The COVID-19 pandemic has proved a boon for game developer iCandy Interactive (ASX: ICI) with the company heralding its first ever positive earnings before interest tax depreciation and amortisation for the full year ending December 2020.
EBITDA for the 12 months came in at $800,000 and was shored up by a 62% increase in revenue from $2.2 million in FY 2019 to $3.6 million.
Adding to the positive financial scenario was a 76% reduction in losses from $2.3 million in FY 2019 to $600,000 in FY 2020.
“Over the last two years, iCandy has been focusing on building up its fundamental capabilities and focusing on doing what we do best – developing and publishing excellent games that are highly engaging, interactive and fun to play,” iCandy chairman Kin Lau explained.
‘Smash hit’ game drives financial performance
Mr Lau has attributed the huge improvement in financial performance to its “smash hit” game Masketeers: Idle Has Fallen.
Masketeers was only launched in October last year and contributed $1 million in revenue from its launch till the end of December.
Claw Stars to launch within two months
Another game in the works that is expected to boost revenue is Claw Stars, which is undergoing a trial.
The trial has so far shown “extremely encouraging early results” that have exceeded first uptake of Masketeers.
According to iCandy, initial seven day retention rates for Claw Stars are 62.5% higher than Masketeers.
Analysists use the retention rate to gauge how engaging and addictive a game is.
iCandy’s management has attributed Claw Stars’ higher retention rates to its “unique social interactivity mechanics” within the game.
Expanding into world’s largest gaming market
To facilitate further growth, iCandy is also planning to expand distribution channels of its mobile games – with mainland China the primary target, which is the world’s largest gaming market.
An agreement with China’s leading game publisher Ohayoo will help with localising, publishing and marketing Masketeers in the region.
Mr Lau said the company was looking forward to the “exciting time ahead”.