The continued strong performance of Animoca Brands’ (ASX: AB1) core gaming business has helped the company generate an almost 200% increase in revenue for the December quarter.
Unaudited revenue for the three-month period totalled $4.59 million, representing an 188% jump on the same period last year. The stellar result has helped to bring total unaudited revenues for the year to $17.7 million
The revenue bump was aided by a 637% year-on-year increase in cash receipts which totalled $6.89 million in the December quarter. The period marked the fourth consecutive quarter with positive operational cash flow.
The Melbourne-headquartered games developer closed the quarter with $10.9 million in cash and cash equivalents.
Commenting on the quarter, Animoca said the stellar results have helped the company finish up its strongest year or record.
“Q4 2018 has capped off a year of record results with continued strong performance,” the company told shareholders.
“The continued performance of the core gaming business, led by titles like Crazy Kings and Crazy Defense Heroes, as well as the portfolio of branded games, drove revenues and cash flow during the quarter.”
During the quarter, the company bolstered its senior management team with the appointment of Gen Kanai as head of strategic partnerships, as well as Ed Fries, creator of Microsoft Game Studio and co-founder of the X-box project.
Strategic investments underpin growth
Animoca, which develops gamification, blockchain, and artificial intelligence (AI) technologies, is seeking it become a “global leader” in the burgeoning blockchain gaming sector.
In line with this objective, the company made a series of strategic investments and partnerships during the quarter.
It acquired a majority stake in Zeroth for $1.5 million, providing Animoca with direct access to market intelligence and open innovation.
Subsequent to the end of the quarter, Zeroth has started its fourth cohort which comprises of 30 new AI and blockchain related start-ups from all over the world.
It also signed a framework agreement with China-based iClick Interactive Asia to become a strategic reseller of its iClick online and data marketing technology platform.
And in a landmark move into branded blockchain games, the company partnered with Atari to make blockchain versions of the popular games RollerCoaster Tycoon Touch and Goon Squad.
In addition to partnerships, the company stepped up inorganic growth activity, completing the acquisition of Pixowl for an upfront consideration of about $6.65 million.
Following on from a series of major strategic investment partnerships, the company expressed a positive outlook for the growth of the business.
“Post the quarter, the company has continued to consolidate its leadership in the area of blockchain gaming with a partnership with WAX Blockchain, the world’s first and largest purpose-built global blockchain e-commerce platform for trading virtual items,” it said.
“The company expects to continue to execute on its mission in 2019 with a continued emphasis on Blockchain, AI and Brands with our specific target focus on games.”