Yorkshire games developer announces record results

The Wakefield-based group said revenue rose 97 per cent to £30.4m in the six months to June 30, while pre-tax profits leapt from £31,000 to £10.4m.

The firm said it was "delighted with the excellent start to 2019" after it successfully launched several high-profile games.

In June, Team17 launched Hell Let Loose, a 100 player, military simulation, first person, WW2 shooter.

Team17's chief executive Debbie Bestwick said: "This is our first game launch in this genre and our first on this scale and relies on strong communication and strategy between players."

She reported positive and encouraging player feedback from the game’s growing community.

"Hell Let Loose is very different from anything we have on our label," said Ms Bestwick.

"We are genre agnostic. We will release great games from all different genres that appeal to a vast array of audiences and players around the world.

"Hell Let Loose is about the skill sets we are developing within our own business."

She said the firm's Wakefield team were very much involved in the development of the game, providing engineering support and the back end service side.

"We're not afraid to step out of our comfort zone as we grow," she added.

"There is a lot of attention to detail. It takes us into a genre where we're currently not which is important."

She said the overall message for the first half was strong results.

"I'm delighted with the excellent start to 2019, delivering record revenues and operating profit in the period as well as successfully launching several high-profile games," she said.

"We have a solid line up of new games to release in the second half of 2019 and look forward to updating our shareholders on our continued progress in due course”.

Team17 expects 2019 revenue to be more weighted towards the first half due to its release schedule.

Since its inception, the firm has launched over 100 games, all focused on the premium rather than free-to-play-market.

The firm said its extensive back catalogue, including iconic titles such as Worms, Overcooked, The Escapists and Yooka-Laylee, is generating significant revenues.

The first half was driven by a mix of new launches and a strong performance from back catalogue titles.

According to a recent report from Newzoo, the global games market is expected to grow to over £120bn in 2019 and to £160bn by 2022.

Sony and Microsoft have both announced they will be launching their next generation consoles in 2020, which will incorporate upgraded technology, architecture and graphics capabilities.

"We are also seeing technology giants entering the market," said Ms Bestwick.

"In March, Apple announced it would be launching Apple Arcade later in 2019, its video game subscription service. Google has announced Stadia, which is due for launch in November. The level of impact caused by the services remains to be seen, but we are well placed to benefit due to the increased number of distribution channels and IP we look after."

Analyst Andrew Bryant at Liberum said: "Team17's half-year results show very strong growth, higher than expected gross margins and strong cash generation."