Company Update: 25 November 2025
Scaling Up: Bookings, Margins & M&A Execution
- M&A execution lifts capabilities and pipeline. In April 2025, Winking completed its largest deal to date, acquiring Mineloader for US$19.8mn, adding AAA console capability and contributing US$4.1mn revenue in 1H25. Indicative artist bookings total at least US$49.4mn over the next 24 months, with US$18.4mn expected to be recognised in 2H25.
1H25 Financials Review
Winking Studios’ revenue grew 27.3% YoY to US$19.4mn in 1H25 from US$15.2mn in 1H24, driven by expansion in both the Art Outsourcing and Game Development segments and the consolidation of Mineloader.
Gross profit improved 38.2% to US$5.9mn, lifting gross margin to 30.2%. Adjusted EBITDA came in at US$2.4mn rising 17.9%, while reported net profit rose 2.0% to US$0.9mn and adjusted net profit rose 21.1% to US$1.4mn. Operating expenses rose due to administrative costs linked to recent acquisitions and ongoing AIM dual listing expenses. Despite this, profitability improved on better utilisation and higher-margin AAA projects. The Group ended 1H25 with a net cash position, bolstered by previous placement proceeds and cash flows from operations.
Resilient Global Gaming Supports Long-Term Demand
The global games market is expected to reach US$188.8bn in 2025 and expand further to US$206.5bn by 2028, representing a 3.0% CAGR. The global player base is also projected to reach 3.9 billion players by 2028, with a 3.3% CAGR. Growth remains supported by continued strength in mobile gaming and renewed momentum in higher-value PC and console segments. These tailwinds driven by rising production values, more complex asset requirements and larger content pipelines, continue to accelerate demand for specialised art-outsourcing partners. With strengthened AAA capabilities, a diversified global client base and expanding production capacity, Winking Studios is well-positioned to capture this sustained outsourcing demand.
Valuation & Action
We recommend an OUTPERFORM rating for Winking Studios with a revised target price of S$0.31, based on a DCF analysis. This valuation incorporates a terminal growth rate of 2.0% and a cost of equity of 7.9%. As Winking Studios continues to expand its art outsourcing segment and drive sales through its business development efforts, we expect sustained revenue growth to support this positive outlook.
Risks
Exposure to USD exchange fluctuations, integration challenges from recent acquisitions, and slower-than-expected conversion of indicative bookings could affect short-term performance.
