Video game developer Team17 posted double-digit growth to help it to record revenue in the first half of the year despite a “challenging” new release market.
Revenue at the Aim-listed firm, which makes games like Hell Let Loose and Trepang, grew to an all time high of £80.6m in the six months ended June 30, up from £72.4m the year prior.
Gross profit grew nine per cent to £32.9m but margins nudged down slightly from 41.8 per cent to 20.8 per cent.
Earnings per share grew 62 per cent to 6.3p, and profit before tax was up 53 per cent to £12.4m.
The results are early signs that the company’s strategic review undertaken last year, after which the company resolved to consolidate focus on its core Indie business model, is beginning to bear fruit.
Steve Bell, Team17’s chief executive, said: “I am pleased with the group’s performance during the first half as we continue to focus on driving sales through first-party intellectual property titles and across our extensive portfolio, with strong demand for our games and apps across the group.”
The results indicate the firm, which invented the hit computer game Worms, has shored up performance after a difficult 2023, which culminated in it issuing a profit warning in November that sent shares crashing by 40 per cent.
The firm expressed its confidence in delivering full year results in line with market expectations, thanks to higher new release revenues and strong summer sales.
Its management said it remained “excited” about the sector as a whole, and was confident about the sector’s prospects in the medium-term.
Bell, who took over as chief executive in June 2023, added: “”Looking ahead, there is significant growth potential in our core markets – Indie, edutainment and working simulation games.
“Our focus on creating a portfolio of games and apps with evergreen longevity, and leveraging our excellent lifecycle management capabilities, ideally positions us to capitalise on this and build a lifetime of play within our growing portfolio and player base.”