The iCandy Interactive Ltd (ASX: ICI) share price is surging 6.7% higher today after the company announced its game Masketeers reached $1 million in revenue. The news sent the iCandy share price flying nearly 17% higher to 17.5 cents before a retracement to its current level of 16 cents.
Shares in the online gaming developer have also soared in recent months, gaining 700% since the start of September.
Image source: Getty Images
What happened?
Just after market open this morning, iCandy announced that its "smash-hit" game Masketeers has reached the milestone level of revenue. In the process, the game has also become the fastest in iCandy's history to reach the $1 million mark, taking only 63 days.
This easily surpassed the 9 month record the company's previous game took to reach the same level.
Financial boost
It's worth noting that the Masketeers revenue was not reflected in the company's most recent half yearly report and will be added to iCandy's next full year report. This is relevant as the company is now on target to smash past its previous annual revenue total of $2.2 million. As of its most recent half yearly report, iCandy's revenue stood at $1.03 million. In today's update the company advised that:
As such iCandy's half-year revenues and Masketeer's revenues for its current financial year would surpass prior financial year's revenues, before revenues from other games in the second half of the current financial year.
What now for the iCandy share price?
With Masketeers currently only available in English, iCandy is aiming to continue its success by translating the game into more languages. Masketeers is currently available in over 70 countries.
To this end, the company will continue with its plans to role out the game into China as management sees this market as particularly lucrative. China recorded over US$36.5 billion in gaming revenue in 2019.
Furthermore, with COVID-19 providing structural tailwinds (more people staying home), the company plans to double marketing spend to capitalise on arising opportunities.
It will be interesting to watch how the iCandy share price performs as the company's expansion plans roll out.
