Video game company reports record revenue following challenging 2023

Video game developer Team17 achieved double-digit growth, reaching record revenue in the first half of the year despite a challenging market for new releases. The Aim-listed company, known for games like Hell Let Loose and Trepang, saw its revenue climb to an all-time high of £80.6 million by June 30, up from £72.4 million the previous year.

Gross profit increased by 9% to £32.9 million, though margins dipped slightly from 41.8% to 20.8%. Earnings per share surged 62% to 6.3p, and profit before tax rose by 53% to £12.4 million.

These figures suggest the company’s strategic review in 2023, which led to a renewed focus on its core indie gaming business, is starting to yield positive results. Team17’s CEO, Steve Bell, expressed satisfaction with the group’s performance, citing strong demand for both first-party intellectual property and its broader portfolio of games and apps.

The firm, famous for creating the popular game Worms, appears to have stabilized after a tough 2023, which ended with a profit warning in November that caused a 40% drop in shares. Team17 remains confident it will meet full-year market expectations, buoyed by strong summer sales and improved new release revenues.

Looking ahead, Bell highlighted the potential for growth in the indie, edutainment, and simulation game markets. He noted that the company’s strategy of developing long-lasting game titles, paired with its lifecycle management expertise, positions it well for future expansion.

The firm is optimistic about the video game sector’s prospects and excited about the opportunities in the medium-term.