Shares in video games publisher and developer TinyBuild (TBLD:AIM) gained 2% to 220p after a resilient first half performance led the company to guide for 2021 full year results to be at least in line with expectations.
Gaming guru at Shore Capital Katie Cousins has upgraded her revenue and profit forecast by 2% and 4% respectively, saying, ‘the positive traction during the first half along with improved visibility has resulted in us upgraded full year revenues to $49.8 million and adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) to $19.6 million’.
The company said in contrast to general expectations that video games sales would be negatively impacted after the removal of Covid restrictions, it had continued to experience sales growth as the firm benefited from platform competition.
Meanwhile, development advances from distribution partners were said to be above expectations which had given the firm greater visibility, helping to de-risk new game development.
The release schedule for 2021 is expected to be second half weighted and TinyBuild has signed an additional seven new games, taking the total games underdevelopment to 26 after accounting for the four games already released.
TinyBuild continued to broaden the reach of catalogue titles to new platforms. The multigame spin-off from the popular Hello Neighbor franchise, Secret Neighbor topped the charts on Apple Store in several countries and it has reached two million downloads on the Apple iOS.
Chief executive Alex Nichiporchik commented: ‘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.’
The company plans to publish interim results to 30 June on 15 September.