Publisher tinyBuild Faces Steep Stock Price Decline and Executive Departure
Publisher tinyBuild has experienced a significant drop in its stock price, with over 75% of its value disappearing following a profit warning and the departure of a key executive.
tinyBuild recently released its financial statement for H1 2023, revealing that its performance fell “below expectations”. In addition, the company announced the immediate resignation of CFO Tony Assenza due to personal reasons, with Giasone Salati taking over the role.
The decline in performance was partially attributed to the increasingly challenging market backdrop, with distribution platforms reducing their investment. Although tinyBuild highlighted the release of new titles, plans for monetizable events, and the success of their existing catalog, investor confidence was significantly shaken, resulting in a sudden downturn for the company.
According to the London Stock Exchange, tinyBuild’s stock has plummeted by 78% as of the time of writing. Analysts have even compared this drop to Embracer’s recent poor financials and loss of a $2 billion deal.
The company’s share price has been on a downward trajectory since reaching a high of £293 in April 2021. Currently, shares are valued at £7.30.
Disappointing Performance and Future Prospects
Speaking about the disappointing performance, CEO Alex Nichiporchik expressed his disappointment: “As CEO and a major shareholder, I am disappointed with the H1 performance. However, we have a strong pipeline of new games in development that have the potential to create lasting franchises.”
Nichiporchik emphasized the company’s diverse portfolio, robust back catalog, and solid financial position, which will enable them to reposition the company for growth and take advantage of favorable opportunities. He also addressed the departure of Tony Assenza, wishing him well in his future endeavors, and expressed enthusiasm for the new CFO, Jaz, and the new CCO, Michael.
Despite Nichiporchik’s optimistic outlook, the downward trend in tinyBuild’s shares continued as investors quickly withdrew their investments from the company.
Challenges Amidst Studio Acquisitions and Title Releases
tinyBuild had previously acquired several studios and released a number of titles. However, it appears that the company was unable to meet its projections, leading to a significant loss of investor confidence.
While many companies are experiencing layoffs, and some analysts predict a resurgence in mergers and acquisitions, tinyBuild’s struggles highlight the difficulties faced by studios during these times.