Winking Studios reported an earnings drop of 70.% y-o-y to US$525,000 from US$1.8 million a year ago in its latest FY2024 ended Dec 31, 2024 results. This is mainly due to the group's IPO expenses from listing on both SGX and LSE, as well as higher marketing expenses.
Revenue was on the uptrend, coming in at US$31.9 million, 8.9% higher y-o-y than US$29.3 million last year.
Excluding currency exchange depreciations, revenue would have increased by 11.2% y-o-y.
The group saw revenue growth in two of its largest business segments, art outsourcing and game development, thanks to an increase in orders from customers. The art outsourcing segment also includes revenue contributed from the group's new acquisitions, On Point Creative and Pixelline.
Distribution and marketing expenses were 39.5% higher y-o-y at US$2.2 million, while administrative expenses were 43.0% higher than the previous year at US$9.1 million.
As at end-2024, cash and cash equivalents stood at US$39.8 million.
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The group declared a dividend of 0.024 cents per share.
“FY2024 also marked another pivotal transition for our group as we expanded our investor base globally, strengthened our business foundation, and adapted to an evolving market landscape," says Johnny Jan, executive director, CEO and founder of Winking Studios.
"The group is focused on delivering long-term, sustainable value creation through a combination of organic growth, strategic acquisitions and operational efficiencies. We expect to complete the acquisition of Mineloader before the end of second quarter of 2025, subject to the fulfillment of certain conditions precedent, expanding our headcount, increasing our market share in the game art outsourcing industry and enhancing our value propositions in our targeted markets."
"The acquisition will also support our broader goal of increasing market share in Western markets, where demand for game art and development services continues to grow. Beyond this, we continue to pursue a robust pipeline of M&A opportunities, leveraging our 25+ years of industry experience and established networks in the global gaming industry to identify high-quality acquisition targets that align with our strategic objectives."
Shares in Winking Studios trade at 29 cents on SGX at 11.15am.
