Streamlining the company and doubling down on IP should be greeted positively by investors. Ahead of final results (15 April), tinyBuild sells its Brazilian QA and localisation studio, Red Cerberus. The buyer is a North American ‘consultive software and hardware company’. The move enables tinyBuild to concentrate on games/IP development. The consideration is US$1.5m cash payable on completion and guidance is that the disposal will be ‘marginally accretive’ in 2025. Into results we remind investors of the reassuring trading update (6 February), which illustrated that tinyBuild is delivering on its investor promises to retain emphasis on IP, expand reach and monetise its back-catalogue. The continued drum beat of new titles (see inside) and monetising the back-catalogue means investor attention can comfortably pivot to tinyBuild’s strong valuation support (EV/Sales 0.6x vs sector 2.9x) and executing on TAM, making the re-rating all the stronger.
tinyBuild: Progressive
Apr 3, 2025Disclaimer & Declaration of Interest
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