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Key Points
- Playside Studios shares lift following another record performance
- All-time high revenue of $5.36 million, up 71% pcp
- Management experts strong pipeline of releases in FY22
The Playside Studios Ltd (ASX: PLY) share price is heading north today following the company's latest trading update for FY22.
At the time of writing, the video game developer's shares have accelerated to 99.5 cents, up 3.65%.
What's driving Playside Studios shares higher?
Investors are buying up Playside Studios shares after the company reported a robust performance for the second-quarter of FY22.
According to its release, Playside Studios advised it has achieved record quarterly unaudited commercial revenue of $5.36 million. This represents an increase of 71% over the corresponding period (pcp), and a 33% improvement quarter-on-quarter (QoQ).
Management credited the company's original IP business which registered $3.3 million in revenue, a growth of 53% on pcp. First development revenue for Age of Darkness: Final Stand and initial revenue from the Dumb Ways to Die portfolio primarily contributed to the result.
The work for hire business continued its growth trajectory with $2.08 million in revenue, up 112% on pcp and 57% QoQ. The key achievements included signing a major strategic agreement with 2K Games and a material new contract with Shiba Inu Games.
In line with its growth plans, Playside Studios is continuing to invest in its game development roadmap. The investment in original IP titles across mobile, PC & console platforms is expected to provide a strong pipeline of releases in FY22.
The company declared $33.01 million in cash reserves, representing an increase by $23.67 million for the quarter. It is worth noting though that the bulk of the positive movement comes from a net $26.7 million placement and share purchase plan.
What did management say?
Playside Studios CEO, Gerry Sakkas commented:
PlaySide continues to deliver strong results with another record quarter of revenue, building on a strong start to FY22. Our Original IP business continued to track extremely well with development revenue generated from Age of Darkness: Final Stand and games revenue from our Dumb Ways to Die acquired portfolio being recorded for the first time.
Additionally, highly anticipated title Legally Blonde entered soft launch during the quarter and is tracking strongly towards commercial launch in Q4 FY22.
PlaySide Studios share price snapshot
Over the past 12 months, Playside Studios shares have gained 150%, but are down by more than 10% year-to-date.
Based on today's price, Playside Studios commands a market capitalisation of roughly $138.52 million, with approximately 144.29 million shares outstanding.
