Delisted game developer Animoca Brands continues to post strong results for the 2020 financial year, buoyed by an increase in video game usage during worldwide COVID lockdowns.
Gaming companies have experienced a greater number of downloads and increased revenue generation during the pandemic, which served to grow the business and bring in record quarterly and monthly revenues for the first four months of the year.
It helped the company realise a record unaudited revenue, including $49 million of revenue received in advance, and a net operating cash flow of $3 million.
Receipts from customers came in at $34 million, representing a record increase on the same period in 2019, and all results included contributions from recently-acquired businesses nWay Inc, Quidd Inc, and Gamee Limited.
At 31 October, Animoca Brands’ cash and cryptocurrencies on hand totalled $17.6 million – of this, $16.4 million was in cash, Bitcoin, Tether, and Ether; while $1.2 million was in other cryptocurrencies.
The significant increase in Bitcoin and Ether holdings came from a growth in the company’s blockchain gaming activities which involved sales of various non-fungible tokens including LAND for The Sandbox, and race car and crate sales for F1 Delta Time.
“Given the dramatic increase in cryptocurrency prices, especially Bitcoin and Ether, over the 2020 Christmas and New Year holiday period, the outlook for products priced in cryptocurrency, such as [Animoca Brands’] blockchain games, is strongly positive,” the company said.
“[We] believe the recent movements in cryptocurrency markets further validate [our] strategy of positioning [our company] to benefit from the growing global acceptance and adoption of blockchain-based activities.”
Throughout the reporting period, Animoca Brands achieved several developments with its product suite, including the launch of the REVV utility token and in-game currency for branded motorsports games such as F1 Delta Time.
It released competitive Time Trial multiplayer game events and multiple “highly-successful” content pre-sales; staged a record-breaking auction for F1 Delta Time’s first track segment (at the time, the most expensive game NFT ever sold); recorded $2.5 million in LAND sales for The Sandbox and released the associated Game Maker component.
Animoca Brands also launched subsidiary nWay’s new title WWE Undefeated as the first World Wrestling Entertainment Inc mobile game featuring real-time, head-to-head gameplay.
New year plans
Animoca Brands maintains strategic holdings in digital lifestyle spin-off OliveX Holdings (NSX: OLX), as well as Australian mobile gaming developer iCandy Interactive (ASX: ICI) and video game software company Versus Systems, all of which have benefited from global interest in the gaming sector during 2020.
It new year plans include full commercial releases of major gaming titles including Battlepalooza, F1 Delta Time and The Sandbox.
It will also launch GAMEE and Quidd tokens; the mobile game franchise Star Girl on the Flow blockchain; and make initial releases of the officially-licensed blockchain games of MotoGP and Formula E which will expand the REVV token motorsports ecosystem.