Independent Australian games developer PlaySide Studios posted revenue of $3.13 million over the previous quarter as highlighted in its first quarterly update, since listing on the ASX in December 2020.

The result represents a 66% increase on the previous quarter’s revenues, while customer receipts saw similar quarter-on-quarter growth (up 84% to $3.19 million) through the second quarter of the 2021 fiscal year (FY21).

The number of daily active users playing PlaySide’s original games grew by an astounding 249% in that same three-month block (up to 237,000), while the number of players installing the company’s titles grew to 5.8 million – up 241%.

“It was an extremely pleasing performance by PlaySide this quarter, underpinned by the result in our original IP,” CEO Gerry Sakkas said.

“Our product-centric strategy of making world-class titles and diversifying our portfolio beyond mobile is truly an exciting prospect for the company. Our portfolio is rapidly expanding and we look forward to releasing additional original IP titles in the second half of FY21.”

The second quarter also saw the release of Animal Warfare – a mobile gaming title in which players command hordes of animals in battles against enemies – which had been downloaded more than 6 million times by the end of the year.

This figure is ‘well above’ the company’s initial expectations, with 60,000 user reviews giving the game an average mark of 4.75 out of 5, suggesting the game has been well-received by players.

Mobile monetisation matures

An estimated 2.6 billion people play video games on their mobile devices, but for much of the segments, history developers and publishers have struggled to effectively monetise that – with only 38% of players currently paying for content.

However the last decade has seen the industry’s efforts to capitalise on games develop into something “a bit more mature”, spurred on by the use of the ‘freemium’ business model.

“The freemium model is essentially when you download a game for free and the user then gets to choose within that game whether they want to pay for it,” Mr Sakkas said.

This model can be incredibly lucrative, with Fortnite (a multiplayer online game with more than 350 million registered players) estimated to have hit $5 billion in revenues in 2020 alone.

While many players still won’t pay under this model, Mr Sakkas noted those that do, could spend thousands on in-app purchases in the course of a year, rather than simply buying the game for $60 – $70.

To stay updated with the latest company news and announcements, please register your details on Playside Studios’ investor centre.

Reach Markets have been engaged by PlaySide Studios to assist with private investor management.

Sources:

• Games Beat, Epic Games seeking to sell stake for $750 million at $17 billion valuation
• PlaySide Studios, ASX Announcement – Quarterly Activities Report
• Stockhead, Profit pockets in the booming gaming and Esports market
• The Verge, Fortnite is now one of the biggest games ever with 350 million players
• Webwise, Explained: What is Fortnite Battle Royale?