tinyBuild Inc (LON:TBLD), the indie video games publisher and publisher, saw adjusted underlying earnings (EBITDA) double in 2020.
Adjusted EBITDA rose to US$15.3mln in 2020 from US$7.7mln on revenue that rose 35% to US$37.6mln from US$28.0mln in 2019.
Net cash at the end of 2020 was US$26.3mln, up from US$17.0mln at the end of 2019. Since then, the company has floated on AIM, raising GBP36.2mln (US$50mln)
The board remains confident the company is on track to deliver results at least in line with expectations this year and remains on the look-out for acquisitions.
Talking of which, the company has acquired DogHelm for a maximum of US$6.5mln. The consideration will be split roughly equally between cash and 166,204 newly issued tinyBuild shares at an assumed price of 254p.
The acquisition will bring DogHelm in-house ahead of the sequel to the “Streets of Rogue” game, along with its developer Matt Dabrowski.
“Our goal is to expand our position as a leading global developer and publisher, focusing on IP [intellectual property] ownership while creating long-term scalable franchises across multiple media formats. We are actively looking at a number of potential acquihires [sic] and larger-scale acquisitions to enhance the company’s strategic and operational position,” said Alex Nichiporchik, the chief executive of tinyBuild.”
“Our back catalogue has performed strongly, and we now have a highly diverse revenue mix. Our strategy to accumulate owned-IP has resulted in a strong financial performance and has translated into underlying gross margin improvement.
“With a strong pipeline of high-quality titles set for release in the next two years, the majority of which are first and second-party titles, we have the potential to build more multimedia franchises and emulate the success of Hello Neighbor. Hello Neighbor was one of our first own-IP franchises and has gone from strength to strength. It is great to now see the fanbase engaging with Hello Neighbor 2 and actively contributing to the game’s progress by playing the alpha release. With books, graphic novels, and early talks for a potential animated TV series, Hello Neighbor provides a template for many of our future games,” Nichiporchik said.
Shares in tinyBuild were up 1.3% at 268.5p after an hour of trading.