Shares are up more than 50% in 2024 for Vancouver-based East Side Games Group, who reported their latest quarterly earnings this month.
Building on momentum from the prior quarter, the maker of free-to-play mobile games achieved its first growth quarter of the year, reporting a top-line revenue of $21 million, which marks a 4% increase quarter-over-quarter and 3% increase year-over-year.
The iconic local game studio, established as an indie developer back in 2011, remains consistently profitable, according to chief executive officer Jason Bailey, who says financial performance has been in the corporate crosshairs.
“Our focus on profitability within our existing portfolio has paid off, and we are excited to further enhance our user acquisition strategies,” Bailey stated.
East Side Games is also buying back shares “as restrictions allow.” Through September, the company purchased more than 1.5M shares at an average price of $0.76.
“With $8.3 million in cash—our highest balance since Q2 2022—we are well-positioned to invest in our future game launches and bolster our share buyback program,” Bailey said.
Key drivers of growth for the quarter included the launch of “Power Rangers: Mighty Force,” as well as tweaking monetization tactics for longstanding titles “Trailer Park Boys: Greasy Money” and “Cheech and Chong: Bud Farm,” according to a statement from East Side Games.
Other titles in ESGG’s portfolio include The Office: Somehow We Manage, Star Trek: Lower Decks – The Badgey Directive, Bud Farm Idle Tycoon, Doctor Who: Lost in Time, and AEW: Rise to The Top.
Future titles include “RuPaul’s Drag Race Match Queen,” developed in partnership with Funkitron and World of Wonder, which is slated for a 2025 release.
“We grow stronger every quarter,” Bailey said in August “as we increase our cash balance, diversify our portfolio, invest heavily in our future, and—most importantly—build a strong base of knowledge and experience, which will allow us to dominate new genres with exceptional IP game launches.”
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