The market is bidding the Playside Studios Ltd (ASX: PLY) share price higher after the company released its half-year earnings.
At the time of writing, the Playside share price is 93 cents — a 5.68% gain on Thursday's closing price.
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Playside share price takes off as losses recover
Highlights of the video game developer's results for the first half of financial year 2022 include:
- Revenue of $9.4 million – an 87% increase on that of the first half of financial year 2021
- Earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a loss of around $150,000 – up from the prior corresponding period's loss of $1.6 million
- Posted an after-tax loss of $444,000 – an improvement on the prior period's $2.05 million loss
- Earnings per share (EPS) came to a loss of 12 cents – a better result than the previous loss of 74 cents
Over the first half of financial year 2022, Playside's revenue split leaned further towards its original intellectual property (IP) segment.
Some 64% – around $6 million – of the company's revenue was generated through its own IP, up from 59% in the prior comparable period.
The increase was mainly due to its Age of Darkness: Final Stand, Battle Simulator, and Animal Warfare titles.
The remaining 36% – or $3.4 million – was generated through work for hire business.
That was boosted by contracts with 2K Games, Meta Platforms Inc (NASDAQ: FB), and Shiba Inu Games (CRYPTO: SHIB).
The company ended the period with $33 million in cash and equivalents.
What else happened in the half?
The last half was a busy one for Playside and its share price.
The company announced its acquisition of the Dumb Ways to Die franchise for $2.25 million. Since then, it's undergone an NFT project, BEANS, under the franchise's name, which brought in $8.38 million in January.
It also underwent a capital raise, whereby it raised $25 million in a private placement and another $3 million through a share purchase plan.
It offered its shares for 75 cents apiece within the raises.
The Playside share price gained 323% between 30 June and 31 December 2021.
What's next?
Playside is currently developing several games to be launched during the second half and beyond.
Its Legally Blonde game will launch in the final quarter of this financial year, while its Age of Darkness: Final Stand will launch in the first quarter of financial year 2023.
The Godfather and World Boss will undergo soft launches in the third and fourth quarter of this financial year respectively.
Additionally, the company is in talks with multiple Hollywood movie studios for the rights to other licences.
It's also developing 3 new titles under the Dumb Ways to Die franchise and is in discussions with streaming providers and toy manufacturers to expand the brand.
Playside share price snapshot
Today's gains haven't been enough to boost the Playside share price back into the year-to-date green.
It is currently still 23% lower than it was at the start of this year. Though, it's 110% higher than it was this time last year.
