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":[],"uagb_featured_image_src":{"full":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/Winking-Studios-Limited-Logo.png?wsr",2215,770,false],"thumbnail":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/Winking-Studios-Limited-Logo-150x150.png?wsr",150,150,true],"medium":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/Winking-Studios-Limited-Logo-300x104.png?wsr",300,104,true],"medium_large":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/Winking-Studios-Limited-Logo-768x267.png?wsr",768,267,true],"large":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/Winking-Studios-Limited-Logo-1024x356.png?wsr",800,278,true],"1536x1536":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/Winking-Studios-Limited-Logo-1536x534.png?wsr",1536,534,true],"2048x2048":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2025\/11\/Winking-Studios-Limited-Logo-2048x712.png?wsr",2048,712,true]},"uagb_author_info":{"display_name":"Enya Tan","author_link":"https:\/\/www.kgieworld.sg\/research\/author\/enya-tankgi-com\/"},"uagb_comment_info":0,"uagb_excerpt":"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.","_links":{"self":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/81537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/comments?post=81537"}],"version-history":[{"count":2,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/81537\/revisions"}],"predecessor-version":[{"id":81547,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/81537\/revisions\/81547"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/media\/81546"}],"wp:attachment":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/media?parent=81537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/categories?post=81537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/tags?post=81537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\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
\n\n\n\n
\n\n\n\n![\"Subscribe](\"https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2021\/04\/subscribegif.gif\")
<\/a><\/figure>\n\n\n\n
\n","protected":false},"excerpt":{"rendered":"