Winners and Losers: Staff cuts boost game maker
An announcement early in the trading week pushed Mighty Kingdom into our Winners list for the week, but that’s little reassurance for those losing their jobs.
Mighty Kingdom announced last Monday that it anticipates a “significant shift in overall staff numbers” as it embarks on a cost-cutting review.
The video game developer, which recently appointed a new CEO and chair, said changes to its management structure and cost base were due to “ensuring sustainability of the underlying studio business based around current Work for Hire contracts and in light of continued industry headwinds around generating WFH revenue streams”.
Changes will be made to the management structure of the firm, Mighty Kingdom said, including “collapsing several senior management positions to a point where that structure is more appropriate to the current contract base”.
Further, “it is anticipated there may be a significant shift in overall staff numbers which will have a material effect on the overall cost base of the company”, Mighty Kingdom said.
“MKL’s ability to service current contracts will not be affected.
“MKL is moving through a consultation and support process with affected staff and will advise when this process has been completed together with outlining the impact on financials moving forward.”
The announcement followed the release of the company’s quarterly financial statement, which showed game revenue was up 10 per cent on the previous first quarter to $1.3 million. Net cash also improved by 60 per cent versus 1Q24.
Shares in Mighty Kingdom rose by 14.20 per cent over the week to $0.008 per share, putting the company in the second position on the Winners list, behind Orbminco which rose on an announcement about its Bronze Fox project.
One notable buyer of MKL shares was Adelaide entrepreneur and former Mighty Kingdom CEO Shane Yeend, who continues to creep up the register.
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Yeend now owns 7.26 percent of the company, via his vehicle, Gamestar Studios.
Meanwhile, Vintage Energy landed on the Losers list on a dilutive $2.1 million capital raise, and Marmota fell following a $5 million placement.
The full list of Winners and Losers for the week ended 7 February:
Data via Baker Young Limited analysts.
