Eidos has posted a 26 per cent rise in revenues in its fiscal results for the first half of the fiscal year.
The Britsoft publisher saw losses cut to 1 million in the six months to the end of December 2008.
Revenues hit 80.3 million in the period, compared to 63.4 million in the same time frame in 2007.
Adjusted pretax loss was 1 million pounds for the six months, compared with 75.1 million pounds a year previously.
"The first six months of trading this year were characterised by an incredibly competitive and increasingly challenging retail environment," said Phil Rogers, CEO of Eidos.
"The changes made at Eidos over the past year, coupled with the continued hard work and determination of our employees and external partners, means we are well placed one year into our three-year strategic plan to produce higher-quality, must-have games to entertain our consumer."
The company has also reduced its net debt from 5.7 million to 3.2 million, which it said was caused by restructuring in the first year of a three-year plan.
Earlier this month, Eidos agreed an 84 million pounds takeover offer from Japan's Square Enix.