tinyBuild Inc. (LON:TBLD), a leading video games publisher and developer with global operations, has provided an update on trading ahead of its AGM later today and the publication of its interim results for the six months ended 30 June 2021 on Wednesday 15 September 2021.
Highlights
● First half performance in line with expectations for H1 2021
● Seven new games were signed, taking the current pipeline to 26
● Strong catalogue performance (e.g. Secret Neighbor reached 2 million downloads on iOS)
● The Company expects to deliver full year 2021 results at least in line with expectations
Current trading
2021 has seen the progressive lifting of Covid restrictions across a number of countries. In contrast with general expectations that video games sales would be negatively impacted, the Board is pleased to confirm that tinyBuild sales are progressing at least in line with expectations for the financial year 2021.
tinyBuild continues to benefit from platform competition and is also well positioned for subscription services growth. Development advances received from distribution partners were above expectations and have given the Company greater visibility in terms of future revenue growth, while helping de-risk the development process for new games.
As anticipated, the release schedule for 2021 is weighted towards the second half of the year. The Board is pleased to report catalogue titles are performing strongly, alongside new game launches, and the Company’s first half performance is in line with expectations for H1 2021.
Portfolio and pipeline
Since the beginning of the year, tinyBuild released Mayhem in Single Valley (PC only), a puzzle-loaded action adventure where the player has to prevent the end of the world, Hello Engineer (early access on Stadia), a multiplayer machinery-building construction game, Cartel Tycoon (early access on Steam), a first party survival business sim, and Black Skylands (early access on Steam), a skypunk Open World action adventure.
The Company also continues to broaden the reach of catalogue titles to new platforms, including Totally Reliable Delivery Service (Steam) and Secret Neighbor (PS4 and iOS). Secret Neighbor, a multiplayer spin-off in the Hello Neighbor franchise where a group of intruders try to rescue their friend from the Neighbor’s creepy basement, topped the charts on Apple Store in a number of countries, and it has reached 2 million downloads on iOS.
tinyBuild had 23 games in the pipeline at the end of 2020. So far in 2021, the Company has signed an additional seven new games, increasing the total number of new games under development to 26, after accounting for the new launches so far. Of these new games, four will be developed in Eastern Europe and Russia, two in the US and one in New Zealand.
People
As part of its effort to secure talent at competitive cost, the Company continued to hire staff (both employees and independent contractors) in strategic geographies. Staff increased from 147 at the beginning of the year to 166 currently, with most of the additions in our development studios.
tinyBuild aims to offer employees the best working conditions in the industry. For example, the Company has implemented clear policies against crunching, the industry practice by which developers overwork to meet certain targets. In June, tinyBuild also gifted one extra week of holiday to all direct employees in a gesture of appreciation for everybody’s hard work.
As a result, tinyBuild enjoys one of the lowest levels of staff turnover, low single digit, compared to an estimated 15.5.% at an industry level (Wired).
Outlook
While tinyBuild continues to carefully review the impact of the pandemic and the fluid macroeconomic situation, early indicators of consumer traction across the Company’s pipeline, including KPIs for Hello Neighbor 2, are very encouraging.
The Board remains confident the Company is on track to deliver results at least in line with expectations, plus accretive acquisitions.
Alex Nichiporchik, Chief Executive Officer of tinyBuild, commented:
“We are really excited about tinyBuild’s progress in terms of organic growth, with major titles in our pipeline showing strong KPIs ahead of launch, including new titles such as Tinykin and the widely anticipated sequel of Hello Neighbor.
“We remain focused on finding new games at different stages of development, and we continue to evaluate a number of M&A targets to help accelerate growth. 2021 has started well, and we look at the future with confidence.”
Analyst Presentation
tinyBuild plans to publish its interim results for the six months ended 30 June 2021 on Wednesday 15 September 2021. Subject to potential restrictions due to Covid, the Company intends to host an in-person presentation to analysts in London at 2pm on the same day. The presentation will be followed by a product demo session at 3pm, where participants will be able to experience the Company’s games firsthand.
