tinyBuild’s first-half profit falls 70% as costs outpace revenue

tinyBuild ($TBLD) reported first-half pre-tax profit of approximately $1.1 million, down from $3.6 million, despite revenue growth of 18% to $20 million. Cost of sales increased to $10.2 million from $5.5 million, while administrative expenses rose to $8.7 million from $7.3 million. The increase in spending more than absorbed the benefit of higher sales.

Management said the first-half performance was ahead of its expectations and maintained its full-year outlook. The company is emphasizing disciplined investment, ownership of intellectual property and a range of development budgets. Several upcoming games have attracted substantial wishlist interest, but that is an indicator of attention rather than booked revenue. The new results reveal a much weaker profit conversion rate even as the top line grows.

Sources:

• Alliance News / AJ Bell — tinyBuild interim results