Scaling Up: Bookings, Margins & M&A Execution<\/strong><\/p>\n\n\n\n Winking Studios\u2019 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. <\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n We recommend an OUTPERFORM<\/strong> rating for Winking Studios with a revised target price of S$0.31<\/strong>, 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.<\/p>\n\n\n\n Exposure to USD exchange fluctuations, integration challenges from recent acquisitions, and slower-than-expected conversion of indicative bookings could affect short-term performance.\u00a0<\/p>\n\n\n\n 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.<\/p>\n","protected":false},"author":17,"featured_media":81546,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","footnotes":""},"categories":[14],"tags":[],"class_list":["post-81537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-reports"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n
\n\n\n\n1H25 Financials Review<\/h2>\n\n\n\n
Resilient Global Gaming Supports Long-Term Demand<\/h2>\n\n\n\n
Valuation & Action<\/h2>\n\n\n\n
Risks<\/h2>\n\n\n\n
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