Investors have responded favourably to iCandy’s H1 FY22 results which sees its revenue increase substantially on the back of its acquisition of Lemon Sky Studios.

Leading ASX game developer iCandy Interactive (ASX:ICI) has seen its share price rocket ~12% to 8.5 cents today after reporting its best first half year financial results.

ICI achieved growth of 1600% in revenue from $900k in H1 FY22 to $15.7 million in H1 FY22, following consolidation of Lemon Sky Studios which ICI acquired in February.

The $44.5 million 100% acquisition of Malaysian-based Lemon Sky establishes ICI at the summit of gaming across Southeast Asia.


Other key H1 results include:

  • A milestone in achieving profitability, recording EBITDA of $4.4 million
  • Operationally profitable for the first time
  • Revenue trend expected to continue as contributions from  newly acquired businesses like Lemon Sky Studios start to be recognised
  • Record quarterly cash receipts of $8.2m, a quarterly increase of 82%
  • Following full integration of Lemon Sky Studios, ICI has contracted services for game production for the next three years.


M&A strategy builds strength

ICI has been heavily investing in acquisitions to build its global presence with Lemon Sky Studios being the jewel in the company’s crown.

In June, ICI also announced completion of a 60% acquisition of German gaming backend tech company Flying Sheep Studios for around $3 million.

Flying Sheep founder Thomas Rössig was recently appointed ICI’s head of Europe. Rössig will manage and provide strategic direction for the ICI team in Europe, while continuing to serve as Flying Sheep Studios’ managing director.

Earlier this year ICI also acquired a majority 51% stake in gaming studio Storms, alongside three of Asia’s top telcos Singtel, AIS and SK Telecom.

The acquisition advances iCandy’s goal of becoming a global games publisher within the fast-growing metaverse and web 3.0 space.


Upcoming and ongoing development

 New key web3 games that are now undertaken by ICI include its first AAA metaverse game Metal Genesis.

The company said Metal Genesis is an armoured robo-suit war machine-themed and player-vs-player metaverse virtual world game being  developed by industry-leading game designers and artists at Lemon Sky Studios.

ICI said the game’s development is progressing rapidly with a playable demo due to be ready in Q4 2022.


This article was developed in collaboration with iCandy, 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.