(Alliance News) - tinyBuild Inc on Tuesday said it swung to a loss in 2023 and saw its revenue fall amid expected drop in contracts.
Shares in tinyBuild were down 18% at 4.95 pence each in London on Tuesday morning.
The Seattle, Washington-based video game developer and publisher said it swung to a pretax loss of USD64.5 million in 2023 from a pretax profit of USD15.9 million the year before. This was due to an impairment of software development costs of USD36.2 million.
Revenue plunged 29% to USD44.7 million from USD63.3 million a year ago, due to an "expected" drop in contracts.
tinyBuild noted that Versus Evil LLC, a firm it acquired in 2021, saw a drop of over 60% in revenue as a result of game delays.
In December, tinyBuild agreed to pay a USD3.5 million settlement to close its legal dispute with Steve Escalante, Lance James and Stall Proof LLC, the previous owners of Versus Evil and Red Cerberus LLC.
This was because the claimants alleged that tinyBuild had ""breached three material obligations", including not providing Versus Evil with "timely capital contributions" in the 2022 and 2023 financial years.
tinyBuild also previously reported that Versus Evil continued to underperform, with three out of four games planned for release in the second half of 2023 delayed into 2024.
Looking ahead, the company said its pipeline for 2024 "remains strong" and remains confident that it will deliver its full-year results in line with expectations.
Chief Executive Officer Alex Nichiporchik said: "2023 was a tough year for the whole video games industry and demonstrated once again the importance of strong diversified back-catalogue and investing in long-term, sustainable franchises. We see early signs of success in our shift towards the 1,000 hour game and we will continue to experiment with the aim to add additional revenue streams to our core business."
By Sabrina Penty, Alliance News reporter
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Tinybuild Inc (TBLD)