Booming growth: iCandy becomes the latest ASX game developer to report a strong September quarter
The September quarter has been another strong one for ASX game developers, and iCandy Interactive (ASX:ICI) has been no exception.
Since COVID-19 first confined people to their homes, people have turned to e-games to pass the time and the sector has never looked back.
Several esports stocks – such as Playside Studios (ASX:PLY) and Mighty Kingdom (ASX:MKL) have already impressed investors with their most recent quarterly figures and iCandy continued that trend with a strong result this morning.
Most pleasing for investors, the company turned a $331,000 deficit in its cash flow operations into a surplus of $242,000.
iCandy’s Claw Stars game was arguably the highlight of the quarter, generating $299,570 in revenue in just two weeks after its launch.
During the quarter, iCandy continued to work with its joint venture partner Lemon Sky Studios on their game studio Sky Candy. The pair are anticipating a playable alpha version of a game with an AAA quality art and animation in due course.
It also became a substantial shareholder of Mighty Kingdom (ASX:MKL), buying a 7.78% stake for $1.59 million.
iCandy reiterated to shareholders this morning that its investment in MKL was a value-accretive opportunity, based on its attractive valuation and the potential business synergies that could be explored.
Looking forward, the company says the boom in egaming is only expected to increase in the years ahead, providing significant opportunities for companies the have already established traction in the market.
“As the world continues to digitise, the opportunities to develop and distribute high quality gaming experiences is expected to increase, ICI said.
In that context, “the board of directors of iCandy believe the company is well positioned to participate further in this expansion”.
This article was developed in collaboration with iCandy Interactive, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.