Revenue grows by nearly 50 per cent year-on-year

Today Team17 reported its first interim results since its IPO in May of this year, providing a snapshot of the state of the business, and it’s looking very rosy.

Results for the six month period ending 30 June showed strong revenue growth of 48 per cent, rising to £15.4m from a H1 2017 reference of £10.4m. Gross profits soared as well, up by 25 per cent to £6.9m from £5.5m.

Debbie Bestwick MBE, CEO of Team17, commented: “We are delighted to announce our maiden interim results as a public company, further demonstrating the strong progress we are making as a business. Following our successful IPO, we have a strong base from which to push forward with the business, and continue to grow the footprint and our international fan base.

Gross margins did fall to 44.4 per cent from 52.4 per cent, as the company’s revenue mix shifted towards third-party IP in H1. This should switch back in H2 according to the company as the mix of releases changes, although in the longer-term we’d predict that growth in their-party publishing will outstrip home-grown titles.

“We continue to strengthen our international relationships and work with independent developers on exciting new games, and through lifecycle management, ensure the longevity of our back catalogue,” Bestwick added.

Team17 has already moved its commercial team to larger premises to allow for further growth, and is looking into larger premises for the development team at present as well.

The statement notes that the recent IPO, which raised £107.5m, with the company currently having a market cap of just under £300m at present, would allow “Team17 to retain its independence and enhance its profile whilst providing the ability to incentivise both current and future employees.”

Recent launches include Overcooked 2, the sequel to the Bafta-winning multiplayer cooking title, while the report also stated that the “group’s back catalogue continues to perform strongly.“ And “the board remains confident in delivering full year in line with expectations.”

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