Winking Studios (AIM:WKS) reported revenue of $23.5 million for the six months ended 30 June, up 21.1% from $19.4 million a year earlier.
The AIM and SGX-listed AAA game art outsourcing and development studio said organic growth ran at 8.9%, with art outsourcing revenue climbing 25.4% to $19.9 million and now making up around 85% of Group revenue.
Adjusted EBITDA fell to $1.2 million from $2.4 million, as gross margin declined 6.2 percentage points, reflecting stepped-up investment in North American subsidiary Ampera and AI-enabled game development, alongside a seasonally softer first-quarter contribution from Mineloader.
"The first half demonstrates the strength of our core business and the scale of the opportunity we are building towards", said chief executive Johnny Jan, adding that repeat business and bookings "provide good visibility over underlying activity".
The Group invested approximately $0.4 million in Ampera, acquired in April, and $0.9 million in AI-enabled development, securing its first AI co-development client projects during the period.
Indicative 24-month bookings stood at $51.6 million, with $22.4 million expected to convert in the second half.
Cash, cash equivalents and bond investments totalled $24.6 million at period end, with low gearing.
The board expects second-half revenue to exceed the first half, but now anticipates a modest Adjusted EBITDA loss for the full year, reflecting continued investment in Ampera and AI-enabled development through the second half.
News Intelligence what this means for the company
Winking Studios posted 21% revenue growth to $23.5 million in H1, driven by art outsourcing climbing 25.4%, but adjusted EBITDA halved to $1.2 million as the company plowed cash into its North American subsidiary Ampera and AI-enabled development. The board now expects a full-year adjusted EBITDA loss despite forecasting H2 revenue to exceed H1, signaling a deliberate near-term margin sacrifice for expansion into new geographies and capabilities.
The revenue momentum is real and bookings visibility ($51.6 million over 24 months) is solid, but the shift to full-year EBITDA loss marks a material change in near-term profitability trajectory. Investors must assess whether Ampera and AI investments will drive sufficient future margin recovery to justify current cash burn—the company's $24.6 million cash position provides runway, but the path to profitability is now extended.
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