Team17 enjoys record maiden results

Video games developer Team17 has reported record maiden half year results following its flotation in May.

The Wakefield-based group, which launched its 100th game last week, said it has seen strong demand for both new games and its back catalogue, which includes the top-selling Worms franchise.

Debbie Bestwick, chief executive of Team17, said: “Our portfolio is getting stronger and it’s growing. We are delighted with the way things are going.

“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.

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

The group has hired a further 30 people since December, bringing its head count up to 158.

Paul Bray, the group’s chief financial officer and chief operating officer, said: “We’ve grown quite considerably.

“We are always looking for talented people, particularly in Yorkshire, and we’re actively recruiting.”

In the six months to June 30, Team17 said revenue rose 48 per cent to £15.4m and gross profit increased 25 per cent to £6.9m.

Pre-tax profit fell from £806,000 to £31,000, but this was due to the costs of the IPO, which stood at £2.6m.

Team17 said the IPO has enabled it to retain its independence and enhance its profile whilst providing the ability to incentivise both current and future employees.

New games launched in the first half of 2018 included My Time at Portia, The Escapists 2 and Forged Battalion, which were all launched in January.

Raging Justice and Yoku’s Island Express were both launched in May.

Overcooked 2 was successfully launched in August and the group said the game has received strong reviews.

Mr Bray said: “We look for quality titles. Whenever you sign up a game, you’re looking for games 2, 3 and 4.”

The group said performance for the full year will be second half weighted, in line with previous years.

It added that revenue growth in the second half will be driven by new product launches and continued growth in the business.

Analyst Benjamin May at Berenberg said: “Team17 has released a solid set of first half results. In line with prior years, the company is 35:65 weighted across its first and second half given its usual game release schedule.

“With this in mind, we increase our top line estimates in 2018 to reflect the stronger than expected first half revenues.

“Team17 has indicated that its pipeline of new label titles is strong heading into 2019. We would expect a similar number of new releases as in 2018 – ie, approximately 10. If this number could be increased, there could be an opportunity for the company to accelerate future growth.”

Last week Team17 launched its 100th game, Planet Alpha, billed as an atmospheric platform adventure game with a unique art style that takes place in a living alien world.

The firm has been involved in the successful launch of numerous games, including the Worms franchise, The Escapists and the Overcooked series.

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