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A landmark deal with Warner Bros to create a Games of Thrones video game, as well as a pipeline of promising titles and projects with smaller developers has seen Melbourne-based PlaySide Studios (ASX: PLY) post a record revenue of $64.6 million for FY24, reflecting a year-on-year increase of 68 per cent.
Known as one of the largest video game developers in the country, PlaySide revealed revenue for its Original IP arm – which develops and publishes the company’s own video game titles - more than doubled to hit $30.3 million, while the work-for-hire segment grew by 46 per cent to reach $34.3 million.
PlaySide is one of the largest games development studios in the country, with 220 staff working across three offices - two in Melbourne and one in the Gold Coast. With a total headcount of 350 staff, the remainder of the team works remotely across Australia, New Zealand and the UK.
The company develops video games for multiple platforms including mobile, PC/console, virtual reality and mixed reality, with a portfolio of more than 70 titles.
“The projects we have signed across Original IP and Publishing in the last twelve months enable us to significantly elevate our profile in the PC/console space,” PlaySide Studios CEO Gerry Sakkas said.
Six months ago, the company announced it signed an agreement with Warsaw-based indie game developers Fumi Games to publish the 1930s-inspired first-person shooter MOUSE, which is expected to launch in 2025 and is already the 40th most wish-listed title on online gaming platform giant Steam.
The ability to publish MOUSE comes after the studio decided in mid-2022 to establish a publishing arm, which provides funding, development support, marketing and publishing of third-party games from smaller independent studios.
“We are thrilled to be working on one of the most recognised entertainment IPs globally, as well as having the opportunity to publish one of the most anticipated titles on Steam in 2025,” Sakkas added.
“Having delivered a record profit in FY24 and starting the year with a cash balance at near-record levels, we are absolutely set up to deliver on these opportunities.”
EBITDA was reported at $17.5 million, with the studio previously posting a loss of $1.7 million. Net profit also rose to $11.7 million after FY23 saw PlaySide reveal a loss of $5.2 million.
The company also revealed a net cash balance of $37.1 million, reflecting an uptick of 14 per cent.
Other highlights noted in FY24 included the launch of Dumb Ways to Survive on the Netflix Games platform and a contract that was expanded and extended with Meta Horizon Worlds until December 2025.
For the near term, the studio is working on twin-stick shooter Kill Knight, which is slated to drop on 3 October 2024 on PC, Xbox One, Xbox Series X/S. PlayStation 5, PlayStation 4 and Nintendo Switch.
“While we have a strong focus on development in FY25, the year is not without its catalysts. We’ve got Kill Knight launching on PC and Console in the next six weeks, our first publishing titles coming to market, and new mobile titles gathering momentum,” Sakkas said.
“Importantly, you will start to see us ramp up the marketing efforts on our larger projects, and the outcomes from those initiatives are going to be very instructive as to how successful these games can be.
“Commercial success of one or more of these titles has the potential to create another step change in the company’s revenue profile, and I look forward to sharing more news with you through the year as we progress our marketing campaigns for these games.”
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