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Animoca Brands achieves record growth in revenue

Wednesday, July 15, 2020

The impact of lockdowns around the world has had the positive externality of increasing the amount of available time that gamers have to engage with video games.

 

Animoca’s business has grown during the pandemic
Animoca’s business has grown during the pandemic

Animoca Brands Corporation Limited has achieved a revenue of $10.5 million (unaudited) for the four months ended April 30 2020.

These results include contributions from the recently acquired businesses nWay, Inc., Quidd, Inc., and Gamee Limited.

The impact of lockdowns around the world has had the positive externality of increasing the amount of available time that gamers have to engage with video games, and gaming companies have seen increases in downloads, revenue generation and engagement.

As a result, Animoca’s business has grown during the pandemic, with record quarterly and monthly revenues over the first four months of the year and a positive EBITDA in April.

Increase in Bitcoin and Ether holdings

Animoca’s four-month revenue of $10.5 million includes $6.2 million for the first quarter of 2020 (a record quarter and an increase of 44% over the same quarter last year) followed by another record $4.3 million in revenue during the month of April alone, which led to about $380,000 in EBITDA in April.

The company’s cash and cryptocurrencies on hand as of the end of April amounted to $8.7 million, which includes $1.1 million in Bitcoin and Ether, $1.6 million in other cryptocurrencies and $6 million in cash.

The significant increase in Bitcoin and Ether holdings came from growth in the company’s blockchain gaming activities, which involved various sales of non-fungible tokens (NFTs) including LAND for The Sandbox, race car and crate sales for F1® Delta Time, and collectible hero cards for Crazy Defense Heroes.

Key initiatives

Animoca recently announced a number of notable developments including:

  • the planned public listing of its subsidiary OliveX Holdings Limited, a company focused on AI-driven health and fitness technology;
  • the commencement of trading of Animoca Brands shares on the PrimaryMarkets secondary share trading platform; and
  • a capital raise of about $6 million from strategic investors including M7 Asia and Mind Fund via convertible notes which converts to equity valued at 18 cents per share.

The company is also planning the commercial release of a number of major gaming titles later in the year, including F1®️ Delta Time and The Sandbox.

 

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