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- iCandy Interactive (ICI) receives $8.2 million in cash receipts over the June quarter of 2022 — an 82 per cent increase on the previous quarter and its highest-ever quarterly result
- The company attributes the result to higher service demand and the Lemon Sky Studios acquisition
- By the end of June, iCandy had acquired majority stakes in three gaming companies and a 100 per cent interest in Lemon Sky, which took its employee count to over 650
- Following increased staff costs and acquisition payments, iCandy had $28.3 million in cash at the end of June
- iCandy says it also expects to announce its highest-ever half-year revenue result of $12.9 million in its upcoming half-yearly report
- ICI shares are trading 5 per cent higher at 10.5 cents per share at 11:37 am AEST
iCandy Interactive (ICI) has reported an 82 per cent quarter-on-quarter increase in cash receipts for the three months ending June 30.
The $8.2 million in cash receipts represents the highest-ever quarterly result in the company’s history.
iCandy largely attributes the growth to “robust” service demand, which led to record quarterly revenue, largely assisted by the integration of Lemon Sky Studios.
The company completed the acquisition of Malaysia-based Lemon Sky Studios in February for MYR135 million (A$44.5 million at the time).
Lemon Sky Studios is a video game, game art, and animation studio, having worked on a large portfolio of video games including Call of Duty Infinite Warfare and Marvel’s Avengers.
Following the integration of Lemon Sky Studios, iCandy has contracted services for game production for the next three years.
Additionally, the company acquired majority stakes in Storms and Gameconomy in the March quarter, with Flying Sheep Studio acquired in June.
As a result, iCandy’s employee count was bolstered to more than 650, which meant staff costs increased in the June quarter to $5.2 million, up from $3.09 million in the March quarter.
Admin and corporate costs were reduced by 31 per cent to $2.2 million, and iCandy management said it expected these costs to decrease further.
iCandy also became cashflow-positive, with a net operating inflow of $152,000, up from a $2.7 million outflow in the previous quarter.
The communication services stock made payments of $9.6 million for the acquisitions of Lemon Sky, Flying Sheep and Gameconomy, representing the final tranches for each company.
At the end of the quarter, iCandy had $28.3 million in cash, which is notably less than the $42.7 million it started with, largely due to the acquisition payments.
For the half-year, iCandy expects revenue to total $12.9 million, which would be the highest half-year revenue ever. The company plans to deliver the half-year results by August 31.
ICI shares were trading 5 per cent higher at 10.5 cents per share at 11:37 am AEST.
