PlaySide posts 33% rise in Q4 revenue to close out FY21 in style
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The games development company now plans new titles and further expansion as growth accelerates in the June quarter.
Australia’s largest publicly listed video game developer PlaySide Studios (ASX:PLY) has flagged record revenues of $10.88 million for the 2021 financial year, with growing success in international markets and further growth forecast for this financial year.
PlaySide posted a 33% increase in June quarter commercial revenue to $3.13 million to close the year with preliminary total revenue of $11.53 million, including R&D tax incentives and government grants.
PLY’s popular Animal Warfare game achieved more than 10.8 million downloads in the June quarter, growing more than 16% over Q3 FY21 to become the highest downloaded original IP game in the company’s history.
Animal Warfare has scored an average rating of 4.8 out of 5 from more than 57,000 reviews on the Apple App Store and 4.4 out of 5 from more than 88,000 reviews on the Google Play Store.
The much-anticipated Toy Warfare to complement Animal Warfare was among a record eight titles launched in FY20/21 across PlaySide’s original IP and partnerships division.
It’s been a productive year for the company, which announced in May it had successfully landed a deal to “licence, develop and publish The Godfather mobile video game” with ViacomCBS, on behalf of the Paramount Pictures film studio.
Playside, which launched on the ASX in 2020, entered a similar deal with MGM Studios to develop a game based on the film franchise Legally Blonde.
In further June quarter highlights, PlaySide signed an innovative work-for-hire development agreement with Facebook Technologies for release of multiple titles on the Facebook Horizon VR platform throughout FY20/22.
As a reflection of their traction in the US market, IP revenue was up 483% to $1.5 million in the June quarter from the corresponding quarter last year.
Even larger positive trends were experienced across many of the other major international markets, including the UK, Canada and Japan.
PlaySide has announced seven new titles on its game development roadmap, with most planned for launch in FY21/22.
Age of Darkness: Final Stand, an original IP title for PC, has progressed strongly towards an early access release via Steam planned for late September. The modern, darker version of the survival RTS genre aims to challenge new players and strategy experts.
PlaySide has announced the new titles will be higher profile in nature with significant global partners and licensors and include their first console title.
In the June quarter, PlaySide also expanded the capacity and capability of its team with additional programmers, designers, an audio specialist, producer, artists and a data scientist.
The company has further committed to key investments in tools and technologies to support its future scalability including a new Match 3 engine, which is the core of the gameplay used in the Legally Blonde mobile title and will enable rapid deployment for future Match 3 titles.
PlaySide has also invested in animation and two-dimensional art customisation tools, refinement of WARKit, its Idle game toolset and in strengthening its corporate IT Governance.
Mobile gaming continues to be one sector benefiting from COVID-19 lockdowns and boredom on a global scale. App Annie has estimated consumers spent US$100 billion in 2020 and will spend over US$120 billion this year.
“It was a really strong performance for PlaySide growing revenue for the quarter 33% on pcp and growing 55% year on year for FY21,” PlaySide’s CEO, Gerry Sakkas said.
“The list of major achievements during the year was particularly pleasing. From taking the company public in December, to launching eight titles including an MMO, commencing development on our first major PC and console titles and signing two major Hollywood franchise licences.
“We have grown our talented team over the year while maintaining our family-based culture, which I am truly proud of. We have created our plan for FY22 with an exceptional pipeline of new titles, and I look forward to building on the momentum of the achievements this past year for an even bigger and better FY22.”
Playside’s stock price held steady at 36.5 cents following the release, maintaining a very positive climb off a 26 cent low at the end of June.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.