A foray into the world of non-fungible tokens (NFTs) has paid off for Melbourne-based video game developer PlaySide (ASX: PLY), today reporting a record quarter with a fivefold increase in revenue.
The company generated unaudited commercial revenue of $13.76 million in Q3 FY22, up 403 per cent, driven mostly by the receipt of $8.4 million from the release of Dumb Ways To Die-branded NFTs called BEANS.
On a nine-month basis, the company says it has seen revenues nearly triple to $23.16 million, compared to $7.76 million for the nine months through March 2021.
PlaySide CEO Gerry Sakkas said the company’s dive into the Web 3.0 space was “highly successful”, putting the company in a solid position ahead of the launch of its new Gold Coast studio.
“We plan to launch additional products within the BEANS universe in FY22 and FY23 and are continuing our Web 3.0 R&D which will lead to further new product launches in FY23,” Sakkas said.
“In addition, we achieved a key work-for-hire agreement with NASDAQ-listed Activision Blizzard, one of the world’s largest and most successful interactive entertainment companies, which is another validation of PlaySide’s capabilities by the biggest players in the industry.
“We have added amazing new talent to our team during the quarter to now be in excess of 150 people and look forward to further expansion to deliver new and exciting original IP products and titles to meet the needs of our growing list of clients. We are also extremely excited to announce that our new studio on Queensland’s Gold Coast is in the final stages of fit out and on track to open early next month.”
The company says it continues to invest in its game development pipeline which includes original IP (intellectual property) titles across mobile, PC and console.
In addition, further investment into its BEANS metaverse project is ongoing, with plans to launch a Web 3.0-driven online game code-named ‘Bean Land’ where player-owned BEANS NFTs will be the central characters.
PlaySide says development has commenced on the game which is planned to be initially launched on the PC platform in 2H22.
The company added $7.02 million to its cash reserves during the quarter, closing out March with $40.03 million.
This was driven by positive cashflow from operating activities, which was a record additional $8.35 million. Net cash outflows from investing activities were $1.83 million, which included $1.03 million invested in intellectual property and $0.35 million invested in capital expenditure.
Shares in PLY are up 2.25 per cent to $0.92 per share at 10.07am AEST.
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