Reuters

SEATTLE – Steam, the biggest gaming platform, reported operating income of $12.5 million in its first full quarter as a public company on Tuesday, as it starts to benefit from cutting costs and expanding more into Asia.

The Seattle-based company reported revenues of $144.7 million in the third quarter ended Sept. 30, up 24 percent from the same period a year earlier.

Steam, which was recently spun off by Take-Two Interactive from video game publisher Electronic Arts, is credited with catalyzing the growth of the $96 billion global video game industry in its early years but has struggled to find its footing in recent years.

Chief Executive Officer Kevin Chou attributed the increase in sales to developers for cutting costs in preparation for online streaming, as well as new game releases such as Fortnite, which make Steam more popular.

Revenue from online subscriptions and microtransactions, such as paying to earn money through in-game purchases, rose 37 percent to $83.5 million, with the lion’s share coming from subscriptions.

The company has been adapting to consumers’ growing demand for cheaper versions of games, either by allowing smaller purchases or expanding into the streaming sector.

“The result is a streamer that can adapt to market cycles and trends in a way no one else in the industry can,” Chou said in an interview.

Shares of Take-Two, which is in the process of going public, closed 3.8 percent lower at $49.81 after swinging between gains and losses.

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