Sumo Group earned £38.1 million in revenue in the year ending December 31st, 2018, a 35 per cent increase year-on-year.
Gross profit also increased – jumping 39 per cent YoY to £18.4 million – and EBITDA (earnings before interest, tax, depreciation and amortization) of £10.4 million, up 25 per cent YoY. However, as GI.biz points out, this is a non-GAAP (generally accepted accounting principle) metric, and Sumo actually reports a pre-tax loss of £0.5 million – a significant improvement on 2017’s loss of £28 million.
“The challenge for the business is the acquisition of talent to support and deliver on these significant growth opportunities,” said CEO Carl Cavers in a statement. “Our quest to attract talented people to the business, both organically and through acquisition, is delivering results and we will maintain a keen focus on this aspect of the business in 2019. Having acquired Red Kite Games at the beginning of the new financial year, we are continuing to explore further interesting acquisition opportunities.”
In other Sumo news, Paul Porter – co-founder of Sumo Digital and formally managing director – joins the Board chief operating officer. Gary Dunn, who had formerly held the position of portfolio director, has moved into the managing director role.
“The past 18 months have been very active and incredibly exciting for Sumo Group,” Cavers said. “Paul and Gary’s appointments strengthen and broaden our management structures, providing further scope to grow our business across the globe, delivering great financial performance as a group and outstanding games for our clients.”
Sumo Digital bought The Chinese Room – which has since added 17 new staff “across a variety of disciplines” to its team – in a surprise move in August. The move is an important one for Sumo, which IPO late last year, with the company having previously been almost exclusively a work-for-hire studio. The acquisition will at least put the company into the space of creating and managing its own IP, though whether it chooses to self-publish or partner remains to be seen.
The acquisition becomes the fifth studio under the recently-floated Sumo Group, after the buyout of CCP Newcastle at the start of the year. TCR joins Sumo’s other operations in Sheffield, Nottingham, Newcastle, and Pune, India.
The Chinese Room is currently still recruiting for a “brand new title”.