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iCandy Interactive (ASX:ICI) flags “explosive” growth as Lemon Sky drives profitability

ASX News, Technology
ASX:ICI      MCAP $30.72M
01 September 2022 13:14 (AEDT)

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Game developer iCandy Interactive (ICI) has flagged in its latest financial report a thousandfold increase in half-yearly revenue as it operates profitably for the first time ever.

The company said it grew half-yearly revenue to $15.7 million for the six months to the end of June 2022 — a 1600 per cent increase on the $900,000 tabled over the same time period last year.

Moreover, iCandy achieved an earnings before interest, tax, depreciation and amortisation (EBITDA) result of $4.4 million for the half-year, driven by record quarterly cash receipts of $8.2 million, up 82 per cent compared to the first half of 2021.

The company attributed the “explosive” growth to its acquisition of Lemon Sky Studios announced in November last year. In light of this, iCandy was only profitable when excluding the costs associated with the acquisition.

Nevertheless, the company assured investors that while the acquisition costs were one-off, it believed its revenue trends were not.

“Management expects the revenue trend to continue and sustain as revenue contributions from newly acquired business units started to be recognised by iCandy,” the company said in an announcement to investors.

Looking ahead, iCandy said the Lemon Sky team had contracted services for game production for the next three years.

Meanwhile, iCandy is working to develop its first AAA metaverse game, Metal Genesis. The company said it expected to release a playable demo of the game before the end of the year.

Shares in iCandy Interactive were up 13.2 per cent to 8.6 cents at 1:13 pm AEST.

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