Streamplay Faces Integration Challenges After Major Noodlecake Deal and Expansion

Strategic Acquisition Strengthens Gaming Portfolio

Streamplay Studio Limited (ASX: SP8) has taken a decisive step forward in its growth trajectory with the completion of its acquisition of Noodlecake Studios Ltd, a North America-based indie game publisher renowned for its award-winning titles and extensive digital footprint. Effective 1 January 2025, Streamplay acquired 100% of Noodlecake’s issued capital for approximately A$9.1 million, structured with upfront and deferred payments over two years.

Noodlecake brings a portfolio of around 60 games, including popular franchises like Stickman Golf and several Apple Arcade exclusives, boasting over 270 million downloads globally. Financially, Noodlecake has demonstrated consistent performance with an average annual revenue of about A$7.3 million and EBITDA of A$1.8 million over the past three years, driven by its presence on major digital storefronts such as Apple, Google, Steam, Xbox, and PlayStation.

Regional Market Momentum and Expansion

Beyond the acquisition, Streamplay reported strong growth across key international markets during the quarter ended 31 December 2024. The Pacific region, particularly Tonga and American Samoa, showed impressive scalability of SMS gaming campaigns, underpinning Streamplay’s regional expansion strategy. In the UAE, resumed marketing efforts and the addition of the du network contributed to a significant rebound in revenue, while South Africa experienced increased engagement, bolstered by new product launches such as MTN Gaming Bundles.

These regional successes highlight Streamplay’s ability to adapt and grow in diverse markets, leveraging infrastructure upgrades and local partnerships to drive user engagement and revenue. The company’s focus on gamification and subscription services in these regions signals a strategic push to deepen market penetration and diversify revenue streams.

Financial Position and Leadership Enhancements

Streamplay closed the quarter with a robust cash position of approximately A$13.9 million, providing a strong runway for further strategic investments and the integration of Noodlecake. Operating outflows were managed prudently, with expenditures reflecting targeted R&D and marketing initiatives aimed at sustaining growth momentum.

Leadership was also strengthened with the appointment of Paolo Privitera, a Silicon Valley-based tech executive, to the Board of Directors. His expertise in business development and strategic planning is expected to support Streamplay’s ambitious growth and innovation agenda. Concurrently, the company acknowledged the retirement of long-serving director Firdhose Coovadia, marking a transition in governance as Streamplay scales its operations.

Looking Ahead: Integration and New Releases

Looking forward, Streamplay is focused on the seamless integration of Noodlecake into its group operations, with plans to launch several key titles globally, including the highly anticipated Flappy Golf 3. This title, along with others like Flick Shot Rogues, Sacre Bleu, and Winter Burrow, is expected to capitalize on the growing casual and indie gaming market, potentially driving significant engagement and revenue growth.

While some projects remain under non-disclosure agreements, the company has signaled forthcoming announcements as launch dates approach, underscoring a pipeline of innovation that could reshape its market positioning.