Original IP rose by 103%, reaching $30.3 million while the company’s Work-for-Hire revenue also saw a notable increase, rising by 46% to $34.3 million.
PlaySide’s financial performance resulted in a boost to its cash balance, which stands at $37.1 million, up from $32.2 million last year, consolidated by net operating cash flow of $18.1 million, a stark contrast to the previous year’s outflow of $1.6 million.
At the operational level, PlaySide continues to expand its footprint in the global gaming industry through strategic partnerships and new game releases. In FY24, the company signed a multi-game licence agreement with Warner Bros. Interactive, a landmark deal that allows PlaySide to develop two games based on the globally recognised Game of Thrones intellectual property. The development of the first title is already underway.
Additionally, PlaySide entered into an agreement with Fumi Games to publish MOUSE, a 1930s-inspired first-person shooter. The game, already generating buzz, ranks as the 40th most wishlisted title on the popular gaming platform Steam and is expected to launch in 2025.
In the mobile gaming space, PlaySide successfully launched Dumb Ways to Survive on Netflix Games, broadening its reach across different platforms and audiences.
Looking ahead, PlaySide is set to release Kill Knight, a twin-stick shooter game, on PC and consoles on 3 October 2024. Furthermore, Playside’s contract with Meta Horizon Worlds has been extended through to December 2025, showcasing the company’s continued work in the virtual reality space.
Competitive Edge and Future Outlook
PlaySide’s competitive advantage lies in its ability to deliver top-tier Original IP while also securing lucrative Work-for-Hire deals with globally recognised brands. The Company’s partnerships with Warner Bros. and Fumi Games position it as a major player in the high-stakes PC and console gaming markets with its current games in development expected to boost this profile upon release.
“The projects we have signed across Original IP and Publishing in the last twelve months enable us to significantly elevate our profile in the PC/Console space,” said Playside Studios CEO, Gerry Sakkas.
“Having delivered a record profit in FY24 and starting the year with a cash balance at near-record levels, we are absolutely set up to deliver on these opportunities. While we have a strong focus on development in FY25, the year is not without its catalysts. We’ve got Kill Knight launching on PC and Console in the next six weeks, our first Publishing titles coming to market, and new mobile titles gathering momentum.
“Importantly, you will start to see us ramp up the marketing efforts on our larger projects, and the outcomes from those initiatives are going to be very instructive as to how successful these games can be. Commercial success of one or more of these titles has the potential to create another step change in the company’s revenue profile, and I look forward to sharing more news with you through the year as we progress our marketing campaigns for these games.”
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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1 Comment
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