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PLAYSIDE STUDIOS LIMITED Investor Presentation 2023
65578_rns_2023-08-23_a2fcb629-90d3-4be5-a454-d25dc4a6e85c.pdf
Investor Presentation
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2023 Copyright PlaySide Studios Ltd
FY23 RESULT PRESENTATION AUGUST 2023
PlaySide delivered 90% revenue growth as its Dumb Ways franchise exploded inpopularity and several major new Work for Hire projects were awarded.
- Record underlying revenue across all divisions
- EBITDA and operating cash flow positive in the second half
- All major Original IP projects announced around the IPO are now largely complete
- • Dumb Ways to Die became one of the largest gaming accounts on TikTok, portfolio expanded outside of mobile
- • Multi-year development contracts with Meta and Skydance Interactive
GAINING MOMENTUM AS THE YEAR PROGRESSED RESULTS SNAPSHOT
Note: FY22 normalised for NFT sales ($9m revenue, $8.4m EBITDA), $0.8m impairment. FY23 normalised for $1.7m impairment in 1H.
FY23 HIGHLIGHTS 90% REVENUE GROWTH, EBITDA POSITIVE IN THE SECOND HALF
| FY22 | 1H23 | 2H23 | FY23 | CHG | |
|---|---|---|---|---|---|
| Underlying Revenue | 20.2 | 16.5 | 21.9 | 38.4 | 90% |
| Original IP | 10.0 | 5.6 | 9.4 | 14.9 | 49% |
| Work for Hire | 10.2 | 10.9 | 12.6 | 23.5 | 130% |
| EBITDA | (1.7) | (2.7) | 1.0 | (1.7) | |
| D&A | (1.0) | (1.4) | (3.0) | (4.4) | |
| EBIT | (2.7) | (4.1) | (2.0) | (6.1) | |
| NPAT (NORM.) | (2.7) | (3.8) | (1.4) | (5.2) | |
| ONE-OFFS | 7.6 | (1.7) | - | (1.7) | |
| NPAT (REP.) | 4.9 | (5.5) | (1.5) | (7.0) | |
| CASH BALANCE | 37.9 | 29.8 | 32.2 | (5.7) | |
| HEADCOUNT | 172 | 224 | 277 | 61% |
Note: FY22 operating cash flow normalised for NFT sales ($8.4m net of costs).
FY23 HIGHLIGHTS CASH FLOW POSITIVE IN THE SECOND HALF
| FY22 | 1H23 | 2H23 | FY23 | |
|---|---|---|---|---|
| Operating cash flow | (0.8) | (5.3) | 3.7 | (1.6) |
| Capitalised dev | (6.2) | (2.4) | (0.5) | (2.9) |
| PP&E, leases | (1.2) | (0.6) | (0.6) | (1.2) |
| NFT sales (net) | 8.4 | - | - | - |
| Capital raising (net) | 26.7 | - | - | - |
| Net cash flow | 27.0 | (8.3) | 2.6 | (5.7) |
| Forex movements | (0.3) | 0.2 | (0.2) | - |
| Opening cash | 11.2 | 37.9 | 29.9 | 37.9 |
| Closing cash | 37.9 | 29.9 | 32.2 | 32.2 |
10 9
13
QUARTERLY REVENUE SOME VARIABILITY FROM QUARTER TO QUARTER…
QUARTERLY COMPOUND REVENUE GROWTH 18%
DEC 22
MAR
23
JUN 23
Note: Normalised for $9m NFT sales. Figures rounded to the nearest million. 6
50-55
38.4
GROWTH TRAJECTORY …BUT ANNUAL GROWTH HAS BEEN A CONSISTENT THEME
GUIDANCE
ANNUAL COMPOUND REVENUE GROWTH 73% REVENUE GROWTH IMPLIED BY GUIDANCE
30-43%
Note: FY22 normalised for $9m NFT sales. Pre-IPO figures are statutory historicals as reported in the company's Prospectus dated 16 December 2020. 7
ORIGINAL IP LAUNCHES
PC TITLES
Age of Darkness campaign mode World Boss global launch
MOBILE TITLES
KEY EVENTS PROJECTS ANNOUNCED IN IPO YEAR ARE LARGELY COMPLETE
Global launch of Legally Blonde Global launch of The Godfather Dumb Ways to Die 4
WORK FOR HIRE SIGNINGS
Expansion and extension of agreement with Meta
MR game development partnership with Meta
VR co-dev partnership with Skydance Interactive
Original IP projects announced during the IPO year are now largely complete, with staff progressively moving onto new projects
Recent Work for Hire projects have been multi-year in tenure and significantly larger than previous signings.
Interactive entertainment is the #1 entertainment vertical globally,with an estimated 3.2 billion video game players globally.
Source: Take Two Interactive JunQ23 report
Sources: Newzoo 2023 Global Games Report, Entertainment Software Association's
OF GAMERS ARE FEMALE
THE VIDEO GAMES INDUSTRY IS APPROACHING
US$200BN
OF US PARENTS PLAY VIDEO GAMES WITH THEIR CHILDREN 76%
OF AMERICANS PLAY VIDEO GAMES FOR AT LEAST AN HOUR EACH WEEK
VIRTUAL AND MIXED REALITY INDUSTRY INVESTMENT CONTINUES TO GROW
- Meta announces the Quest 3 next-generation virtual and mixed reality headset
- Roblox available on Meta Quest as open beta, achieves 1m downloads in the first week
- Apple unveils the Vision Pro augmented reality headset
- Unity partners with Apple to bring its apps to the platform
- Sony to invest US$2.1bn in the field of extended reality by the end of March 2024, accounting for 40% of its R&D budget for the year
Brand owners are using transmedia to add depth, breadth and reach to their stories, with some of the worlds hottest properties starting as gaming IP.
PlaySide continues to extend the reach and value of its Dumb Ways to Die IP, which is significantly greater than when we acquired it.
500M+ DOWNLOADS 1.3M COUNTING
RECENT INITIATIVES
WE CAN TAKE THIS BRAND A LOT FURTHER! DUMB WAYS TO DIE
- • VR title for Meta Quest devices
- • Dumb Ways to Survive premium mobile title for Netflix Games
- • Card game deal with Spin Master
- • Beanland****online battle royale for PC
- • Console title in concepting phase
- With more than one billion views across all our Dumb Ways brand channels in 2023 alone, we are very confident we can take the brand well beyond mobile. ""
- BEN KELLY, GM DUMB WAYS TO DIE
PlaySide is committed to developing valuable Original IP content across multiple platforms, supported by a pipeline of multi-year Work for Hire projects.
PUBLISHING TWO TITLES SIGNED TO LAUNCH IN 2024
FIRST YEAR OF OPERATION
- Established July 2022
- Three experienced staff based in the UK, supported by game review team in Melbourne
CURRENT GAME PORTFOLIO
- • Dynasty of the Sands (Rocket Flair Studios)
- • Creative/survival city builder
- • Thrive: Heavy Lies the Crown (Zugalu Entertainment)
- • Medieval fantasy city builder
- Expect to sign a third title during FY24
DIVISION FOCUS ORIGINAL IP PROJECT PIPELINE
OUTLOOK ANOTHER YEAR OF STRONG GROWTH
- • Substantial investment in Original IP development
- New titles across mobile, PC/Console and VR
- Titles to be announced once greenlit
- • FY24 revenue guidance of $50-55m
- Implies 30-43% revenue growth on FY23
- 50:50 WFH/Original IP revenue split, 1H weighted
- Based on current pipeline and signings
- • Anticipate signing a third Publishing title in FY24