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Published on: June 26, 2024

Trading update – little steps forward

In a trading update on 24 June, tinyBuild reported that sales are ‘slightly ahead of expectations’ for the first five months. The year is H2-weighted, there is risk with new title debuts and the industry backdrop ‘remains difficult’. But there are a few signs of modest improvement: (i) the pipeline is growing stronger; (ii) cash ‘mid-to-high single digit’ show that the ‘burn’ is reducing; and (iii) data points indicate that the strategy is working – 1m new wishlists added in the past month, players have spent c.1.8m hours in-game with playtests and demos since March 2024, and our research shows an 18% increase in followers across our monitored titles (see inside). Through industry-wide restructuring, tinyBuild retains emphasis on IP, expanding reach, debuts and monetising its back-catalogue. Nervousness pervades, competitor performance is mixed, but investors should be encouraged by this progress. We believe valuation should catch-up as positive news continues.

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