“Aligned with the company's expansion objectives, this strategic move not only secures two additional global game publishers as clients but also promises to amplify its top-line growth trajectory,” says analyst Alyssa Tee.
Additionally, on April 8, Winking Studios announced that it plans to acquire assets and services from Pixelline Production, a Malaysian art and animation outsourcing company.
Winking Studios remains committed to sustaining organic growth alongside its acquisition endeavours. It has bolstered its internal business development team, which is dedicated to securing sales from key markets such as Japan and US, further diversifying its geographic reach.
Furthermore, Winking Studios has demonstrated consistent workforce expansion, with an annual double-digit growth rate. “This strategic increase in manpower positions the company to tackle larger and more extensive projects from various publishers, driving sustained growth and market competitiveness,” says Tee.
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Meanwhile, the company has exceeded expectations with its FY2023 growth performance. It achieved an overall revenue growth of 19.5% y-o-y, driven primarily by heightened contributions from its art outsourcing and game development segments.
The 9.5% y-o-y increase in art outsourcing revenue stemmed from securing new contracts from customers in key markets such as US and South Korea.
Notably, the game development segment witnessed a remarkable 124.3% y-o-y surge, fuelled by expanded business with existing clients and the acquisition of projects from new customers.
“As the company progresses with its expansion plans and experiences enhanced revenue growth driven by the expansion of its art outsourcing segment and increased sales from its business development team, we anticipate this positive trend to persist and reflect in the FY2024 revenue figure,” adds Tee.
As at 3.32pm, shares in Winking Studios are trading at 26 cents, about 21.4% higher than its IPO price of 21 cents.
