CEO Letter #2 - Tiny Titan Studios Status
Dear Trophy Games Investors,
Welcome to our second bi-monthly investor letter from CEO Søren Gleie. This time the focus will be to give a short status on our Tiny Titan Studios Acquisition, done 14 months ago.
Tiny Titan Studios was one of the first acquisitions after the IPO in March 2021. The total investment was 750,000 USD, and the results have been impressive. Tiny Titan Studios came without employees when we acquired it, so only their games were acquired. Almost all of the revenue generated by Tiny Titan Studios is from their main game, the popular pixel arcade train game Tiny Rails.
Significant factors in our success with Tiny Rails have been our efforts in app store optimization, which has led to a 40% increase in organic installs. Additionally, our team has identified weaknesses in the game economy of Tiny Rails and implemented strategies to improve monetization. The App Store Optimization (ASO) and the game's timeless design have helped drive significant growth for Tiny Titan Studios. We are proud to report that our efforts have led to a 25% increase in revenue for Tiny Titan Studios this year.
With a 63% return on investment achieved thus far, the acquisition has proven to be a great success for our company. As we look to the future, we are confident that our investment will continue to pay off, with projections indicating that we will reach a 100% return on investment by the end of this year. Tiny Rails was released in 2017 and based on its historical performance, we expect it to continue generating revenue for several years.
The Tiny Titan Studios acquisition is just the latest example of the success of Trophy Games' M&A strategy, with our first acquisition of Xombat having also been a great success. We remain committed to delivering exceptional value to our shareholders and pursuing further opportunities through our many years of experience in designing and publishing games. Our acquisition of Tiny Titan Studios for 750,000 USD was a low-risk investment case, and the results have shown it was the right one.
We look forward to continued growth and success in the future.
- Søren Gleie, CEO of Trophy Games Development A/S