Resilience and operational reset

tinyBuild’s results for the six months ended 30 June demonstrated resilient performance during a challenging period, with a key takeaway being management’s focus on delivering successful games while maintaining financial stability. Revenue in H1 23 fell 19% to $23.3m (H1 22: $28.8m) and adjusted EBITDA turned negative at -$1.2m (H1 22: $9.9m). However, games sales remained stable, and the company is demonstrating tighter control of spending to steady the business in the short term. A strong games pipeline, combined with continuous monitoring of progress, provides potential for mid- to long-term growth, in our view.

Resilience and operational reset

In an attractive video games market, tinyBuild is investing to accelerate growth, including new technologies and larger-budget Games-as-a-Service (GaaS) titles, and has a strong pipeline of games under development. The company’s strategy retains an emphasis on expanding its own intellectual property (own-IP) portfolio and monetising its catalogue of AA and indie games using a franchise and multimedia model. Following recently reported challenges, the outlook for platform deals has stabilised. Direct sales to consumers continue to perform well and the strong reception to recently announced titles bodes well for the future.