Playside Studios (ASX:PLY) share price climbs on record revenue

Playside is in fine form for the first-half of FY22.

| More on:
A happy family playing video games smiles and laughs together

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Technology Shares

Up 60% in two months, is it too late to buy Pro Medicus shares?

Pro Medicus has been delivering solid returns for years. Can the trend continue?

Read more »

Group of people in a gym high five each other surrounded by gym equipment.
Mergers & Acquisitions

This ASX tech stock is hitting a record high on acquisition news

The market is responding positively to this news. Let's dig deeper into it.

Read more »

A man in a suit face palms at the downturn happening with shares today.
Technology Shares

Guess which ASX 300 share is crashing 17% on shock news

Investors are rushing to the exits on Thursday. Let's find out why.

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Technology Shares

These were the best ASX 200 tech stocks to buy in May

Shareholders of these shares were smiling last month. But why?

Read more »

A woman smiles as she sits on the bus using her phone and listening to music through headphones.
Technology Shares

Here's why I think these ASX tech shares are buys in June

These stocks have loads of potential.

Read more »

A young man wearing a black and white striped t-shirt looks surprised.
Technology Shares

Why did the Life360 share price rocket 51% in May?

This ASX 200 stock smashed the market last month with an incredible gain.

Read more »

Man ponders a receipt as he looks at his laptop.
Technology Shares

Up 30% since April, are Xero shares still a buy?

Xero shares have surged 30% since April, but can this SaaS leader's share price keep rising?

Read more »

A man and a woman sitting in a technology-related work environment high five each other while the man wears headphones around his neck and the woman sits in front of a laptop.
Share Market News

Strong gains for Wisetech, TechnologyOne, and Catapult amid ASX 200 tech sector lead

ASX technology shares led the market with a 3.85% increase while the ASX 200 lifted 0.88% last week.

Read more »