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tinyBuild moving away from third-party publishing as its shares plunge nearly 80% on bad H1 performance | Game World Observer
tinyBuild has seen its shares collapse following the release of its latest financial statement. The company reported a revenue decline, the departure of its CFO, and its decision to stop publishing games from third-party developers.
gameworldobserver.com
On June 29, tinyBuild told investors that its first-half performance was below expectations. There are two major reasons for this:
- Lower contribution from deals with distribution platforms due to the downsize of investment in non-AAA games;
- Underperformance of Red Cerberus and Versus Evil, two companies acquired by tinyBuild in November 2021.
“As CEO and a major shareholder, I am disappointed with the H1 performance,” tinyBuild founder Alex Nichiporchik said in a statement.
The company is now also reviewing a number of unreleased and already launched games, saying that it may conduct the reorganization of some studios and the impairment of certain assets.
On top of that, tinyBuild CFO Tony Assenza stepped down from the company and its board of directors. He will be replaced by Giasone Salati.
Following the publication of this announcement, tinyBuild shares declined by 78.8% to £7.3 per share (via the London Stock Exchange). This is the lowest share price in the company’s history. Overall, its stock has plunged 92.86% since going public in 2021.
Opposite to the headwinds mentioned above, tinyBuild currently has a record number of upcoming games in its pipeline, including Critter Cove, Slime 3K, and Kill it with Fire 2. On top of that, its back catalog, driven by Hello Neighbor, Potion Craft: Alchemist Simulator, and Not for Broadcast, continues to perform well.
That’s why tinyBuild decided to move away from publishing third-party titles and focus on games from its in-house teams. It also plans to “invest in new larger-budget own-IP with high replayability” and/or with games-as-a-service potential.
